The Tamil Nadu Electricity Regulatory Commission (TNERC) has issued levelized generic tariff for the procurement of solar power in the state for the financial year (FY) 2018-19.
TNERC has fixed ₹3.11/kWh without accelerated depreciation (AD) as the levelized tariff for solar. The AD component of the tariff is ₹0.06/kWh.
In 2017, TNERC had set ₹4.50/kWh as the benchmark tariff for solar PV projects and ₹10.19/kWh for solar thermal projects without AD.
TNERC has fixed 25 years as the useful life of a solar project. TNERC has also fixed ₹35 million/MW as the project cost and capacity utilization factor (CUF) at 19 percent for the calculation of levelized tariff.
For this tariff order, the TNERC fixed operation and maintenance (O&M) expense of 1.4 percent of capital cost of solar projects with an escalation of 5.72 percent from the second year.
The current tariff order doesn’t mention solar thermal projects.