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The 2024 Delhi Solar Policy aims to encourage residents to adopt solar power by permitting them to install solar panels on their rooftops. This initiative enables residents to produce their own electricity, potentially leading to zero electricity bills and the possibility of earning money by selling excess solar power to the grid.
With a target of achieving 4500 megawatts of installed solar power capacity in Delhi by 2027, a substantial increase from the previous goal of 1500 MW, the government is expected to allocate Rs 570 crore for policy implementation. This policy lays the groundwork for widespread solar adoption among residents and is primarily focused on reducing air pollution, a major concern for the government.
Adopting solar power is essential for reducing air pollution by decreasing reliance on fossil fuels and promoting sustainable energy practices in Delhi. The policy aims for around 20 percent of Delhi's electricity consumption to be sourced from solar power by 2027, which would be one of the highest proportions in India.
The key highlights of this policy are:
Net metering: As per the net metering mechanism, the consumer will only have to pay the net value of the units they import from the grid. In case surplus solar energy is generated, it can be exported to the grid. The value of this energy given to the grid would be the same as the local electricity tariff. The amount will be adjusted to the consumer’s monthly electricity bill. For example, if a residential consumer consumes 400 units of electricity monthly and his/her solar rooftop generates 200 units of electricity. The consumer's net consumption is 200 units. This consumer will get zero electricity bill as the first 200 units are free for Delhi residents. In case the rooftop solar generates more than consumed, let us say, 600 units, then the additional 200 units will be credited to the consumer’s account.
GBI (Generation-Based Incentives): GBI’s will work as an additional incentive to residential, commercial, industrial and group housing society projects. The amount under GBI will be adjusted against the monthly electricity bill of the consumer. Any excess amount will be deposited into the consumer’s bank account by the discom every month. Earlier, this amount was transferred only twice a year.
Residential (Independent home) | GBI (Generation-Based Incentives) |
Up to 3 kW | Rs. 3 per unit |
3 KW to 5KW | Rs. 2 per unit |
Commercial and Industrial | Rs. 1 per unit |
Group Housing | Rs. 2 per unit |
Let us assume that a home is generating 200 units (approx 2KW system) of electricity through its rooftop solar. This consumer will get a GBI of 200 units X Rs. 3 per unit = Rs. 600 as an additional income.
3. Capital subsidy: The Delhi government will offer a subsidy of Rs 2000/- per kW, with a cap of Rs 10,000/- per consumer. This subsidy will be in addition to the Central Financial Incentive provided by the central government and will only be available to residential consumers.
Example:
Suppose a residential home is consuming 400 units and has installed a RTS of 2KW capacity. This RTS will generate on average 230 units of electricity.Â
The net monthly consumption of this home will be 170 units (400-230).
The bill amount will be zero as the number of units is below 200 units.
GBI per month will be Rs. 690 (230 units * Rs. 3 per unit).
Delhi Government Capital subsidy for the 2KW system is Rs. 4000.
Central government subsidy for 2KW project registered from 12th Feb onwards is Rs. 64,000.
No | Benefits | Amount (in Rs) |
1 | Bill Amount per month | 0 |
2 | GBI per month | 690 |
3 | Delhi government subsidy (one time) | 4000 |
4 | Central government subsidy (one time) | 64,000 |
5 | Capital cost of 2KW system | 1,50,000 |
6 | Effective cost (5 - 4 -3) | 82,000 |
7 | Potential Annual Savings | 22,080 |
Simple Payback period for Delhi residents will be 3.7 years.