Experts Question Feasibility of Budget Allocation

In a bid to promote clean and affordable energy in the national capital, the Delhi government has made a major announcement for domestic consumers. In a cabinet meeting held on May 20, 2025, chaired by Chief Minister Rekha Gupta, it was decided that households installing rooftop solar panels would receive a total subsidy of up to Rs 1,08,000.

However, experts believe that implementing the scheme on the ground won’t be easy.

Binit Das, Program Manager at the Delhi-based think tank Centre for Science and Environment, told Down To Earth (DTE), “The enhanced subsidy of Rs 30,000 from the state government along with Rs 78,000 from the central government for installing 3 kW solar panels at the household level is a bold step towards faster adoption of rooftop solar. However, there are some serious shortcomings.”

However, according to Das, the allocated budget of Rs 50 crore for 2,30,000 installations is quite low.

“It means only Rs 2,174 per unit would be available, which is far less than the promised Rs 30,000 subsidy per household, raising concerns of a financial shortfall,” Das stated.

“The claim of saving Rs 4,200 per month is not backed by solid data, suggesting the benefits might be overstated. Achieving the goal of 2.3 lakh installations in three years will also require a robust supply chain and trained workforce — without which the target will be hard to meet,” he added.

Plan outline

Under the approved plan, in addition to the existing Rs 78,000 central subsidy for up to 3 kW rooftop solar systems, the Delhi Government will now provide direct financial assistance of up to Rs 30,000. This is being implemented under the ‘State Top-Up’ component of the Free Electricity Scheme, with a budget allocation of Rs 50 crore.

Previously, the subsidy ranged between Rs 2,000 to Rs 10,000 per kW, but now it has been standardised at Rs 10,000 per kW.

According to media reports, Chief Minister stated, “Delhi Government is offering the highest financial assistance in the country to promote solar energy.”

She mentioned that the government aims to install rooftop solar panels on 2,30,000 households in the next three years.

Following the amendment in the Delhi Solar Policy 2023, domestic consumers can now avail subsidies of up to Rs 30,000 per month. This is expected to significantly reduce electricity bills and lower dependence on the power grid.

The government also announced that it is partnering with financial institutions to make the scheme more effective and inclusive. This will provide consumers with easy loan options, enabling them to adopt solar energy without a heavy upfront investment.

Chief Minister Gupta reiterated that the Delhi government is providing the highest financial support in the country for promoting renewable energy. She confirmed the target of installing 2.3 lakh residential rooftop solar power systems in the coming years.

Media reports quoted the Chief Minister as saying, “To make solar adoption easier and more affordable, the Delhi Government is collaborating with financial institutions to offer easy loan options to consumers.”

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