Solar PV Rooftop Training Entrepreneurship Development market trends & business proposals

1. Partnership To Advance Clean Energy-Deployment (PACE-D)
Technical Assistance Program
Presented by
USAID PACE-D TA Program
Apr-18
Solar PV Rooftop Training Program For Entrepreneurs
Session:
Market Trends & Business Proposals

2. Contents
Overview of Solar PV Rooftop market in India
Recent developments in SPVRT markets
Market segments
Market research strategies
Market entry – Empanelment / Certifications / Approvals

3. Contents
Promotional activities
Service – Pre and Post Sales
Warranties and Guarantees
Financing and Offers

4. India’s National Solar Mission – Overall Target
(2022)
Source: Ministry of New and Renewable Energy, Government of India
Part of National
Action Plan for
Climate Change
(NAPCC : 2008)
Energy Security
Utility Scale
Solar
60%
Solar PV
Rooftop
40%
100000 MW Solar Power Target by 2022
 Utility Scale Solar – 60 GW
 SPVRT – 40 GW
 Other applications like mini
grids etc.

5. Growth of Solar Power Installations in India
2.12 10.3 37
941
1645
2632
3383
6763
12289
0
2000
4000
6000
8000
10000
12000
14000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Installed Solar Capacity (MW)
Financial Year

6. India’s National Solar Mission – State Wise Target
(2022)
0
1000
2000
3000
4000
5000
Andhra…
Bihar
Chattisgarh
Delhi
Gujarat
Haryana
Himachal…
Jammu&…
Jharkhand
Karnataka
Kerala
Madhya…
Maharashtra
Orissa
Punjab
Rajasthan
TamilNadu
Telangana
Uttrakhand
Uttar…
WestBengal
Arunachal…
Assam
Manipur
Meghalaya
Mizoram
Nagaland
Sikkim
Tripura
Chandigarh
Goa
Dadra&…
Daman&Diu
Puducherry
Andaman&…
Lakshadweep
Solar Rooftop (in MW)
Source: Ministry of New and Renewable Energy, Government of India

7. Advantage Of Rooftop Solar PV Projects
Over Large Utility Projects
Solar Deployment areas/
benefits
Land Requirement T&D losses Investments
Optimal
utilization of
infrastructure
Large ground mounted
projects
Need dedicated land
for 25 years
High losses
similar to
conventional
power projects
(15-30%)
Need large
investments
Need new
transmission lines
& enhanced grid
capacity
Large solar rooftop projects
(industrial/ commercial/
institutional)
Un-utilized roofs can
be put to use
Minimal losses
due to
consumption at
generation point
Medium
investments
Can be mobilized
from small to
medium investors
Infrastructure
expansion needs
can be minimized
Small rooftops projects
(residential)
Small investments
Can be mobilized
from retail
investors

8. Global Scenario of Solar Power Projects & Share of
SPVRT
Country Total PV Installed Capacity Share of Rooftop PV (%)
China 43.2 GW (Dec 2015) ~ 20%
Germany 39.6 GW (Dec 2015) ~60%
US 25.0 GW (Dec 2015) ~ 40%
Japan 23.3 GW (Dec 2014) ~35%
Italy 18.5 GW (Dec 2014) ~ 70%
UK 8.4 GW (Dec 2015) ~ 52%
France 5.7 GW (Dec 2014) ~ 70%
Spain 5.4 GW (Dec 2014) ~ 70%
India 5.3 GW (Dec 2015) ~ 10%
Australia 4.1 GW (Dec 2014) ~ 80%

9. SPVRT Installation Status in India (31st March, 2015)
Residential
143 MW
(27%)
Commercial
172 MW
(33%)
Industrial
210 MW
(40%)
Source:
Bridge to India

10. NSM Progression Over the Years
0
20000
40000
60000
80000
100000
120000
2011 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E 2022T
Cumulative Installations
Cumulative
Installations

11.  Increasing awareness of climate change hazards
 Energy security considerations
 Rapid decline in solar energy generation costs
 Emergence of new and innovative business models
 Greater reliability in the technology
 Favourable policy and regulators framework across the globe
 Two main instruments for the promotion of SPVRT installations have been
adopted
 Feed in Tariffs and
 Net Metering
Global Key Drivers for Growth of SPVRT

