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Chandigarh: Free rooftop solar plants likely soon

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Dushyant Singh Pundir

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Chandigarh, August 31

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The UT Administration has allowed the Chandigarh Renewable Energy Science and Technology Promotion Society (CREST) to fix the build, operate and transfer (BOT) period for installation of rooftop solar power plants free of cost at 22 years and six months.

1,200 applications received

This means that residents of the city will soon be able to get rooftop solar power plants installed free of cost, while the cost of installation will be recovered by the selected firm over that period through the sale of electricity generated by the plants.

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In June, CREST had identified a company for the project, but there was no consensus on the BOT period. The firm had proposed a BOT period of 23 years, while CREST maintained it should be 20 years. The impasse in negotiations has delayed the project by eight months.

To resolve the issue, the Administration has asked CREST to finalise the BOT period to 22 years and six months and to start the work at the earliest.

The Joint Electricity Regulatory Commission (JERC) had in January granted approval to the installation of grid-connected rooftop solar plants in the city for domestic consumers by a third party under the BOT model.

CREST, which has been designated as an executing agency for renewable energy projects of the Department of Science and Technology, UT, had filed a petition before the JERC, seeking an approval for the installation of grid-connected rooftop (GCRT) power projects for domestic consumers by a third party under the Renewable Energy Services Company (RESCO) BOT model.

The society has already received more than 1,200 applications from residents for free-of-cost installation of rooftop solar plants, which aim at generating 8.5 MWp of solar power, even as this falls short of the intended target of 20 MWp.

Under the RESCO model, the house owners will get electricity at a consistent rate of Rs 3.23 per unit.

The owners will have to give space on the rooftop to the firm and they will get electricity at the rate of Rs 3.23 per unit during the BOT period. At present, domestic consumers have to pay Rs 2.75 per unit for 0-151 units, Rs 4.25 per unit for 151-400 units and Rs 4.65 per unit for consuming over 400 units.

Once the BOT period concludes, the ownership of the solar plant will get transferred to the consumer at no additional cost.

Earlier, the Administration had made installation of rooftop power plants mandatory for houses built on land measuring 500 sq yd and above. Under the new model, the house owner will have to provide nearly 500 sq ft of space for a 5kWp solar plant.

Chandigarh’s solar power generation target was revised by the Union Ministry of New and Renewable Energy from 69 MWp to 75 MWp, which was to be achieved by August 15 this year. Although progress has been made with nearly 56 MWp already generated, the UT Administration aims at meeting the target by December this year.

Owners of 421 houses are still awaiting subsidy for their solar plants installed way back in 2019. An official said the Centre had recently approved the subsidy, which would be disbursed soon.

Win-win situation

Owners will have to give space (500 sq ft) and they will get electricity at a flat rate of Rs 3.23 per unit during the BOT period. Once the BOT period concludes, the ownership of the solar plant will get transferred to the consumers at no additional cost.

Present power tariff

Domestic consumers have to pay Rs 2.75 per unit for 0-151 units, Rs 4.25 per unit for 151-400 units and Rs 4.65 per unit for consuming over 400 units.

421 house owners await subsidy

Owners of 421 houses are still awaiting subsidy for their solar plants installed way back in 2019. An official said the Centre had recently approved the subsidy, which would be disbursed soon.

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