The document discusses various business opportunities in the solar energy sector in India. It describes different types of business entities like sole proprietorship, partnership, private and public companies, and cooperatives that can be formed. It also provides details of government initiatives and incentives for solar power projects in India, including subsidies, loans, tax benefits, and purchase guarantees. The document outlines potential business models like manufacturing and selling solar products, developing solar projects, consulting services, and maintenance services.

1. Solar energy System and
Entrepreneurial Opportunities
Types of business Enterprise, Formalities of Setting up of a small Business Enterprise,
Business opportunity in solar energy, Government initiatives & incentives on solar
power generation in India (MNRE & IREDA), Schemes to Support Solar Projects, Net
metering, REC mechanism Financial analysis of Grid Interactive Solar Rooftop PV
system, depreciation benefits, levelized cost of generation, IRR
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2. Types of Business Enterprise
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Based on ownership pattern, we have different forms of business organisation like a
proprietary concern, a partnership firm or a company. Different types of business
entities in India.
1. Sole proprietorship
2. Partnership
3. Co-operative Society
4. Joint stock company (Private and Public)

3. Types of Business Enterprise: Sole proprietorship
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The sole proprietorship is a form of business that is owned, managed and controlled by
an individual. This type of business organisation is also called single ownership or single
proprietorship. If the business primarily consists of trade, the organization is a sole
trading organization. Small factories and shops are often found to be sole proprietorship
organisations.
Features
 Individual Initiative:
 Risk Bearing to owner:
 Management and control
 Minimum govt. regulations:
 Unlimited liability
 Secrecy:
Merits
 Easy formation
 Better Control
 Sole beneficiary of profits
 Benefits of small-scale operations
 Inexpensive Management
Demerits
 Limitation of management skills
 Limitation of Resources
 Unlimited liability
 Lack of continuity

4. Types of Business Enterprise: Partnership
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Partnership is an association of persons who agree to combine their financial resources
and managerial abilities to run a business and share profits in an agreed ratio. The Indian
Partnership Act defines partnership as “Partnership” is the relation between persons who
have agreed to share the profits of a business carried on by all or any one of them acting
for all
Features
 Existence of an agreement
 Engagement in business
 Sharing of profits and losses
 Agency relationship
 Unlimited Liability
 Common Management
 Consent based share transfer
 Registration not mandatory
Merits
 Ease in formation
 Pooling of financial resources
 Pooling of managerial stalls
 Balanced business decisions
 Sharing of risks
Demerits
 Existence at partners will
 Risks of implied authority
 Risks of disharmony
 Difficulty in withdrawal from the firm
 Difficulties of expansion

5. Types of Business Enterprise: Partnership
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• Registration of a partnership firm is not compulsory under Indian Partnership Act
• Certain privileges which are allowed to those firms, which are registered.
• The privileges make it virtually compulsory for a firm to get registered.
• A partnership firm may be registered at registrar of firms any time.
A partnership firm desiring registration applies lo the Registrar of Firms in prescribed
form along with the registration fee. The application should state the following:
• Name of the firm.
• The principal place of business of the firm.
• The name of any other place where the firm is to carry on business:
• Date of admission of the partners in the firm.
• Names and permanent addresses of the partners.
• Duration of the firm

6. Types of Business Enterprise: Partnership
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Consequence of Non registration of firms:
• A partner of an unregistered firm can not file a suit against the firm or any other partner
for enforcing his right arising out of the contract
• An unregistered firm cannot file suit against any third party for the recovery of the claims
• Such a firm also cannot file a suit against any partner.
Types of Partnership
Partnership at-will: Such a partnership exists on the will of the partners. That is, it can be
brought to an end whenever any partner gives notice of his intention to do so.
Particular partnership: A particular partnership is formed for undertaking a particular
venture. It comes to an end automatically with completion of the venture.
Partnership for a fixed duration: Such partnership is for a fixed

7. Types of Business Enterprise: Company
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Suitable for organising business activities on a large scale as it does not suffer from the limitations
of capital and management of other forms of organisation. It has the advantage of attracting huge
capital from the public due to the limited liability of members.
A company is defined as a voluntary association of persons having separate legal existence,
perpetual succession and a common seal.
Features
 Registered body:
 Distinct legal entity
 Artificial person
 Perpetual succession
 Common seal
 Limited liability
 Transferability of shares
Merits
 Collection of huge financial resources
 Limited liability
 Free transferability of shares
 Durability and stability
 Efficient management
 Public confidence
 Social benefits
 Democratisation of management
 Assumption of social responsibilities
Demerits
 Lengthy and expensive legal procedure
 Excessive government regulations
 Lack of incentive
 Delay in decision-making and action
 Conflict of interest
 Oligarchic management:
 Speculation

