Tamil Nadu's Solar Energy Paradox: Subsidies vs. Adoption

A recent study unveils a paradox in Tamil Nadu's energy policy: while government schemes like PM KUSUM-C and PM Surya Ghar aim to boost solar energy adoption, entrenched subsidies for electricity are stymieing progress. Auroville Consulting highlights that despite generous federal support for solar pumps and grid-connected solar power plants, farmers remain hesitant.

The research, detailed in the paper 'Advancing Distributed, Equitable Solar Energy in Tamil Nadu', identifies unmetered electricity as a significant barrier. The state's free power offerings discourage solar investments, casting the schemes as financially unattractive. As of July 2025, Tamil Nadu lags in solar deployments under these programs, contrary to its vast potential.

To address these challenges, the think tank advocates for full subsidies under PM KUSUM-C and targeted support for low-income households. They propose direct benefit transfers to integrate rooftop solar applications effectively, aligning economic and environmental goals for sustained energy security and sustainability in the state.