Powering your Roof Tops, 2016 - 2017

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NationalInstituteofSolarEnergy(NISE),Gurugram,Haryana.TheInternationalSolarAllianceisheadquarteredinthiscampus.
This innovative design hosts an elliptical roof with each module uniquely positioned to optimise generation. The building
stands 20 metres tall, with specially designed clamps to hold the modules in place. This unique structure is for a total capacity
of 151 Kwp.

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Executive Summary
Rooftop Solar: Global Experiences
India's Rooftop Solar Targets
Workshop Series: Powering your Rooftops
Workshop I: Pune, Maharashtra
Workshop II: Chandigarh, Punjab
Workshop III: Hyderabad, Telangana
Workshop IV: Bengaluru, Karnataka
Summary
Conclusion
Abbreviations

At the current prices of solar, RTS has emerged as a disruptor in the Indian energy sector. RTS,
more so, as it doesn’t need to rely on distribution network. Energy generated from RTS
currently, can give stiff competition to any other energy source at the ‘home socket’ level. Like
any disruptive technology, solar is following the Moore’s law. Module prices have fallen by
almost 90 per cent in the last five years.
To meet the Paris climate agreement targets, it is important for solar to continue its growth.
The global solar industry is ready to do that, and can even speed up. Solar power, is a major
player in the USA energy field, second only to natural gas as their largest source of new
electricity-generating capacity. European countries have embraced solar enthusiastically way
back, the total amount of solar power passed the symbolic milestone of 100 GW in early 2016
itself. With 360 days of sunshine in India, solar industry has to grow fast and exploit its full
potential.
The combination of mass adoption of solar technology; consistent awareness campaigns, and
improved financing terms is likely to lead to clear gains for RTS in the eyes of both the general
population and the investment community. RTS installations, the green thing to do, is on their
way to becoming the norm in India.
Mr Rahul Munjal
Co-Chair,
CII National Committee on Solar Energy
and Chairman and Managing Director,
Hero Future Energies

The Indian solar market has been dominated by large utility-scale projects. With the
ambitious target to achieve 40 GW solar power capacity from rooftop installations out of 175
GW by 2022, the Government is now looking to boost grid interactive Rooftop Solar (RTS)
photovoltaic (PV) plants.
Despite advantages such as minimal distribution loss, ease of connectivity with consumer
premises, creation of economic value for unutilised rooftops, the small-scale RTS segment
remains in a nascent stage of development in India. However, several States and Union
Territories along with the Central Government have come up with enabling policy levers to
provide the necessary thrust for the growth of RTS in the country.
Confederation of Indian Industry (CII) in partnership with Hero Future Energies organised a
series of Workshops in Chandigarh, Karnataka, Maharashtra, Punjab and Telangana, which
are leading in RTS implementation. The objective of the Workshops was to provide a platform
for engagement and discussions between key stakeholders of the solar rooftops programme
for higher deployment of RTS in the country.
The Workshops deliberated on policy frameworks to accelerate the RTS programme,
identified and addressed key challenges, discussed support mechanisms and financing
options, and chalked out specific measures to mitigate investor and developer concerns.
The key takeaways of the discussions and the outcome of the State Workshops for Phase I
(2016-17) is presented in this Report.
CII will continue to partner with the government and key stakeholders to build an enabling
environment for RTS development in the country.
Mr Chandrajit Banerjee
Director General,
Confederation of Indian Industry

Delhi Technical University (DTU), New Delhi is one of the many educational institutes using clean energy

1.1 Global Solar Market
India’s energy consumption is set to grow by 4.2 per cent a year by 2035, faster than that of all major
1
economies in the world .
2
However, India’s per capita consumption of electricity stood at 1075 kWh in 2015-16 , the lowest
amongst the BRICS countries. India is last among the top 10 developing and developed nations on
this front. The country’s per capita consumption is almost a third of what is required to grow in the
contemporary world and almost one twelfth of the nations like the USA, Canada and China. The
figures suggest that India is going to need more power than it currently produces to upkeep its
development, economy and the growth story intact. This is not going to be easy through its
conventional energy sources. Now, with the increasing emphasis on clean power and rising concern
of climate change, a lot of it must be powered by renewable energy.
3
India is endowed with 300 days of sunshine a year . While it has a huge landmass, the country is
densely populated which leads to scarcity of large tract of unused land for solar parks. Little wonder
then, RTS is going to be the key to India’s current power needs. With strong sunshine beating down
on rooftops, the future of solar in India is bright indeed.
Globally, solar power has been making rapid strides. During 2016, 75 GW of solar PV capacity was
4
added worldwide – equivalent to the installation of more than 31,000 solar panels every hour . Solar
PV capacity installation in 2016 was 48 per cent higher over 2015, and higher than the cumulative
5
world capacity five years earlier. By the year’s end, global solar PV capacity totaled to 303 GW .
1
BP Energy Outlook
2
Central Electricity Authority (CEA)
3
World Bank
4
REN21
5
CEA
Installation of
more than
,31 000solar panels every hour
48%higher than 2015
1. Executive Summary
01
A WORKSHOP SERIES ON ACCELERATING
Phase I Report, 2016-17
Solar PV capacity
installation in 2016

6
Bridge to India
02
Source: REN21
46%
China
Japan
12%
India
5%
USA
20%
Other
17%
Next Six
Countries
9%
Rest of
World
8%
1.2 Global Share of RTS
In India, RTS has maintained a 10-12 per cent share of overall solar capacity. This is much lower than
6
other key markets such as USA, Germany, China, Spain and Australia .
Rooftop
Solar
Utility
Solar
Australia Germany Spain USA China India
97%
%03
73%
27%
60%
40%
46%
54%
18%
82%
12%
88%
Source: Bridge to India
Fig 1.1 Share of Solar PV Capacity Additions Globally, 2016
Fig 1.2 Share of utility scale solar vis-à-vis rooftop solar

7
Ministry of New & Renewable Energy
8
World Bank
9
REN21ef-de.org.
1.3 Indian Scenario
7
India accomplished 1GW milestone from RTS in 2016, a 113 per cent growth over the previous year .
The country’s RTS market has expanded significantly in recent years, but accounted for only about 10
per cent of the country's total solar PV capacity as on 2016. Financial, regulatory and logistical
challenges have hindered growth, and India remains a long way from its rooftop target of 40 GW to
be achieved by 2022.
Until now, the business case was strong, and the costs of solar panels were falling and financing was
difficult. However, things have begun to dramatically change after World Bank announced a $625
million loan to SBI to provide discounted finance for RTS installations and the market response has
been overwhelming. In the past six months alone, State Bank of India (SBI) has approved 575 MW of
8
RTS projects giving a big boost to India’s RTS program.
Experts and analysts are therefore, optimistic. They conclude that the rooftop potential in India is
currently pegged at 124 GW. More than 30 per cent of this can be easily achieved if 1.3 per cent
9
rooftops in the country are made solar compatible.
There are many challenges though, and the most immediate ones being congestion in the grid and
curtailment. To help address this challenges, India has been constructing eight 'Green Energy
Corridors' transmission lines to carry power from solar-rich states to high demand regions. The
present status of the installed RTS capacity in India is:
Table 1.4: Current status of installed RTS capacity in India
India 1396 40,000 3.49
Country Present Status of RTS MW RTS Target MW BY 2022 RTS Target Achieved %
Source: MNRE
To meet the target of RE, the GoI has launched various programs to hasten the deployment of RTS in
the country. In line with the vision of GoI, the Confederation of Indian Industry (CII), in partnership
with Hero Future Energies organised a series of Workshops across states of Maharashtra, UT of
Chandigarh, Punjab, Telangana and Karnataka, which are leading in RTS implementation. These
interactions provided a platform for engagement and discussions between key stakeholders of the
RTS programme in the state, including senior government and regulatory functionaries, State
Electricity Boards, transmission and distribution companies, solar power developers, panel and
ancillary equipment manufacturers, EPCs, and consumers such as builders, Resident Welfare
Associations and Cooperative Housing Societies.
The Workshops deliberated on existing and necessary policy frameworks to accelerate the RTS
programme, identified and addressed the key bottlenecks, debated on support mechanisms and
financing options, and chalked out specific measures to mitigate investor and developer concerns.
The RTS capacity in the top four states are as below:
03

