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Cabinet takes a major step towards making Delhi a solar city, 06th June 2016


New Delhi: 06/06/2016


The Delhi cabinet, in its meeting on Monday, chaired by the Chief Minister Mr Arvind Kejriwal fulfilled one of the main election promises of the government by approving the solar policy to make the national capital an environment friendly solar city.

Implementation of the solar policy was one of the main focus areas in the 70 Point Agenda for governance.

The policy recommends installation of 1 GW (1,000 Mega Watts) solar power capacity in Delhi by the year 2020. It is proposed to double it to 2 GW during further next five years (by 2025).

The policy outlines a combination of regulations, mandates, incentives, and tax breaks for the growth of rooftop solar power in the capital.

The policy has been prepared by Government of Delhi in consultation with the Dialogue and Development Commission after extensive consultations with local and international experts.

Many leaders of the Indian Solar Industry, DISCOMS, Consultancy Organisations, Banks, the DERC, NGOs, Research Institutions, International experts, Central Government Departments, officials and general public participated and contributed in consultations.

Chief Minister Arvind Kejriwal said, “Making Delhi a Solar City is one of our 70 point agenda points. This Policy which is very progressive will help in providing clean and green energy.” He further said “Rooftop solar systems offer sustainable energy, environmental benefits, low gestation period and minimum transmission and distribution losses”.

Delhi’s Minister of Power, Satyendar Jain, voiced his support for solar energy and said that solar power is the most viable form of green energy in Delhi. It has the potential of lowering the state’s expenditure on energy through peak shaving, strengthening its energy security, and reducing its reliance on unsustainable fossil fuels. It will also reduce the burden on the existing transmission & distribution system hence less expenditure will be required on their maintenance.

The policy supports all models of ownership and maintenance of solar plants, including self-owned (“CAPEX”) and third-party-owned models (“RESCO”).
The Delhi Government expressed its commitment to work towards increasing Delhi’s share of renewable energy to help combat climate change, reduce air pollution, and enhance energy security.

Key highlights of Solar Policy

• Mandatory deployment of solar on Govt./Public institution
• Concept of Virtual Net Metering.
• Group Net Metering
• Generation Based Incentive for 3 years
• Building bylaws amendment for rooftop solar installations
• Tax breaks, benefits and subsidies
• Solar system upto 200 KWp are exempted from certification by Electrical inspector.
The policy promotes net metering for all solar plants above 1 kW based on the net metering regulations already issued by the Delhi Electricity Regulatory Commission.

Mandatory deployment of solar on Govt./Public institution

· The policy mandates the deployment of solar plants on all government-owned rooftops in the next five years. It requires DISCOMS to meet at least 75% of their solar renewable purchase obligation (RPO) within Delhi.

Virtual Net Metering
• To give access to the Solar Net Metering facility for consumers who do not have a suitable roof for installing a solar system (e.g. residential consumers who live in apartments, consumers with shaded rooftops) there will be the facility of Virtual Net Metering. In Virtual Net Metering consumers can be beneficial owners of a part of a collectively owned solar system. All energy produced by a collectively owned solar system will be fed into the grid through an energy meter and the exported energy as recorded by that meter will be pro-rata credited in the electricity bill of each participating consumer on the basis of beneficial ownership.

Group Net Metering

• To encourage solar plants on rooftops of buildings that cannot consume all of the energy generated locally, DISCOMS shall facilitate Group Net Metering, whereby surplus energy exported to the grid from a solar plant at the location of the solar plant can be adjusted in any other (one or more) electricity service connection(s) of the consumer within the NCT of Delhi, provided these connections are in the same DISCOM territory. The purpose of this provision is to help maximize the utilization of rooftop space for solar energy generation for consumers with multiple buildings and service connections.

Generation Based Incentive

· The policy approved a non-capital subsidy model for implementation of the targets outlined in the policy. It has instead provided performance based incentives i.e. Generation Based Incentive (GBI) of Rs.2 per unit for domestic households coming forward for installation of solar panels on first come first served basis that reward actual production in the domestic segment. It will be applicable only to the solar PV plants which generate more than 1100 units per KW per annum and will ensure the deployment of quality solar panels.

Building bylaws amendment for rooftop solar installations

· The height of the module structure carrying solar panels shall not be counted towards total height of the building as permitted by building bylaws, except near airports where building regulations issued by the Airport Authority of India take precedence.

· No approval will be required from concerned Municipal Corporation or other Urban Development Bodies like DDA for putting up solar plants including any additional system for monitoring the performance of solar plant in existing or new buildings.
· The support structure on which rooftop solar panels are installed shall be treated as a temporary structure built in accordance with local building codes.

Tax breaks, benefits and subsidies

· Government is taking up with MCDs/NDMC exemption of Electricity tax (currently 5%) for Solar Energy generated.
· Government in consultation with DERC shall provide exemption on open access charges.
· Government in consultation with DERC will exempt wheeling, banking and transmission charges for Solar Energy generated / consumed within Delhi.
No need for certification by Electrical inspector
· Solar system upto 200 KWp are exempted from certification by Electrical inspector. Self certification will suffice.

The Delhi Government will facilitate all consumers in installation of Solar Panels.

Energy Efficiency and Renewable Energy Management Centre (EE&REM) under the Department of Power, GNCTD shall act as the State Nodal Agency (SNA) for the purposes mentioned in this Policy and shall be responsible for the effective implementation of this Policy in consultation with the State Government, eligible consumers, the Central Government, other States and other stakeholders.

In collaboration with the State Nodal Agency, the Indraprastha Power Generation Co. Ltd. (a Govt. of NCT of Delhi Undertaking) will aggregate capacity on Government rooftops / rooftop other than of Government buildings and ground mounted capacities, float tender and manage the entire bidding process under both RESCO & CAPEX model.

GNCTD will facilitate capital subsidy (@30% at present) provided by Ministry of New & Renewable Energy, Govt. of India to the domestic consumers for which the exercise of empanelment of vendors is already under process.

The success of Delhi’s solar energy policy will depend significantly on raising the consumers’ awareness of solar energy and the significant return on investment it can provide. The Government plans to conduct awareness campaigns in Delhi as well as facilitate technical training for aspiring solar industry professionals. Adoption of large scale solar power in Delhi will also create good number of new jobs in the next 5 years.


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Last Updated : 22 Jun,2016