Kejriwal-Led Delhi Govt Announces Free Electricity for Homes With Solar Panels

The announcement was made by Delhi CM Arvind Kejriwal as part of the new Delhi Solar Policy 2024.

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(File photo)

The Delhi government on Tuesday, 30 January, announced a new solar policy under which the electricity bills of all residential consumers who install solar panels will be free.

"Currently, residential consumers pay nothing up to 200 units, half for 201-400 units, and full bill for consumption exceeding 400 units," said Delhi Chief Minister Arvind Kejriwal.

"Under the new policy, even those using more than 400 units, with solar panels, will have zero electricity bill," Kejriwal added.

"Electricity bills of all residential consumers who install solar panels on their rooftops by opting for this policy will be zero, no matter how much electricity they consume. That is the most important takeaway of the policy," Kejriwal said.

The Delhi Solar Policy 2024 looks to reduce the air pollution in the city and help fight inflation by bringing the electricity bills of non-subsidised residential consumers to zero, and halve the bills for commercial or industrial consumers.

“As per a recent report by the Central government, the national average inflation rate is 6%, and 7% in Haryana and Gujarat, but in Delhi it is only 3%, which is the lowest in the country. After the implementation of the policy, the inflation rate will decline further in Delhi,” Kejriwal said.

“The target of Delhi Solar Policy is to increase the total installed solar capacity of Delhi to 4,500 MW by March 2027, that is, by three times of the current capacity of 1500 MW in only three years. This includes 750 MW of rooftop solar plants installations in Delhi and the 3750 MW purchased by the discoms through utility scale solar plants installed outside Delhi by 2027."

Delhi CM Arvind Kejriwal

What Are the Incentives for Delhi Residents?

As per the Delhi Solar Policy 2024, residential consumers who have installed solar panels will reportedly be provided with additional incentives.

The Delhi government will provide incentives of Rs 3 per unit for up to 3 kilowatt and Rs 2 per unit for more than 3 kilowatt to 10 kilowatt for residential consumers.

The incentive amount will be adjusted in the electricity bill, according to the press release. The Delhi government is also offering a capital subsidy of Rs 2,000 to Rs 10,000 per kilowatt on residential solar panels, over and above the capital subsidy offered by the central government.

"Let us say a residential consumer's average monthly consumption is 360 units and the consumer installs a 2kW rooftop solar plant at approx. cost of Rs 90,000 with taxes and subsidy included. The consumer will start getting zero electricity bill right away (savings of Rs 1370 per month) as well as a Generation Based Incentives (GBI) benefit of approx. Rs 700 per month. Total annual savings will be Rs 24,000. Since the consumer spent Rs 90,000 initially, the cost will be recovered in four years. But the consumer will continue enjoying zero bill for life of the solar panel, which is 25 years,” Kejriwal said.

What About Commercial Consumers?

Besides residential consumers, the Delhi government has also extended Generation Based Incentives (GBI) for commercial or industrial consumers too (for the first 200 MW of solar panel installations in Delhi).

“There is no conditionality of minimum generation to receive GBI which existed in the 2016 policy. The amount under GBI will be adjusted against the monthly electricity bill of the consumer. Any excess amount will be deposited into the consumer’s bank account by the discom every month. Earlier, the GBI amount was transferred only twice a year,” Kejriwal elaborated.

Additionally, all existing government buildings with rooftop area that's more than 500 square metres will have to mandatorily install solar plants within the next three years, as per the Delhi Solar Policy 2024.

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