Installing Solar Panels in Delhi is Affordable: How to Avail Double Subsidies from Central and State Governments

Subsidies are provided by both the Central and Delhi governments for installing solar panels on residential rooftops in Delhi. Read on for details regarding the cost of a 3 kW solar plant, GBI incentives, and essential information about the rooftop solar scheme.

Solar Panel Subsidy: If you are considering installing solar panels on your home's rooftop in Delhi, you stand to gain significantly. Subsidies from both the Central and Delhi governments make the initial installation cost much lower. For a 3 kW rooftop solar plant, a combined subsidy of up to ₹1.08 lakh is available from both governments.

According to officials, installing a 3 kW rooftop solar plant costs approximately ₹2.25 lakh. The combined subsidies can substantially reduce this initial investment. Consequently, installing solar panels at home is considered an option that not only cuts electricity costs but also benefits the environment.

Earn Money by Generating Electricity

Domestic consumers who install rooftop solar systems also receive a Generation-Based Incentive (GBI) based on the electricity generated. For a 3 kW plant, the GBI is ₹3 per unit, while plants with a capacity exceeding 3 kW receive an incentive of ₹2 per unit.

Currently, the GBI amount is adjusted against the consumer's monthly electricity bill. If the incentive amount exceeds the bill total, the electricity company deposits the remaining balance directly into the consumer's bank account.

Over 10,000 Solar Plants in Delhi

There are currently more than 10,000 rooftop solar plants installed in Delhi. The government aims to increase this number to 2.30 lakh by promoting the 'PM Surya Ghar: Muft Bijli Yojana' (Free Electricity Scheme). Meanwhile, Delhi's existing solar policy targets raising the city's total solar power capacity to 4,500 MW by March 2027. The process of installing solar panels has also been simplified. The requirement for technical inspection and approval for rooftop solar plants of up to 10 kW has been eliminated, and a fixed timeframe has been established for the approval process.

The Delhi government is also exploring options to further reduce the initial cost of installing rooftop solar systems. These options include a plan to provide the Generation-Based Incentive (GBI) amount upfront, alongside the subsidy. If implemented, customers could receive the GBI amount—normally distributed over five years—in advance, thereby lowering the initial cost of setting up the solar plant. However, this remains a proposal, and Cabinet approval will be required for its implementation.