Delhi's new solar policy

Highlights:

  • Delhi Govt. approves the draft of the new solar policy 2022 that will be operational for the next 3 years.
  • Generation-based Incentives for residential, commercial, and industrial consumers introduced.
  • The new policy aims to create 12,000 jobs and boost the state’s efforts to fight pollution.

Delhi government has approved the draft of the state’s new Solar Policy 2022, with an ambitious target of 6000MW installed solar capacity by 2025. The goal is a significant jump from the previous target of 2000MW capacity by the same year.

The new policy aims to increase the share of solar energy in Delhi’s electricity demand from 9% to 25% in the next three years, as per Deputy Chief Minister Manish Sisodia. Moreover, a single window state portal, managed by the Delhi Solar cell, will be created to provide relevant information about the benefits of a PV system, process-related guidelines, and timelines.

The key initiatives proposed by the solar policy are:

1. Generation Based Incentives

The government will provide monthly Generation Based Incentives (GBI) to residential, commercial, and industrial consumers along with group housing societies, and resident welfare associations. The incentive will be provided for five years from the date of the commissioning of the solar plant.

For Residential Consumers:

₹3/kWh for Up to 3kW systems-

₹2/kWh for 3kW- 10 kW systems

For CGHS and RWAs

₹2/kWh Up to 500kW systems (at 10kW per house)

For Commercial and Industrial Consumers

For the first time, an early bird GBI of ₹1/kWh will be given to C&I consumers for the first 200MW of solar deployment.

2. Capital Subsidy

The government will provide capital subsidies to residential consumers for mounting raised structures with a minimum ground clearance of higher than 6 feet. The rate of subsidy will be ₹2000/kW, with a maximum limit of ₹10,000 per consumer. This amount will get adjusted in the electricity bill.

3. Exemption of Taxes and Duties

The policy states that no taxes and duties will be levied against the generation from rooftop solar systems, whether they are used for self-consumption or supply to the grid.

4. New Deployment Models

The Delhi solar policy also encourages three new deployment models to maximize solar power usage.

  • Hybrid RESCO: Through this model, consumers can use solar energy and avail of the net-metering benefits without investing capital into the solar power system. All they have to do is sign an agreement with their power distribution company.
  • Community Solar: This model allows consumers who live in shared apartment buildings without private access to the roof, to get the benefits of solar energy through a shared solar energy system.
  • Peer-to-Peer Trading: Peer to Peer energy trading refers to the buying and selling of energy between multiple partners. Under this model, owners of a solar energy system can sell their excess energy through P2P trading platforms.

Additionally, the policy also encourages Discoms to increase the amount of solar energy procured from outside Delhi through the RE-RTC model (Renewable Energy-Round the Clock).

5. Solar on State Properties

The deployment of solar energy systems on all state properties with a roof area of over 500 square metres is now mandatory. Solarization will be carried out in a phased manner within the next 3 years.

The policy will now be placed in the public domain for the next month for comments from various stakeholders before getting tabled in the cabinet for final approval.

“The new solar policy will further boost the efforts of the Delhi government to fight pollution while generating 12,000 new jobs. 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,” said Manish Sisodia.

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Resource: ET EnergyWorld

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