Chandigarh Committee Recommends Major Solar Charge Overhaul for Government Housing
In a significant policy shift aimed at providing substantial financial relief to residents, a high-level committee of the Chandigarh Union Territory finance department has approved and recommended a fundamental change in how solar user charges are levied on approximately 6,000 government houses. The committee has proposed moving from the existing fixed charge system to a consumption-based mechanism linked to the lowest power consumption slab.
From Fixed Rate to Consumption-Based Billing
The current system imposes a flat rate of Rs 300 per kilowatt for solar user charges, introduced in 2019 to partially offset the substantial costs incurred by the Chandigarh administration for installing rooftop solar panels on government housing. The committee, after thorough examination from all relevant aspects, unanimously concluded that this flat rate was unjustified and recommended calculating charges based on actual power consumption at the lowest available slab.
"Since the lowest slab of power consumption is currently around Rs 2.80 per unit and keeps fluctuating from time to time, the committee decided that the charges should be consumption-based and that too at the lowest slab so that people can benefit from it," revealed a source within the Chandigarh administration. This proposed shift is expected to significantly reduce the financial burden on thousands of government house occupants across the city.
Committee Composition and Additional Recommendations
The high-level panel comprises senior officials from multiple key departments, including:
- The finance department
- Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST)
- The engineering department
- Chandigarh Power Distribution Limited (CPDL)
During their comprehensive discussions, the committee also unanimously recommended that any surplus solar power generated after being used by occupants of government houses should be routed to CPDL, the power distribution company for Chandigarh. The UT administration would then charge CPDL for this surplus electricity based on the Average Power Purchase (APP) cost, creating a more efficient energy distribution system.
Background and Financial Implications
The solar user charges were initially implemented as the Chandigarh administration had spent between Rs 80 crore to Rs 90 crore on installation of rooftop solar panels across government buildings. This substantial investment covers approximately 6,600 government buildings, including nearly 6,000 government houses, government schools, and other public structures throughout Chandigarh.
These solar-equipped buildings collectively generate about 21 million units of solar energy annually, contributing significantly to Chandigarh's current solar energy generation capacity of around 103 megawatts. The proposed policy change represents a key shift in how solar infrastructure costs are recovered from beneficiaries while simultaneously addressing critical concerns regarding affordability and equitable billing practices.
Administrative Approval Pending
As the proposal involves major financial implications and represents a substantial policy change, the committee's recommendations have been formally sent to the Chandigarh administration for careful consideration and final approval. The administration's decision on this matter is eagerly awaited by residents who stand to benefit from the proposed consumption-based billing system.
The final implementation will depend entirely on approval from the Chandigarh administration, as the matter involves substantial financial considerations and represents a significant departure from the existing billing methodology that has been in place since 2019.
