Tata Power is exploring solar power projects worth around Rs. 25 bn in West Bengal and has urged the state government to provide additional subsidies for rooftop installations. The company is also targeting rooftop solar systems in 300,000 homes across the state over the next three years, citing significant potential for higher adoption.

Sanjay Banga, chief executive officer and managing director of Tata Power Renewable Energy, said a state incentive modelled on schemes in Odisha, Bihar and Assam could make rooftop systems more affordable for low-income households. The proposed support could range from Rs. 15,000 to Rs. 25,000 per project, in addition to assistance available under the Centre’s PM Surya Ghar Muft Bijli Yojana.

Tata Power has installed about 6,000 rooftop solar systems in West Bengal, out of nearly 22,000 households covered under the national programme in the state. The company said the upfront cost remained a key barrier despite central assistance, which provides Rs. 30,000 for a 1-kW system and up to Rs. 78,000 for a 3-kW installation.

The company is promoting a zero-down-payment financing scheme for residential solar projects through a panel of banks. It is also examining several solar power plants with a combined capacity of about 500 MW, involving an investment of around Rs. 25 bn. Land availability remains a challenge, and the company has approached the state government regarding possible locations.

The projects could be distributed across multiple sites depending on land availability. Banga proposed that the state identify non-agricultural land, develop infrastructure and invite renewable energy developers to establish solar parks. Under the suggested model, private companies would install generation facilities and supply power to the West Bengal State Electricity Distribution Company (WBSEDCL) under long-term agreements.

Tata Power estimated that electricity from such projects could be supplied at about Rs. 3 per unit, compared with WBSEDCL’s average procurement cost of Rs. 4 to Rs. 5 per unit. The company said it would be interested in participating if the state provided suitable land and grid connectivity, citing similar approaches in Rajasthan and Karnataka.