Understanding Solar Incentives in Delhi and Haryana – Asia Pacific

With Delhi and Haryana leading the way, the transition to solar energy has become more accessible than ever. Financial incentives, innovative models, and supportive policies make it easier for residents, farmers, and businesses to adopt this sustainable energy source.

January 06, 2025. By News Bureau

As the world moves toward cleaner and greener energy solutions, solar energy has become a leading choice for renewable energy. India is striding on its path toward net zero target and renewable transition is coming out as a major path toward this goal. 

The efforts are also being taken by states of India by contributing with regional efforts in the broader national renewable goals. Indian states are offering innovative policies that make adopting solar power easier and more affordable. Whether you are a homeowner, farmer, or business owner, understanding these policies can help you transition to solar energy. 

Here’s a clear and straightforward guide to the solar energy initiatives in Delhi and Haryana.

Solar Energy in Delhi: A Visionary Approach

Delhi’s Solar Energy Policy 2023, launched in March 2024, aims to install 750 MW of rooftop solar capacity within the state and source 3,750 MW of solar power from utility-scale projects outside Delhi. This initiative reflects the city’s commitment to reducing its reliance on traditional energy sources and promoting sustainability.

Under the same policy, Delhi recently launched the Delhi Solar Portal to accelerate rooftop solar adoption for residents and businesses. The portal targets a cumulative rooftop solar capacity of 750 MW by 2027, transitioning at least 25 percent of the city’s electricity consumption to solar energy.

Financial Incentives for Solar Adoption

Delhi offers several financial incentives to make solar energy adoption accessible and cost-effective. 

Residents can benefit from a State Capital Subsidy, which provides INR 2,000 per kW, up to a maximum of INR 10,000. This subsidy is directly adjusted in the consumer’s electricity bill after the solar system is operational, ensuring a smooth and immediate financial benefit.

Additionally, Delhi’s Generation-Based Incentive (GBI) rewards consumers for the energy their solar systems generate. Residential systems up to 3 kW earn INR 3 per kWh, while systems between 3 and 10 kW earn INR 2 per kWh. Group Housing Societies with systems up to 500 kW also qualify for INR 2 per kWh, and commercial and industrial users can earn INR 1 per kWh for the first 200 MW deployed.

Residents can also take advantage of the Central Financial Assistance (CFA) provided by the Ministry of New and Renewable Energy (MNRE). This includes INR 30,000 per kW for systems up to 2 kW, INR 18,000 per kW for capacities between 2 and 3 kW, and a fixed amount of INR 78,000 for systems above 3 kW. These incentives make solar installations not just affordable but also a smart financial choice for Delhi’s residents and businesses.

Innovative Solar Models

Delhi’s solar policy goes beyond financial subsidies by introducing creative business models. The Community Solar Model, for instance, allows individuals without rooftop space to benefit from shared solar installations, making solar energy accessible to everyone. The Peer-to-Peer Trading model enables consumers with surplus energy to sell it to others, creating a dynamic energy marketplace.

For those with rooftop space but limited funds, the Hybrid RESCO Model offers a solution by eliminating upfront costs. This model enables users to adopt solar energy without worrying about financial barriers. The government has also mandated the solarisation of all government buildings with rooftop areas exceeding 500 square metres. This step not only reduces energy costs for public facilities but also sets a strong example for private entities.

Haryana’s Solar Energy Drive

Haryana, with its abundant sunshine and 330 sunny days a year, is well-positioned for solar energy generation. Haryana’s government is focused on expanding its solar capacity through various initiatives that cater to its diverse population.

Financial Support for Solar Installations

Haryana residents can benefit from the Central Financial Assistance (CFA) offered by MNRE. This financial aid reduces the cost of installing solar systems, making solar energy adoption more affordable. The subsidy structure includes INR 30,000 per kW for systems up to 2 kW, INR 18,000 per kW for systems between 2 and 3 kW, and a fixed subsidy of INR 78,000 for systems above 3 kW. These subsidies significantly lower the upfront investment, making solar a viable option for households and small businesses.

