Renewable Energy Sources (RES) are essential for establishing a new trend in the Indian energy sector and developing sustainable energy sources. To reduce its reliance on fossil fuels and dispute climate change, while India as a whole has been promoting renewable energy sources (RES), including solar, wind, and biomass, individual states within India may have their own specific programs and initiatives tailored to their local needs and resources. In this case, the Tamil Nadu government has taken steps to implement initiatives aimed at promoting rooftop solar PV energy systems and RES potential specifically within the residential sector in the state. An optimal on-grid roof top solar PV 2 kW and 3 kW for residential system is designed with various incentive schemes based on the real time 50 residential buildings data at selected location Hosur, Krishnagiri, Tamil Nadu. Additionally, considering scenarios of two incentive policies, such as 30% and 50%, this research undertakes multiple techno-economic analyses. Additionally, here HOMER software (Hybrid Optimization Model for Electric Renewables) is employed for the design and implementation of the proposed system. Moreover, the optimal system has motivated to reduce total investment cost of proposed system, reducing purchasing energy cost, increasing selling energy cost. Therefore, the consequence of these two incentive policies shows that the Net Present Cost of 50% incentive scheme is $ 1,126.735 and Operating and Maintenance cost (O&M) is $ 101.998 are the best effective than 30% incentive scheme. Thus, the performance of each scheme is examined in the selected capacity of solar energy production in 2 kW is 3257 (kWh/yr) and 3 kW is 4885 (kWh/yr) for the residential load of total energy consumption is 3248 (kWh/yr) with lowest cost of energy is $ 0.26. Therefore, the proposed system under various policy incentive scheme is economically feasible according to the selected capacity which render that the emission level of CO2 (1,213 kg/yr), NO 1.66 kg/yr, and SO23.01 kg/yr, respectively.