12.  Exclusive policy provisions for SPVRT in many states
 Most of the states / UTs have notified regulations for net metering / feed-in-
tariff mechanisms
 Accelerated depreciation benefits for industrial and commercial buildings
 Loans available for residential sector under priority sector lending
 Provision of bank loans as a part of home loan / home improvement loan
 Loans available from IREDA for system aggregators
 Viability gap funding through competitive bidding
 MNRE subsidy for selected sectors
Key Drivers for Growth of SPVRT - India

13. Recent Developments in SPVRT Markets in India
(1/2)
 Industries for their factories willing to invest to save on increasing tariffs and
energy costs
 More than 15 states have announced rooftop programs, mainly under net
metering framework
 Corporations like Delhi Metro initiated projects on stations and other buildings –
upcoming metro corporations like Nagpur already going for SPVRT
 Municipal Corporations have made SPVRT compulsory for certain real estate
projects (like solar water heating few years ago)
 Banks on rural branches and Oil companies on dispensing stations

14. Recent Developments in SPVRT Markets in India
(2/2)
 Roof identification as an independent business
 SECI has completed 5 rounds of SPVRT tendering for more than 35 cities
 Railways have launched first pilot program of 50 MW for utilising all premises for
SPVRT installations
 Warehousing Corporation / Food Corporation of India
 Public Sector Undertakings (PSUs) have also ambitious programs
 Smart cities programs have this as an integral component
 Tax sops / Property tax rebates for individual roof owners?

15. Market Segments
Commercial entities like malls, theatres, office complexes or individual
offices, warehouses, housing societies, banks, hospitals, airports
Industrial entities like factories, workshops, garages
Educational institutes – government and private
Individual households – bungalows, apartments, apartment flats, farm
houses
Government establishments – institutes, factories, offices, hospitals,
airports, railway stations

16. Market Research Strategies (1/3)
 Programs
 Incentives to different
customer types
 Tax benefits
 Subsidies
 Soft / concessional
loans
 Restrictions and
limitations
Study & Understand All
Applicable
 Technical features of
the system
 Outputs to the user
 Competitive Pricing
 Commercial aspects
 Economics and
profitability
Prepare Standard
Offers that include

17. Market Research Strategies (2/3)
 Manpower – numbers,
qualifications,
designations,
experience, roles and
responsibilities,
retention
 Employment vs. on-
the-job-basis
contracting
Organization
 Identify, study, shortlist
suppliers for material
 Decide vendors and
contractors
 Each component of the
system should have
more than 3 possible
vendors shortlisted with
your company
Sourcing

18. Market Research Strategies (3/3)
 Salesmen – limited
number as employees
 Dealers – exclusive or
non-exclusive
 Distributors – as stocking
and forwarding agents;
once the company reaches
certain level
 Commission agents –
existing service companies
dealing with particular
market segments where
you have possibilities
Making Sale
 Cost is a fact, price is a
decision
 Market intelligence and
competitors pricing
 Cost plus, or market driven
Product Pricing

19. Market Entry – Empanelment / Certifications /
Approvals
 Empanelment / certifications / approvals
 MNRE empanelment for a particular category
 SNA registration wherever applicable and necessary
 Product testing, approvals and certificates
 Special certificates – RDSO, Defence, Telecom

20. Promotional Activities
 Participate in exhibitions
 Organise or participate in events
 Brochures – product offerings, special features, customer focus, track record
with customers appreciation
 Catalogues – technical specifications, certifications
 Website and social networking
 Hand-outs and inserts in newspapers
 Wall paintings and hoardings

21. Service – Pre & Post Sales
Pre Sales Service
 Pre Sales service
 Site survey
 Offer submission
 Negotiations
 Contract signing and
payments
Post Sales Service
 Service Centres
 Service personnel
 Spares stock
 Preventive & curative
(repairs)

22. Warranties & Guarantees
 Warrantees vs. Guaranties
 Module performance warranty
 System / Product guarantee / warranty

23. Financing & Offers
 Client own financing
 Client own and debt financing – Indian and Foreign banks
 Equity participation
 Supplier’s Credit
 ESCO – Energy service companies – selling energy rather than the hardware
(system)
 Sharing of benefit of Accelerated Depreciation
 Sharing subsidy

24. 24
Anurag Mishra
Senior Clean Energy Specialist
USAID/India
Email: amishra@usaid.gov
Disclaimer:
This training material is made possible by the support of the American
People through the United States Agency for International
Development (USAID). The contents of this material are the sole
responsibility of Nexant, Inc. and do not necessarily reflect the views of
USAID or the United States Government. This material was prepared
under Contract Number AID-386-C-12-00001.