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India News News

TN to install rooftop solar panels on state govt buildings, reduce power bills

  • BY India News Newsdesk
  • October 7, 2025
  • 0 COMMENTS

Chennai, Oct 7 (IANS) In a major push to cut power costs and promote clean energy, the Tamil Nadu Green Energy Corporation Limited (TNGECL) has invited bids to install 40 MW of grid-connected rooftop solar systems on government buildings across the state.

The move is expected to help state departments lower their electricity bills, many of which have been overdue for months, burdening the state’s power utility. “This is the first time we are taking up such a large-scale solar project for government office buildings across Tamil Nadu,” a senior TNGECL official said.

Previously, the Tamil Nadu Energy Development Agency (TEDA) — now functioning under TNGECL — installed solar panels in 250 schools with a combined capacity of 1.5 MW.

“Though some government offices already have solar systems, we do not have proper data on them,” the official added.

TNGECL had initially planned a 200 MW rollout, but is starting with 40 MW in the first phase. The projects will be implemented under the Renewable Energy Service Company (RESCO) model through tariff-based competitive bidding.

Developers will set up and maintain the systems at no upfront cost to the government and sell the power at a pre-fixed tariff. The installations will work under a net feed-in mechanism, feeding surplus power back into the grid.

In the initial phase, rooftop solar projects will come up in Chennai, Chengalpattu, Kancheepuram, and Tiruvallur. The Chennai Corporation has already shortlisted about 105 buildings, and site inspections are underway.

Priority will be given to government offices with electricity loads above 5 kW or bulk consumption. Roof areas required will range from 2,000 to 10,000 sq ft per building.

As per the tender, a pre-bid meeting will be held on October 8. Online bid submissions will be open from October 15 to 27, with technical bids scheduled to be opened on October 28.

Bidders must provide an earnest money deposit of Rs 50 lakh and a performance bank guarantee of Rs one crore per MW within 15 days of signing the agreement.

TNGECL has estimated installation costs at about Rs 6 crore per MW, though the final figure will depend on market conditions. Officials said once completed, the solar systems could reduce monthly electricity bills of government buildings by 40-50 per cent, easing the Tamil Nadu Generation and Distribution Corporation’s (Tangedco) struggle to recover nearly Rs 2,000 crore in unpaid dues from government offices and local bodies.

–IANS

aal/dpb

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