Delhi solar policy exempts Electricity Tax, Open Access Charges, VAT, Entry Tax, CSS and Transmission Charges

The exemptions, benefits, and incentives below shall be available to solar plants implemented by the eligible entities, as applicable, during the Operative Period of the Policy.

Exemption from the payment of Electricity Tax and Cess **

Electricity Tax (currently 5%) shall be exempted for solar energy units generated, whether for self-­‐consumption or supplied to the grid. In other words, Electricity Tax will be applicable only on net consumption charges billed by the DISCOM at the applicable rate.

Exemption on open access charges

There shall be no Open Access Charges during the Operative Period of the Policy if the solar electricity is generated and consumed within the State.

Exemption on conversion charges

The implementation of rooftop solar energy systems shall be permitted by the State Planning Department, after necessary scrutiny. Residential consumers opting to implement solar plants to sell power to the grid shall be exempted from conversion of house tax to commercial tax.

Exemption on VAT and entry tax

All solar panels, inverters, energy meters, and other devices purchased for the installation of solar plants in Delhi shall be exempted from VAT and entry tax during the Operative Period.

Exemption on wheeling and banking charges

There shall be no wheeling and banking charges for solar plants commissioned during the Operative Period.

“Must Run” status

All solar power systems shall be treated as ‘Must Run’ power plants and shall not be subjected to Merit Order Rating (MOR) / Merit Order Dispatch (MOD) principles.

** DMC (Assessment and Collection of Tax on the Consumption, Sale or Supply of Electricity) Bye Laws, 1962 provides for levying a tax on consumption, sale or supply of electricity and also levies a tax on electricity generated for own consumption.

Cross subsidy charges

DERC shall exempt payment of cross-­‐subsidy charges and surcharge for solar plants commissioned during the Operative Period of the Policy.

Transmission charge

There shall be no Transmission Charges for solar plants commissioned during the Operative Period of the Policy.

CDM (Clean Development Mechanism) benefit

All risks, costs, and efforts associated with the availing of carbon credits shall be borne by the solar energy generating entity. Further, the generating entity shall retain the entire proceeds of carbon credit, if any, from an approved CDM project.

Posted in Uncategorized | Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *