The new Tamilaga Vettri Kazhagam(TVK) led Tamil Nadu Government has announced a subsidy of up to ₹1 lakh for domestic consumers installing solar panels under the ‘Pradhan Mantri Surya Ghar Muft Bijli Yojana’ rooftop solar scheme. The government has allocated ₹50 crore to implement this subsidy. The move aims to bolster rooftop solar in Tamil Nadu at a time when its adoption in the state has lagged in comparison to other large states like Maharashtra, Gujarat Uttar Pradesh and Andhra Pradesh. As of July 2026, Tamil Nadu’s rooftop solar capacity stood at 316 Mega Watt(MW), with 87,039 installations across 1,03,004 households. Industry executives had earlier called stronger policy support from the state government to drive broader rooftop solar adoption in the state.Beyond the subsidy, the government, in its latest budget, has also introduced multiple other initiatives to bolster the renewable energy sector. In order to leverage Battery Energy Storage Systems (BESS) in managing peak power demand, the government has initiated plans to formulate a New BESS Promotion Policy which will facilitate private investment in this sector and transform Tamil Nadu into India’s ‘BESS Hub’.A system for installing smart meters will also be introduced for all consumers in Chennai city, as well as for 50 lakh industrial and commercial consumers across other parts of the State.The government also plans to expedite Phase-II of the Green Energy Corridor Project, valued at ₹1,187 crore and crucial to evacuating renewable energy from southern Tamil Nadu. As for the broader power sector, the announcements included faster completion of the multiple thermal power projects including the Udangudi Stage-I and Ennore SEZ Thermal Power Projects, which will together add 2,640 MW to Tamil Nadu’s power generation capacity. It will also expand the The Government will construct 178 new sub-stations at an investment of ₹1,543 crore to strengthen the power distribution infrastructure. Further, 40,000 old transformers will be replaced in a phased manner at a cost of ₹2,000 crore. The government has introduced initiatives to improve transmission networks in the state including a ₹4,000 crore transmission line project between Coimbatore and Ariyalur and another ₹1,640 crore transmission project between Virudhunagar-Coimbatore.Published on August 5, 2026