Installing rooftop solar panels may become easier for Delhi households. The Delhi government is considering an advance payment of five years of production-based incentives under the PM Surya Ghar Muft Bijli Yojana.
The plan aims to reduce the amount that residents must pay at the time of installation. The proposal is still being prepared by the Energy Department and will need approval from the Delhi Cabinet. It has not yet become a final policy.
How much support can a household get?
A 3-kilowatt rooftop solar system costs about Rs 2.25 lakh to install. Under the current support plan, the Central Government provides a subsidy of Rs 78,000. The Delhi Government adds Rs 30,000.
This brings the total subsidy to Rs 1.08 lakh. After this support, the household may need to pay about Rs 1.17 lakh from its own funds.
That amount can still be hard for many families to arrange. The proposed advance incentive could reduce this first payment and make solar power more accessible.
What is the production-based incentive?
The production-based incentive, or GBI, is linked to the electricity produced by a rooftop solar system. At present, residential users with a 3-kilowatt system get Rs 3 per unit under this support. For systems above 3 kilowatts, the rate is Rs 2 per unit.
The incentive is now adjusted through the monthly electricity bill. If the incentive is higher than the bill, the distribution company sends the remaining amount to the consumer’s bank account.
The Delhi Government is now looking at paying five years of this incentive in advance. This could help cover a large part of the amount that a household pays after receiving the main subsidy.
Why is Delhi pushing rooftop solar?
Delhi’s electricity demand continues to rise. Rooftop solar can help households generate some of their own power during the day. It can also reduce pressure on the wider power network.
More than 10,000 rooftop solar systems have been installed in Delhi, according to the Energy Minister. The government wants to raise this number to 2.30 lakh under the PM Surya Ghar scheme.
That is a large jump. The government will need simple application steps, quick approvals and enough trained installers to meet this target. A subsidy that arrives at the right time can also make a big difference. A discount that comes months later may not help a family standing at the payment counter with a large bill.
What the proposal could change for residents
At present, a resident may need to pay the installation cost first and then receive the applicable subsidy and monthly incentive through the approved process. The proposed advance payment could lower the upfront burden.
For a 3-kilowatt system, the support package includes:
- Rs 78,000 from the Central Government
- Rs 30,000 from the Delhi Government
- A possible advance payment of five years of GBI
The exact value of the five-year payment will depend on the power generated by the system and the rules approved by the government. It may not be the same for every household.
What residents should check before applying
Residents should wait for the official rules before making a payment based on the proposed advance incentive. The Cabinet must first approve the plan. The government may also set conditions for system size, approved vendors, documents and payment timelines.
Households should check whether the installer is registered under the scheme. They should also ask for a clear cost sheet that lists the panel system, installation work, paperwork, taxes and maintenance terms.
Solar panels need suitable roof space and regular care. Shade from nearby buildings, trees or water tanks can affect power generation. The roof must also be strong enough for the system and easy to access for cleaning and repairs.
Applicants should keep their electricity connection details, identity documents and bank information ready if these are required under the official process. They should use government portals or authorised channels and avoid paying agents who promise faster approval for an extra fee.
When will the decision be made?
The Delhi Energy Department is preparing the proposal. It will place the plan before the Cabinet for approval. Until that happens, the five-year advance incentive remains under consideration.
For now, the existing subsidy structure and monthly GBI process continue to apply. Any change in the payment method will depend on the final Cabinet decision and the guidelines issued after approval.