Source: MNRE
Maharashtra
Punjab
Telangana
Karnataka
Total
137
66
43
83
329
4700
2000
2000
2300
11000
2.91
3.30
2.15
3.60
11.96
Country Present Status of RTS MW RTS Target MW BY 2022 RTS Target %
Source: MNRE
Rest of IndiaFour States
3.49%11.96%
Maharashtra
Punjab
Telangana
Karnataka
2.91%
3.30%
2.15%3.60%
Fig 1.5 Percentages of Target-RTS
Table 1.4: Current status of installed RTS capacity in four states chosen for the CII-HFE workshop series

1.4 Focus of the Workshop
• Rooftops Implementation Roadmap
• Policies and framework
• Financing Solar Rooftops
• Issues and challenges
1.5 Workshop Schedule
1.6 Conclusion
The workshops have been organised to create awareness among the end consumers of the RTS
programme. These workshops and the deliberations have been enriching and educational, bringing
to the forefront various issues and challenges facing the RTS movement in India and globally. These
workshops helped arrive at ideas, solutions and suggestions from various stakeholders to address
these challenges and lay a roadmap for a rapid solarisation of the country. The main challenges that
were identified during these discussions are as follows:
WorkshopI
th
24 Nov, 2016
Pune, Maharashtra
WorkshopII
th
14 Feb, 2017
Chandigarh, Punjab
WorkshopIII
th
25 Apr, 2017
Hyderabad,
Telangana
NationalConference
New Delhi
th
19 Jan, 2018
Bengaluru, Karnataka
WorkshopIV
th
30 May, 2017
Lack of awareness
across the value chain,
ie. from engineering to
commissioning to
certification standards
and procedures for
installing RTS
Consumer
education, clarity
on the concept of
metering, net vs.
gross, its incentives,
implementation,
limited skilled
manpower
Lack of legal
framework to
ensure that
individuals
adhere to Power
Purchase
Agreement (PPA)
Absence of
guidelines
from the
policy
makers
Apprehensions
over quality and
technology of
products
05

National Institute of Solar Energy (NISE), Gurugram, Haryana

2.1 Global Status- Solar Power
Worldwide growth of solar power is extremely dynamic and varies strongly across countries.
• By the end of 2016, cumulative photovoltaic capacity increased by more than 75 GW and reached
10
at least 303 GW, sufficient to supply 1.8 per cent of the world's total electricity consumption
11
• The top installers of 2016 were China, USA and India
• There are more than 24 countries around the world with a cumulative PV capacity of more than
12
1GW. Austria, Chile, and South Africa, all crossed the one GW-mark in 2016
Source: REN21
10
REN21
11
MNRE
12
Sustain. Energy Rev
2. Rooftop Solar:
Global Experiences
07
Fig.2.1 Top 10 countries in 2016 based on total PV installed capacity
14%
Japan
14%
Germany
13%
United
States
26%
China
06%
Italy
04%
United
Kingdom
03%
India
02%
France
02%
Australia
02%
Spain
14%
Others

2.2 Rooftop World Wide
Rooftop
Solar
Utility
Solar
Australia Germany Spain USA China India
97%
%03
73%
27%
60%
40%
46%
54%
18%
82%
12%
88%
Source: REN21
2.3 Global Success Stories - Overview of Policies
Germany with more than 38.25 GW of cumulative installations has a share of almost
one fourth of world's PV capacity. The RTPV share was 9 per cent residential, 26 per
cent commercial and 24 per cent industrial with 1 per cent from building envelop,
remaining 40 per cent capacity comes from ground based installations. Beginning
1999, 1,00,000 rooftops were adopted to encourage solar installation in residential
sector with zero per cent interest loan. The government had incentivized rooftop by a
significant fall in the costs, by introducing-
• UserfriendlypoliciesforinstallationsandFeed-in-Tariff(FiT)wereperiodicallyupdated
• The country introduced the “Corridor” concept in 2011, a method allowing feed-in
tariff levels to decline according to the market evolution. As the market grew
during a defined period, feed-in tariff levels were lowered further
• In 2009 gross metering was introduced to encourage solar project development
independent of captive load of the consumers. Household owners got income
from preferential tariff. Small consumers who produced electricity for their use
were given premium FiT EURO 0.25/kWh and those who also supplied to grid at
EUR 0.47/kWh
• Market Integration Model: Apart from self-consumption incentives, Germany
pushed PV producers to sell electricity in the market through a “market premium”.
The producer could decide to sell its electricity in the market at any period, instead
of getting a fixed tariff. The producer received an additional premium on top of the
market price
• The government in 2013 decided to support battery back-up in each household to
facilitate storage to further incentivize RTPV use
• In addition to financial incentives, regulatory measures included Renewable Resources
ActGuidelinesforinterconnectiononprioritybasisandwithlowvoltagegrid
Germany
08
Fig.2.2 Share of utility scale solar vis-à-vis rooftop solar

China has the second highest RTS installation after Germany and has achieved 28.3
GW SPV capacity as on March 2016. In 2005 the country was heavily dependent on
coal which was contributing to 68.75 per cent of electricity. Solar energy is utilised only
for powering remote villages and telecommunication towers because of its high cost.
The government enacted ‘Renewable Energy Law’ in 2005 to facilitate renewable
energy generation, in addition to fresh guidelines.
• China has focused on R&D, training for manpower skills and public participation.
The SPV industry in China has grown faster than any other country and the market
share of Chinese PV increased from 1 per cent to 35 per cent in 8 years
• The government has established PV industry chain for assured supply of material
and products. In 2014, giving a renewed thrust to Rooftop Subsidy programme of
$2.4/W, Golden Sun Demonstration (GSD) programmes were launched. GSD
provides 50 per cent support for large grid connected rooftop of >300 kW and 70
per cent for off-grid systems
China
Japan
Japan is third among the leading countries with 23.4 GW capacity, having invested
majorly in R&D for grid connected RTS under its ‘Sunshine and New Sunshine Projects’
since 1970s. A “Basic Guidelines for New Energy Introduction” was decided upon in
December 1994 with introductory targets for PV power generation pegged at 400 MW
in 2000 and 4.6 GW in 2010. In 2004, target of 100 GW in 2030 was set up with a
roadmap ‘PV2030’.
• Japan has given incentives to small producers by buying power at double the price
and capital subsidy & soft loans to larger systems. As the result, 10–1000 kW RTPV
systems have grown significantly
• The major reason for the consistent and sustainable growth has been the new FiT
policy of the government of Japan, which was introduced in 2009 and
strengthened in 2011. With the start of the FiT programme, the market for public,
industrial application, and utility-scale PV systems has grown at a fast pace
• On the regulatory side, Electrical Utility Industries Act provide provisions for
utilities. Renewable Purchase Obligations and saving in electricity bills were other
incentives being provided
Italy
Italy having 18.6 GW capacity, is at the fourth position globally. The country has
put in place various policies and schemes to give a fillip to its solar programme in a
big way.
• In 2000, net metering scheme was introduced with direct incentives for RTPV
• More generous incentives were provided in 2007, and in 2008. FiT ‘canto
energia’ act for RE development was enacted
• Tax credits were given for plants up to size of 20 kW and in 2014 new rules for
electricity storage connected to grid was published. As a result, the target set
for 2020 of 15 GW has already been exceeded
09

In 2007 and 2008, Spain’s FiT programme triggered a rapid expansion of the PV
market. Large PV installations developed fast and drove Spain to the first place in
the world PV market in 2008. In October 2008, a moratorium was put in place to
control the growth. FiT was granted only after a registration process capping the
installations at 500 MW/ year.
• After a low 2009, due to the time required to put the new regulation in place,
the market went down to between 200 MW and 450 MW a year
• In 2012, a 223 MW SPV was installed in Spain. However, some measures
taken have affected the PV electricity producers retroactively, due to difficult
economic conditions
• The most visible one is the cap on hours during which PV installations received
the FiT. As a result, FiT’s are granted for a part of yearly production only. This
situation led to opposition from conventional stakeholders and grid operators
in such a way that it forced the government to decide on a moratorium for all
new renewable and co-generation projects benefiting from FiTs (’Special
regime’) from January 2012
• Finally, at the end of September 2012, Spain imposed a new tax on all the
generation technologies to cover the electricity price deficit, reducing the
profitability of the existing PV plants. Discussions on a possible net-metering
system were not conclusive in 2012 and its implementation for even self-
consumption became difficult
SPAIN
10
Table: 2.3 Overview of different support schemes for RTS in various countries
Direct capital subsidy
Green electricity schemes
PV specific green electricity scheme
Renewable Portfolio Standard (RPS)
Solar set aside RPS target
Financing scheme
Tax credits/tax benefits
Net-metering/net-billing/self
consumption incentives
Sustainable building requirements
Scheme Australia Germany India Italy Japan USA

