Draft Solar Policy of Delhi Wants 6000 MW Installation by 2025

The Delhi government has accorded approval to the draft Solar Policy 2022 under which the state wants to install solar capacity to 6,000 MW by 2025. In the previous solar policy released in 2016, Delhi had targeted to install solar power of a cumulative capacity of 2,000 MW of solar power by 2022. Readers will recall that actual achievement till date was barely 20% of those targets.

The new draft solar policy envisages a three-fold jump in solar capacity in the coming three years. Delhi’s Deputy Chief Minister Manish Sisodia said that 6,000 MW will heighten the solar power share in the annual electricity demand of Delhi from 9 per cent to 25 per cent by 2025. It will be the highest in India, stated Sisodia.

The solar policy draft will remain in the public domain for 30 days for comments and suggestions from stakeholders and the public. Thereafter, the solar policy will be tabled before the Cabinet for approval.

The Delhi government will create a single-window portal to offer information on solar PV system benefits, guidelines and timelines. The portal will be managed by the Delhi Solar Cell.

The Deputy CM said, “To motivate consumers to use solar energy, the government will provide various incentives such as generation-based incentives (GBI) and capital subsidies. For the first time in the country, consumers will have an opportunity for Community Solar and Peer-to-Peer trading.”

He informed that the solar policy will offer capital subsidies for residential and commercial consumers in the national capital.  The state government will fight pollution through the policy and generate 12,000 jobs as well.

“It will make Delhi a model for states and cities not just in India but also across the world in enabling sustainable clean energy transition,” he stated.

Key Tenets Of Draft Solar Policy

Generation Based Incentive: The residential, group housing societies, resident welfare associations, and commercial & industrial consumers can qualify for monthly GBI for five years. For residential consumers having solar PV installation of up to 3kW, the GBI will be Rs 3/kWh,  for solar installation above 3kW and upto 10kW, GBI will be Rs 2/kWh, for CGHS and RWAs having solar systems up to 500kW, the GBI will be Rs 2/kWh.

Early-Bird GBI: The government will also offer early-bird GBI of Rs 1/kWh for the first time for commercial & industrial (C&I) consumers for the first 200 MW of solar installation.

Capital Subsidy: A capital subsidy for mounting structures will be given to residential consumers at a rate of Rs 2,000 per kW up to a max of Rs 10,000 for every consumer. This will be adjusted against power bills of the consumers.

Tax-Less: The state government will not levy taxes and duties on power production from rooftop solar systems.

Introduction of New Models: To step-up the rooftop solar installations in the city, deployment models like RESCO, Community Solar and Peer-to-Peer trading will be employed. In the RESCO model, consumers sign agreements with their DISCOMS where they get net-metering benefits and do not have to make capital investments upfront.

Community Solar: The solar policy, claims the Delhi Government, brings the concept of ‘Community Solar’ for the first time in India. Consumers who don’t have enough rooftop space can become co-owners of a greater solar PV system that will be installed by a developer on lands available in the city.

Peer-to-Peer Trading: There will also be Peer-to-Peer trading of solar power. Now producers can sell their excess electricity through a P2P trading platform in real-time.

Solar Power Import: Distribution companies can raise the share of solar energy procured from outside Delhi solar energy sources.

Storage to Accompany: The Delhi Government, through the new policy, looks to amalgamate all renewable energy sources with battery based energy storage systems that will offer round-the-clock green energy in Delhi.

At SaurEnergy, we have repeatedly drawn attention to the high enthusiasm among Delhi discoms for EV charging, whch will drive demand higher , over Solar capacity creation, which will generate cheap power. The discoms remain with limited incentives to truly push for solar, if a target as ambitious as 6000 MW is to be achieved. That will require steps including possible legislation to mandate use of solar in buildings over a certain plot size, besides speeding up the approvals and inspection regime. Alternately, Delhi will have the option of purchasing much higher renewable power, as it has been pushing for in any case, from outside the state.