An open letter to the Prime Minister and Minister of Power in regards to the past few years of solar power policy in India. As a new startup, the letter describes the difficulties that we have faced due to sudden changes and irregular policies of the government in hopes that things improve. This is my personal views only and surely things could have been planned better and in advance.

1. India - Start ups and Solar Power Policy
An open letter to our Prime Minister and Minister of Power
01.12.2017
Dear Sh. Narender Modi Ji and Sh. Raj Kumar Singh Ji
I am writing this letter to highlight the uncertain policy and adverse consequences for start
ups in INDIA, in a bleak hope that future policy making would be better. This is a brief
account of my experience as an entrepreneur specializing in solar energy and smart grids.
After completing my masters in Sustainable Energy Technology from TU Delft, Netherlands
in 2012, I came back to India in 2013 in hopes to start my own business.
1. Delayed Start to Solar Rooftop (2014 End) - The policies for rooftop grid connected
net metering started coming up. Despite the pressure from the government, there are
huge loopholes in the policy. Proper regulations are still not in place for smooth setting
up of solar rooftop power plants. Many DISCOMs don’t have proper procedures for net
metering of solar rooftop plants and execution procedures are not standardised.
2. Empanelment Programme Started (March 2015) - The empanelment programme was
started in 2015 by MNRE. We formed a Private Limited Company as it was compulsory
for empanelment. The government did not recognize LLP or Proprietorship for the
process. After a lot of paperwork, we managed to get ourselves empanelled as channel
partners under the New Entrepreneur category of MNRE. The conditions for
empanelment were kept liberal and ensured technical companies were recognized. It
seemed a very logical step at the time. The ministry also set up SPIN portal to monitor
progress of rooftop solar, but the portal was poorly executed, and has been till date.
3. Subsidy (Mid 2015) - MNRE announced that it would be offering 30% subsidy to the
domestic and social sector to promote installation of solar power plants. This came after
almost a year of confusion if there is going to be a subsidy or not or will it be reduced to
15%. Though the announcement was made, the execution of the scheme was not planned
by the government and there was no clarity on amount and process of availing this
subsidy. We thought there was a vision to empanelment and now empanelled Chanel
partners can avail subsidy waiting patiently for a simple procedure to avail subsidy.
4. State Empanelment and SECI (Mid 2015) - The process of claiming subsidy was made
complicated with different states agencies floating own tenders to again empanel
agencies eligible for subsidy. This was a complete opposite of what you did for tax
registration from VAT to GST. The criteria for empanelment in some states even focused
on cheaper systems, huge turnovers for companies. Only limited companies were
empanelled in certain SNAs. In many states, we were not able to meet the criteria; being
a start up and not able to do domestic/social sector business. Further, for each state,
companies had to furnish bank guarantees and block huge long term capital.
SECI launched a separate empanelment process for big players in market. It had tough
criteria and huge bank guarantee as well. The SECI empanelled companies were entitled
to upfront subsidy that really narrowed our market and also created a huge public
confusion for subsidy processes and amount.

2. 5. SPINOFFS (Late 2015) - To get subsidy, we now got the billing from bigger players
giving them a share of our profits; thus managed to work in the market, barely surviving
the tough conditions and falling prices. We realized that in absence of a stable policy, we
needed to explore other options apart from solar rooftop installations. We started
working on other projects and thankfully, this has kept us afloat.
6. Demonetisation and GST (Late 2015 - Mid 2016) – During Demonetisation, the
market got a sudden shock and many of our prospective clients stopped their orders. It
was a state of emergency and everyone was trying to manage their affairs in a cash
crunch. Similarly, when GST was launched there was a lot of confusion regarding its
implementation in the market. Due to monthly filing, compliances increased, servers
crashed the market was in a state of turmoil. It seems your government has mastered the
art of taking drastic decisions first and later figuring out how they would be implemented
while the people suffer its consequences.
7. Re-Empanelment (August 2017) - Our empanelment expired in August 2017. To re-
empanel with MNRE, we had to get a MNRE Rating Certificate from a rating agency.
We paid Rs. 50,000 for this MNRE rating certificate and invested to re-empanel, hoping
it would add value to our company and help differentiate us from local and unskilled
installers. Just after our application, a notice was published that no need to get this
certificate for empanelment until further notice.
8. Empanelment Programme Cancelled (24.11.2017) - Within 2 years of starting its
empanelment programme, the ministry that has the responsibility to promote SOLAR
suddenly cancelled the Chanel Partner program making the whole thing useless. For a
start up, we are only involved in paperwork without focusing on promoting solar and
doing research. We wasted huge capital in rating certificate and lot many man hours in
empanelment process. Still our bank guarantee is pledged with a nodal agency for 10
years.
9. CONFUSION (always and onwards) – There is confusion all around. In absence of a
channel partner certification there is nothing to differentiate a technical specialist in Solar
Power from other business. Everyone is into solar products; the difference is the quality
and awareness of the company about the technology. The subsidy and its process are also
in question with a huge confusion on it. There have been no written instructions
clarifying the same. Concerned officials are silent and no official statement is given.
With such uncertain environment, India surely is no place for a start up. Paper work,
approvals and bureaucratic hurdles pull you down and take away from focusing on your
idea. I feel it is the only reason; India does not have huge international start-ups till date.
Your Digital India, Start-up India and Solar India have been a huge failure!
Your government is far from good governance that you talk about so much. I hope you will
improve things in the future.
Brhamesh Alipuria
Direct Watts SET Pvt. Ltd Brhamesh@DirectWatts.com