Delhi govt to provide free rooftop solar panels to 2.3 lakh families in first phase

According to government figures, 10,073 solar systems have been installed in Delhi, a bulk of which are on government buildings. (File Photo)

\In a move to encourage electricity consumers in the Capital to switch to solar power, the Delhi government has set a target to provide free rooftop solar panels to more than 2.30 lakh families in the city in the first phase of  ‘Pradhan Mantri Surya Ghar: Muft Bijli Yojana’.  Chief Minister Rekha Gupta on Monday launched a portal to register such power consumers.  The portal was launched for applications on a “first-come, first-served” basis, as part of ‘Seva Sankalp Abhiyan’ being undertaken to mark Prime Minister Narendra Modi’s 76th birthday, said officials.

Under the scheme, the Centre provides a subsidy of up to Rs 78,000 for rooftop solar systems of up to 3 kW. The Delhi government has also decided to provide a state subsidy of Rs. 78,000 along the same lines. This means a total subsidy of up to Rs 1.56 lakh will be available for such consumers.

“Domestic consumers in Delhi with an average monthly electricity consumption of up to 400 units will be provided rooftop solar systems of up to 3 kW without any payment,” Gupta said, adding that if there is any additional gap in the cost of the solar system, arrangements will also be made to cover it through the assistance provided by the government.

“In the first phase, the target is to provide free rooftop solar panels to more than 2.30 lakh families,” Power Minister Ashish Sood said.

Why Delhi lags

Solar rooftop installation has traditionally lagged in the national capital. Delhi only has 29,718 solar connections installed by both BSES and Tata Power, data shows, with a total solar capacity of 472 MWp.

Officials have attributed this to three reasons. Firstly, free electricity upto 200 units means that consumers don’t have an incentive to install solar panels. Secondly, a large number of consumers don’t live in their individual houses, residing in group housing, where arriving at a consensus for installation of solar panels gets difficult. Thirdly, solar rooftop installation also has a high upfront cost, going up to Rs. 2 lakh for bigger systems. The government has now sought to cover this cost through its incentives.

A look at benefit

n0–200 units a month: Consumers in this category get a system of up to 3 kW without any upfront cost.  Officials said that one important benefit for this category is that they also get an additional 50% energy-saving incentive on reduced consumption.
For instance, cutting use from 200 to 50 units would fetch an incentive equal to 75 units.

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They can earn from surplus power sold to the discom.

n 201–400 units: The existing subsidy of up to Rs. 800 a month continues, based on eligible consumption after solar.
Officials, however, said the bill for these households could fall potentially to zero.

For example, 400 units of consumption dropping to 100 net units after solar would result in a zero bill after subsidy.
n  400+ units: These are the households which would be able to utilise the maximum subsidy amount of Rs 1.56 lakh These households however, would not be eligible for the electricity subsidy, as eligibility is based on gross consumption.

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Devansh Mittal is a Correspondent at The Indian Express, based in the New Delhi City bureau. He reports on urban policy, civic governance, and infrastructure in the National Capital Region, with a growing focus on housing, land policy, transport, and the disruption economy and its social implications. Professional Background Education: He studied Political Science at Ashoka University. Core Beats: His reporting focuses on policy and governance in the National Capital Region, one of the largest urban agglomerations in the world. He covers housing and land policy, municipal governance, urban transport, and the interface between infrastructure, regulation, and everyday life in the city. Recent Notable Work His recent reporting includes in-depth examinations of urban policy and its on-ground consequences: An investigation into subvention-linked home loans that documented how homebuyers were drawn into under-construction projects through a “builder–bank” nexus, often leaving them financially exposed when delivery stalled. A detailed report on why Delhi’s land-pooling policy has remained stalled since 2007, tracing how fragmented land ownership, policy design flaws, and mistrust among stakeholders have kept one of the capital’s flagship urban reforms in limbo. A reported piece examining the collapse of an electric mobility startup and what it meant for women drivers dependent on the platform for livelihoods. Reporting Approach Devansh’s work combines on-ground reporting with analysis of government data, court records, and academic research. He regularly reports from neighbourhoods, government offices, and courtrooms to explain how decisions on housing, transport, and the disruption economy shape everyday life in the city. Contact X (Twitter): @devanshmittal_ Email: devansh.mittal@expressindia.com ... Read More

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