• RTS boom is set to spread worldwide as costs plunge
• One-quarter of Australia’s power will come from RTS
• In Brazil, as much as 20 per cent of the nation’s power will come from panels on residential
rooftops, and Germany will get 15 per cent from these small systems by 2040. That compares to
about 5 per cent for the USA and India. Germany, Japan, Italy — all rank higher than India, even
though India has a much larger landmass
• Installed capacity of household and office systems will exceed those of large utility-scale storage
in the decade, with investment reaching $16.9 billion over a five-year period from 2026 to 2030
• Solar has been found to consistently add value to homes; real estate agents need a new way to
fairly value solar homes and make sure house hunters can easily find key solar system
information
2.4 Global RTS Scenario: Highlights
11
Incentive
structure
Long term
project viability
Metering
Arrangements
Implementation
of business)
models
Reasons for
programme
structure
FIT, periodically
updated
Long-term FiT
Guarantee, Public
participation in
enhancing financing,
Streamlined
interconnection
& permitting process
Gross metering till
now, piloting metering
Income from
Preferential tariff
FiT's to encourage solar
project development
independent of the
captive load of the
consumer
Capital subsidy,
Renewable Purchase
Obligation
Soft financing,
streamlined
interconnection
and administrative
approval processes
Net metering
Saving in electricity
Higher retail tariff &
promotion of captive
consumption were
the key factors for
choice of net metering
Capital Subsidy,
Tax credits,
Rebates
Emergence of third-party
service providers who take
on the risks associated with
the development and
performance of the system
Net metering
Saving in electricity bill for
rooftop owner, lease payments
and tax benefits to project
developer or owner
Use of the net metering mechanism
allowed regulators to facilitate the
development of decentralized
solar system without significant
cooperation from electricity utilities
Key components
for development
of RTS
Programmes
Germany Japan California, USA
Source: E&Y
Table: 2.3 (Part-2) Key RTS Developments in Germany, Japan and USA

2.6 Conclusion
The RTPV success stories in these countries have relied not only on financial incentives and metering
arrangements, but also on regulations of grid connectivity and successful business models. The
changing dynamics of policies has been a dominant factor. In most countries, there has been
dominance of FiT and direct capital subsidy mode until 2011. But since 2012, trends changed, soft
loans, tax credits, role of municipalities and market based mechanisms have played dominant roles
in encouraging peoples' participation. Thus, self-consumption mode of implementation increased
from 3.4 per cent to 12 per cent.
On other hand, in Spain, which has most abundant solar irradiation among EU countries (varying
from 1.48 to 3.56 kWh per sq. m per day), had renewable energy plan 2005–2010 approved in 2005.
Spain attained second position in top five countries in 2010 having 3.4 GW installed solar capacity.
However, subsequent retroactive support to cut FiT did not permit self-consumption of solar
electricity, made it costlier than the electricity price and the growth in solar rooftop had a slowdown.
However, it is now picking up again.
2.5 Learning for India
In India, RTS has maintained a 10 - 12 per cent share of overall solar capacity. This is much lower than
other key markets such as the USA, Germany, China, Spain and Australia.
In recent years, Japan, China and Germany have been successful in generating most of their energy
requirements from RTS. India can learn from these countries’ experiences in achieving its target to
install 40 GW of RTS by 2022.
• Subsidy to Solar Producers– India should look at subsiding the solar power output through
some accounting mechanism like FiT in Germany. This will attract more private and public power
producers in this field and consumers will be attracted for its low cost and easy operation
• Public Participation- Mandatory installation of RTS on government and public buildings as
some states like Rajasthan and Haryana have adopted. This will help tide over scarcity of power
and more usage in productive works
• PPP type projects- Must be initiated in different states
• Technology- Collaborating with countries leading in solar power installation like Germany,
France, USA, Japan etc. will result in necessary R&D and innovation in this sunrise industry
12

3.1 Background
Renewable energy is being seen as a transformative solution to meet energy need as well as
economic challenges, both globally and nationally. As part of its National Determined Contributions
(NDCs), India aims to increase the share of installed power generation capacity from non-fossil fuel
based energy resources to 40 per cent by 2030. In this context, the Government of India has
embarked on the world’s largest renewable energy capacity target of 175 GW to be achieved by 2022
of which 100 GW is to come from solar, 60 GW through wind, 10 GW through small hydro power and
the remaining 5 GW through biomass-based power projects.
India’s solar market, especially solar photovoltaic, has seen significant growth after the launch of the
Jawaharlal Nehru National Solar Mission (JNNSM) in 2010. Thus, multiple state governments have
taken necessary initiatives to kick-start implementation of RTSPV projects.
3.2 Current Status/Installation trend
3. India's Rooftop Solar Targets
India’s total installed RTS capacity is estimated at 1,247 MW as of December 31, 2016, with Capital
[13]
Expenditure (CAPEX) route accounting for nearly 84 per cent of total installed capacity but the
Operating Expenditure (OPEX) model has been gaining ground in the last couple of years .
Residential
28%
Industrial
34%
Government
12%
Commercial
26%
Source: Bridge to India
14
Fig.3.1 Installation Trend

1
TotalInstalledcapacity:1,396MwasofMarch31,2017
CommercialIndustrial
PublicSector
Residental
212590189386
2291127
OPEXCAPEX
138
2
3
Jammu&Kashmir
6681048Punjab
Chandigarh2011
2
7
Haryana7855320
Rajasthan88145321
87353319Gujarat
137610922Maharashtra
MadhyaPradesh215115
8395222Karnataka
18412
2
Kerala
UttaraKhand
2
8
2
12
Delhi2682153
UttarPradesh16401368
NorthEast
3
3
915
Bihar
32
8
3
WestBangal
3
7717
Jharkhand44614
Odisha
2
4
1
7
Chhattisgarh511420
Tleangana2118443
Others87722
Andhrapradesh1915640
TamilNadu361243163
Source:BridgetoIndia
15
13
Bridge to India
Fig.3.2 Installation trend
Manipur,Assam,
Meghalaya,Tripura,
Mizoram,Nagaland,
Sikkim,ArunachalPradesh
NetMeteringimplementation
statedasperasurveyofindustry
GoodAveragePoor
Symbolwithtwoarrows:
StateswithNetMetering
Symbolwithonearrowontheright:
StateswithGrossMetering
AllfiguresinMW

3.3 Target
The Government of India is determined to achieve 100 GW of grid interactive solar power capacity by
2022, of which 40 GW would be deployed through decentralised and rooftop-scale solar projects.
RTSPV would play a prominent role in meeting energy demands across segments. It has already
achieved grid parity for commercial and industrial consumers, and fast becoming attractive for
residential consumers as well.
9,000
2016-172015-16 2017-18 2018-19 2019-20 2020-21 2021-22
200
4,800 5,000
6,000
7,000
8,000
Total 40,000 MW
Source: MNRE
AndhraPradesh
Bihar
Chhattisgarh
Delhi
Gujarat
Haryana
HimachalPradesh
J&K
Jharkhand
Karnataka
Kerala
MadhyaPradesh
Maharashtra
Orissa
Punjab
Rajasthan
TamilNadu
Telangana
Uttarakhand
UttarPradesh
WestBengal
ArunachalPradesh
Assam
Manipur
Meghlya
Mizoram
Nagaland
Sikkim
Tripura
Chandigarh
Dadar&Nagar
Daman&Diu
Puducherry
Andaman&Nicobar
Lakshadweep
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Source: MNRE
16
Fig.3.4 RTS state wise target
Fig. 3.3 RTS year – wise target (MW)

