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June 21, 2025

State-Specific Carbon Credit & REC Incentives for Biomass Users in Tamil Nadu, Karnataka, and Rajasthan

This comprehensive guide explains carbon credit and REC incentives for biomass users in Tamil Nadu, Karnataka, and Rajasthan. It covers financial benefits, biomass sourcing districts, and step-by-step procedures to register, generate, and trade environmental credits. With government-backed schemes and MNRE support, biomass producers can reduce costs and monetize green energy efforts. Ideal for renewable energy developers and investors seeking sustainable returns.

🟢 Tamil Nadu

Carbon Credit Momentum

  • Tamil Nadu launched a Green Climate Fund backed by TNIFMC (~₹1,000 cr + ₹1,000 cr greenshoe) aimed at financing green projects via carbon markets
  • Example: A 220 MW wind project in Tuticorin received ~1.6 million credits from the Global Carbon Council globalcarboncouncil.com—showing precedent for renewable energy carbon issuance.

REC Scheme for Biomass

  • Biomass cogeneration qualifies for RECs under the national REC mechanism—verified via state nodal agencies
  • MNRE’s Biomass Programme offers Central Financial Assistance:
    • ₹40 L/MW for non-bagasse cogeneration (up to ₹5 cr/project), plus support for biomass pellet plants

Procedure & Websites

  1. Register as an RE generator via TN SNA (check TANGEDCO/TNERC portal).
  2. Get accreditation and monitoring done per MNRE/MNRE BioURJA program.
  3. Apply for rec and carbon credits via central bodies: REC Registry (REC issuance) and Bureau of Energy Efficiency/BEE (carbon, under CCTS or VCM).
  4. Trade credits on power exchanges (IEX/PXIL) or carbon exchanges.

Biomass Sourcing

  • Common residues: rice husk, sugarcane bagasse, coconut shells—plenty in Coimbatore (rice mills), Tiruchirappalli, and Erode.
  • Agro-districts to explore:
    • Coimbatore, Erode – rice husk, coir pith
    • Tiruppur – cotton stalks
    • Madurai – coconut shells and agro-residue

🟢 Karnataka

REC & Fit Tariff Support

  • Under KREDL, Karnataka’s 2022‑27 RE policy supports biomass projects, including GOs, fee structures, and commissioned plant lists
  • Central grants via MNRE (same ₹40 L/MW + pellet plant support).
  • Feed-in Tariff: INR 6.75/kWh for biomass projects

Carbon Credit Opportunities

  • Large biomass and CBG (compressed biogas) plants in Karnataka can generate carbon credits—potentially 3,000–3,500 credits annually per 1 TPD CBG
  • Karnataka also hosts numerous carbon credit developers (e.g., Grow Billion Trees)

Procedure & Websites

  1. Apply via KREDL portal for biomass power or pellet project.
  2. Register and get REC issued via REC registry.
  3. For carbon credits: register to CCTS (administered by BEE); ensure MRV and accreditation through BEE processes
  4. Sell electricity via captive/group-captive model + trade RECs via exchanges.

Biomass Districts & Crops

  • Uttara Kannada – forest biomass availability
  • Mandya, Mysore, Hassan – rice husk, groundnut shells, sugarcane bagasse.

🟢 Rajasthan

Integrated Clean Energy & RIPS 2024

  • Rajasthan’s Integrated Clean Energy Policy 2024 and RIPS 2024 offer fiscal incentives:
    • 100% electricity duty waiver for 7 years
    • 75% stamp duty exemption & land conversion rebates
    • 100% mandi/market fee reimbursement
    • PCB fee waivers, wheeling & transmission exemptions
  • Biomass & waste-to-energy projects also qualify for subsidized land, capital assistance, and PCB waivers

REC & Carbon Credit Context

  • Biomass projects are qualified RE generators—eligible for RECs.
  • Rajasthan also under the national CCTS and Green Credit Program

Procedure & Websites

  1. Apply through Rajasthan’s Energy Department / Finance Portal (for RIPS).
  2. Register project as RE generator → get REC.
  3. Accreditation for carbon credits under CCTS (BEE).
  4. Sell power + trade credits on power or carbon exchanges.

