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Delhi Dialogue Commission proposes 1 GW solar power capacity for Delhi in next 5 years

According to reports, releasing its draft on the Solar Energy Policy exclusively for the national capital in presence of Delhi Power Minister Satyendra Jain, the Delhi Dialogue Commission today proposed 1GW (1,000 Mega Watt) solar power capacity for the national capital in next five years.

The DDC draft has been put in public domain to invite views on it and after 15 days, it will be finalised and submitted to the Delhi government.

The draft recommends the installation of 1GW (1,000 Mega Watts) solar power capacity in Delhi by the year 2020. It is proposed to double it to 2 GW during the next five years (by 2025).

The DDC has recommended a non-capital subsidy model for implementation of the targets outlined in the policy. It has instead strongly advocated performance based incentives for domestic households coming forward for the installation of solar panels.

The draft policy outlines a combination of regulations, mandates, incentives, and tax breaks for the growth of rooftop solar power in the capital.The draft policy promotes net metering for all solar plants above 1 kW based on the net metering regulations issued by the Delhi Electricity Regulatory Commission in 2014.

The draft policy mandates the deployment of solar plants on all government-owned rooftops in the next five years and requires DISCOMS to meet at least 75 per cent of their solar renewable purchase obligation (RPO) within Delhi. It emphasises demand aggregation to achieve economies of scale, introduces group and virtual net metering in a phased manner to maximize solar energy potential, and calls for a change in building bylaws to streamline the deployment of rooftop solar plants.

The draft policy supports all the 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 an 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, Vice Chairperson, DDC. Its 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 is a mature technology with huge traction around the world. It should be a significant part of our energy portfolio.

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