3.4 Challenges and Outlook
As India moves ahead to achieve the target of 40 GW of RTS, new challenges are being faced at
14
different stages of installation and use, major ones are:
• Low consumer awareness and acceptance
• Highupfrontcapitalexpenditureforresidentialcomparedtocommercialandindustrial(C&I) segment
• Manufacturing of solar cells and R&D
• Installation technology and adequate skilled workforce
• New business models
• Micro and mini grid development for distributed generation
• Integration of solar energy into national grid
• Challenges in regulatory framework
• Outlook for RTPV in residential, commercial and industrial sectors
40 GW of rooftop solar
3) Reducing investor risk and
providing a level playing
field for investors
4) Consumer awareness,
support for system
quality
SUSTAINING
GROWTH
URGENT
BUILDING
BLOCKS
NECESSARY
FOUNDATIONS
5) Skills in
industry,
regulators
and utilities
6) Maximising
suitable
rooftop
space
7) Mandates to
drive adoption
once viability
and ecosystem
in place
1) Operationalising
net metering,
quick connections
2) A fair deal for utilities
to secure their
active support
14
International Energy Agency
17
Fig. 3.5 Seven pillars of growth for attaining solar RTPV targets in India

3.5 Policy and Regulatory Framework
There are various enabling policies/ incentives for promoting RTS namely: Electricity Act, National
Electricity Policy 2005, Tariff Policy 2006, Integrated Energy Policy 2006, National Action Plan on
Climate Change (NAPCC) 2008, Generation based Incentives (GBI) for Solar, Jawaharlal Nehru
National Solar Mission (JNNSM) 2010, Renewable Energy Certificates (RECs), Clean Energy Cess, Joint
15
Liability Group (JLG) for Off-grid installations, Corporate Social Responsibility (CSR) . International
Energy Agency's analysis suggests that the Amendments in the Acts, Tariff Policy 2006, State-level
policies and a greater participation of the private sector have played a key role in the overall growth
of RTS installed capacity in India.
POLICY UPDATE:
• Net metering: 29 states and 7 union territories have notified grid connectivity regulations with
provision for net/gross metering, but on-the-ground implementation remains patchy
• Subsidy for residential, institutional and government consumers: MNRE has sanctioned
Rs 50 billion ($ 750 million) funding for 30 per cent capital subsidy for RTS for residential and
institutional consumer segments. In addition, up to 30 per cent subsidy is also available for
government projects
• Boost in government demand: Government is expected to become a major demand source for
RTS in the coming years. All building facilities under different central government departments
are being urged to adopt RTS and a potential of 6 GW capacities has been identified so far. SECI
has already announced 500 MW of tenders for such buildings
• Concessional debt financing: The GoI, with assistance from multilateral financial institutions
such as Asian Development Bank, The World Bank and New Development Bank, has earmarked
$ 1,470 million of concessional credit lines for the RTS market
• Building by - laws: The Government of India has recommended mandatory RTS installations for
buildings exceeding specified size and/or power consumption thresholds under the model
Building by - laws. Four states and union territories - Uttar Pradesh, Haryana, Chandigarh and
Chhattisgarh - have adopted these regulations so far.
3.6 Financing Model
For financial analysis, two types of rooftop solar PV systems are considered, viz.
• A 2 kWp SPV system for residential sector, and
• A 100 kWp SPV system for commercial/industrial sectors
3.7 Achievement
India installed world’s largest single RTS power plant of 11.5 MW capacity in Beas near Amritsar in
Punjab. Spread at a single rooftop stretch of 42 acres at Dera Baba Jaimal, the project was
synchronized earlier last year. Very recently, GAIL India Ltd., a hydrocarbons company has installed
the second largest RTS power plant in Uttar Pradesh.
15
Climate Group
18

4.1 Preamble
The Confederation of Indian Industry (CII) has taken up the program to initiate a dialogue between
industry, government, policy makers and consumers to help arrive at a roadmap for a speedy
rooftop solarisation in the country. In the first year of the project 2016-17, the agenda was to
organise a series of Workshops across states leading in RTS implementation. These interactions
were expected to provide a platform for engagement and discussions between key stakeholders of
the RTS programme in the state, including senior government and regulatory functionaries, State
Electricity Boards, transmission and distribution companies, solar power developers, panel and
ancillary equipment manufacturers, EPCs, and consumers such as builders, Resident Welfare
Associations and Cooperative Housing Societies. During 2017, Workshops were conducted at four
different city’s/states namely: Pune, Chandigarh & Punjab, Hyderabad, Bengaluru. The Series-I of the
program will conclude with a Conference in New Delhi, which will draw upon the learning’s from the
state Workshops to formulate a roadmap to accelerate the deployment of RTS in India.
4.2 Choice of States for the Workshop Series
The following four states i.e. Maharashtra, Chandigarh & Punjab, Telangana, Karnataka were chosen
in the first phase to carry out the workshops given that these states have played an important role in
terms of targeted per centage as well as the achievement till date.
Source: MNRE as 29.02.2016
Maharashtra 0 0 0 0.125 5.983 0.736 6.844
2 Punjab 5 0 20 25 23.481 2 0.707 26.188
3 Telangana 0 4 70 74 5.78 2.535 0.648 8.963
4 Karnataka 0 0 0.935 0.935 4.817 2.493 2.141 9.451
1
Sl.
No.
State/UTs Projects
Sanctioned
under MNRE
Scheme to
SNAs/State
eptts. (MWp)
NCEF
BY
MNRE
(MWp)
In
Principle
approval
given
(MWp)
Total
Sanctioned
and
approved
in principle
Total
Achieve
ments
(MWp)
Achievement
by
SECI (in
MWP)
Achievement
by Channel
Partner/NE
without subsidy
(in MWP)
Total
Achivement
(in MWP)
4. Workshop Series:
Powering your Rooftops
19
Table: 4.1 Status of grid connected SPV rooftop projects sanctioned to states/UTs/SECI/PSUS and
other government agencies

Eligible Developers A consumer in
area of supply of
DISCOM who
intends to use
solar rooftop
project having
capacity of less
than 1 MWp
Rooftops or/
and vacant
spaces/areas on
the land, building
or infrastructure
or part or
combination
thereof
All registered
companies,
Govt. entities,
domestic,
commercial and
industrial
establishments
An eligible consumer in
the area of supply of a
distribution licensee is
allowed to install RTSPV
plant with installed
capacity not less than
1 KW but not exceeding
1 MW
Net metering
arrangement
shall be provided
on first come
first serve basis
Maximum
capacity capping
of 80% of
contract demand
(max of 1 MW)
with a minimum
capacity of 1 kWp
Both Net Metering
and gross metering
allowed
Grid Connectivity Net Metering
allowed
Net Metering
facility shall be
available for
complete 25
years
Both Gross and
Net Metering
facility shall be
available for
complete 25
years of project
Gross metering is only
applicable to homes,
hospitals and educational
institutes. Net metering
still applies to industrial,
commercial and all
categories of consumers,
apart from these three
Other
Incentives/Promotional
provisions
30% Capital
Subsidy from
MNRE to Govt.
buildings and
residential
consumers
30% Capital
Subsidy from
MNRE to Govt.
buildings and
residential
consumers
30% Capital
Subsidy from
MNRE to Govt.
buildings and
residential
consumers
Accelerated
depreciation of 80%
Connectivity voltage Upto 8 kW-230
V/ Single phase
Upto 150 kW-
415 V/ 3 phase
Above 150 kW-11
kV and above
Upto 100 kW-LT
More than 100
kW-11kV
Policy/Regulation MERC Net
Metering
Regulations
2015
Punjab Net
Metering Policy
2014 & PSERC
Net Metering
Regulations 2015
Telangana Solar
Rooftop Policy
2015
KERC Solar Rooftop
Policy 2016-18
Date of launch Sep-16 5-Nov-14 1-Jun-15 May-16
Description Maharashtra Punjab Telangana Karnataka
Operative Period Will remain in
force till new
policy
pronounced
Will remain
in force till
new policy
pronounced
5 years Will remain in
force till 2018
Source: MNRE
20
Table: 4.2 Other Indicators

