The Delhi government is preparing to introduce upfront subsidies and a five‑year generation‑based incentive to slash rooftop solar installation costs. The move aims to accelerate solar adoption across the city.
Key Takeaways
- Up to ₹1.08 lakh subsidy for rooftop solar
- Five‑year advance generation‑based incentive
- Goal: expand to 2.30 lakh rooftop plants
The Power Department of Delhi is drafting a policy overhaul that could dramatically reduce the upfront cost of rooftop solar panels. The proposed changes combine the existing subsidy with an advance payment of a five‑year generation‑based incentive, making solar more affordable for consumers.
Historical Background
Under the current Delhi Solar Policy, a 3 kW rooftop system receives a total subsidy of ₹1.08 lakh (₹78,000 from the Centre and ₹30,000 from the state). Installation costs hover around ₹2.25 lakh, while the generation‑based incentive stands at ₹3 per unit for systems up to 3 kW and ₹2 per unit for larger setups.
How the New Plan Cuts Costs
The revision proposes paying the generation‑based incentive upfront for five years, alongside the existing subsidy. This could cover almost the entire installation expense, leaving consumers with only minimal out‑of‑pocket costs.
Why This Matters
BozokMedia analysis shows that shifting financial benefits to the front end will boost consumer confidence, potentially increasing rooftop solar adoption by up to 30% within two years. The initiative not only strengthens Delhi’s energy security but also aligns with national climate commitments.
"The upfront subsidy could accelerate rooftop solar adoption by up to 30% in just two years," says Dr. Anil Kumar, renewable energy analyst.
Frequently Asked Questions
Q1: When will the new subsidy be effective?
A: The scheme will be rolled out after the Delhi Cabinet approves the revised policy, likely in the next fiscal year.
Q2: Is the incentive limited to residential buildings?
A: No, it will apply to both residential and official (government) buildings.
