Delhi Solar Energy Policy: Objectives, Subsidies and Key Benefits

The Delhi Solar Energy Policy 2023 was notified in March 2024 by the Government of the National Capital Territory of Delhi with the goal of increasing rooftop solar capacity to 750 MW within Delhi and accessing 3,750 MW of utility-scale solar from outside the state, totalling 4,500 MW by 2026 to 2027. Aligned with the Jawaharlal Nehru National Solar Mission, the policy offers residential and commercial consumers state capital subsidies, Generation-Based Incentives and access to MNRE's Central Financial Assistance, making rooftop solar adoption significantly more affordable and financially rewarding for Delhi households and businesses.

The policy is built around clear and measurable goals designed to accelerate clean energy adoption across Delhi at both the residential and commercial level. It is a key part of India's broader rooftop solar programme to decentralise clean energy generation.

• Achieve 750 MW of rooftop solar capacity within Delhi: The policy sets a specific target of 750 MW of installed rooftop solar capacity within Delhi by 2026 to 2027, driving large-scale adoption across residential, commercial, industrial and government buildings across the city.
• Access 3,750 MW of utility-scale solar from outside Delhi: In addition to in-state rooftop solar, the policy declares Delhi's intention to source approximately 3,750 MW of utility-scale solar power from outside the state to meet its growing electricity demand and renewable purchase obligations.
• Reduce household electricity bills through solar generation: By enabling residents to generate their own solar power and benefit from net metering and Generation-Based Incentives, the policy aims to significantly reduce or eliminate monthly electricity bills for Delhi households, with a particular focus on making rooftop solar financially viable for all consumer segments.
• Introduce innovative business models for solar adoption: The policy introduces multiple business models including CAPEX, RESCO and Hybrid RESCO to remove financial barriers and give consumers flexibility in how they adopt rooftop solar without mandatory upfront capital investment.
• Mandate solar on government buildings: All Delhi government buildings and properties with a rooftop area of 500 sq. metres or above are mandated to install solar systems under the policy, with the government leading by example in scaling up solar adoption across public infrastructure.

The policy offers multiple layers of financial support for solar adopters in Delhi, combining state-level incentives with central government assistance. These subsidies are complementary to the production incentives supported under the Solar PV Module PLI Scheme that strengthens India's domestic solar manufacturing base.

Disclaimer: Subsidy rates and terms are subject to revision. Always verify current rates on the official Delhi Solar Portal at solar.delhi.gov.in or the PM Surya Ghar Yojana portal at pmsuryaghar.gov.in before applying.

The policy delivers a wide range of financial, environmental and practical benefits for Delhi residents and businesses who adopt rooftop solar under its framework.

• Significant reduction in monthly electricity bills: By generating their own solar power and benefiting from net metering, Delhi consumers can substantially reduce or in many cases eliminate their monthly electricity bills. Residents consuming less than 200 units per month who already receive a zero bill can additionally earn a monthly income of Rs. 700 to Rs. 900 through Generation-Based Incentives.
• Multiple layers of financial support: The combination of the Delhi state capital subsidy, Central Financial Assistance under PM Surya Ghar Yojana and the five-year Generation-Based Incentive creates one of the most financially rewarding rooftop solar ecosystems in India, making the investment case for Delhi residents particularly strong.
• Roll-over of excess solar units for 12 months: After monthly net metering, any remaining surplus solar units are rolled over into subsequent billing cycles for up to 12 months until the close of every financial year, ensuring no generated energy goes to waste and maximising the financial benefit from every unit of solar power produced.
• Additional annual income for surplus generators: At the end of the financial year, if the total solar power generated exceeds the consumer's annual electricity demand, the DISCOM pays the consumer for the surplus units, converting the rooftop solar system into an active income source in addition to a bill-reduction tool.
• Flexible adoption models for all consumer types: The availability of CAPEX, RESCO and Hybrid RESCO models ensures that consumers across all financial situations can adopt rooftop solar, whether they have capital available for an outright purchase or prefer a zero-upfront arrangement with a developer.
• Environmental contribution to cleaner Delhi air: Widespread rooftop solar adoption under the policy directly reduces Delhi's dependence on coal-based electricity, contributing to lower carbon emissions and improved air quality across one of India's most pollution-affected urban areas.

Understanding the eligibility requirements before applying ensures a smooth and successful solar installation and subsidy claim process in Delhi.

• Residential property owner with an active DISCOM connection: The applicant must be the owner of a residential property in Delhi with an active electricity connection under one of the three DISCOMs serving the city, which are BSES Rajdhani Power Limited, BSES Yamuna Power Limited and Tata Power Delhi Distribution Limited.
• Minimum 10 to 12 sq. metres of shadow-free rooftop area: A minimum vacant rooftop area of 10 to 12 sq. metres or 100 to 120 sq. ft of shadow-free space is required for a 1 kW solar installation. Larger systems require proportionally more unobstructed rooftop area that receives direct sunlight for at least six hours daily.
• Single-phase or three-phase electricity service connection: The consumer must have either a single-phase or three-phase electricity service connection with the respective DISCOM. The existing service connection meter will be replaced with a bidirectional net metering meter after the solar system is commissioned.
• Use of ALMM-listed and DCR-compliant solar panels: For Central Financial Assistance eligibility, the solar panels must be on the Approved List of Models and Manufacturers and must meet the Domestic Content Requirement, meaning the PV module and cell must be manufactured in India. Always confirm ALMM listing and DCR compliance with your installer before finalising the panel brand.
• Installation by an empanelled vendor: The solar system must be installed by a vendor empanelled with IPGCL or registered on the PM Surya Ghar Yojana or Delhi Solar Portal. Using a non-empanelled installer disqualifies the installation from receiving any state or central subsidy.
• Required documentation: Documents typically required include proof of identity such as Aadhaar card, PAN card or Voter ID, proof of property ownership or residence, the active electricity consumer number and recent electricity bill, bank account details and a cancelled cheque for Direct Benefit Transfer of the central subsidy.