Understanding the framework for Solar Rooftop business in India with the help of MNRE initiatives and government schemes

1. Project
Solar Rooftop Business in India

2. Objective
• To analyse solar rooftop business in India
Approach
• Secondary data sources mainly from Government websites

3. MNRE initiatives
• Road Map for 100GW Solar Power by 2022
• Solar Park : 20 GW
• Unemployed graduate : 20 GW
• State/Private/Others : 20 GW
• Solar Rooftop : 40GW
• Channel partners
• New Entrepreneurs
• Government Agencies
• Association of Renewable Energy Agencies of States (AREAS)

4. Channel Partners – Who?
• RESCO
• System integrators
• Manufacturers of any solar component
• Project developers
• Vendors/suppliers of solar equipment
• NGOs
• Govt. PSUs, Departments, Agencies,
Technical Institutions
• Must have relevant experience
• Certificate from rating agency in country
for technical and financial strength
• Audited account for last 3 years
• Positive net worth
• Clear specification of Assets & Liabilities
• Reputed Govt. PSUs, Dept., Agencies,
Tech. Inst.
• Exempted from accreditation – based on
criteria

5. Guidelines for Channel Partners
• Tenure: 2 years
• Service network
• Within 48 hrs. complaint addressal
• Toll-free number
• Website
• Interactive
• Training Manpower
• Literature User’s Manual
• Publicity Plan
• Quality Standards
• Data entry to MNRE website
• 1st & 15th of every month on SPIN
• Online Data Generation
• >10kWp – maintained on Channel partner
website

6. Application process
• Approach rating agencies
• Ex. India Ratings & Research (Ind-Ra)
• Crisil Ltd., Credit Analysis & Research Ltd.
(CARE), Brickwork Ratings India Pvt. Ltd., SME
Rating Agency of India Ltd. (SMERA)
• 1A/1B/1C – Valid for 2 year
• Others – Valid for 1 year
Financial Strength
Performance
Capability
High Moderate Low
Highest SP 1A SP 1B SP 1C
High SP 2A SP 2B SP 2C
Moderate SP 3A SP 3B SP 3C
Weak SP 4A SP 4B SP 4C
Poor SP 5A SP 5B SP 5C
Project Appraisal
Committee
Max. 45 days approval

7. Performance monitoring
by MNRE
• Progress & Performance
monitoring by MNRE
periodically (3rd party)

8. Business Models
• Model 1 : Self-financing of balance cost
• Model 2 : Installation through RESCO model
• Model 3 : Installation through leasing model
• Model 4 : Installation through concessional loans
• Model 5 : Self-financing of complete cost without MNRE incentive

9. Estimated Solar Rooftop potential across Sectors – 7.2 GW
• Technical potential : 352 GW
• Economic potential : 210 GW
• Market potential : 124 GW

10. Subsidy Disbursement
• Not available for Industrial/Commercial sector
• Channel partners should target them
• Not directly through MNRE
• Via SNAs, SECI, Govt. agencies, IREDA
Fiscal & Financial Incentives
• Custom Duty Concessions
• Concessional Custom Duty Certificates (CCDC)
• Excise Duty Exemptions
• Excise Duty Exemption Certificates (EDEC)
• Accelerated Depreciation
• 40% (2017)
• Fiscal & other concessions from State Government

11. Financing by Banks
• Department of Financial Services
• All PSBs to provide loan for grid connected solar rooftop systems
• As Home loan / Home improvement loan
• So far, 9 PSBs have given instructions to branches
• To be made effective as till now no branches are providing such loans
• RBI included RE projects under Priority Sector lending (2014)
• Rs. 15 crores to borrowers : For Grid connected solar rooftop and Ground mounted systems
• Rs. 10 lakhs per borrower : Individual households
• Yet to be made effective

12. National Solar Mission: Rooftop Project Details
Sr. No. Phase-II kW
1 Bhubaneshwar/Cuttack 1000
2 Gurgaon 1500
3 Hyderabad 2000
4 Jaipur 3250
5 Noida/GN 1500
6 Raipur 2050
11300 kW
11.3 MW
Total
Sr. No. Phase-III kW
1 Chennai 2000
2 Coimbatore 1000
3 Delhi 1000
4 Kolkata 1000
5 Mumbai 1000
6 Pune 1000
7 Palatana 1000
8 Chandigarh 500
9 Gwalior 250
8750 kW
8.75 MW
Total
Sr. No. Phase-IV kW Sr. No. Phase-IV kW
1 Andra Pradesh 1500 1 Karnataka 1000
2 Bihar 1000 2 Andra Pradesh 2000
3 Gujarat 2000 3 Delhi 2000
4 Haryana 2000 4 Maharashtra 2000
5 Jharkhand 2000 5 Tamil Nadu 2000
6 Karnataka 2000 9000 kW
7 Madhya Pradesh 1000 9 MW
8 Maharashtra 3000
9 Punjab 2000
10 Rajasthan 1000
11 Tamil Nadu 3000
12 Uttar Pradesh 3000
23500 kW
23.5 MW
Total
CAPEX
Total
RESCO
Sr. No. Phase-V MW Capacity Bidding available
1 Delhi 10 5
2 West Bengal 10 5
3 NER States and UTs 10 5
4 Gujarat 2 1
5 Karnataka 2 1
6 Others 16 8
50 25 MWTotal
RESCO
Total installed capacity 18.1 GW
Total CFA amount (30%) 36 crores
Total CFA released 22 crores
Subsidy Status (2015)
Total installed capacity 27.5 MW
Total CFA released 10 crores
Subsidy Status (2015)

