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Tamil Nadu Rooftop Solar Network Charges Dispute Escalates After High Court Stay

The rooftop solar sector in Tamil Nadu has been jolted by a recent Madras High Court interim stay on the cancellation of network charges for industrial solar users. The stay, granted on April 28, applies to a case involving a single textile mill in Coimbatore and was filed by the Tamil Nadu Electricity Board (TNEB). Despite being case-specific, the move has alarmed industrial stakeholders, who fear it could pave the way for the state utility to resume levying network charges more broadly.

This comes after a December 2024 court ruling favored industrial associations like SISPA, SIMA, TASMA, and RTF, cancelling the imposition of network charges. These charges, introduced under TNERC’s 2021 Generic Tariff Order, had seen hikes—HT users now pay INR 1.04/unit, while LT users are charged INR 1.27–1.59/unit.

Industry bodies accuse TNEB of circumventing legal opposition by selectively filing cases. Despite previous court orders prohibiting such charges for association members, TNEB allegedly continued collections, particularly from LT consumers.

In response, TNEB CMD J. Radhakrishnan signaled willingness for policy review, promising stakeholder consultations. The outcome of this dispute is seen as critical to Tamil Nadu’s industrial competitiveness and its ambition to lead in renewable energy adoption.