Boost for solar power: Same tariff for 25 yrs, 2,000 MW usehttps://indianexpress.com/article/cities/delhi/boost-for-solar-power-same-tariff-for-25-yrs-2000-mw-use/

Boost for solar power: Same tariff for 25 yrs, 2,000 MW use

The DDC has also submitted to the government that solar installations be completed within five years on all government rooftops.

Another major policy shift recommended by the DDC is the “zero government subsidy”.
Another major policy shift recommended by the DDC is the “zero government subsidy”.

From proposing a constant tariff for consumers using solar energy for a period of 25 years to achieving 2,000-MW solar capacity during the same period, the Delhi Dialogue Commission (DDC), in a thrust to use of clean energy, submitted its draft solar energy policy for the capital on Thursday.

With an aim to incentivise the consumers — both domestic and industrial — to use solar technology, the DDC has recommended to the government to keep the power tariff at the current rates at Rs 6-8 per unit consumed for 25 years for solar power.

The commission has also said that it aimed to raise the percentage of total electricity consumption of solar energy from 35 MW to 2,000 MW in the next 25 years — which would account for over 21 per cent of total power consumption from the current 1 per cent. The DDC has also submitted to the government that solar installations be completed within five years on all government rooftops.

“We will create cheap, clean, affordable and reliable energy through solar energy, which will be able to meet 20 per cent of Delhi’s power demand. The cost of setting up 1 KW Solar System plant comes to around Rs 80,000. It requires an area of about 10 sqm and generates 1,300 KWH units per year. This will lead to saving of Rs 11,500 a year for households’ generation. So in seven years, a family will recover the investment made for solar installation,” Ashish Khetan, vice-chairperson, DDC, said.

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Another major policy shift recommended by the DDC is the “zero government subsidy”. Instead, the DDC proposed “generation-based incentives” or the GBI. According to the draft policy, the DDC proposes that state shall offer a limited time GBI for net metered connection only to domestic users — where a GBI of Rs 2 unit (KWH) of gross solar energy is proposed for three years. This will applicable to only to those who generate more than 1,000 units. For this purpose, a green fund would be established.

It also recommends the multiple financial models — from self-owned (CAPEX) where the end consumer can own the asset and claim accelerated depreciation and save taxes. The other model proposed is the third party-owned (RESCO) where the user does not carry out maintenance but only pays for the service to another operator.