Power consumers in Delhi have a reason to cheer as the Delhi government has formulated the Delhi Solar Policy 2024 that will not only ensure zero electricity bill to them but also give them an opportunity to earn by installing solar panels on their rooftops.
Making amendments to its Solar Policy 2016 that resulted in 1500 MW solar power installed capacity in Delhi, the Arvind Kejriwal government has come out with a more consumer-friendly Solar Policy 2024 that will provide 4500 MW of installed capacity of solar power in Delhi by 2027.
Addressing mediapersons, he said the Delhi Solar Policy 2016, announced in the first term of the AAP government after coming to power in 2015, laid the foundation for solar adoption in Delhi. “This was considered to be the most progressive solar policy in the country. Under the policy, the rooftop solar panels installed by the people in Delhi have the installed capacity of 250 MW electricity. Besides this, various discoms in Delhi purchased 1250 MW solar power from outside Delhi. So, in total, 1500 MW solar power was made available under the policy. We all know that solar power reduces air pollution,” he said.
Delhi Chief Minister Shri Arvind Kejriwal said the aims of Delhi Solar Policy 2024 are to reduce Delhi’s air pollution and help fight inflation by bringing the electricity bills of non-subsidized residential consumers to zero and for commercial/industrial consumers to 50% of their current bill.
Power Minister Ms. Atishi and the Vice Chairperson of Dialogue and Development Commission of Delhi, Jasmine Shah, were also present at the press conference.
The chief minister said as of now, the Delhi government gives 200 units of electricity free (fully subsidized) to residents and gives subsidy of 50% to those residential consumers who consume 201 units to 400 units a month (partly subsidized) and for those with consumption above 400 units a month, there is no subsidy. “But electricity bills of all residential consumers who install solar panels on their rooftops by opting for this policy will be zero, no matter how much electricity they consume. That is the most important takeaway of the policy,” said Shri Kejriwal.
The chief minister said not only this, each domestic consumer will also be able to generate an additional income of Rs 700 to Rs 900 per month under the policy and inflation will come down further in Delhi. “As per a recent report by the Central government, the national average inflation rate is 6%, and 7% in Haryana and Gujarat, but in Delhi it is only 3%, which is the lowest in the country. After the implementation of the policy, the inflation rate will decline further in Delhi,” he said.
Shri Arvind Kejriwal said that it is estimated that there will be an installed capacity of 4500 MW of solar energy by 2027 in Delhi after the implementation of the policy. “The target of Delhi Solar Policy is to increase the total installed solar capacity of Delhi to 4,500 MW by March 2027, that is, by three times of the current capacity of 1500 MW in only three years. This includes 750 MW of rooftop solar plants installations in Delhi and the 3750 MW purchased by the discoms through utility scale solar plants installed outside Delhi by 2027,” he said.
The chief minister said that the cost of installing the rooftop solar panels will be recovered in four years. “In addition to zero bill, they will get a monthly income of Rs 700-900 through Delhi govt’s Generation Based Incentive (GBI) and the total cost of installing the rooftop solar panel will be recovered in four years. Let us say a residential consumer’s average monthly consumption is 360 units and the consumer installs a 2kW rooftop solar plant at approx. cost of Rs 90,000 with taxes and subsidy included. The consumer will start getting zero electricity bill right away (savings of Rs 1370 per month) as well as a GBI benefit of approx. Rs 700 per month. Total annual savings will be Rs 24,000. Since the consumer spent Rs 90,000 initially, the cost will be recovered in four years. But the consumer will continue enjoying zero bill for life of the solar panel, which is 25 years,” he said.
The chief minister said that the GBI has been increased from Rs 2 per unit in Solar Policy 2016 to Rs 3 per unit for domestic consumers with solar panels of capacity 1 kW to 3 kW in Solar Policy 2024. However, residential consumers with solar panels of capacity 3 kW to 10 kW will continue to get the GBI of Rs 2 per unit as provided in Solar Policy 2016, he added.
Shri Arvind Kejriwal said apart from residential consumers, Delhi government has decided to extend GBI for commercial/industrial consumers too for the first time (for the first 200 MW of installations in Delhi). They will receive an incentive of Rupee 1 per unit of solar power generated for five years in addition to the benefits of net metering, roll over of excess units and additional income as described. As a result, an average commercial or industrial consumer in Delhi can save nearly 50% on their existing electricity bill and recover the cost of rooftop plant in four years, he added.
The chief minister said that the Group Housing Societies and Residential Welfare Associations will continue to receive a GBI of Rs 2 per unit of solar power as was the case in the 2016 solar policy.
He said the shortcomings in the previous solar policy have been removed and the clause of minimum generation to be eligible for the benefits in Solar Policy 2016 has been done away with in the new policy and now any consumer generating any amount of solar power will be eligible for the benefits. “There is no conditionality of minimum generation to receive GBI which existed in the 2016 policy. 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, the GBI amount was transferred only twice a year,” Shri Kejriwal said.
