Tamil Nadu's domestic electricity tariff is ₹5/kWh and the net-metering buyback rate is ₹2.25/kWh, via TANGEDCO. Here's what that means for a home going solar. Data updated January 2026.
A 3 kWp on-grid system in Tamil Nadu generates roughly 4,272 units per year at local irradiance. At ₹5/kWh, if you use most of it yourself, that's around ₹21,360 saved annually. After the ₹78,000 PM Surya Ghar subsidy, payback lands near 5.5 years — before counting any export income.
| Item | Estimate for Tamil Nadu |
|---|---|
| System size | 3 kWp (typical home) |
| Gross cost | ~₹1,95,000 |
| PM Surya Ghar subsidy | − ₹78,000 |
| Net cost | ~₹1,17,000 |
| Annual generation | ~4,272 units |
| Annual saving (self-use) | ~₹21,360 |
| Estimated payback | ~5.5 years |
Your distribution company is TANGEDCO. To go solar with net metering, you apply for feasibility approval, install through a registered vendor, and get a bi-directional meter. Surplus units you export earn ₹2.25/kWh — lower than the ₹5 you pay, which is why self-consuming your generation is always worth more than exporting it.
At ₹5/kWh, Tamil Nadu sits in the middle band — solar pays back solidly, especially if you consume most of your generation during the day. Combined with 5 peak sun hours a day, the numbers work well.
The calculator uses Tamil Nadu's tariff and irradiance automatically — enter your appliances or bill for a precise number.
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