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Solar users in India's Tamil Nadu face network fees despite ads pointing to zero energy fees

"Tamil Nadu should adopt an approach similar to Kerala."

People installing solar panels.

Photo Credit: iStock

Unfulfilled government claims could be inhibiting rooftop solar adoption in India's Tamil Nadu, according to industry and consumer advocates.

Here's what to know

Households in the state of Tamil Nadu may face nearly ₹5,800 ($62) per year in network charges, despite government advertisements pointing to zero bi-monthly energy fees, The Hindu reported.

K. Kathirmathiyon — of the consumer rights advocacy group Coimbatore Consumer Cause — told the news outlet that such charges may still happen even if a household with a 5-kilowatt array uses 500-550 units per month and sends energy back to the grid: They may still pay a network fee.

"Tamil Nadu should adopt an approach similar to Kerala instead of allowing surplus electricity credits to lapse without compensation," Kathirmathiyon said.

Residential solar can offer electricity savings, and, depending on location and contract terms, $0-upfront solar leases may save households hundreds of dollars per month. EasyHome offers a free explorer tool to estimate potential savings and find vetted local installers.

What's being done?

A.D. Thirumurthi, an adviser to India's National Solar Energy Federation, also believes that network charges should not fall on households. If they don't use all of their solar energy, Thirumurthi told The Hindu, then they should at minimum receive the average power purchase price.

The news outlet indicated that changes could come after March 31, "at the end of the settlement period."

Meanwhile, the Tamil Nadu Green Energy Corporation is working to bring more households online. As it stands, the southern state has 425.61 MW of domestic solar capacity. 

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Where can I learn more?

Tamil Nadu households aren't alone in navigating unexpected charges and savings that may fall short of expectations: 

• In India, a homeowner's solar system produces 575 kWh monthly, yet bills still reach ₹5,000.

• A solar homeowner generating excess power faced a $10.32 grid-access bill and a $2.30 payment fee.

• A Texas homeowner said a solar lease promising no electricity bill left him paying $620 monthly.

• A family's supposedly free solar offer could entail $71,000 in payments, commenters warned.

• A Connecticut homeowner said solar credits vanished despite higher output.

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