The chief minister said that for the first time, Delhi government will provide a capital subsidy to residential consumers of Rs. 2,000 per kW of installation up to a maximum of Rs 10,000 per consumer. This will be over and above the capital subsidy of Central government,” he added.
Shri Arvind Kejriwal said under ‘Net Metering’, the solar power generated gets offset with the electricity consumed by the domestic consumer. “So, let us say if a household has consumed 400 units and generated 100 units of solar power, it will be billed only for 300 units. This allows consumers to benefit from reduced electricity bills,” he said.
He further said that a provision has been made for roll-over of excess electricity units in the Solar Policy 2024. “After net metering, which happens every month, the excess solar units left will be rolled over into subsequent billing cycles for up to 12 months,” said the chief minister.
As against the money transfer into consumers account which would take place twice a year earlier, it will be transferred every month under the Solar Policy 2024, added the chief minister.
The chief minister said Under the new Solar policy, all existing government buildings with rooftop area more than 500 square metres will have to mandatorily install solar plants within the next three years.
Shri Arvind Kejriwal said under the Delhi Solar Policy 2024, some new innovative deployment models such as community solar model and peer-to-peer trading will be introduced to address the challenges faced by consumers who wish to install solar plants but have constraint of funds or rooftop space that they own. “For the first time in the country, ‘Community solar’ model will be set in place. It will enable consumers who do not have a suitable roof for installing a solar plant to be part of a community owned solar system installed at a third-party location and get all its benefits like GBI, net-metering etc. A model for peer-to-peer (P2P) trading of solar energy will also be set in place. It will enable owners of solar energy systems to sell their excess generated electricity in real time to other consumers in Delhi via a P2P energy trading platform,” said the chief minister.
Talking about the other measures taken by the Delhi government in making the most progressive electric vehicle (EV) policy that results in zero pollution, Shri Arvind Kejriwal said, “Delhi is called the EV capital of India. In December 2023, 20 percent of the public transport vehicles purchased by the Delhi government were EVs, which is the highest in India,” he said.
The government will conduct a power generation assessment for consumer convenience – Minister Atishi
Delhi’s Power Minister Atishi stated that the Delhi government will also include provisions for power generation assessment. The government is planning to collaborate with certain organizations for this purpose. These organizations will assess the capacity of power generation across Delhi through satellite technology. This will benefit consumers as they won’t have to assess how much power can be generated on their rooftop. Consumers often face difficulty in determining how many solar panels to install. “Keeping consumer convenience in mind, the government will make assessments available. Additionally, outreach camps will be set up in various parts of Delhi so that people don’t have to come to the government; instead, the government will reach out to them,” she added.
Consumers can install solar panels through empaneled vendors on the Consumer State Solar Portal – Jasmine Shah
Answering reporters’ queries, the Vice Chairperson of Dialogue and Development Commission of Delhi, Jasmine Shah said, “A State Solar Portal will be created. All qualified vendors will be enlisted in it. Any consumer in Delhi can visit the portal, contact the vendor, and install solar panels on their rooftop. The discoms will install the solar panels and set up a net meter. Benefits under the policy will then begin to accrue.”
GOALS OF DELHI SOLAR POLICY 2024:
i). Delhi Solar Policy 2024 has two main goals:
Reduce Delhi’s air pollution and fight climate change by establishing Delhi as a leading state for solar adoption across India.
ii). Help fight inflation by bringing the electricity bills of non-subsidized residential consumers to ZERO and for commercial/industrial consumers to 50% of their current bill.
iii). The target of Delhi Solar Policy is to increase the total installed solar capacity of Delhi to 4,500 MW by March 2027 i.e. by 3 times of the current capacity of 1500 MW in only 3 years. This includes 750 MW of rooftop solar plants installations in Delhi and the 3750 MW through utility scale solar plants installed outside Delhi by 2027.
iv). As a result, around 20% of Delhi’s electricity consumption will come from solar power by 2027 – one of the highest in India.
v). Delhi government will spend Rs 570 Crores towards the implementation of Delhi Solar Policy 2024.
KEY FEATURES OF DELHI SOLAR POLICY 2024:
Delhi Solar Policy 2024 is the most-consumer friendly solar policy in India. It provides the following 5 financial incentives to all residential consumers:
Generation Based Incentives (GBI): For every unit of solar power generated, Delhi govt will offer a GBI of Rs 3 for small rooftop plants (upto 3 kW) and Rs 2 for larger plants (3 to 10kW). Delhi is the only government in India that offers GBI and that too for 5 years from the date of installation. Many hurdles in receiving GBI have been removed under the new policy:
There is no conditionality of minimum generation to receive GBI which existed in the 2016 policy.
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, GBI amount was transferred only twice a year.
Capital subsidy: For the first time, Delhi government will provide a capital subsidy to residential consumers of Rs. 2,000 per kW of installation up to a maximum of Rs 10,000 per consumer. This will be over and above the capital subsidy of the Central government.
Net Metering: Under ‘Net Metering’, the solar power generated gets offset with the electricity consumed from the grid. So let’s say if a household has consumed 400 units and generated 100 units of solar power, it will be billed only for 300 units. This allows consumers to benefit from reduced electricity bills.
