Delhi Solar Policy 2016
Through the Delhi Solar Policy 2016, the Government of the National Capital Territory of Delhi (GNCTD) aimed to rapidly decentralise renewable energy sources and reduce Delhi's dependence on unsustainable fossil fuel energy. Thereby, promoting renewable energy to combat climate change, reducing air pollution and enhancing energy within the territory.
As such, the Dialogue and Development Commission of Delhi (DDC) collaborated with the Power Department to develop the landmark Delhi Solar Policy 2016 after consultations with various national and international experts. Blessed with almost 300 sunny days and available rooftop space, Delhi has the potential to generate 500 MWp (annual Generation approx. 3,500 million kWh) of solar energy. Of this potential, 26% is in the government/public sector, 25% in the commercial/ industrial sector, and 49% in the domestic sector.
DDC drafted the policy with the aim to promote the adoption of rooftop solar units in residential as well as commercial buildings in Delhi at a mass scale. The policy was subsequently notified by the Power Department and has successfully kickstarted the adoption of solar energy at a mass scale in Delhi.
Key Features
The policy extended benefits such as Group and Virtual Net Metering (GNM and VNM). DISCOMS were required to facilitate Group Net Metering, whereby surplus energy was exported back to the grid from the solar plant and adjusted to any other electricity service connections of the consumer. This benefit encouraged consumers to switch to rooftop solar plants. While Virtual Net Metering was for the benefit of consumers who collectively owned the solar system. All energy produced by a collectively owned solar system was to be fed into the grid through an energy meter and the exported energy as recorded by that meter would be pro-rata credited to the electricity bill of each participating consumer.
It was the first time that any state policy in India gave space to progressive concepts like VNM and GNM in its policy.
Amidst several innovations, the policy proposed a generation-based incentive (GBI) for solar energy produced by domestic consumers and charitable organisations. Generation-based incentives of INR 2 per unit of solar generation were provided for a minimum of 1100 units per year to domestic residential consumers.
Impact
The solar power contribution which was less than 0.3% (79 MW) in 2016 increased substantially to 7% (1189 MW) in 2022 and is likely to increase to 11% (2540 MW) in the next two years. The share of renewable power has increased from less than 0.3% (95 MW) in 2016 to 15% (1582 MW) in 2022 and is likely to increase to 22% (3623 MW) in the next two years.
The policy had successfully deepened the penetration of solar energy in Delhi with a total of 1189 MW of solar power installations commissioned to date, of which 230 MW were through rooftop solar installations. Since 2019, the share of renewable energy in the total power supply also doubled.
The Delhi Solar Policy 2016 expired in 2021 and it was subsequently announced in Rozgar Budget 2022 that Delhi Government will come up with a new Solar Policy in 2022 that will position Delhi as a national and global leader in rooftop solar generation, while simultaneously generating 40,000 green jobs.
