MCD clears rooftop solar plan for 1,100 civic buildings

The Delhi Municipal Corporation has approved a unified rooftop solar plan to equip approximately 1,100 civic buildings with solar power without any direct capital expenditure.
The civic body cleared the proposal in its House Meeting on Tuesday, allowing Indraprastha Power Generation Company Limited (IPGCL) to conduct feasibility assessments and install solar systems at eligible municipal properties under the Delhi Solar Energy Policy, 2023.

The move also means the corporation will drop its earlier plan to float a separate tender for rooftop solar projects and instead adopt the State power department’s framework, officials said.

According to official documents, the civic body has already installed 574 rooftop solar photovoltaic plants with a combined capacity of 13.25 MWp across its properties. Of these, 399 are on buildings of the erstwhile South Delhi Municipal Corporation, 164 are on school buildings of the former North Delhi Municipal Corporation, and 10 are on properties of the erstwhile East Delhi Municipal Corporation.

Structural and feasibility assessments have identified another 800 to 900 municipal buildings that could potentially host grid-connected solar systems, officials said.

The state Department of Power had directed IPGCL to implement solar projects on all feasible Government and civic properties under the policy. IPGCL has already awarded tenders covering nearly 2,600 Government buildings, including around 1,100 MCD properties.

Under the arrangement, the Delhi Government will bear the capital expenditure or long-term operational costs under the RESCO model through IPGCL, leaving the MCD without a capital expenditure burden.
Officials said that under the RESCO (Renewable Energy Service Company) model, a third-party firm sets up, runs and maintains a solar power system on a customer’s premises. In contrast, the customer pays only for the electricity it generates.

The client does not own the plant. It buys the power at a pre-agreed tariff for a fixed term, typically under a Power Purchase Agreement (PPA) or a lease.
The arrangement shifts the burden of financing, installation and upkeep from the consumer to the service provider. It removes the heavy upfront capital cost.

The civic body, however, will be responsible for routine roof repairs and maintenance and will provide basic access for installation work. IPGCL will conduct site surveys and install systems of up to 25 kW under the CAPEX model, along with five years of free maintenance. IPGCL will install larger systems under the RESCO model.

The arrangement will also allow the MCD to use Group Net Metering, enabling surplus power generated at one municipal building to offset consumption at another.

Any annual surplus electricity will either be carried forward or credited at the average power purchase cost of around Rs 5 per unit, potentially helping reduce the civic body’s electricity expenditure.