Chandigarh to commence free rooftop solar plant installation in september

Chandigarh is gearing up to launch a program for the cost-free installation of rooftop solar plants in the second week of September. This initiative, led by the Chandigarh Renewable Energy Science and Technology Promotion Society (CREST), is set to bring renewable energy to homes across the city.

The journey to free rooftop solar installations in Chandigarh began when the Joint Electricity Regulatory Commission approved the installation of grid-connected rooftop solar systems in the city under the RESCO (renewable energy service company) model back in January.

However, progress faced a minor hurdle in June when CREST was in the final stages of selecting a company to execute the project. The key point of contention was the Build-Operate-Transfer (BOT) period, with the company proposing 23 years and CREST advocating for 20 years.

To resolve this issue, the administration has intervened and recommended a BOT period of 22.5 years, allowing the project to move forward without delay.

The demand for solar power in Chandigarh

CREST has already received approximately 1,300 applications from residents seeking to benefit from the free installation of rooftop solar plants. These installations collectively have the potential to generate 8.5 MWp (megawatt peak) of solar power.

A senior CREST officer confirmed that with the approval from the UT administration, the selected company will commence installation work in the near future.

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Understanding the RESCO model and its benefits

Under the RESCO model, a private firm is responsible for developing, installing, financing, and operating the rooftop solar power plant for a specified BOT period. During this period, homeowners are entitled to electricity at a fixed rate of ₹3.23 per unit.

Upon the completion of the BOT period, the ownership of the solar plant is transferred to the homeowner at no additional cost. Considering the expected lifespan of the system, which is nearly 25 years, beneficiaries will enjoy free solar power for a minimum of 2.5 years.

Currently, domestic consumers in Chandigarh pay ₹2.75 per unit for consumption of 0-151 units, ₹4.25 per unit for 151-400 units, and ₹4.65 per unit for usage exceeding 400 units.

The UT administration initially made the installation of rooftop solar plants mandatory in residential units measuring 500 square yards and above, as well as in group housing societies, back in May 2016. For the past seven years, homeowners have been eligible for a 30% subsidy on plant installation. However, with the adoption of the RESCO model, the installation of solar plants will now be entirely free of cost.

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Previously, the cost to install a 1 kWp plant was ₹60,000, but with the subsidy, it reduced to ₹42,000. Some residents who had borne the complete installation cost have voiced concerns about not receiving the promised subsidy from the administration.

In conclusion, Chandigarh's initiative to provide free rooftop solar installations is making significant strides, with installations set to begin in September. This marks a significant step toward promoting renewable energy and reducing electricity costs for residents, aligning with the city's commitment to sustainability.