Delhi plans new solar policy to cut rooftop installation cost to ₹15,000

The Delhi government is set to introduce a new solar policy aimed at significantly reducing the upfront cost of rooftop solar installations for households by advancing financial incentives, officials said on Monday

The Delhi government is set to introduce a new solar policy aimed at significantly reducing the upfront cost of rooftop solar installations for households by advancing financial incentives, officials said on Monday.

The draft policy, which is in its final stages, is likely to be placed before the cabinet after the conclusion of the monsoon session. (HT)

The draft policy, which is in its final stages, is likely to be placed before the cabinet after the conclusion of the monsoon session. It seeks to complement the Centre’s PM Surya Ghar: Muft Bijli Yojana by offering additional financial support to boost the adoption of rooftop solar systems in the capital.

Officials said the revised policy is expected to bring down the upfront contribution for a standard 3 kW residential rooftop solar system to around ₹15,000.

One of the key proposals under consideration is the upfront disbursal of the generation-based incentive (GBI), instead of releasing it over five years as is done currently. Officials said that, when combined with the existing subsidy, the move would substantially reduce the initial investment required from consumers.

“We are bringing substantial changes to the policy to accelerate the adoption of solar energy in Delhi. The draft is in its final stages and is likely to be placed before the Cabinet after the monsoon session ends,” a government official said.

Power minister Ashish Sood said the government aims to eliminate the financial barriers that discourage households from installing rooftop solar systems. He said the proposed policy would strengthen financial incentives and give a major boost to solar adoption across the city.

A standard 3kW rooftop solar system currently costs around ₹2.25 lakh. Under the existing policy, households are eligible for financial assistance of ₹1.08 lakh, including ₹78,000 from the Centre and ₹30,000 from the Delhi government.

The government is now considering combining the existing subsidy with an advance payment of the GBI for the entire five-year policy period. At present, residential consumers receive a GBI of ₹3 per unit for rooftop solar systems of up to 3 kW and ₹2 per unit for systems above 3 kW. The incentive is adjusted against monthly electricity bills, with any surplus credited to the consumer’s bank account by the discom.

Officials said that providing the entire five-year GBI upfront, along with the existing subsidy, would significantly reduce the upfront investment required from consumers.

Delhi currently has more than 10,000 rooftop solar installations. Sood said the government aims to increase this number to 2.3 lakh by giving a strong push to rooftop solar adoption under the PM Surya Ghar: Muft Bijli Yojana.