Chandigarh: In a significant move aimed at providing financial relief to residents of govt houses in Chandigarh, a high-level committee of the UT finance department has approved and recommended a change in the manner in which solar user charges are levied on approximately 6,000 govt houses.The committee has proposed that solar user charges be calculated based on power consumption at the lowest slab instead of the existing fixed charge of Rs 300 per kilowatt. As the proposal involves major financial implications, the recommendations have been sent to the Chandigarh administration for consideration and final approval.Sources in the Chandigarh administration said the committee unanimously felt that a flat rate was not justified. “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,” a source said. The committee examined the issue from all relevant aspects before reaching the decision to convert solar user charges from a fixed-rate system to a consumption-based mechanism linked to the lowest slab.The panel comprises senior officials from multiple departments, including the finance department, Chandigarh Renewable Energy and Science & Technology Promotion Society (Crest), engineering department, and Chandigarh Power Distribution Limited (CPDL), the power distribution company for Chandigarh.During the discussions, it was also unanimously recommended that surplus solar power generated after being used by occupants of govt houses should be routed to CPDL. The UT administration will charge the power distribution company for this surplus electricity based on the average power purchase (APP) cost.As per official information, solar user charges were introduced in 2019 and have since been levied at a fixed rate of Rs 300 per kilowatt. The charges were initiated as the Chandigarh administration had spent crores on installartion of rooftop solar panels on govt houses, and the recovery of solar user charges was meant to partially offset the cost of these installations.The proposed shift to a consumption-based mechanism at the lowest slab is expected to reduce financial burden on thousands of govt house occupants. However, the final decision will depend on approval from the Chandigarh administration, as the matter involves substantial financial considerations.The committee’s recommendation marks a key policy shift in how solar infrastructure costs are recovered from beneficiaries, while also addressing concerns regarding affordability. The administration’s decision on the proposal is awaited.Box: UT’s Green Energy EffortAround 6,600 govt buildings, including nearly 6,000 govt houses, govt schools and other govt buildings in Chandigarh, are equipped with solar panels. The Chandigarh administration has spent approximately Rs 80 crore to Rs 90 crore on installation of solar panels. These govt buildings generate about 21 million units of solar energy annually. Chandigarh currently generates around 103 megawatts of power through solar energy.The Proposal —UT finance department’s high-level committee recommends shifting solar user charges from a fixed rate to consumption-based charges—Proposed charges to be levied at the lowest power consumption slab instead of the existing Rs 300 per kilowatt fixed charge—Committee held that a flat rate was unjustified and consumption-based billing would benefit residents—Lowest slab power tariff currently around Rs 2.80 per unit, which fluctuates periodically—Surplus solar power generated after in-house consumption to be supplied to CPDL—UT administration to charge CPDL for surplus power based on Average Power Purchase (APP) cost—Proposal sent to the Chandigarh administration for final approval
