The Delhi government launched the Delhi Solar Policy 2023, in which residents consuming over 400 units of electricity can install solar panels bring electricity bill charge to zero. Under the newly launched policy costing Rs 570 crore to the government, residents who currently do not get subsidies for monthly electricity consumption exceeding 400 units can install rooftop solar panels, and enjoy zero electricity bill. This is an extension of the government policy where households consuming between 201 to 400 units receive a 50 per cent subsidy on their bills and those under 200 units get zero electricity bill.
Capital Subsidy For Setting Up Solar Panel
The Delhi government claims it will for the first time, provide a capital subsidy of Rs 2,000 per kW of installation, up to a maximum of Rs 10,000 per consumer. This will be over and above the capital subsidy of the Central government.
Generation-Based Incentives
The scheme has generation-based incentive (GBI), where consumers producing surplus solar power in excess of their use can earn up to Rs 900 per month. The government will deposit Rs 3 per unit for electricity generated into the bank account of customer. For 3 to 10 kilowatts, money will be deposited at the rate of Rs 2 per unit. The government will continue to provide this generation-based incentive for five years. After net metering, which happens every month, the excess solar units left will be rolled-over into subsequent billing cycles for up to 12 months (until close of every financial year). At the end of the year, in case the solar power generated is more than the consumer's annual electricity demand, the consumer will earn money for the same from the discoms, the government said.
Combining these two incentives, the expenses incurred for solar panel installation under this policy are projected to be recovered within four years.
Here's How?
Regardless of their energy consumption levels, customers are promised zero electricty charge under this scheme. For instance, consider a residential consumer using 380 units of electricity, who now falls within the 201 to 401 unit bracket, where the electricity bill is currently halved. If he installs a 2-kilowatt rooftop solar panel, with installation costs estimated at a modest estimation around Rs 1,10,000 to 1,20,000, and after subsidies consider it done at Rs 1,05,000. The consumer's electricity bill will be zero from month one. This amounts to savings of Rs 1,710 per month, based on a charge of Rs 4.5 per unit consumed for 380 units.
Further, the Delhi government provides a monthly generation-based incentive of up to Rs 900. If he/she gets Rs 900, both these savings when combined, accumulate to monthly savings of approximately Rs 2,610. Over a year, this amounts to savings of Rs 31,320, thereby allowing the initial investment of Rs 1,05,000 to be comfortably within four years.
