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Will Delhi’s Rs 30,000 Rooftop Solar Subsidy Accelerate Clean Energy Transition?

Delhi strengthens rooftop solar adoption with an added state subsidy under the PM Surya Ghar scheme

Photo by RDNE Stock project
Rooftop solar panel adoption is gaining traction under new subsidy scheme in Delhi. Photo by RDNE Stock project

The Delhi Cabinet approved providing Rs 30,000 subsidy on the installation of 3 kW rooftop solar panels (Rs 10,000 per kW) under the PM Surya Ghar scheme on May 20. This scheme is reportedly the world’s largest domestic rooftop solar initiative. This raises the available subsidy to Rs 1.08 lakh, reported The Indian Express.

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The Delhi government introduced ‘PM Surya Ghar: Muft Bijli Yojana State Top-Up’ scheme to increase the effectiveness and reach of the initiative. The Centre provides Rs 78,000 subsidy for installing rooftop solar panels under the PM Surya Ghar scheme.

According to reports, the BJP government has allocated Rs 50 crore to install rooftop solar systems on 2.3 lakh residential units over the next three years.

Chief Minister Rekha Gupta told The Indian Express that the new subsidy will help consumers to access solar power solutions at zero initial cost while saving Rs 4,200 on their monthly electricity bills on average.

She also mentioned that the government is working with financial institutions to provide easy loan options for the remaining installation cost of around Rs 90,000.

Challenges in Ground Implementation

However, experts caution that the scheme may encounter challenges during implementation.

Binit Das, Program Manager at the Delhi-based think tank Centre for Science and Environment, told Down To Earth (DTE), “The enhanced subsidy of Rs 30,000 from the state government along with Rs 78,000 from the central government for installing 3 kW solar panels at the household level is a bold step towards faster adoption of rooftop solar. However, there are some serious shortcomings.”

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However, according to Das, the allocated budget of Rs 50 crore for 2,30,000 installations is quite low.

"It means only Rs 2,174 per unit would be available, which is far less than the promised Rs 30,000 subsidy per household, raising concerns of a financial shortfall," Das stated.

“The claim of saving Rs 4,200 per month is not backed by solid data, suggesting the benefits might be overstated. Achieving the goal of 2.3 lakh installations in three years will also require a robust supply chain and trained workforce — without which the target will be hard to meet," he added.

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