Solar Power Producers at New Delhi Look for a Tariff Policy with Subsidy

The solar segment of the India is waiting for a fillip under its recently announced Jawaharlal Nehru National Solar Mission that has set a target of 20,000 MW solar power productions by the year 2022. The city of New Delhi is set to meet 5% of its total power demand through solar energy by the year 2012.

Recently, the state government of New Delhi has announced its tariff for the power produced from solar installations. The Delhi Electricity Regulatory Commission, the apex body liable for fixing solar power tariffs has declared the tariff as Rs.19/- per unit of power. It is feared that this high cost without adequate government subsidy may not find many takers. The solar segment of the state received a setback despite the encouragement it received from the power companies and corporates due to the fluid government policy in extending solar subsidy. The tariff announced by the authority does not include the rebate anticipated from the Ministry of New and Renewable Energy and the entire burden of solar power production is put on the consumer. A power industry expert said that if the fixed tariff of Rs.19/- receives a subsidy of Rs.13.50 per unit, the power distribution companies can pay the balance of Rs.5.50 on behalf of the consumers which will allow the industry to thrive.

The absence of a clear cut solar tariff policy has affected the distribution companies from feeding the excess power produced to the grid and make money out of it. Similarly it prevented the individual solar power producers from getting any compensation from the power distribution companies. More solar projects can make a headway only on announcement of a subsidy policy.