8. Types of Business Enterprise: Limited Liability
Partnership (LLP)
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LLP, a legal form available world-wide is now introduced in India and is governed by the
Limited Liability Partnership Act 2008, with effect from April 1, 2009
LLP combines the advantages of ease of running a Partnership and separate legal entity
status and limited liability aspect of a Company
Features
 Distinct legal entity
 partners have right to manage the business
 partners are not liable for other partner’s misconduct or
negligence
 Min. of 2 partners and no max.
 Perpetual succession
 The rights of partners as per partnership deed
 Liability limited to the extent of contribution
 Shall maintain annual accounts. Audit must if contribution
exceeds Rs. 25 lac or turnover exceeds Rs.40 lakhs.
Merits
 Lower cost of formation
 Lesser compliance
requirements
 Easy to manage and run.
 Easy to wind-up and dissolve
 No requirement of minimum
capital contributions
 Partners are not liable for the
acts of the other partners
Demerits
 LLP cannot raise
money from the
public
 Financial Institution
may not lend the
large amount the
LLP

9. Types of Business Enterprise: Private Limited Company
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Private Limited is closely held businesses usually by family, friends and relatives.
Private companies may issue stock and have shareholders. However, their shares do not trade on
public exchanges and are not issued through an initial public offering.
Shareholders may not be able to sell their shares without the agreement of the other shareholders.
Features
 Distinct legal entity
 Minimum number of shareholders to start is only2
 Maximum share holders is 50
 Scope of expansion is higher: can take loan from FI’s
 Liability limited of shareholders to the extent of share value
 memorandum of association is the charter of the company
 Registered with registrar of companies
 Regular returns and audit
Merits
 Limited Liability
 Continuity of existence
 Easy to wind-up and dissolve
 No requirement of minimum
capital contributions
 Partners are not liable for the
acts of the other partners
Demerits
 Growth may be
limited as max
shareholders are 50
 shares cannot be
sold or transferred
without agreement
of other shareholder
•The shares in a private limited company cannot be sold or transferred to anyone else without the agreement of other shareholders
•The shares in a private limited company cannot be sold or transferred to anyone else without the agreement of other shareholders

10. Types of Business Enterprise: Public Limited Company
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Private Limited is closely held businesses usually by family, friends and relatives.
Private companies may issue stock and have shareholders. However, their shares do not trade on
public exchanges and are not issued through an initial public offering.
Shareholders may not be able to sell their shares without the agreement of the other shareholders.
Features
 Distinct legal entity
 Minimum number of shareholders to start is 8
 No limit on Maximum share holders
 Scope of expansion is higher: can take loan from FI’s and
raise money from public through shares
 Liability limited of shareholders to the extent of share value
 memorandum of association and article of association (AoA)
 Registered with registrar of companies
 Regular returns and audit
Merits
 Limited Liability
 Continuity of existence
 can raise large capital sum as
there is no limit to the number
of shareholders
 The shares of the business
are freely transferable providing
more liquidity
Demerits
 lot of legal
formalities
 strict controls and
regulations to
comply.
 huge in size and may
face management
problems
•The shares in a private limited company cannot be sold or transferred to anyone else without the agreement of other shareholders
•The shares in a private limited company cannot be sold or transferred to anyone else without the agreement of other shareholders

11. Types of Business Enterprise: One person Company
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The concept of a one-person company (OPC) will encourage corporatization of
entrepreneurial ventures. It is recommended that the OPC be registered as a private
company with one member and at least one director. To distinguish it from other
companies, the suffix OPC can be used..
Features
 Distinct legal entity
 One Person Company is a Private Company with one shareholder
 One Person Company shall indicate the name of the nominee in the memorandum,
 One Person Company can appoint maximum 15 directors, but minimum should be one director
 Cash Flow Statement may not include in the financial statements of One Person Company. One
Director is sufficient to sign the Financial Statements/Director's Report.
 One Person Company should inform to the Registrar about every contract entered

12. Business opportunity in solar energy
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Product-Oriented Solar Business Opportunities
1. Sell Products– selling of solar PV, solar thermal systems, solar attic fans, solar cooling
systems, along with small application products like solar lights, solar gadgets, solar
chargers, etc. can be traded.
2. Be a Distributor (trading)– As more an more manufacturers of products emerge – they
need distributors to get the products to the market.
3. Develop & Own Solar Projects – With Solar Energy – anybody can become a solar
developer. Search a good location, a team of experts develop a good business plan, raise
the money, build project; ex. solar power plants large scale/ medium scale. Solar rooftop ,
4. Invent Solar Products –There's a whole bunch of new solar products being
developed. For example solar powered home cooling systems

13. Business opportunity in solar energy
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5 Produce Informational Products – With everything going on in the solar industry – there is a
strong demand for good quality information. Research reports, ebooks, instructional videos, solar
training classes, etc.
6 Produce Financial Products - Set up a financial company – and offer specific financing products –
such as solar construction financing, long term solar project financing, joint venture financing,
provide angel financing, etc.
Solar Business Opportunities in the Service Sector
- Independent Solar Consultant – A lot of people would like to know if it makes sense to install
solar on their property, and could benefit from a professional opinion that looks at the various
options and guides them through the process.
- Solar Repairs and maintenance –
- Energy Auditor - Another service that is growing in demand is to conduct energy audits and make
recommendations how people can reduce their electrical consumption.

