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:
- MNRE subsidy on the system cost of 15%
- Net-metering (Virtual battery system without the need of expensive batteries)
- Generation Based Incentive of INR 2/unit of electricity produced (proposed in the Delhi Solar Energy Policy)
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.
Cash flows (without GBI) for a 10 kW system
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.