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This incentive will be funded by Delhi government's “air ambience fund“ created from the 25 paise cess on each litre of diesel bought in the city . Experts say GBI, which is meant to be offered only for two years, can be a great boost for domestic consumers. “We have set aside around Rs 10 crore for the solar GBI from the environment department's air ambience fund,“ said Ashwani Kumar, environment secretary .
Another good news for those investing in solar power is that the Centre has restarted its 30% subsidy on the capital cost of the project. The subsidy had been rolled back to only 15% last year.
Power department officials, however, clarified that the incentive will not be given for commercial rooftop projects.“We are offering GBI to households or trusts in addition to the 30% subsidy from the ministry of new and renewable energy ,“ an official said, adding that the solar policy is likely to be notified soon.
Delhi Dialogue Commis sion (DDC) had released a draft solar policy in September after getting inputs from industry as well as NGOs. The focus of the subsidy is to ensure that all existing and proposed Delhi government buildings install solar rooftop systems within three years of notification of the policy. The same applies to all new commercial buildings, with plot size greater than 500 sq m and 50% shadow-free rooftop area, and all new residential buildings, with plot size grea ter than 300 sq m and 50% shadow-free area.
Projects of 5MW will soon be commissioned at Netaji Subhash Institute of Technology and Delhi Technological University , among others.
Installing a net metering system is essential to avail the incentive. Net metering is the billing arrangement with the electricity utility that shows how much power a consumer is supplying to the grid so that they can be compensated accordingly . The current net metering tariff being offered by DERC for electricity supplied to the grid is about Rs 5 per kwh, which is likely to be higher now with the introduction of GBI.
The reason for not making GBI a permanent feature is because solar energy is already very competitive. Recently solar tariffs for large projects fell to a record low of Rs 4.34 per unit. Delhi government's draft policy states that the market conditions have “never been more favourable“ for solar rooftop systems. “While solar tariffs have fallen by 6% to 8% per year since 1998, conventional energy prices in Delhi have risen by 6.9% per year on average since 2007,“ it states.
“GBI is great for people to become early adopters of solar rooftop systems. It also decreases the payback time for residents. With constantly falling solar tariff, the time is ripe to see the solar policy in practice in the capital. It would have been ideal to see it in practice before the peak summer power shortages hit us,“ said Pujarini Sen, campaigner, Greenpeace India.
To promote solar projects in the city , the power department Tuesday said it has waived off the mandatory certification of solar projects by the electrical inspector for projects up to 200 kW . Till now it was required for any project of 100 kW and above.
News Source: Times Of India