14. Government initiatives & incentives on solar power
generation in India (MNRE & IREDA)
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• The Government of India has set targets which will take the total renewable capacity to
almost 175 GW by the end of 2022. This includes 100 GW from solar power.
• The government is playing an active role in promoting the adoption of solar energy
resources by offering various incentives, such as generation-based incentives (GBIs), capital
and interest subsidies, viability gap funding, concessional finance, fiscal incentives etc.
• The National Solar Mission aims to promote the development and use of solar energy for
power generation and other uses, with the ultimate objective of making solar energy
compete with fossil-based energy options.
• The objective of the National Solar Mission is to reduce the cost of solar power generation
in the country through long-term policy, large scale deployment goals, aggressive R&D and
the domestic production of critical raw materials, components and products.

15. Government initiatives & incentives on solar power
generation in India (MNRE & IREDA)
31-08-2016 IEC-803 ENERGY BASICS BY DR N R KIDWAI, INTEGRAL UNIVERSITY 15
INCENTIVES OFFERED BY THE GOVERNMENT
Exemption from excise duties and concession on import duties on components and
equipment required to set up a solar plant.
A 10-year tax holiday for solar power projects.
Wheeling, banking and third party sales, buyback facility by states.
Guaranteed market through solar power purchase obligation for states.
GBI schemes for small solar projects connected to a grid below 33KV.
Reduced wheeling charges as compared to those for conventional energy.
Special incentives for exports in renewable energy technology under renewable SEZ.
A payment security mechanism to cover the risk of default by state utilities/discoms.
A subsidy of 30% of the project cost for off-grid PV and solar thermal projects.
Loans at concessional rates for off-grid applications.

16. Government initiatives & incentives on solar power
generation in India (MNRE & IREDA)
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MNRE supported subsidy schemes:
• To promote decentralized solar power generation and use of solar power for heating and
cooling purposes, MNRE started the programme on “Off-grid and Decentralized Solar
Applications”.
• IREDA provides finance upto 75% of the cost of the solar project.
• IREDA provides finance to all Renewable projects irrespective of the technology involved
with a minimum debt requirement of Rs 50 lacs, based on their techno-commercial
viability.
• IREDA finances projects based on their techno-commercial viability after taking into
consideration the subsidy/ grants available from the Government of India, if any (With
respect to subsidy schemes, the website of MNRE may kindly be referred).

17. Net Metering
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A grid connected system as the name suggests is the one in which
your solar power system is connected to the local main grid. In this
case, your loads can run on solar power as long as there is sufficient
energy available from the sun during the day. Any deficit is taken
care by the main utility supply. However, if the solar energy
production is in excess as compared to the load requirement at that
moment, the excess energy can be either stored in the batteries (if
available) or can be sold back to the utility grid. This difference of
energy can be tracked using a meter connected to your solar pv
system.

18. Net Metering
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Net metering takes into account the difference of excess energy fed back to the grid and
total energy consumed from the grid by the system owner.
Net metering is an agreement that allows the solar PV system owner to sell excess solar
energy to the utility company or buy deficit energy from the utility company using a meter
to track this energy exchange.
The owner is charged for the difference of units (Net metered units) consumed as per
usual retail tariff. If more units are fed to the grid than consumed then the difference of
units is either carried forward to the next billing period
The 3 most important advantages of net metering are
1. Financial benefit for the system owner
2. Avoid the use of batteries (reduce cost of solar energy system)
3. Produce more today, use that tomorrow

19. REC Mechanism
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Renewable Energy Certificate (REC) mechanism is a market based instrument to promote
renewable energy and facilitate compliance of renewable purchase obligations (RPO). It is
aimed at addressing the mismatch between availability of RE resources in state and the
requirement of the obligated entities to meet the renewable purchase obligation (RPO). One
Renewable Energy Certificate (REC) is treated as equivalent to 1 MWh.
There are two categories of RECs, viz., solar RECs and non-solar RECs.
Solar RECs are issued to eligible entities for generation of electricity based on solar, and non-
solar RECs are issued to eligible entities for generation of electricity based on renewable
energy sources other than solar.
Revenue for a RE generator under REC scheme includes revenue from the sale of electricity
component of RE generation and the revenue from the sale of environmental attributes in the
form of RECs. RECs can be traded on the REC exchange.