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Delhi Studies Odisha Model for Solar Policy

Why in the News ?

The Delhi government is examining Odisha’s Utility-Led Aggregation (ULA) model under the PM Surya Ghar: Muft Bijli Yojana to frame a new solar power policy that aligns with environmental clearance norms and promotes a pollution free environment. Major announcements are expected in the upcoming 2026–27 Delhi Budget, aimed at boosting rooftop solar adoption while ensuring compliance with environmental impact assessment requirements.

Odisha’s ULA Model and Delhi’s Policy Review:

  • The Delhi government is studying the Utility-Led Aggregation (ULA) model implemented in Odisha to expand rooftop solar installations, ensuring streamlined environmental clearances for residential projects.

  • Under the model, households make a one-time payment of ₹5,000 for installing a 1 kW rooftop solar panel, with simplified procedures that avoid complex ex post facto compliance issues.

  • The remaining cost is covered through Central and State government subsidies, ensuring affordability while adhering to principles of environmental democracy in energy policy formulation.

  • Officials believe replicating this model could significantly scale up rooftop solar capacity in the national capital, eliminating the need for retrospective environmental clearances through proper planning.

  • Consultations with power distribution companies (DISCOMs) are underway to finalise the contours of the new solar policy, incorporating lessons from environmental jurisprudence and the EIA notification framework.

Expected Benefits and Budget Announcements

  • The proposed framework aims to reduce peak power demand in Delhi, especially during summer months, while promoting a pollution free environment through clean energy adoption.

  • Increased rooftop solar adoption could lower electricity bills for consumers and promote clean energy transition, following the precautionary principle in environmental protection.

  • Standardised pricing and streamlined installation processes under the ULA model may improve efficiency, avoiding ex-post regulatory complications that often delay renewable projects.

  • The 2026–27 Delhi Budget is likely to include major announcements related to the new solar power policy, with provisions for proper environmental clearance mechanisms aligned with the Forest Conservation Act where applicable.

  • Delhi’s Power Minister Ashish Sood stated that the government seeks to make solar adoption easier and more accessible for residents, incorporating the polluter pays principle by incentivizing clean energy over fossil fuels.

About PM Surya Ghar: Muft Bijli Yojana:

●  PM Surya Ghar: Muft Bijli Yojana (2024): A central government initiative to promote rooftop solar installations and reduce household electricity costs, with built-in environmental impact assessment protocols for larger installations.

●  Utility-Led Aggregation (ULA) Model: Power utilities coordinate procurement, installation, and subsidy disbursement to simplify the process for consumers, ensuring compliance with environmental clearances and avoiding post facto legal challenges as seen in the Vanashakti judgment.

●  Rooftop Solar Systems: Decentralised renewable energy installations that contribute to energy security and lower carbon emissions, promoting a pollution free environment in urban areas including those near coastal regulation zone boundaries.

●  Subsidy Structure: Financial support from the Central and State governments to encourage renewable energy adoption, reflecting principles of environmental democracy and sustainable development.

●  Renewable Energy Targets: India aims to achieve 500 GW of non-fossil fuel capacity by 2030 under its climate commitments, guided by the precautionary principle in environmental planning.