The Tamil Nadu Electricity Regulatory Commission (TNERC) has reportedly proposed solar tariff of Rs. 3.04 per unit without accelerated depreciation benefit for the FY 2019-20. The solar tariff is marginally lower than the tariff of Rs. 3.11 per unit set last year.
Accelerated depreciation allows firms to claim higher deductions during the early years of the solar plant.
According to The Hindu, assuming that the life of solar project is 25 years, a company claims higher rate of depreciation in the first few years.
The publication notes that, the regulator has proposed a tariff of Rs. 2.80 per unit with accelerated depreciation benefit for 2019-20, lower than the Rs. 3.05 per unit fixed last year.
Once the tariff is finalized it will be applicable to also solar PV project in the state noted the pulication.