Domestic consumers will not have to bear cost of installation of solar panels: Delhi govt

To boost use of solar power for domestic use, the Delhi Cabinet Tuesday decided that such consumers will not have to spend any money for the installation of solar panels.

According to a statement, there will be a tripartite agreement between the group housing society concerned, the service provider and the Delhi government for the purpose.

The Delhi government is giving a generation-based incentive (GBI) of Rs 2 per unit on solar generation for a three-year period from 2016-17 to 2018-19 under the Delhi Solar Policy -2016, introduced in September 2015.

The GBI is disbursed on annual basis by power distribution companies and the power department reimbursed this payment to discoms.

About 100MW of solar power has so far been installed in the national capital.

It has been mostly in government buildings such as Delhi Metro Rail Corporation(20 MW), Delhi Jal Board, Mandoli Jail, Azadpur Mandi and Dwarka Court.

The government said that in domestic sector, it is around 05 megawatt (MW). Around 8-10 group housing societies and some individual consumers have also installed solar power.

The reason for less utilisation is due to "poor response" for solar adoption by residential sector consumers.

It stated that for the concept of "solarise" the national capital, as envisaged in Delhi Solar Policy 2016, to gain momentum, residential sector needs to be geared up for solar installation.

"Since solar is in initial phases in domestic sector, there is need for extending GBI and also need for course correction in view of new tariff regime. For giving impetus, there is need to extend GBI for a period of 5 years starting from 2019-20," it stated.

Combined with a decrease in solar tariff, this will offset the impact of electricity tariff and will increase adoption to solar by consumers from residential/domestic sector, it also stated.

It stated that for a typical solar power plant, this will amount to GBI payment of Rs 13,000/KW in five years, adding that this payment will amount to 22-25 per cent on benchmark solar costs.