The Delhi government has announced a historic decision under the revised 'Solar Policy' for residential electricity consumers in Delhi. Families whose average monthly electricity consumption does not exceed 400 units can now install a rooftop solar system of up to 3 kilowatts (kW) without any upfront costs (Zero Upfront Cost).
This opportunity is available for homes whose roofs meet the necessary technical requirements for installing solar panels. This step by the Delhi government aims to completely eliminate the significant initial financial burden, which could reach around 200,000 rupees when installing solar panels.
Under this initiative, the consumer will not have to pay a penny at the time of installation. The total cost of the solar installation will be covered jointly by the central and state governments. The estimated cost of a 3-kilowatt rooftop solar system is about 160,000 rupees. The Delhi government has stipulated that for families in the capital region with consumption up to 400 units, the installation of a system up to 3 kW will be completely free.
The expenses of 156,000 rupees for installing a system up to 3 kW will be shared between the central and state governments. The central government will provide a subsidy of 78,000 rupees, and the Delhi government will provide another 78,000 rupees. Furthermore, the Delhi government itself will cover the difference between the total cost determined through subsidies and tenders.
The operation and maintenance (O&M) of the solar system will be provided free of charge by the contractor for the first five years. After this period, consumers can choose maintenance and insurance options through the Distribution Companies (DISCOMs). Eligible consumers will continue to receive the existing Delhi government electricity subsidy (100% free up to 200 units and a 50% discount on 201–400 units). A 3 kW solar system generates an average of 300 units of electricity per month. Excess energy remaining after household use can be exported to the grid, for which the consumer will receive payment according to the DISCOM's 'Average Power Purchase Cost'.
Currently, 10,073 solar systems are installed in Delhi, most of which are located on government buildings. To change this situation, the government has set a target to add 500 megawatts (MW) of additional solar capacity by installing solar panels on 230,000 rooftops by March 2027. This entire program will be implemented under a Utility-Led Aggregation (ULA) model managed by utility companies. Indraprastha Power Generation Company Limited (IPGCL) will select contractors through Competitive Bidding and will manage the entire process, from installation to complaint resolution.