Madras HC Grants Stay on Cancellation of Rooftop Solar Network Charges for Industries

In a move that has stirred concerns across Tamil Nadu’s industrial circles, the Madras High Court has granted an interim stay on the cancellation of network charges levied on rooftop solar systems used by industries.

The stay was issued on April 28 by a division bench, following a petition by the Tamil Nadu Electricity Board (TNEB) against a Coimbatore-based textile mill owner. Senior Counsel and DMK MP P. Wilson reportedly represented the power utility in the matter.

As per reports, the stay is applicable solely to the individual respondent and does not extend to broader industrial users, who had earlier secured court relief through a 2024 ruling that quashed such charges.

The December 2024 order had sided with industrial associations such as the South India Spinners Association (SISPA), Southern India Mills’ Association (SIMA), Tamil Nadu Spinning Mills Association (TASMA), and Recycle Textile Federation (RTF), directing the cancellation of rooftop solar network charges for industrial users.

Reports indicate that industrialists are now worried the TNEB could use this selective stay order as a backdoor to resume collecting network charges from all users.

Association representatives expressed concern that although multiple industry bodies had filed caveats to block such petitions, the TNEB strategically filed a case against a single textile mill in Coimbatore. RTF President Jayabal M was quoted in reports suggesting that the power utility’s intent appears to be to obtain a legal foothold through this limited stay, and then apply it across the board , a move he believes could severely hamper industrial growth in the state.

Under the Generic Tariff Order for Grid Interactive PV Solar Energy Generating Systems (GISS), issued by the Tamil Nadu Electricity Regulatory Commission (TNERC) in October 2021, network charges have been gradually increased. As per reports, high tension (HT) consumers now pay INR 1.04 per unit, up from 83 paise, while low tension (LT) users face charges between INR 1.27 and INR 1.59 per unit.

Challenging these hikes, SISPA filed a writ petition in 2022. Following hearings, the High Court issued an interim injunction barring TNEB’s distribution arm , TNPDCL, from collecting network charges from SISPA members. Despite this, reports suggest the utility continued imposing charges, particularly on LT lines.

According to SISPA Secretary S. Jagadesh Chandran, even after a March 23 court order reiterated the prohibition on network charges for association members, the TNEB allegedly went ahead with collections, a move he characterised as a clear violation.

In response to the rising tensions, J. Radhakrishnan, Additional Chief Secretary and CMD of TNEB and TNPDCL, said the government is not inclined to pursue the matter through legal hostility. As per reports, he indicated that policy reforms are on the table and that a stakeholder consultation will soon be held to address the grievances surrounding network charges.

With Tamil Nadu aiming to be a renewable energy leader and industries increasingly adopting rooftop solar to cut costs and carbon emissions, the final resolution of this legal standoff is expected to shape the state’s energy policy and investor climate in the near term.