Making tariff rationalization for domestic consumer a winning proposition for all stakeholders

This note explores the potential of State Government facilitated community solar energy programs for domestic consumers as a mitigation strategy for a rationalization of electricity tariffs. The combination of (i) phasing out electricity subsidy for all domestic consumers, (ii) a tariff rationalization for the domestic electricity category (I-A), (iii) a revision of the existing solar net feed- in tariff and (iv) a TANGEDCO facilitated and State Government supported solar scheme has the potential to result in substantial financial savings over 25 years: 31% for the State Government and of 103% for TANGEDCO. At the same time this approach has the potential to benefiting the domestic consumers. In addition to the financial gains, such an approach results in the creating green jobs, increasing income from tax revenue and contributing to meeting the State’s solar energy and climate targets.

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