4.3 Objective of the Workshops
In compliance with the objectives of the Project “Powering your Rooftops”, CII provided a platform to
discuss existing and necessary policy frameworks to accelerate the RTS programme, identify and
address key bottlenecks deliberate on support mechanisms and financing options, and chalk out
specific measures to mitigate investor and developer concerns. It also discussed RTS scenario in
each state, their Government’s short- and long-term targets on RTS development, policy initiatives to
achieve these targets within the defined timelines for the respective states.
The Workshops brainstormed on how to achieve state-specific targets given the present scenario,
policy and regulatory frameworks, available and potential opportunities, roadblocks and challenges,
and proposed strategies for the state RTS roadmap. Efforts were made to understand the financing
options for stakeholders, low-cost, long-term support mechanisms for stakeholders to promote
institutional, commercial and residential RTS adoption in respective state and nation. The identified
four states have 27.5 per cent of the target set for RTS -2022.
State
Solar Power Target
MW BY 2022
RTS Target
MW BY 2022
RTS Target%
Maharashtra
Punjab
Telangana
Karnataka
11,926
4772
5697
4700
2000
2000
2300
11.75
5
5
5.75
Source: MNRE
4.4 Focus of the Workshops
• Implementation Roadmap
• Financing Solar Rooftops
• Issues and challenges
21
Table: 4.3 State Targets

4.5 Workshop Schedule
WorkshopI
th
24 Nov, 2016
Pune,
Maharashtra
WorkshopII
th
14 Feb, 2017
Chandigarh,
Punjab
WorkshopIII
th
25 Apr, 2017
Hyderabad,
Telangana
National
Conference
New Delhi
th
19 Jan, 2018Bengaluru,
Karnataka
WorkshopIV
th
30 May, 2017
22

Solar powered green building initiative of the HERO MotoCorp factory in Neemrana, Rajasthan

5. Workshop I:
Pune, Maharashtra

5.1 Implementation of Rooftop Solar
Lack of awareness for installation of RTS, conditions, capacity etc.
• Yet to arrive at the policies to achieve its potential
Operationalisation of net metering in Maharashtra
Lack of storage for power
Due to size reduction, achieving costing economics gets difficult
Residential is a discreet sector, hence willingness to work is missing in the state
Procedural delays
Non-healthy relation between the developers and DISCOMS, creates liability risks
Streamlining of CEIG and DISCOM approval processes is missing
Regular bureaucratic hurdles encountered in billing cycle
Unavailability of skilled manpower
•
•
•
•
•
•
•
•
•
• Spreading awareness across all concerned stakeholders
• Implementation of net-metering is important
• The state should set solar targets taluka or district wise
• Need for an increased R&D on the storage capacity front
• More programs like Surya Mitra should be rolled out
• A methodology introducing small local village grid and a separate secured payment mechanism
should be implemented
• Concept of DC home should be worked on
• Testing by NABL Accredited Labs should be made compulsory
25
A - Issues & Challenges
B - Solutions & Suggestions

• In the state, bank loans put a demand for collateral which is a challenge as banks do not consider
solar systems as a collateral
• SBI is providing loans at 10 per cent
• IREDA has come up with an interest rate of 10 per cent
• Presently banks are restricting their financing to industrial and commercial consumers for the
reason that they have a very strong business case for installing a RTS
• For the micro grids, there is a provision in the Electricity Act by which an integrated scheme for
generation and distribution of electricity does not require a license in rural areas
• Absenceofcorrectinformationforeligibilitycriteria,financing,technicalparametersetc.
• Lack of commercial financing for RTS
• Demand for more clarity on home loan with RTS as a component
• Absence of clauses for default settlement
• Priority lending
• Clarity for the system going on -grid from off-grid
• Challenges in investment and returns in micro solar
• Lack of work satisfaction as per the present bid process
• Lack of sense of security in case of contracts due to falling solar prices
5.2 Financing Rooftop Solar
• World Bank guidelines should to be adhered for better results
• Awareness should be spread for the policies and usage
• There should be more clarity on the home loan itself with solar as a component
• Priority lending system to be improved in a similar way that MNRE has formulated the channel
partner scheme wherein, they are underwritten
• New policies should be introduced where DISCOMs can buy power from people and the village
can buy from the DISCOM
• Need to adopt the solution for finalising bidders like, book building and not matching L1
• A clear distinction has to be made between the net metering and off grid system
• Introducing models that can replicate the RESCO format
26

Highlights of the workshop
To achieve the target
of 40 GW, we need to
set taluka/district wise
solar targets. It is only
going to the grassroots
that will help us achieve
the targets we have set.
Mr. Nikhil Sanghani
Vice President,
Vikram Solar Pvt Ltd
Size reduction poses challenge
to costing economics. Investors
do not want to work for
residential projects as it is a
discreet sector, offers smaller
projects. There is unavailability
of bank loans and Solar projects
are not considered collateral
for loan.
Ms. Anita Agarwal
Manager – Power Systems.,
Solar Energy Corporation of
India (SECI)
27

6. Workshop II:
Chandigarh & Punjab

6.1 Rooftop Solar in Chandigarh & Punjab
• Punjab has been at the forefront of the RTS movement and Ministry of New & Renewable Energy
(MNRE) has acknowledged this effort. Punjab houses the world's largest single RTS plant and for
the last three years, the state has ranked No 1 in attracting investments in the solar sector
• Top ten RTS power plants in India are in Punjab, the one being at Mohali vegetable market
generates 2 MW on a single roof
• The state is targeting 1,000 MW RTS capacity by end of 2017 and is one of the few states which has
brought in the net metering policy and is geared to simplify its understanding and
implementation
• Punjab has made significant headway and even excelled in putting the necessary policies for
ground mount rooftop systems
• In gross metering, Punjab has made significant strides. It is the first state to bring out a 100 MW
tender for commercial grid connected RTS and has already bid out around 60 MW, the highest
allocation in the country
• The British High Commission network that started in 2016, has been delivering and implementing
a project on RTS assessment in Punjab working across several cities including Ludhiana, Patiala,
Ferozepur and Kapurthala. Activities under this program include:
- Formulation of State Action Plan for RTSPV across government buildings in
Punjab
- Conducting technical surveys to prepare feasibility reports in selective government
institutions
- Suggesting possible business models for implementation of rooftop projects and
conducting financial assessments of the proposed rooftop installations
- Supporting PEDA in conducting a bid process to discover the competitive tariff for RTS
installations in Punjab
- Supporting the state in creating awareness for RTS installations on government
buildings eligible for subsidy and feasibility assessments of rooftops across 25 institutions
to support the establishment of projects of over 10 MWs
• The total power demand for Chandigarh is around 450 MWs. The State Government has put in
place a policy to ensure that every house above 500 sq yards has rooftop solar system
• The government's target is to convert Chandigarh into a 100 per cent renewable energy city,
partly fed by hydel power and partly by bio fuels. It may also become the manufacturing hub for
solar related industries
29

• In Punjab, 24 MW is the allocated capacity and out of this capital expenditure mode is around 21
MW and 3 MW is under RESCO model
• For the RESCO model two bidders Amplus and Clean Max Enviro have been allotted 2 and 1 MW
effectively. They will carry forward the SECI scheme for residential, institutional and social sectors
• The Punjab Government has facilitated and identified vendors through its tendering process and
have enabled customers to choose from the list or their own. Even if customers choose the
vendors on their own, the government vets the process to protect the consumers' interest and
provide safeguards
• Subsidy on the domestic sector can be applied online and the same gets credited to the account.
Essentially, a RTS customer gets a single window option for its needs and this facilitates interest
and action on ground
• The state has incorporated several practical aspects in the execution of the RTS programme. For
instance, it is targeting school and educational institutions aggressively because these are
operational for a limited duration in a day as they shut around 2 pm. This makes the capacity
requirement lower and thereby, lowers the capital cost as full capacity plants do not need to be
installed to support them. The surplus goes to the grid under net metering for consumption later
• Punjab Government is currently working on an assessment project across key cities. PEDA is
identifying and has zeroed in on the buildings including government offices, hospitals,
universities etc. to harness solar energy
• Punjab Government has ensured ease of doing business so that the consumer do not have any
apprehension about investing in RTS. That is one of the reasons because which Punjab's RTS
installed base has grown exponentially in the last 1½ years
• Inadequate and inaccurate communication between the National and State Governments
continues to be a challenge
• Punjab has a ceiling policy that 80 per cent of the connected load can be generated on the
respective roof. Proponents of the industry think that these should be made more open
• Manufacturing plants are commercially viable only if capacity is at least 2 GW to achieve the
current low-cost targets
• Selling back the excess power into the grid invites surcharges for distribution companies.
Eventually, when rooftop installations increase over the years, there will be less consumption
from the state DISCOM. The DISCOMs, therefore, have a conservative view of these projects as it
affects their profitability
• There are some very specific risks like fire especially due to hotspot. Hotspot could arise due to
shadow effect, it could also be because of soiling like dust. Therefore, there is a need to assess the
quality of products procured as well as processes to install large scale modules
• In net metering, while the intention is good, the industry still faces a few challenges. One such
challenge is that, at the end of the year, banking units’ lapse. They are not carried forward,
thereby impacting the viability of the business model of companies engaged in this sector
30

