The Delhi Solar Policy 2023 has come to fruition. Following the government’s issuance of the policy notification, the doors have swung open for Delhiites to adorn their rooftops with solar panels, paving the way for zero electricity bills.

Not only does this herald a newfound era of energy independence, but it also promises an avenue for additional income generation. Under the policy, even those who consume more than 400 units of electricity with solar panels installed will have zero bills, while commercial and industrial consumers’ electricity bills will be halved.

“As the national capital embraces this renewable revolution, prudent investment in solar panel installation is projected to yield returns within the span of four years. This landmark development, announced by Chief Minister Arvind Kejriwal on January 29 underscores a triumph for sustainable progress and economic empowerment in Delhi,” the Delhi government said in a statement.

“Notably, the government had sent its file to Delhi Lieutenant Governor V K Saxena for approval. After waiting for about a month, approval was received from the LG, and now this policy has been implemented,” it said.

Upon the issuance of the policy notification, Delhi Power Minister Atishi said that the Delhi Solar Policy is a remarkable initiative. Not only will the implementation of this policy benefit Delhiites, but it will also contribute to reducing pollution. Under this policy, the Delhi government will provide monetary incentives to consumers installing rooftop solar panels for every unit of electricity generated.

This not only ensures zero electricity bills for consumers but also enables them to earn money from rooftop solar power plants.

“Our aim is to have 50 per cent of Delhi’s total electricity usage sourced from solar energy by 2027. The Delhi government will also make provision for power generation assessment. For this, the government will collaborate with certain institutions. These institutions will assess the capacity of power generation across Delhi using satellite technology.

“This will relieve consumers from the burden of estimating the potential power generation capacity on their rooftops. Camps will be set up in different parts of Delhi to facilitate this process, ensuring that people do not have to approach the government but rather, the government reaches out to them,” Atishi mentioned.

Before the Delhi Solar Policy 2023, the Delhi government had issued the Delhi Solar Policy 2016, considered the most progressive policy in the country. In a way, the Solar Policy 2016 laid a strong foundation for solar power in Delhi.

Under this, Delhiites have installed solar panels with a capacity of 250 megawatts on their rooftops so far. Under the Solar Policy 2016, DISCOMs have procured 1250 megawatts of solar power from outside. Thus, under the Solar Policy 2016, Delhi has installed nearly 1500 megawatts of solar power.

The Kejriwal government is working on several initiatives to reduce air pollution. This includes the Delhi Solar Policy. The government believes that the Solar Policy will also help in reducing air pollution. The government has also formulated an EV policy to reduce air pollution, which is the country’s most progressive EV policy, and today Delhi is called the EV capital of India. In December 2023, about 20 per cent of vehicles purchased in Delhi were electric vehicles, the highest in the country.

The Delhi Solar Policy 2023 has several special features. For instance, under this, those who install solar panels on their rooftop will have their electricity bill reduced to zero. The Delhi government already provides 200 units of free electricity to every household. Their bill comes to zero. Similarly, for electricity usage between 201 to 400 units, half the bill is charged, and for usage over 400 units, the full bill is charged.

Under this policy, even those consuming more than 400 units of electricity will have their bill reduced to zero if they install solar panels. After the implementation of the Delhi Solar Policy 2024, the electricity bill of all residential sectors in Delhi could be reduced to zero. Whether you use 800, 1000, or 2000 units of electricity, the bill will be zero.

Under the policy, the money spent on solar panels will be recovered within the next four years because the government has provided several subsidies. For example, if a consumer in the residential sector is using 360 units of electricity, they fall into the slab of 201 to 401 units and their electricity bill is half. If that consumer installs a 2-kilowatt rooftop solar panel, they will have to spend Rs 90,000 for installation. After that, the consumer’s electricity bill will start coming to zero, saving them Rs 1370 every month.

Additionally, the Delhi government will provide a monthly generation-based incentive of Rs 700. This will result in an additional income of Rs 700 per month for the consumer. Combining both, the consumer will save around Rs 2000 every month. This way, they will save Rs 24,000 per year, and the investment of Rs 90,000 will be recovered within 4 years. Solar panels last for at least 25 years. Therefore, after installing solar panels, electricity will be free for 25 years.

The Delhi government will provide 5 types of financial benefits under the solar policy. If you install a 3-kilowatt capacity solar panel, the Delhi government will deposit Rs 3 per unit of electricity generated into your bank account. If you install solar panels with a capacity of 3 to 10 kilowatts, money will be deposited at the rate of Rs 2 per unit.

The Delhi government will continue to provide this generation-based incentive for 5 years. Only the Delhi government in the entire country is providing Generation-Based Incentives (GBI) to those installing solar panels. No other state government besides Delhi is providing this incentive.

After the implementation of this policy, within the next three years (by 2027), Delhi will have a capacity of 4500 megawatts of solar power. Of this, 750 megawatts capacity solar panels will be installed on rooftops, while 3750 megawatts will be purchased from outside by DISCOMs. Currently, there is a capacity of 1500 megawatts of solar power in Delhi, which will be increased threefold to 4500 megawatts in the next three years.