Delhi Cabinet Approves Zero Upfront Cost Rooftop Solar Scheme for 2.3 Lakh Homes
The Delhi Cabinet on Tuesday approved the second amendment to the Delhi Solar Energy Policy, 2023, allowing an estimated 2.3 lakh eligible domestic consumers to install rooftop solar systems of up to 3 kW at zero upfront cost.
Under the revised policy, domestic consumers with an average monthly electricity consumption of up to 400 units during the 2025-26 financial year will be eligible for the scheme, subject to technical feasibility. The Delhi government has set a target to install rooftop solar systems across 2.30 lakh households and add 500 MW of rooftop solar capacity by March 2027.
For households consuming up to 200 units, the existing 100 per cent electricity subsidy will continue after the solar system is installed. A 3 kW solar setup generates roughly 300 units of electricity. If a household produces surplus power, it can supply the excess energy to the grid through net metering and receive payment from distribution companies based on their average power purchase cost.
Funding for the zero-cost installation includes a ₹78,000 subsidy provided by the central government for a 3 kW system, matched by a ₹78,000 capital subsidy from the Delhi government. The state government will also provide an additional top-up to cover the remaining gap between the subsidies and the tendered cost of the solar plant.
Vendors installing the panels will provide free operation and maintenance for the first five years. After five years, consumers can opt for maintenance and insurance through electricity distribution companies or empanelled agencies. The solar systems have an expected lifespan of around 25 years.
The Cabinet also approved reducing the timeline for residential solar net metering from 75 days to 25 days. Additionally, application and registration fees for residential solar systems of up to 10 kW have been waived. The scheme will run on a utility-led aggregation model, with Indraprastha Power Generation Company Limited selecting vendors through competitive bidding and managing installation support and grievance redressal.
Delhi currently has approximately 10,073 solar installations generating about 228 MW, with a significant share located on government buildings.
Chief Minister Rekha Gupta said the amended policy aims to turn residential households into power generators and remove the financial burden of upfront installation costs. Power Minister Ashish Sood stated that the decision secures the capital's existing free electricity benefits while broadening solar adoption.
