Delhi Government Releases Solar Policy 2016-2020


The state government of Delhi has released the Delhi Solar Policy 2016, which is applicable for the four-year period 2016-2020. This policy will be applicable for any solar energy generating system with a capacity of 1 kW or more.

The policy focuses on promoting an investment climate that enables multiple financial models, from self-owned (CAPEX) to third-party owned (RESCO) models. The promotion of solar rooftop through a combination of generation targets, regulations, mandates, and incentives is at the heart of the new Delhi Solar Policy 2016. This policy applies to all electricity consumers and all entities who construct and operate power projects in Delhi. To achieve Delhi’s solar generation targets, the policy mandates solar installations to be complete within five years on all government-owned rooftops.

Policy Highlights:

  • It will be mandatory for all government buildings with a rooftop area of 500 m2 or above to install a solar PV project as far as possible with a minimum capacity (kW) computed as follows: Capacity in kW = (total shadow free rooftop area x 75 percent) ÷ 12.
  • A generation- based incentive (GBI) of Rs.2.00/kWh of gross solar energy generated is being offered for three years to domestic and residential consumers.
  • The minimum eligibility criteria for GBI will be 1,100 solar energy units (kWh) generated per annum per kW. For solar projects that generate less than 1,100 units (kWh) per kW a year, the GBI will not apply. The annual solar energy generation that is eligible for GBI will be capped at 1,500 kWh per kW, irrespective of the readings of the solar generation meter.
  • All solar projects will be treated as ‘Must Run’ projects and will not be subject to Merit Order Rating (MOR)/Merit Order Dispatch (MOD) principles.
  • Evacuation infrastructure will be developed and augmented, wherever necessary, by the state transmission Licensee or state DISCOM (distribution company).
  • Developers of all solar projects above 1 MW will have to install necessary equipment to monitor solar irradiance, wind speed, ambient air temperature, and electricity generated and injected into the system or self-consumed from the solar project.
  • The Delhi state government will work with Delhi Electricity Regulatory Commission (DERC) to develop virtual net-metering (in which consumers can be beneficial owners of a part of a collectively owned solar project) framework for all consumers not later than April 1, 2017.

The state DISCOM will give preference to sourcing 75 percent of the renewable purchase obligation (RPO) target from within the state.