UT approves of solar plants installation under Resco model

Under the Race model, residents will not have to spend a penny on setting up an SPV power plant

The UT administration has approved the installation of solar photovoltaic (SPV) power plants on the roofs of the residential sector under the Renewable Energy Services Company (Resco) model.

The Chandigarh Renewal Energy and Science and Technology Promotion Society (CREST) is currently tendering and 2,200 systems will be awarded as pilot projects on a first come first serve basis.

Under the Race model, residents will not have to spend a penny on setting up an SPV power plant. The SPV plant will be set up by a private company. Residents will only be allowed to set up plants on their property.

Read Also: Tata Power has developed a 100 MW solar project in Maharashtra

The equipment will be maintained by the private company, while the surplus power generated by the plant will be paid to the company against the electricity used. After a period of about 15 years which will be settled through e-tender, ownership of the plant will be transferred to the resident without any additional payment.

By the project transfer period, the beneficiaries will get solar power at a fixed fee of ₹ 3.44 per unit. Currently compared, residents pay 2.75 per unit for the first 150 units, ₹ 4.80 per unit up to 400 units, and ₹ 5.20 per unit if usage crosses 400 units of consumption. Crest officials said that according to calculations an average consumer would save between 1-2 per unit.

Read Also: Tata Power plans to develop 120 MegaWatt solar project in Gujarat, 300 million kg of CO2

More residents with a connected load of 5kWp and regardless of the size of their plot will be eligible. As a pilot project, 2,200 systems will be installed on a first come first serve basis. The project will be set up to a maximum connected load of up to 10kWp.

Crest Chief Executive Officer, Devendra Dalai said, “The department will soon launch a website for interested people after tendering. The number of years before the SPV plant by residents will be variable, but it is expected to be around 15 years, ”he said, adding that solar panels on the roof would help keep the top floor cool during summer.

Read Also: British Petroleum operates a global trade service centre in Pune, employing 2,000 employees

Essentially, all plots above 500 square yards are to be equipped with SPV power plants, the last date of which has been extended to 31 March 2021. This scheme will benefit the plot owners who do not want to spend millions on this system, although those with plots smaller than 500 square yards can also apply.