Delhi govt plans to cut rooftop solar costs with subsidy, advance 5-year incentive
Rooftop solar installations in Delhi could soon become significantly cheaper, with the government considering upfront subsidies and advance payment of a five-year generation-based incentive to
Rooftop solar installations in Delhi could soon become significantly cheaper, with the government considering upfront subsidies and advance payment of a five-year generation-based incentive to bring down the cost for consumers. The Power Department is preparing a note to revise the existing solar policy, which will be placed before the Delhi Cabinet for approval. The proposed changes are aimed at tackling the high upfront cost of installing rooftop solar panels, one of the biggest barriers to wider adoption. Read Full Story Power Minister Ashish Sood said the government was looking at changes that would accelerate the city's shift towards solar energy. "A major problem in adoption of rooftop solar plants is high upfront cost of the panels.
We are considering to bring it down through subsidy and advance payment of generation based incentive, and cover the residential and official buildings with the help of the Central government," Sood said. HOW THE NEW PLAN COULD CUT COSTS Under the existing policy, a 3 KW rooftop solar plant receives a combined subsidy of Rs 1.08 lakh. This includes Rs 78,000 from the Central government and Rs 30,000 from the Delhi government. The installation cost of a 3 KW plant is currently around Rs 2.25 lakh. For residential consumers, the generation-based incentive is currently Rs 3 per unit for rooftop plants with a capacity of up to 3 KW and Rs 2 per unit for plants above 3 KW.
At present, the incentive is adjusted against the consumer's monthly electricity bill. Any amount left over is deposited into the consumer's bank account by the power discom every month. Under the proposed changes, the generation-based incentive could instead be paid upfront for five years, along with the existing subsidy. Officials said this could almost cover the entire installation cost of a rooftop solar plant, leaving consumers with only minimal installation expenses. DELHI TARGETS 2.30 LAKH ROOFTOP PLANTS The proposed policy changes come as Delhi seeks to rapidly expand its rooftop solar capacity. The existing Delhi Solar Policy aims to increase the city's total installed solar capacity to 4,500 MW by March 2027, three times its current level.
The Delhi Electricity Regulatory Commission has already eased the installation process by removing the requirement for technical feasibility approval and introducing time-bound clearances for rooftop solar plants of up to 10 KW. Sood said Delhi currently has more than 10,000 rooftop solar plants. The government now aims to increase that number to 2.30 lakh through a wider push under the PM Suryaghar Muft Bijli Yojna. If approved, the proposed changes would shift a larger part of the financial benefit towards the beginning of the installation process, potentially making rooftop solar more accessible to households and official buildings across the city. Ends With PTI inputs
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