The Solar Energy Standstill: Tamil Nadu's Struggle with Subsidies

The introduction of the PM KUSUM-C scheme in Tamil Nadu has seen little success since its 2019 rollout. The scheme, designed to bolster solar energy use among farmers, faces significant hurdles, primarily due to Tamil Nadu's existing subsidized electricity program, according to a recent white paper.

Authored by the Puducherry-based think tank, Auroville Consulting in collaboration with the World Resources Institute (WRI) India, the report, titled 'Advancing Distributed, Equitable Solar Energy in Tamil Nadu', critiques the challenges in renewables adoption and calls for urgent program reforms.

Despite the state possessing the technical potential to leverage over 60GW in rooftop solar capacity, widespread adoption remains elusive, largely due to the existing 'subsidy trap', which undermines solar's competitiveness against the subsidized grid tariffs.