CHENNAI: Micro, Small and Medium Enterprises (MSMEs) installing rooftop solar power systems at their establishments are set to get a 100% exemption from electricity tax for five years under the Vetri Solar Mission.
The energy department will soon issue a notification to implement the exemption for eligible MSMEs. The move is aimed at encouraging industries to adopt renewable energy and boosting rooftop solar generation across Tamil Nadu.
“Both the central and state governments are already providing subsidies of up to Rs 1 lakh to domestic consumers installing rooftop solar systems. The state government has now decided to extend support to MSMEs through an exemption from electricity tax,” an official said.
Tamil Nadu has around 45 lakh MSMEs, many of which have sought incentives to install rooftop solar systems, officials said. Electricity tax is currently levied at 5% of the net energy charges paid by consumers. TNPDCL officials said field-level engineers would inspect establishments and verify whether the systems meet the eligibility criteria before granting the exemption.
Ponmalar Duraisamy, proprietor of Vel Hi-Tech Industries in Thirumazhisai, said she pays around `1 lakh in electricity charges every two months, but the exemption would save only about `2,500 a month, while installing a rooftop solar system would cost at least `5 lakh.
She said MSMEs would also have to bear the maintenance costs of the solar panels. “We are also not sure what will happen after five years when the exemption ends,” she added. MSME owners have urged the government to consider direct subsidies, similar to those available to domestic consumers.