DDC proposes 1,000 MW solar power capacity

Tribune News Service 

New Delhi, September 10

The Delhi Dialogue Commission today sought suggestions from people over its draft of the Solar Energy Policy of the national Capital for which it has proposed 1 GW (1,000 mega watt) solar power capacity in the next five years.

The draft policy has been put on the websites of DDC and power department and after 15 days, it will be finalised and submitted to the Delhi Government. The DDC has further proposed to double the solar capacity during the next five years while recommending a non-capital subsidy model for implementation of the targets outlined in the policy. 

The thrust is on performance-based incentives for domestic households coming forward for installation of solar panels, said Power Minister Satyendar Jain. 

"Delhi Government's financial assistance for solar will not take the form of capital subsidies but through low-cost financing options for all consumers, and through generation-based incentives that reward actual production in the domestic segment, where solar energy tariffs today are less competitive than in other segments," he noted. 

The draft policy supports all models of ownership and maintenance of solar plants, including self-owned ("CAPEX") and third party-owned models ("RESCO"). It also provides a generation-based incentive of Rs 2 per solar energy unit in the domestic segment for three years. 

In addition, it calls for the exemption of electricity tax on solar energy, and waives VAT on all solar plant components, including solar panels and solar inverters, for 5 years.

"Solar energy is being embraced across the world and for good reasons," said Ashish Khetan, DDC vice-chairperson while elaborating, "It's not only sustainable but has also become financially lucrative for all consumers in the non-domestic tariff segments in Delhi, and for many consumers in the domestic segment. Rooftop solar should be a significant part of our energy portfolio."

The proposed Delhi's Solar Energy Policy has been drafted by Namit Arora, an alumnus of IIT Kharagpur with over 20 years of varied technical and business experience in California's Silicon Valley along with Rajneesh Shrivastava of the EE and REM Center, the State Nodal Agency responsible for the effective implementation of the policy.