Thinking of installing solar panels on your terrace but worried about the high cost that can run into lakhs? The Delhi government is planning to revise its Solar Policy to make rooftop solar panels more affordable by giving generation-based subsidies upfront, provided households have adequate terrace space.For residents, this could significantly reduce the initial expense. Instead of receiving the generation-based subsidy in installments over five years, eligible households would get it upfront, with the government saying it could cover nearly 90% of the installation cost.The existing Delhi Solar Policy, notified in March 2024, aims to increase the city’s installed rooftop solar capacity to 750 MW (mega watt) while providing a mix of state capital subsidy, generation-based incentives and the Centre’s financial assistance for residential consumers.Also Read | How transmission bottlenecks are threatening India’s renewable energy projectsSubsidy now upfrontDelhi Power Minister Ashish Sood said the biggest hurdle in the adoption of rooftop solar systems has been the high upfront cost, which can go up to around Rs 2 lakh for larger systems. “To encourage the public, we are planning to provide generation-based subsidies under schemes of the Delhi and Central governments, which is currently spread over five years, in one go. This will cover nearly 90% of the installation cost,” he said.He explained that after the subsidy, households may have to pay only around Rs 15,000 from their own pocket to install a rooftop solar system, depending on the system’s capacity.Express Explained | Power subsidies are slowing household solar adoption. A solution: More subsidiesSood said many households can meet their electricity needs with a 2 kW rooftop solar system, which would also reduce the government’s subsidy burden.He added that discussions on the revised policy, and proposed changes and modifications have taken place in multiple meetings.Story continues below this adThe minister said the proposed policy aims to address the single biggest concern raised by residents — high upfront investment required for rooftop solar installations. “Under the revised policy, homeowners would primarily need to provide terrace space, while the government’s support would substantially reduce the installation cost,” he said.“The department is ready with the final draft, it will soon be placed before the Cabinet for approval,” he said.What the current policies offersUnder the Centre’s PM Surya Ghar-Muft Bijli Yojana, residential consumers can avail Rs 30,000 per kW for systems up to 2 kW, plus another Rs 18,000 per kW for additional capacity up to 3 kW — taking the maximum central subsidy to Rs 78,000.Under the existing Delhi Solar Policy, residential consumers are eligible for a state capital subsidy of Rs 10,000 per kW, capped at Rs 30,000.Story continues below this adThis takes the total financial assistance available to an eligible household to Rs 1.08 lakh.The state has also waived technical feasibility approvals for residential rooftop systems up to 10 kW, besides introducing time-bound online approvals to speed up installations.The minister said at present, only about 10,000 solar panels have been installed on residential rooftops and others. Sood said the government is collecting data to frame the revised policy and is working in coordination with the Centre.Excess power can be soldSood said consumers would continue to benefit from net metering, with surplus electricity generated by rooftop solar systems being exported to the grid.Story continues below this ad“The excess power will go to the grid, and consumers will be paid around Rs 5 per unit,” he said.Five-year targetThe power minister further added that the city government’s immediate priority is to achieve rooftop solar targets under the Centre’s ‘PM Surya Ghar’ scheme, which is around 2.30 lakh panels.He said Delhi currently has around 500 MW of rooftop solar capacity, and that the revised Solar Policy will lay down year-wise targets for the next five years to accelerate rooftop solar adoption.Besides incentivising households, the government also plans to solarise government buildings, including government offices, and progressively meet their electricity requirements through solar power.