• Policy initiatives to align DISCOMs - The Regulatory Authority need to create regulations and
policy intervention mechanism for aligning DISCOMs to consumers moving into captive RTS
generation. What needs to be driven is the commercial viability of clean energy, and the change in
mindset of the people working in DISCOMs who will drive the transformation. They need enough
time to adjust to the new systems
• Standardization and ratification of processes and quality of products for modules to be
integrated into large scale installations, is necessary. This will ensure protection of rights and
interests of developer and regulator. MNRE along with other ministries should also explore the
ways and means through international trade regimes like WTO, to ensure that the right quality of
products are entering into the country; and that domestic manufacturers are complying with
certain international standards. This not only includes ensuring standards at the design approval
stage, but also at the installation, commissioning, post commissioning stages. Furthermore,
periodic, annual and performance checks of the products are required
• Educating developers
- Project execution for developers can be expedited if statutory approvals from various
bodies such as Chief Electrical Inspector to Government (CEIG) are streamlined
- Operatingexpendituremodelinwhichthedeveloperleasestheroofsystemwiththerooftop owner
has no upfront cost, but it comes with challenges of consumer credit risk. There should be a
standard rooftop PPA and fast track dispute redressal mechanism
• Awareness about the economic viability is yet to seep in for RTS to gain traction. It requires long
term investment in RTS installation
• Banks need to come up with combined loan packages for the RTS at the time of the concept stage
of the building
• Financing companies like IDBI makes accessible products. It is done with the aim of simplifying
the financing of RTS for the individuals with focus on the retail consumer and the individuals for
smaller ticket size loans. IDBI funds up to 85 per cent of the total cost of the project
• Accelerated depreciation for 2016-17 would remain at 80 per cent on the full rate, but in the
financial year 2017-18 it will come down to half. ROI is in any case always under pressure
• There are mixed views on how long subsidies should be retained. While subsidies do help the
consumer, it also creates a dependency factor for them
• Long term investment is required in RTS installation
• Accelerated depreciation should be held at 80 per cent for at least another year or two. This will
boost investments from the commercial sector into solar power plants whether it is rooftop or
ground mounted for their own usage or for others, but it is a very big incentive. It directly relates
to savings of taxes
31

Punjab has always been
in the forefront in facilitating,
protecting the interest of the
consumer and that of the
installers. It is high time that
the focus shifts from
ground mount commercial
ventures to rooftop commercial
as well as net metered
domestic ventures
Dr Amarpal Singh,
Chief Executive Officer,
Punjab Energy Development
Agency (PEDA)
Considering the sheer
size of market in India it
could easily become the
manufacturing hub
for solar related products
in line with the Prime
Minister’s Make in India
mission
Mr Javed Malla,
Energy & Low Carbon Adviser,
British Deputy High Commission,
Chandigarh
L_R: Mr Vikram Hans, Co-Chair, CII Regional Committee on Power Reforms and Renewable Energy, Northern Region, and Managing Director, Multi Overseas
India Pvt Ltd (Delta Power); Mr Sunil Jain, Chief Executive Officer, Hero Future Energies Pvt Ltd; Mr Javed Malla, Energy & Low Carbon Adviser, British Deputy
High Commission, Chandigarh; Mr Santosh Kumar, IFS, Director (Renewable Energy, Environment, Science & Technology), Vice Chairman (Chandigarh
Pollution Control Committee), Chief Conservator of Forests, Chief Wildlife Warden, Chandigarh Administration, Union Territory of Chandigarh; Mr Tanmay
Bishnoi, Head - Standards and Research, Skill Council for Green Jobs, Government of India; Ms Aashima Bhullar, Assistant General Manager, IDBI Bank, Punjab
32

Installation of rooftop solar panels in Delhi Technical University (DTU), New Delhi

7. Workshop III:
Hyderabad, Telangana

7.1 Hyderabad and Rooftop Solar
• The Government of Telangana is planning a campaign for RTS and is looking to partner with the
industry to help spread awareness about solar energy
• The Government has also emphasised that net metering should be a bill saving activity and only
then a business venture
• Raj Bhawan in Telangana has already installed the largest RTS installation of 900 KW on the
Government building
• For RTS, lead acid, lithium zinc and nickel are the most suitable batteries which are compatible for
storing energy. Promoting the storage of energy through RTS is important as there is a need to
store the energy produced during the day to reduce the stress on the grid during the night
• Entrepreneurs who are branching out into this sector need the knowledge on how to develop
efficient business models for RTS
• Lack of skilled labour to do quality installation for RTS
• Very slow response to net metering applications. It takes more than 2 months from the
registration of application
• Shortage of suitable batteries which are compatible for storing energy generated by RTS. Also,
the batteries are expensive and demand high capital expenditure
• Most distribution companies do not invest in individual installations of RTS because it means a
revenue loss for them. However, if solar and storage cost come down, it will help people to move
off the grid
• From a consumer perspective, quality of the roofs has to be checked before installing RTS.
Maintaining the rooftop is also critical. Regular cleaning of panel is important to get the best
results
• It is important to evolve the invertor technology with regards to RTS. The invertor is an important
component of RTS as it is lighter and efficient, and stabilises the fluctuations in current. The
funding for this depends on the bankability of the component used in the RTS unit
35

7.3 Financing RTS in Telangana
• The Government of Telangana with the help of the banks is going to announce loans to install RTS
on Government buildings in the state
• IREDA has the lowest interest rate for borrowing, and now Reserve Bank of India has included RTS
as a priority area for lending which is a step in the right direction
• Majority of the fund given to State Bank of India is given by World Bank. Telangana aggressively
pushed 20 units for Rs 100 crores.
• Punjab National Bank is financing up to 10 to 50 MW RTS Capacity. Loans for capacity over 50 MW
are also available
• How to reduce the price of borrowing
• Residential areas are difficult to cater to and there are challenges in terms of financing the capital
• Loan tenure finance needs to be extended for RTS. State Bank of India has one of the most liberal
terms of loans for RTS. Extending the loan duration of 15 year will reduce the EMI
• To ensure bankability and that funds are given to units; there should be standardisation of RTS.
The technologies which will solve the problem of shadow effect will provide that bankability
36
L-R: Mr C V Ramana, State Bank of India, Bengaluru; Mr Vijaykumar Shiroor, Senior Manager – Technical, Project Finance Department, Canara Bank; Mr K Krishan,
Chairman, CVC India Infrastructure Pvt Ltd; Mr Shiva Prakash, KREDL; Ms Soma Banerjee, Executive Director - Energy & Infrastructure, Confederation of Indian
Industry; Ms Latithambal, KREDL; Mr Harinarayan, CEO & Founder, Usolar; Mr Vikas Bansal, Director - Corporate Finance, YES Bank; Mr Hiten Parekh, President and
Head, Everest Solar

The Government of Telangana
will ensure ease of doing business
for implementation of rooftop
solar and encourage solar parks
through which a decentralised
method of providing electricity
can be adopted. Also, the
industry needs to take a lead
in disseminating information
on RTS which will
benefit all the stakeholders
Mr Ajay Mishra
IAS, Special Chief Secretary,
Department of Energy,
Government of Telangana
RTS is now cheaper,
to Rs 5 from Rs 8
and will attain grid
parity in near future
Mr Sunil Jain
Chief Executive Officer and
Executive Director,
Hero Future Energies Pvt Ltd
37

