Demand Aggregation Rooftop Solar - The aggregated demand in the geography is bid-out to the developers, thereby decreasing the effective transaction costs of the developers due to aggregation and economies of scale. Interest from various developers is solicited for the aggregated demand and the demand is then awarded to the most qualified bidder. The asset is securitized by developing the draft model PPA format post consultations with all the stakeholders involved, including the lenders.

1. Demand Aggregation
Rooftop Solar: A Way
forward for India’s
Solar Market
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2. Introduction
Rooftop solar projects have not
experienced a high growth rate as
compared to ground mounted solar
projects.
 Cumulative rooftop installations as
of December 2019 are 5.440 GW
vis-à-vis a cumulative installed solar
capacity of 35.7 GW.
 Rooftop solar has been maintained
at ~10% share of overall solar
capacity. This is much lower than
other key markets such as US,
Germany, China, Spain and
Australia.
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3. Challenges
Modest uptake of grid
connected rooftop solar
systems can be attributed to
the following:
 The individual installation
approach
 Lack of asset
securitization
 Non-bankable PPA
 High transaction costs for
the developers etc.
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4. Ways to Overcome The Challenge
 Aggregating the demand can accelerate
the uptake in geography.
 Marketing / lead generation / transaction
costs which form a significant portion of
the total expenditure of the developers
can also be reduced by demand
aggregation rooftop solar.
 States can adopt the aggregation route
for accelerating the installation of rooftop
solar systems in the state.
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5. In this process, the aggregated demand
in the geography is bid-out to the
developers, thereby decreasing the
effective transaction costs of the
developers due to aggregation and
economies of scale. Interest from various
developers is solicited for the aggregated
demand and the demand is then
awarded to the most qualified bidder.
The asset is securitized by developing the
draft model PPA format post
consultations with all the stakeholders
involved, including the lenders.
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6. Result
The indicators of success are evident from
 Substantial reduction in transaction
cost for developers
 Discovery of competitive bidding rates
 Large developer turn around and
market participation
 Creation of a ready pool of consented
consumers
 Potential assessment and creation of
centralized repository of data of sites
and seamless execution of multiple
residential rooftop solar tender.
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7. Contact Us
SUPRABHA TA Program
EY LLP, WorldMark 1,
Aerocity District,
New Delhi - 110037, India
Phone: +91 11 66718000
Email: info@suprabha.org
Website: www.suprabha.org
Follow:
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