Ladakh Floats Draft Rooftop Solar Policy For Commercial Prosumers

The Ladakh Power Development Department (LPDD) has released a Draft Rooftop Solar Policy to accelerate the deployment of rooftop solar energy systems among commercial consumers. The policy outlines a targeted, subsidy-based initiative for installing grid-connected rooftop solar PV systems, aiming to leverage a commercial base of over 10,800 consumers and a sanctioned load of nearly 29.5 MW across both districts of the Union Territory as of March 31, 2025. The initiative targets decentralized energy generation and better utilization of vacant commercial rooftops.

Expected Outcomes

The scheme seeks to increase solar capacity in Ladakh’s commercial sector, promote renewable energy adoption, reduce grid congestion, and lower diesel generator usage in remote areas with limited grid access. It proposes establishing a digitally integrated platform to track, monitor, and manage subsidies, enhancing compliance and operational efficiency.

The policy also aims to empower commercial consumers to become prosumers—those who both produce and consume electricity—thus enabling active participation in Ladakh’s clean energy transition. It supports national renewable energy and carbon neutrality goals while contributing to the creation of a resilient and sustainable local energy ecosystem.

All stakeholders, including commercial electricity consumers, solar developers, and the general public, are invited to submit comments, suggestions, or objections on the proposed policy within 21 days from the date of notification.

Proposed Installation and Subsidy Model

The draft encourages solar installations ranging from 1 kW to 40 kW. These will be supported by a UT-funded capital subsidy of ₹15,000 per kW or one-third of the total project cost (whichever is lower), capped at ₹6,00,000 per consumer.

A dual-phase energy accounting mechanism is proposed:

• Offset Phase: Excess energy exported to the grid offsets the subsidy received. The offset rate is based on a levelized tariff of ₹3.56 per kWh (subject to revision by LPDD and the Hon’ble JERC-JKL).

• Buyback Phase: Once the subsidy is fully offset, LPDD will purchase any additional exported electricity at regulated rates.

Eligibility Criteria

To qualify for participation, commercial consumers must:

• Be registered under the Commercial Tariff Category recognized by LPDD;

• Own or lease the rooftop where the system is installed;

• Install a grid-connected system compliant with LPDD and JERC Ladakh’s net metering regulations.

System capacity limits are defined as:

• Consumers with a sanctioned load of less than 1 kW must install a minimum 1 kW rooftop solar plant.

• Consumers with a sanctioned load above 1 kW may install rooftop capacity up to 80% of their sanctioned load, rounded to the nearest whole number (kW).

For this scheme, the sanctioned load for all existing consumers will be frozen as of March 31, 2025, and used to determine eligible solar capacity.

Capacity Range and System Limitations

Solar projects of up to 500 kWp at a single premise, based on MNRE-approved technologies, are eligible to connect to the grid under this proposal. For systems installed under Group Net Metering or Virtual Net Metering, the capacity must range from 5 kWp to 500 kWp.

To be eligible for the UT subsidy of ₹15,000 per kW or one-third of the project cost, LPDD proposes a maximum subsidy cap of ₹6,00,000 per consumer.

Sanctioned Load Constraint

The policy reiterates that for commercial consumers:

• Those with sanctioned load below 1 kW must install at least 1 kW of rooftop solar;

• Those above 1 kW can install up to 80% of their sanctioned load, rounded to the nearest kW.

The policy is applicable only to grid-connected systems and applies to consumers under the Commercial Tariff Category as recognized by LPDD.

Priority Mechanism

Subsidy disbursement and energy buyback will follow a First-In-First-Out (FIFO) approach based on the date and time of successful registration, subject to eligibility criteria and technical validations. Consumers who do not meet these requirements will not qualify for subsidy or buyback benefits.

Generation Guarantee Clause

To ensure effective use of UT Ladakh’s subsidy, the following conditions apply:

• Minimum Generation: Consumers must guarantee generation of at least 80% of the installed capacity over five years from the system commissioning date.

• Subsidy Recovery: If this generation threshold is not met, the disbursed subsidy will be proportionally recovered by LPDD.

• Exceptions: Shortfalls due to uncontrollable factors (e.g., extreme weather, grid outages, equipment failure) will be reviewed on a case-by-case basis, and the generation guarantee period may be extended accordingly.

Capital Subsidy Support

A capital subsidy of ₹15,000 per kW, up to ₹6,00,000 per consumer, will be provided under the scheme. This financial support will be directly funded from the UT’s budgetary provisions. The subsidy is subject to an annual financial ceiling, as determined by the UT administration, based on available budget resources, projected consumer demand, and annual solar capacity addition targets.