Chennai, Aug 5:
The Tamil Nadu government’s 2026–27 Budget unveiled a comprehensive roadmap to strengthen the State’s energy sector, with a focus on renewable power, storage solutions, electric mobility and consumer subsidies.
In a major policy initiative, the government announced a new Battery Energy Storage Systems (BESS) Promotion Policy aimed at attracting investments and improving grid stability. To accelerate solar adoption, a Rooftop Solar Subsidy Scheme offering subsidies up to Rs 1 lakh has been introduced, with an allocation of Rs 50 crore.
The Budget also prioritises power infrastructure upgrades, with plans to introduce smart meters in Chennai and extend them to 50 lakh industrial and commercial consumers across the State. Additionally, 178 new substations will be established and 40,000 transformers replaced to enhance transmission efficiency and reliability.
Electric mobility received a significant boost, with the government announcing the establishment of 20,000 public EV charging stations over the next five years, supported by an allocation of Rs 50 crore. To encourage adoption at the community level, a subsidy scheme for Resident Welfare Associations (RWAs) to install EV charging stations has also been introduced, with Rs 5 crore earmarked.
In a major relief measure for households, the government has doubled the free electricity entitlement from 100 units to 200 units for eligible consumers, with Rs 1,545 crore allocated for the scheme. Overall, a substantial Rs 18,860 crore has been earmarked towards electricity subsidies in the Budget.
The energy announcements reflect the State’s dual strategy of strengthening infrastructure while promoting clean energy adoption and ensuring affordability for consumers.