7. Workshop IV:
Bengaluru, Karnataka

8.1 Rooftop Solar in Karnataka
• Karnataka has made significant headway in RTS implementation. It is one of the few states in
India which has not put a limit to the size of the solar plant installation and follows the principles
of gross metering to encourage adoption of RTS by individuals. This supportive policy will help the
state achieve its target of 400 MW generation capacity through RTS by 2018
• The Government envisages a minimum of 400 MW of grid connected RTS plants and 1,600 MW of
grid connected utility scale solar projects in the state by 2018. These developments make
Karnataka an investment friendly state for RTS
• The State Government’s main objective is to create awareness amongst the citizens about RTS
and lead the way in generating and consuming green energy
• By 2022, Karnataka aims to achieve 2400 MW of solar power generation.
• The state has already allotted solar energy projects to the tune of 300 MW to farmers and this
scheme is in progress yielding good results
• Decentralised RTS system should be installed in states
• On technology side, it is imperative that when RTS is being implemented, a set of guidelines
should be made based on geographical location
• Module level, real time monitoring should be done to ensure that the plants are generating as per
their capacity in the specific geographical region
• High efficiency panels, such as black silicon, bifacial, mono panels are a good choice and are
suitable for all RTS
• Shadow Analysis needs to be done to ensure that maximum generation output can be achieved.
Moreover, adoption of new technology panels like smart panels, cell string optimizers can easily
avoid the shadowing effects or any kind of mismatch losses. These kinds of panels will ensure
predictability and support in stabilising the grid
• It is also recommended that as per the guidelines the tilt of the solar panel should be minimum 5°
so that water gets washed down from the panels effectively during rainy season
• Soiling Loss Analysis is important as dust and soiling on solar panels leads to instantaneous
degradation of PV plants. The damage is caused more on thin films panels than on crystalline
panels
39

• The installation of solar panels is not done in an effective manner resulting in the inability of the
RTS to maximise output
• Implementing 100 MW rooftop solar projects is a difficult procedure compared to implementing a
single 100 MW utility scale project
• Lack of awareness across the value chain (from engineering to commissioning to certification
standards) regarding the procedures for installing RTS
• Non-existence of a legal framework which can ensure that individual consumers pay the amount
as per the PPA
• There is no clarity on the procedure related to Chief Electrical Inspectorate General (CEIG)
approval
• Aluminium is recommended for manufacturing panels because it is lightweight and does not
corrode, hence a longer shelf life
• Inverters are very important component of the solar plant because they convert the solar energy
(AC into DC power) which can be fed into the grid. Also, the technologies used in inverters help
optimize power supply
• Rigorous monitoring solutions should be in place for ensuring maintenance of the RTS, identify
and rectify the defects
• Increase R&D to make installation process for RTS more efficient and effective
• There is a need for a change in the regulatory environment especially regarding tariffs regulations
and net metering policies
• An effective policy framework to encourage implementation of RTS in the state
• Introduction of norms, testing and standardisation for RTS
• Ensure that new technologies such as high efficiency panels are adopted and there is an increase
in demand for them in the market
40

• It is important to develop financial models which are bankable and revenue oriented
• The developers would want assurance that they get some return on the investments
• Karnataka has introduced a new net metering policy especially for domestic customers so that
they could invest in RTS and then sell the surplus power to the grid
• It is also essential that the banks decrease the payback period of the loans that consumers take
for installing RTS
• Traction for RTS is still very slow due to its economic viability
• Installation of RTS on existing buildings results in load bearing and generation losses
• Regulatory environment for small RTS installation is complicated
• Long term investment is required in RTS installation
• RTS installations are not advisable on existing rooftops and high rise buildings, instead, at the
concept stage of construction of new buildings, incorporation of RTS installation should be made
a priority. Villas, large housing and commercial developments should also be aggressively
targeted
• Government could consider incorporating premiums in marginal cost lending rates. In any
project, Micro, Small and Medium Enterprises (MSMEs) or those which are covered under Credit
Guarantee Fund Trust for Micro and Small Enterprises (CGFTMSEs), the Government should
either provide premium or risk concessions to the banks or make solar finance a part of the
original project cost and means of finance by adding some premium to the pricing
41

Karnataka is leading the way in
the implementation of solar
power in the country. The state
is rich in solar resources and
was the first state to notify
the Solar Policy in 2011. It was
also the first to commission
utility scale solar projects in India.
Mr K Siddaraju
Director (Technical) BESCOM,
Government of Karnataka
Karnataka is one of the leading
states in solar capacity addition.
As of March 2017, the state has
achieved an installed capacity of
11GW from renewables and solar
is the second highest contributor
with an annual aggregate
of 882.38 MW
Mr Sanjeev Sharma
Vice Chairman, CII Karnataka
& Country Managing Director,
ABB India Limited
L-R: Mr Andrew Hines, Head and Business Development – South India, Clean Max Solar; Ms Anandi Iyer, Head – India Office, Fraunhofer-Gesellschaft; Mr Sunil Jain,
Chief Executive Officer and Executive Director, Hero Future Energies Pvt Ltd; MrSrinivasappaDy.Director(Distribution)KPTCL;MrKaranSingh,RegionalSalesManager–
SouthSMASolarIndiaPvtLtd;MrNiranjanNaik,DeputyGeneralManager,BoschLimited;MrAnilPoluru,SalesManager–SouthIndia,TrinaSolar
42

9.1 Outcome
The series of workshops on the RTS are being done as a part of a project with an objective of creating
awareness among end consumers on RTS.
While substantial work is required to be done towards this, there are a lot of peculiarities that come
with every state apart from the fact that resource spread is very different in many of these states.
Some are rich in solar, some are average and others are deficit. How is the market created for selling
the surplus or buying within each state, there are regulatory issues which are critical to the whole
structure. Across the length and breadth of the country, developers are trying to scale up with all
odds stacked against them. CII has been at the forefront through these Workshops, trying to provide
a platform to different stakeholders to address these issues.
Interaction amongst the stakeholders - bankers, manufactures, government representatives,
researchers, representatives from international agencies, Investors, buyers and sellers – threw up
some interesting points of discussion in these Workshops.
9. Summary
43
A glance of Kochi Metro station powered by Rooftop solar. It boasts of an energy efficient ride, with sufficient green cover
and vertically gardened pillars.

44
9.2 Focus/Concerns/Challenges:
Awareness:
• Communicating central government programmes and state programs to the end customer and
making the customer understand the benefits of the RTS
• Ideal conditions for the RTS
• Dissemination of information about policies to the consumers
- how they can make use of it
- how it is done
- how much does it cost
- prices and its gains
• Financial options loans, subsidies and cost benefit analysis
Metering:
• Net-Metering Incentives
• The implementation issues of net-metering with DISCOM
• Gross –Metering
• Stabilized Grid issues
• Gross meter reading and submitting the invoices to the government
Skilled Manpower:
• Knowledge of product and installation
• Monitoring skills
• Maintenance
The contractual and the legal framework for
RTS are poor
Pricing
• Way to secure contracts with falling solar prices
• Pricing difference in the absence and presence of grid
• RTS installations put on hold - with falling prices

45
Power Purchase Agreement (PPA):
• Due to change in price, PPAs are not honoured
Financial Problems:
• Banks do not regard solar systems as a collateral
• Financer first evaluates the security and return on investment
Capital Subsidies:
• Tax benefits
• Lack of subsidies to achieve target
• Commercial sector lacking subsidies and changes in accelerated depreciation on full rate
RTS is a Discreet sector:
• When there’s a size reduction, the costing economics is difficult, therefore developers do not give
due importance to residential sector.
Land Disputes:
• Convincing a massive group of people/village for installation of RTS on large scale.
Battery/Storage:
• Cost, due to which the entire system cost goes up
• Life Cycle issues
Modules:
• Manufactures actively looking at cost reduction, which indirectly leads to compromising on
quality of modules
• Norms for testing, standardization are lacking