Biomass Sourcing

  • Chittorgarh, Hanumangarh – abundant wheat/rice straw and mustard straw.
  • Baran, Alwar – agro-residue like cotton stalks; ideal for pellet units.

📌 Summary Table

StateREC IncentivesCarbon Credit OpportunitiesBiomass Districts (Examples)
Tamil NaduREC via TN SNA; MNRE CFA ₹40 L/MWGreen Fund; voluntary & compliance creditsCoimbatore, Erode, Tiruppur, Madurai
KarnatakaREC via KREDL; FiT ₹6.75/kWhCBG credits; numerous carbon firms presentUttara Kannada, Mandya, Mysore
RajasthanREC via policy; duty/stamp exemptionsCCTS credit under energy sectorChittorgarh, Hanumangarh, Alwar

⚙️ Common Application Steps

  1. Project feasibility study (tech + MRV baseline).
  2. Apply to State Nodal Agency for biomass power or pellet plant.
  3. Register as RE generator → accreditation → REC issuance via REC registry.
  4. Optionally register for carbon credits via CCTS/BEE or voluntary platforms (VCS, GoldStandard).
  5. Trade credits on IEX/PXIL (RECs) or commodity/carbon exchanges (carbon credits).

🔗 Central Government & National Agencies

  1. MNRE – Ministry of New and Renewable Energy
    🔗 www.mnre.gov.in
  2. REC Registry India (Renewable Energy Certificates)
    🔗 www.recregistryindia.nic.in
  3. BEE – Bureau of Energy Efficiency (for CCTS/Carbon Credits)
    🔗 www.beeindia.gov.in
  4. IEX – Indian Energy Exchange
    🔗 www.iexindia.com
  5. PXIL – Power Exchange India Ltd
    🔗 www.powerexindia.com

🟢 Tamil Nadu

  1. TANGEDCO – Tamil Nadu Generation and Distribution Corporation
    🔗 www.tangedco.org
  2. TNERC – Tamil Nadu Electricity Regulatory Commission
    🔗 www.tnerc.tn.gov.in
  3. TNIFMC – Tamil Nadu Infrastructure Fund Management Corporation
    🔗 www.tnifmc.com

🟢 Karnataka

  1. KREDL – Karnataka Renewable Energy Development Ltd
    🔗 kredl.karnataka.gov.in
  2. KBB – Karnataka Bioenergy Development Board
    🔗 kbb.karnataka.gov.in

🟢 Rajasthan

  1. Rajasthan Finance Department (RIPS Scheme Info)
    🔗 finance.rajasthan.gov.in
  2. Invest Rajasthan Portal (Clean Energy Policies)
    🔗 energy.rajasthan.gov.in

🌍 Carbon & Climate Action Platforms

  1. Global Carbon Council
    🔗 www.globalcarboncouncil.com
  2. Proclime (Carbon Program Support)
    🔗 www.proclime.world
  3. Grow Billion Trees (Carbon Offset Developer)
    🔗 www.growbilliontrees.com
  4. Task 37 – IEA Bioenergy (CBG and Biomass Insights)
    🔗 task37.ieabioenergy.com
  5. IFMR Lead – Climate Finance Research
    🔗 www.ifmrlead.org

⚠️ Disclaimer

This summary is for informational purposes only. Policies may change—always verify current rules via official state nodal agency portals (e.g., TNERC, KREDL, Rajasthan Energy Dept.). Consult legal/financial experts before project investment.

📞 Contact Us for Biomass Solutions
📍 Servoday Plants & Equipments Ltd
📞 +91 9427210483 | +91 9427210484
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🌐 www.PelletIndia.com
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