Roll-over of excess energy units: After net metering, which happens every month, the excess solar units left will be rolled-over into subsequent billing cycles for up to 12 months (until close of every financial year).
Additional income: At the end of the year, in case the solar power generated is more than the consumer’s annual electricity demand, the consumer will earn money for the same from your DISCOM.
Currently, around 70% of Delhi’s residential consumers get ZERO electricity bill (less than 200 units consumption/month). By installing a rooftop plant under the new Policy, partially-subsidized and unsubsidized consumers too can get ZERO bill every month from the first month itself. In addition, they will get a monthly income of Rs 700-900 through Delhi’s govt’s Generation Based Incentive (GBI) and a total return of investment (ROI) in 4 years.
For example:
i). Let’s say a residential consumer’s average monthly consumption is 360 units – so he/she is a partially subsidized consumer.
ii). The consumer installs a 2kW rooftop solar plant at approx. cost of Rs 90,000 with taxes and subsidy included.
iii). The consumer will start getting ZERO electricity bill right away (savings of ~ Rs 1370 per month) as well as a GBI benefit of approx. Rs 700 per month. Total annual savings will be Rs 24,000.
iv). Since the consumer spent Rs 90,000 initially, return on investment is 4 years. But the consumer will continue enjoying the ZERO bill for the life of the solar plant ~ 25 years.
Apart from residential consumers, Delhi government has decided to extend GBI for commercial/industrial consumers too for the first time (for the first 200 MW of installations in Delhi). They will receive an incentive of Rs 1/unit of solar power generated for 5 years in addition to the benefits of net metering, roll over of excess units and additional income described above. As a result, an average commercial or industrial consumer in Delhi can save nearly 50% on their existing electricity bill and obtain a return of investment (ROI) on rooftop plants in 4 years.
Group Housing Societies and Residential Welfare Associations will continue to receive a GBI of Rs 2 per unit of solar power as was the case in the 2016 solar policy.
Features like Group Net Metering, Virtual Net Metering and RESCO model will continue under the new Delhi Solar Policy as well.
Note: Under RESCO model, a large customer (typically with >25kW demand) doesn’t have to invest in a solar plant but enters into a power purchase agreement (PPA) with the solar developer (RESCO – Renewable Energy Service Company) to purchase electricity at a set tariff for a fixed period of time.
Under the Delhi Solar Policy 2024, some new innovative deployment models will be introduced to address challenges faced by consumers who wish to install solar plants but have constraint of funds or rooftop space that they own:
1). Community solar:
For the first time in the country, ‘Community solar’ model will be set in place. It will enable consumers who do not have a suitable roof for installing a solar plant to be part of a community owned solar system installed at a third-party location and get all its benefits like GBI, net-metering etc.
2). Hybrid RESCO model:
This model will allow even smaller consumers (not covered by the traditional RESCO model) who do not have funds but have viable roof space to benefit from cheap solar energy. A Tripartite Agreement will be entered into between RESCO developer, Discom and Consumer. The Discom will collect payment from the Consumer and pass it on to the Developer. The Consumer will benefit from cheap solar power along with net-metering benefits.
3). Peer to peer trading:
For the first time in the country, a model for peer to peer trading of solar energy will also be set in place. It will enable owners of solar energy systems to sell their excess generated electricity in real time to other consumers in Delhi via a P2P energy trading platform.
State Solar Portal:
The new Solar policy aims to create a unified single window state portal. It will act as a one-stop-shop for all information under Delhi Solar Policy, benefits of solar PV systems, installation process related guidelines, list of technically qualified vendors etc.
Government buildings mandate:
Under the new Solar policy, all existing government buildings with a rooftop area more than 500 sq.m. will have to mandatorily install solar plants within the next 3 years.
Out-of-state Solar plants:
Apart from rooftop solar plants, Delhi government will also aggressively increase the procurement of solar power from utility scale solar plants outside Delhi. Delhi is among the first states in India to participate in tendering for RE-RTC (Renewable Energy – Round the Clock) power – an innovative model that combines solar, wind and battery to provide round the clock power at very low prices. So far, 1250 MW is already at tendering stage.
An Apex Committee will be constituted under the leadership of the Minister of Power, GNCTD which shall monitor the progress on policy implementation on a quarterly basis or as often as necessary. It shall include the Vice Chairperson, Dialogue and Development Commission of Delhi, GNCTD; Additional Chief Secretary/Secretary (Power), GNCTD; Principal Secretary (Finance), GNCTD; Special Secretary (Power), GNCTD; CEOs of State discoms and up to four industry experts.
A dedicated ‘Delhi Solar Cell’ shall be constituted within the Power Department, GNCTD, to facilitate, coordinate, and monitor day to day implementation of the Delhi Solar Policy 2024.
The policy was developed after extensive stakeholder consultations over the last 1.5 years with the industry, consumers, government entities, financing institutions, and clean energy think tanks. The consultations and drafting of the Delhi Solar Policy 2024 were led by the Dialogue and Development Commission of Delhi (DDCD) with the support of the Power Department, GNCTD.