Solar Initiatives for Farmers and Rural Development

Haryana’s solar policies place a strong emphasis on supporting farmers and rural communities. The Solar Water Pumping Programme provides a 75 percent subsidy for solar pumps ranging from 3 HP to 10 HP. This initiative reduces farmers’ reliance on diesel pumps, cutting irrigation costs and promoting sustainability.

In rural areas, the government is also implementing a solar-powered street lighting programme using LED-based systems. These systems rely entirely on solar energy, reducing electricity expenses and ensuring a reliable lighting solution. Government buildings across the state are adopting solar power through CAPEX and RESCO models, which further promote renewable energy adoption.

Policy Support for Businesses and Industries

Haryana’s Solar Power Policy 2021 encourages businesses and industries to adopt solar energy. Rooftop solar systems, canal-top installations, and grid-connected solar projects are promoted for captive consumption. Small and medium enterprises benefit from systems of up to 100 kW, while larger industries with higher energy demands typically install systems of 500 kW or more.

The state also supports the local manufacturing of solar-related equipment by offering a 10 percent tax exemption and priority land allotment to manufacturers. 

Draft Haryana Solar Power Policy 2023

The Haryana government last year introduced the Draft Haryana Solar Power Policy 2023, targeting the installation of 6 GW of solar power capacity by 2030. This ambitious plan includes 3.2 GW of ground-mounted solar projects, 1.6 GW of rooftop solar installations, and 1.2 GW from the solarization of irrigation pumps. 

For ground-mounted solar projects, 20 percent of the capacity is reserved for small generators of up to 2 MW. The policy allows entities to set up solar projects for self-consumption without capacity limits and provides the option to transmit power through open access. To further encourage investments, the state plans to develop solar parks equipped with comprehensive infrastructure to attract independent power producers.

In the rooftop solar segment, the policy permits both CAPEX and RESCO models. Net metering is allowed for systems up to 500 kW or the sanctioned load, whichever is lower. The cumulative capacity for rooftop solar installations is capped at 500 MW, with an annual review conducted by the Haryana State Electricity Commission (HERC) to monitor progress and adjust targets.

The policy also promotes the solarization of irrigation pumps, aligning with schemes like the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), to achieve a target capacity of 1.2 GW. This initiative aims to support the agricultural sector by reducing energy costs and enhancing access to renewable energy.

To facilitate adoption, the policy offers several exemptions and incentives. Utility-scale solar projects are exempt from land use approvals, external development charges, and stamp duty. Additionally, the policy waives transmission and wheeling charges for eligible projects, reducing overall costs and encouraging the development of solar infrastructure across the state.

Comparing the Two Approaches

Delhi and Haryana have adopted unique approaches to solar energy, each tailored to their specific demographics and needs. Delhi focuses on urban households, businesses, and institutions, offering diverse financial incentives and innovative models to make solar energy adoption feasible. 

Haryana, on the other hand, earlier placed greater emphasis on agricultural and rural development while addressing the energy needs of businesses and industries. In the new draft policy, the state is hoping to give a push to nearly all the sectors including ground-mounted solar projects, rooftop solar installations, and solarization of irrigation pumps

Both states, however, share the same goal: to make renewable energy accessible and practical for all. By driving solar adoption, Delhi and Haryana contribute significantly to India’s renewable energy goals, setting an example for other states to follow.

The Path Forward

Solar energy is no longer just an environmentally conscious choice. It is a practical and financially sound solution for energy needs. With Delhi and Haryana leading the way, the transition to solar energy has become more accessible than ever. Financial incentives, innovative models, and supportive policies make it easier for residents, farmers, and businesses to adopt this sustainable energy source.

Now is the time to take action. Explore the benefits and incentives available in your state, calculate your energy needs, and make the switch to solar power. By choosing solar energy, you are not only reducing your electricity bills but also contributing to a cleaner, greener future for generations to come. Solar power is the future of energy—be a part of the revolution today.

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