Chief Minister Rekha Gupta presided over a cabinet meeting on May 20, 2025, where the Delhi government unveiled a significant incentive to support sustainable energy. Domestic customers can earn up to Rs 1,08,000 in combined subsidies for installing rooftop solar panels. This comprises Rs 30,000 from the state’s “State Top-Up” portion of the Free Electricity Scheme and Rs 78,000 from the federal government. To promote adoption, Delhi’s rooftop solar subsidy is now being presented as one of the most financially supportive in the country.

The new program provides direct financial support of Rs 10,000 per kW for installations up to 3 kW, standardizing the subsidy that previously varied between Rs 2,000 and Rs 10,000 per kW. The program has been given a budget of Rs 50 crore. The government wants to equip 2,30,000 homes with rooftop solar systems in three years.

Chief Minister Gupta reportedly stated in media reports that the Delhi government is providing the highest financial support in the nation for promoting solar energy. To make the switch to solar energy more accessible and inclusive, she reaffirmed her intentions to collaborate with financial institutions to provide simple loan choices.

Budget Allocation Triggers Concerns Over Feasibility

Experts have expressed concerns regarding the scheme’s viability for implementation. Program Manager Binit Das of the Centre for Science and Environment in Delhi said that although the extra Rs 30,000 subsidy is a good step in increasing the use of solar power, the scheme’s financial foundations are poor.

Das emphasized that the projected Rs 30,000 subsidy is significantly higher than the Rs 50 crore allotted, which, when split among the intended 2.3 lakh installations, comes to just Rs 2,174 per unit. This discrepancy indicates a significant cash deficit that may make the plan less successful.

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Execution Challenges and Unverified Savings Claims

Das indicated logistical issues, pointing out that a good supply chain and trained personnel would be required if it had to achieve 2.3 lakh installations in three years. Without both, the rollout might take a considerable amount longer.

He also challenged the Delhi Government’s claim of a possible saving of Rs 4,200 a month per household, saying there was insufficient evidence to prove the figure. Das claims that the scheme’s advantages can be exaggerated without proof to support such savings.

The government’s strategy behind Delhi’s rooftop solar subsidy could face difficulties if operational gaps and fiscal inconsistencies are not addressed.

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