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Madras High Court Strikes Down Network Charges on Rooftop Solar Projects for Captive Use in Tamil Nadu

The Madras High Court has ruled against the Tamil Nadu Power Distribution Corporation’s (TANGEDCO) imposition of network charges on industrial captive rooftop solar users, declaring them in conflict with the state's renewable energy policy.

Industry Impact and Reactions

The ruling has been welcomed by industry bodies, including the Tamil Nadu Spinning Mills Association, which has called for an immediate refund of payments made since the charges were introduced in October 2021.

However, legal experts warn that residual charges might still appear on electricity bills, potentially leading to further legal disputes.

Precedent for Renewable Energy Charges

This is not the first time the Madras High Court has overturned charges imposed on renewable energy projects. In December 2024, the court struck down the Rs50 lakh/MW Resource Charge levied by Grid-India Energy Consultants Ltd. (GECL) on wind power projects connected to the Central Transmission Utility (CTU), citing the fee as arbitrary and unlawful.

Strengthening Renewable Energy Policies

The verdict is seen as a major win for the renewable energy sector, reinforcing the state's commitment to sustainable energy expansion. It also sets a legal precedent for challenging unfair levies imposed on clean energy initiatives.