The memorandum of understanding (MoU) engaged SECI, a central public sector undertaking under Ministry of New and Renewable Energy, for setting up solar power plants on the rooftops of the buildings and land owned by SDMC.
The target is to generate 20 megawatts of solar power under the agreement in a period of two years, said a senior municipal corporation official.
The MoU, signed by SDMC chief engineer Firoz Ahmed and SECI managing director Ashwini Kumar, would cost around Rs 12 crore in the first phase, in which set up for generating 2 MW of power is to be done, said SDMC Commissioner P K Goel.
He added that in line with government rules, the civic body is likely to get a subsidy of 25 per cent in the solar project costs.
Of the 20 MW, 10 MW power would be generated on roof tops of 400 buildings, including schools, while remaining on spare vacant land of SDMC, he said.
The civic body will make available rooftops of municipal buildings on zero lease rental basis to the SECI.
Both parties have agreed to collaborate, identify and develop potential sites for execution of solar power projects.
SECI, an expert in the sector, will undertake all the activities pertaining to planning, design, manufacture, supply, installation, testing, commissioning, operation and maintenance of grid connected rooftop solar plants, he said.
It will also coordinate with local discoms in association with SDMC for net metering of the generated solar power as per the prevailing regulation of the Delhi Electricity Regulatory Commission, he said.
The solar electricity generated on rooftop will be used by the SDMC offices, whereas that generated on the spare vacant land will be sold to the discoms, he said.
Besides reducing power bill and curbing pollution, the project will also benefit SDMC which will avail the achievement-linked incentive scheme launched recently by the Ministry of New and Renewable Energy, that offers up to 25 per cent incentive on standard project cost in case 100 per cent target is achieved, he added.