Free solar panels for Delhi homes using 400 units of power

Delhi households with an average monthly electricity consumption of up to 400 units will now be able to get rooftop solar systems of up to 3 kW installed without any upfront cost. This is among key provisions of the amended Solar Policy announced by the Delhi government on Tuesday, which is part of a push to make rooftop panels more affordable to residents.

The policy had been notified in March 2024 with the stated aim of increasing the city’s installed rooftop solar capacity to 750 MW (mega watt). According to government figures, 10,073 solar systems have been installed in Delhi, a bulk of which are on government buildings.

The biggest hurdle identified has been the high upfront cost of installation, which can go up to Rs 2 lakh for larger systems. On Tuesday, Chief Minister Rekha Gupta announced a target of installing solar systems on 2.3 lakh rooftops, and of adding 500 MW of additional rooftop solar capacity under the policy by March 2027.

Among the key components of this push announced is that eligible domestic consumers with average monthly electricity consumption of up to 400 units will be provided rooftop solar systems of up to 3 kW at zero upfront cost, subject to technical feasibility.

The Central government’s Rs 78,000 subsidy will be supplemented by a capital subsidy of Rs 78,000 by the Delhi government, along with an additional top up by the Delhi government to cover the difference between the subsidy and the tendered cost of the solar plant.

Gupta also announced that the system installed by the government will be mandatorily operated and maintained by the vendor concerned for five years. “There was a capital constraint for households.

People found it difficult to make such a huge payment upfront. The second is that incentives we used to give would be made in installments later after installation, which we have now moved upfront to the time of installation.

People would also find operation and maintenance difficult. Now for five years, our vendor will operate and maintain it,” she said. After this period, consumers will be able to opt for maintenance and insurance facilities through electricity distribution companies as per their choice, the government has stated.

It has stated that eligible consumers will continue to receive the existing electricity subsidy – free electricity for monthly consumption of up to 200 units and a 50% subsidy for those using 201 to 400 units – and export their surplus solar generated electricity to the grid.

A 3 kW solar system is estimated to generate around 300 units of electricity, and consumers who export the surplus to the grid will be paid at the average power purchase cost of Discom.

The system will be implemented under a utility-led aggregation model. Indraprastha Power Generation Company Limited (IPGCL) will select vendors through competitive bidding and coordinate installation, vendor coordination and grievance redressal, the government has stated.