cash incentive

Delhi Solar Policy: Generation Based Incentives

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The Delhi Solar Policy (draft) has proposed a great incentive for end customers called ‘Generation Based Incentive’ (GBI). And guess what? This time, it aims for capturing volumes- Residential Customers. This move may actually be a turning point in the uptake of solar in the residential segment, that too at a location where the highest slab tariff is so high!

Delhi is probably the most ripe place to go solar (tariff-wise refer) after Mumbai. The three incentives that make it even more desirable for the residential segment are:

GBI has been proposed to reduce the pay-back period further by paying the end customer INR 2/ unit of solar produced, eight times what Haryana will provide to its customers as an incentive (refer). Money would be transferred on an annual basis by the State Nodal Agency (Energy Efficiency and Renewable Energy Management Centre) before 15th April. However, this proposition has an absolute validity of 3 years starting from the beginning of 2016. Eligibility for availing this scheme is as follows:

  • GBI would not be provided for more than 1,500 units/ kWp (annual generation)
  • Minimum eligibility for to avail this is generation of 1,000 units in a year

Let’s do a direct comparison between savings with and without this incentive for a typical 10 kW solar power system.

CCF_without incentive

Cash flows (without GBI) for a 10 kW system


CCF_with incentive

Cash flows (with GBI) for a 10 kW system


In the first case the breakeven is achieved in 4 years whereas in the second case, it is achieved in 3 years. Also, the savings are considerably higher in the first 3 years when such an incentive is given. The monetary benefit for a residential customer is evident.

When in these 3 years do you plan to go solar?

Our suggestion: Make a New Year’s resolution to do so. Get a free estimate of your solar power system using Sunkalp’s Solar Calculator.

Tanya Batra

Tanya keeps a close track of policy updates in the field of Rooftop Solar in India and likes to write blogs on its application for the end customer

4 thoughts on “Delhi Solar Policy: Generation Based Incentives

  1. Hi Tanya
    What is your assessment of the policy provisions in the Delhi Solar Policy to deal with loss of generation due to load shedding.
    Please model the impact of load-shedding on such net-metered Roof-top SPV systems.
    Dr. Rajan Kapur

    1. Dear Rajan,

      Very good suggestion. Typically, I have not considered systems that require batteries- hence looking at parts where power cuts are infrequent. I will surely consider covering something in that as well.

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