CREST to introduce RESCO model solar project for govt-built properties

Time of India

19-05-2025

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Chandigarh: In a move to boost solar energy production and utilisation in the city, the Chandigarh Renewal Energy and Science and Technology Promotion Society (CREST) is set to introduce the RESCO (
Renewable Energy
Service Company) model
rooftop solar panel installation
on govt-built properties.
Considered as a significant revenue model, CREST has identified properties of the Chandigarh Housing Board (CHB) and Chandigarh municipal corporation to roll out these solar projects in Chandigarh, initially with 3-megawatt (MW) solar plants for each identified property of these govt entities.
CREST has identified CHB's Sector 51 Housing Society, where this RESCO project will be first implemented. The authority held a meeting with the resident welfare association (RWA) of the society, following which the memorandum of understanding (MoU) was prepared.
Later, the govt properties under the MC will be planned under the segment. The MC has already provided lists of their properties to CREST.
"Under the
RESCO model
for government buildings, a private agency will bear the complete installation cost of the solar plant, requiring no financial investment from the Chandigarh administration. The revenue structure involves the agency selling the generated electricity to the Chandigarh Power Distribution Limited (CBDL) at Rs 4.96," UT officials said.
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"The RESCO project incorporates the Rent on Roof component, enabling government building owners to receive yearly payments. For instance, the CHB Sector 51 RWA anticipates an annual income of approximately rupees 30 lakhs, whilst the MC will similarly receive yearly earnings from the company post-installation of the solar project through this RESCO model," UT officials added.
Though the exact financial details are being worked out, initial estimates suggest an investment of approximately Rs 15 crore for each 3-megawatt solar project under the RESCO model on these government properties.
CREST has finalised the MoU and is now developing the tender document, considering various aspects including practical feasibility, longevity, and revenue potential. The tender will be floated once the document is complete.
Imp Box: Project for pvt properties awaits nod
The RESCO model solar plants project for private residential properties awaits approval from the Ministry of New and Renewable Energy (MNRE).
Chandigarh administration submitted comprehensive documentation three months ago, requesting permission for 5 to 10-kilowatt capacity installations instead of the standard 3-kilowatt limit. The administration justified this request citing higher than national average power consumption in Chandigarh.
Despite positive initial responses, formal approval remains pending.
Under the model, residents can get rooftop solar power plants installed free of cost, as the company bears the cost of installation.
The company operates and transfers the ownership of the plant to the homeowner after around 15 years.
The UT proposal for the RESCO model began nearly five years ago and received approval from the Joint Electricity Regulatory Commission (JERC) in Jan 2023. The tendering process started in March 2023.
The CREST put on hold the tender process for RESCO model implementation in February last year, which was in the final stages of work allotment for 40MWp. CREST had shortlisted four firms for the work allotment. It decided to wait for the central govt guidelines on the project. RESCOs will be selected by CREST through a competitive bidding process, with the build-operate-transfer (BOT) period as the bidding parameter.