Delhi Power Minister Satyendra Jain on Thursday released a Delhi solar energy policy 2015 draft aimed at generating 1,000 MW solar power in the next five years.
The draft policy will be available on the website of Delhi Government’s advisory body Delhi Dialogue Commission (DDC) for public consultation. After feedback from the public, the policy will be finalised and submitted to the Delhi Government for further approval of the Cabinet after 15 days.
The draft proposes installation of 1,000 MW solar power capacity in Delhi by the year 2020 and double it to 2,000 MW by 2025. It means that by 2025, solar energy would contribute to around 21 percent of national capital’s peak power demand.
Releasing the draft, Delhi’s Minister of Power, Satyendar Jain said that the Government is going to start solar power generation in Delhi secretariat. “We will set up 5 MW plant and we have floated a tender under RESCO model. By October 3 MW will be completed and rest will be done by December. We will try to promote clean and will make Delhi Secretariat run on solar energy,” Jain said.
The draft policy mandates the deployment of solar plants on all Government-owned rooftops in the next five years and requires DISCOMS to meet at least 75% of their solar renewable purchase obligation (RPO) within Delhi.
Interestingly, DDC has recommended no subsidies from Delhi Government and instead strongly advocated performance-based incentives for domestic households coming forward for installation of solar panels.
“Government has burnt their fingers by giving subsidy. In the policy we have recommended not offer any subsidy for the installation of the solar panel but incentive will be on the generation of power... If we give subsidy during the installation then there is no incentive to maintain and keep it operative so we will give generation based incentive. We will give Rs 2 per solar energy unit in the domestic segment for three years. So more you generate more benefit you get,” Vice Chairperson of DDC Ashish Khetan said.
The draft policy is based on net-metering, with the government promoting development of grid connected solar rooftop systems to meet its own electricity needs and injecting the surplus into the grid.
According to the draft report, the cost of setting up 1 KW solar system plant that needs an area of about 10 square meters comes around Rs 80,000 and it generates 1,300 KWH units per year. This is expected to lead to saving of Rs 11,500 a year for households’ power consumption.
“So in seven years a family will recover the investment made for solar installation. Average age of solar plant is 25 years so a family can enjoy free electricity for 17-18 years,” Khetan said.
Payback time for commercial, Industrial and government is estimated to be only 5.5 years assuming savings of Rs 15,000 each year.
Meanwhile, Tata Power Delhi Distribution ltd. (TPDDl) has also identified a solar potential of nearly 400MW of Rooftop Solar capacity (Private & Government Buildings) in next 5-6 years within its licensed area in North and Northwest Delhi.
The draft policy was made by Delhi Dialogue Commission and Energy Efficiency and Renewable Energy Management (EE&REM) Center within the Department of Power, Government of Delhi.
The Delhi government’s draft solar policy is to be placed for Cabinet approval soon.