13. Rooftop Warehouse Scheme (Phase I)
Sr. No. States MW
1 Andra Pradesh 5
2 Haryana 10
3 Punjab 20
4 Telangana 5
5 Tamil Nadu 5
6 Uttar Pradesh 5
7 Others 23
73 MWTotal
Max. bid capacity 15.0 MW
Subsidy 2.0 Rs./kWh
Fixed tariff to DISCOM 5.5 Rs./kWh
Tenure 25.0 years
Size of project 0.5 - 5 MW
Sale of power to DISCOMs
BOO basis
Rooftop Warehouse Scheme Phase-I
73MW

14. Grid connected Rooftop
&
Small Power Plant Program (RTS)

15. Implemented
• MNRE - ‘Grid Connected Rooftop and Small Solar Power Plants Programme’
• 2012-17 (2th Five Year Plan) - Target of 300 MWp - Financial outlay Rs. 600 crore
• Approved total amount of Rs. 5,000 crore spread over a period of 5 years from National Clean Energy Fund (NCEF)
 15% subsidy about 4,200 MWp aggregate capacity is expected to be set up with this fund
• 2019 - Phase-II for achieving cumulative capacity of 40 GW RTS plants by 2022
• Solar rooftop projects are being implemented by SNA’s, SECI, PSUs and MGAs, Private Developers etc.

16. Objectives
• Consumer segments, viz., residential, institutional, social, Govt., commercial, industrial etc.
• DISCOMs at forefront as key drivers for rapid deployment of RTS
• To create awareness, capacity building, human resource development, etc.
• To promote sustainable business models.
• Additional RTS capacity of 38000 MW in the country by 31.12.2022
• Out of which a capacity of 4000 MW in residential sector with CFA
• 34000 MW in other sectors by suitably incentivizing DISCOMs
• To promote domestic manufacturing of solar cells and module

17. Benefits & Financial Outlay
• Substantial environmental impact in terms of savings of
CO2 emission
• Average energy generation of 1.5 million units per MW
• Expected addition of 38 GW solar rooftop plants under Phase-II
by year 2022
• Result in CO2 emission reduction of about 45.6 tonnes per year.
• The programme has directed employment potential
• Equivalent to 9.39 lakh job years for skilled and unskilled
workers
Targets 2015-
16
2016-
17
2017-
18
2018-
19
2019-
20
Total
Physical
Target
Capacity
to be added
(MWp)
1000 1500 1500 200 - 4200
Financial
Target
(Rs. in
crore)*
250 1500 1500 1000 750 5000

18. Current Status
• 2098 MW solar rooftop systems have been sanctioned/approved under the scheme
• 1436 MW have been reported as installed in the country
• North-Eastern States
• RTS projects of 55.05 MWp capacities - 32 MWp have been sanctioned in FY 2018-19
• Grid Connected Rooftop Solar Programme Phase II with two Components
• Component A: 4,000 MW of Grid Connected Rooftop Plants in residential sector with CFA
• Component B: Incentives to DISCOMS - first additional 18,000 MW of rooftop capacity
• Under Phase-II Programme, focus will be on increased involvement of DISCOMs
• Performance based incentives will be provided to DISCOMs based on RTS capacity i.e. cumulative capacity achieved at the end of previous
financial year.

19. Incentive to DISCOMs
Sr.
No.
Parameter Incentive
1 For installed capacity achieved up to 10% over and above of
installed base capacity within a financial year.
No incentive
2 For installed capacity achieved above 10% and up to 15%
over and above of installed based capacity within a financial
year
5% of the applicable cost for capacity achieved above
10% of the installed base capacity
3 For installed capacity achieved beyond 15% over and above
of installed based capacity within one financial year.
5% of the applicable cost for capacity achieved above
10% and up to 15% of the installed base capacity
PLUS 10% of the applicable cost for capacity
achieved beyond 15% of the installed base capacity.

20. Data related to installations or work done till 2019/2020
47%
Subsidized
53%
Non-Subsidized

21. Learnings
• MNRE processes for Solar business in India
• Schemes in India

22. Thank you!