46
9.3 Recommendations and way forward
A small local village
level grid should be
developed and a
separate secured
payment mechanism
needs to be assured
for people who are
willing to invest in RTS
More programmes
should be launched
like Surya Mitra, Skill
Council for Green
jobs
Sufficient incentive required
to offset the high cost
More help from international
agencies
Guidance encouragement
from the policy makers
Decentralized RTS system
Modules
Skilled
Manpower
Government
Support
Online
Support
More online interactive
portals, chat corners
should be created like
in Chandigarh & Punjab
Research on
Modules
New technology and
research should be
done to maintain the
efficiency of modules
Implementation
Area
Work should begin on
existing villas and large
developments with focus
on new roofs
Assured PPAs
Some kind of a system
should be introduced
wherein, installer,
integrator or a developer
can get legal support on
PPA issues
Financial
Support
More banks and agencies
should support the
proliferation of RTS as is
being done by SBI and
IREDA
New Concept
DC Home is a concept
where many appliances
work on DC so that
conversion and inversion
doesn't take place
Norms for
Testing &
Standardization
There's a need for
stringent certification
standards from
engineering to
commissioning
Module testing and
standardization
Adopt Net
Metering
A net metering
mechanism allows for
a two-way flow
of electricity wherein
the consumer is billed
only for the 'net'
electricity supplied by
the DISCOM
Rooftop owners consume
electricity for which they pay
a pre-decided tariff monthly.
The model provides for
continuous operational and
maintenance support from
the developers. It allows for
better monitoring of load and
consumption with energy data
analytics. The central and
state governments provide
subsidies to RESCO solar
developers on over all project
costs
RESCO
Model

A glance of Kochi Metro station powered by Rooftop Solar.

Conclusion
Present RTS Status March 17
137
109
22
6
66
48
10 8
43
2118
4
83
22
52
9
Present Status of RTS MW
Commercial
Industrial
Public Sector
Maharashtra Punjab Telangana Karnataka
Maharashtra Punjab Telangana Karnataka
137
4700
66
2000
43
2000
83
2300 Present Status of RTS
RTS Target MW By 2022
Present v/s Target RTS 2022
48
The Workshops clearly showed that:
• Across the four states, industrial development of RTS is more prominent over commercial and
residential
• The states with the right policy levers are pushing for higher deployment of RTS
• Punjab and Karnataka are moving fast towards their RTS targets

49
Abbreviations
AC Alternate Current
BRICS Brazil, Russia, India, China and South Africa
C&I Commercial & Industrial
DC DISCOM Distribution Company
EPC Engineering, Procurement and Construction
FiT Feed in Tariff
GoI Government of India
GW Giga Watt
kWh Kil Watt Hour
LFC Load Frequency Control
MNRE Ministry of New and Renewable Energy
MW Mega Watt
PV Photovoltaic
R&D Research and Development
RE Renewable Energy
RTPV Rooftop Photovoltaic
RTS Rooftop Solar
SPV Solar Photo Voltaic
SECI Solar Energy Corporation of India

Solar Energy Corporation of India ltd (SECI) is a CPSU under the administrative control of the Ministry of New and Renewable Energy
(MNRE), set up on 20th September, 2011 to facilitate the implementation of JNNSM and achievement of targets set therein.
It is the only CPSU dedicated to the solar energy sector and was originally incorporated as a section-25 (not for profit) company under
the Companies Act, 1956. SECI has recently been converted into a Section-3 company under the Companies Act, 2013. The mandate
has been broadened to cover the entire renewable energy domain.
SECI is responsible for implementation of schemes launched by MNRE, major ones being the VGF schemes for large-scale grid-
connected projects under JNNSM, solar park scheme and grid-connected solar rooftop scheme, along with a host of other specialised
schemes such as defence scheme, canal-top scheme, Indo-Pak border scheme etc.
In addition, SECI has ventured into solar project development on turnkey basis for several PSUs. The company also has a power trading
license and is active in this domain through trading of solar power from projects set up under the schemes being implemented by it.
Solar Energy Corporation of India Limited
(A Govt. of India Enterprise)
1st Floor, D-3, A Wing, Religare Building District Centre, Saket, New Delhi - 110017
Corporate Identity No (CIN) - U40106DL2011NPL225263
T: 011-71989200; E: corporate@seci.co.in; Twitter: @SECI_Ltd Facebook: @SeciLimited
Skill Council for Green Jobs is an initiative launched by the Government of India aligned to the National Skill Development Mission. It is
promoted by the Ministry of New and Renewable Energy (MNRE) and Confederation of Indian Industry (CII).
The creation of the SCGJ was approved in the 10th meeting of National Skill Qualifications Committee held on 28th September 2015.
Established as a not-for-profit, autonomous, industry-led society, the SCGJ was incorporated under the Societies Registration Act XXI,
1860 on 1st October, 2015
Skill Council for Green Jobs
3rd Floor, CBIP Building, Malcha Marg, Chanakyapuri, New Delhi - 110021
T: 011-41792866; E: info@sscgj.in; Twitter: @sscgreenjobs; Facebook: @Skillcouncilforgreenjobs

The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India,
partnering industry, Government, and civil society, through advisory and consultative processes.
CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in India's
development process. Founded in 1895, India's premier business association has over 8,500 members, from the private as well as
public sectors, including SMEs and MNCs, and an indirect membership of over 200,000 enterprises from around 265 national and
regional sectoral industry bodies.
CII charts change by working closely with Government on policy issues, interfacing with thought leaders, and enhancing efficiency,
competitiveness and business opportunities for industry through a range of specialized services and strategic global linkages. It also
provides a platform for consensus-building and networking on key issues.
Extending its agenda beyond business, CII assists industry to identify and execute corporate citizenship programmes. Partnerships
with civil society organizations carry forward corporate initiatives for integrated and inclusive development across diverse domains
including affirmative action, healthcare, education, livelihood, diversity management, skill development, empowerment of women,
and water, to name a few.
As a developmental institution working towards India’s overall growth with a special focus on India@75 in 2022, the CII theme for 2017-
18, India@75: Inclusive. Ahead. Responsible emphasizes Industry's role in partnering Government to accelerate India's growth and
development. The focus will be on key enablers such as job creation; skill development and training; affirmative action; women parity;
new models of development; sustainability; corporate social responsibility, governance and transparency.
With 67 offices, including 9 Centres of Excellence, in India, and 11 overseas offices in Australia, Bahrain, China, Egypt, France, Germany,
Iran, Singapore, South Africa, UK, and USA, as well as institutional partnerships with 355 counterpart organizations in 126 countries,
CII serves as a reference point for Indian industry and the international business community.
Confederation of Indian Industry
The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road, New Delhi – 110 003 (India)
T: 91 11 45771000 / 24629994-7 F: 91 11 24626149 E: info@cii.in W:
Reach us via our Membership Helpline: + 91-11-435 46244 /+ 91 99104 46244
CII helpline toll free No: 1800-103-1244
www.cii.in
Hero Future Energies Pvt. Limited (HFE), one of India’s leading Independent Power Producers (IPP) in renewable energy, came into
existence in the year 2012. HFE carries an illustrious legacy of the Hero Group. The company today has presence in nearly 10 states of
India with cumulative installed capacity of ~1200 MW as on date across wind, solar PV (grid connected) and rooftop solutions.
Under the able leadership of Rahul Munjal, Chairman & Managing Director and Sunil Jain, CEO, HFE has scaled new heights. Together
with its strong execution capabilities and efficient project management skills, the company has developed high quality and diversified
wind & solar asset base in such a short time span. HFE has achieved one of the lowest employee per MW in the industry. The company
is known for adhering to the highest standards of corporate governance.
In rooftop solar, HFE has a track record of installing one of the largest rooftop solar plant in the country (1.5 MWp) at Neemrana, it has
plans to implement over 100 MW by 2018-19. There are plans to focus on solar - wind hybrid technology and storage in near future.
HFE is committed to make its mark in the renewables space globally through extending its activities to Europe, MENA and the far East.
The company is optimistic about building a robust portfolio of ~3.5 GW by 2020.
Website www.herofutureenergies.com
Twitter @HeroFuture_HFE
Facebook @herofutureenergies

Powering your Roof Tops, 2016 - 2017

Powering your Roof Tops, 2016 - 2017

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