This document provides a summary of key aspects of solar power projects including technology, costs and project development phases. Some key points from the document include: - The basic schematic and components of a solar power system are described, including how solar energy is converted to DC and then AC current for transmission to the grid. - Key solar technologies like polycrystalline and thin film solar modules are discussed as well as manufacturing processes. Historical and projected future increases to solar cell efficiencies are presented. - The cost structures and trends for solar modules and balance of system components are analyzed, showing modules now account for 65% of project costs on average. Factors driving further cost reductions are also outlined. -

1. Solar Power Sector
July-2017
Technology, BoS & Phase of Project Development
Ashish Verma, Analyst AMPSolar Inc.

2. Solar Power Generation: Schematics and BoS
Solar
Module
s
Solar
Inverters
Mounting
Structures
AC
cables
DC Cables
Junction
Boxes +
Protectio
n
Transmission
Line
Transformer
RMU and
HT Panels
DC
AC Utility
The energy from sunlight gets converted into
DC Current on hitting the solar panels. The
current so produced is fed into inverter to give
AC Current at a low voltage. The transformer
connected to the inverter steps up the voltage
to an exportable level after which the
electricity produced is fed to the grid.

3. Solar Power Sector
Solar in India: Technology, cost structure & prospective

4. 4P R I V A T E & C O N F I D E N T I A L
Key solar technology: Heads for selection of PV Module
• Poly C-Si is dominant technology and first
preference by the developer
• Proven Track record of performance >35-40 years
• India’s installation is dominant by Imported
Chines Tier 1 Modules
• PERC, Black silicon, Dual Glass,
Solar PV
Technology
Crystalline
Technology
Poly
Mono
Thin film
Thin film
silicon
CIS/CIGS
CdTe
Type of
Material
Module
efficiency
Module rating
(in Wp) Module weight
Effect of
Temperature
Irradiance &
Spectral Gain
Vendor Track
record
Tier 1, Financial
, Bill of Material
Specific Yield Module Price
(Cents/Wp)

5. 5P R I V A T E & C O N F I D E N T I A L
Key solar technology: Manufacturing & arrangement
Conventional Silicon batch process
Thin film Manufacturing process

6. 6P R I V A T E & C O N F I D E N T I A L
Solar Cell efficiency: Historical & roadmap
• Efficiency of average commercial wafer based silicon module has grown from 10% to 17% in last 10
years
• Best efficiency multi-crystalline module: 19.20 % & Thin film CdTe 18.6%
12.90%
13.40%
14.40%
16.10%
16.48%
14.40%
16.10%
17.00%
18.20%
19.00%
14.40%
15.00%
15.45%
16.00%
16.45%
17.30%
18.70%
20.40%
21.50%
22.10%
12.00%
14.00%
16.00%
18.00%
20.00%
22.00%
24.00%
2012 2013 2014 2015 2016
Thin film Solar Module Thin film Solar Cell Poly Solar Module Poly Solar Cell
• Lower Poly silicon cost ( $13-15/kg)
• Lower Poly silicon uses and leveraging diamond wiresaw
• Reduce raw material uses and purchase cost through vertical
integration
• Increase fleet production
• Higher efficiency
• Reduction in bill of material cost

7. 7P R I V A T E & C O N F I D E N T I A L
Upcoming technology & product, Process
PERC/PERL/PERT
• Expected > 50% in 2025 (ITRPV)
• Improve efficiency by rear side dielectric
treatment improving passivation and
rear side reflection
Half cut cell
• Expected ~ 30% market
share in 2025
• Improve efficiency by
reducing the level of current
flow through module
Copper wire Interconnection Technology
• Expected ~25% market share in 2025
• Improve efficiency by reducing series
resistance and shadowing
Shingling technology
• Expected 8% market share in
2025
• Improve efficiency by
reducing current level and
shadowing
Series 6 First solar 420 Wp
18% Module efficiency (Q2 2018)
• Cost reduction opportunity due to Reactor capacity, reduced electricity consumption , FBR technology different from
Siemens process
• Expected to touch PV Module prices ($0.25/Wp ) by Q2-2020
• Lowering cell to Module ratio
• Silicon module super league (SMSL) accounts 50% market share
KU Module
Black Silicon

8. 8P R I V A T E & C O N F I D E N T I A L
Cost structure of leading module manufactures
0.76
0.13
0.11
0.09
0.23
0.08
0.06 0.06
0.33
0.12 0.12
0.1
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Q2 2011 Q42016 Q42017 Q42020
Cost structure of leading Module manufacturers (in $/Wp)
Wafer Cell Module
1.32
0.33
0.29 0.25
Annual reduction rate of -9.80%
Source: Canadian Solar Investor relation March 2017

9. Solar Power Sector
Balance of system ( Utility scale Solar PV Project)

10. 10P R I V A T E & C O N F I D E N T I A L
Balance of system
• Inverters
• Mounting & Racking Systems
• Electrical Equipment and Installation
• Cabling-AC & DC
• Transformers & Breakers
• Combiner Boxes
• Earthing
• Transmission Line, etc
• Civil Work & Development
• Inverter Rooms, CMCS
• Roads, Boundary, Drainage, Cleaning Systems, etc
• Land
• Miscellaneous
“All components of a photovoltaic system other the photovoltaic panels”

11. 11P R I V A T E & C O N F I D E N T I A L
BOS Trend
-10.00
10.00
30.00
50.00
70.00
90.00
110.00
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
NormalizedValue
Normalized CERC PV Cost Curves
Project Cost Module Cost BOS Cost
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Module-BOS Cost Breakup
Module BOS
• Module cost curve has
outrun BOS cost curve
• BOS optimization from
2013-14
• Module:BOS at 65:35
• Module CARR~ 9%
• BOS CARR ~8%

12. 12P R I V A T E & C O N F I D E N T I A L
BoS Cost Breakup
Module
65%
Inverters
4%
Mounting
Structures
7%
Civil Works &
Development
7%
Electrical BOS
10% Land
6%
Miscellaneous
1%
Solar Project Cost Breakup
Head Components Trend
Inverters
Mounting Structures MMS, Fasteners, Installation or Tracker
Civil Works & Development Rooms, Roads, Boundary, Drainage, Cleaning
Electrical BOS Cabling, Transformers, Breakers, Combiner Boxes, Earthing
Land
Miscellaneous CCTV, Monitoring

13. 13P R I V A T E & C O N F I D E N T I A L
What next in BoS :1500V Inverter
Advantages
• Higher DC and AC voltage i.e. lesser current and lesser cabling
• Lesser current allows the increase in inverter block power, lesser BOS
• 50% longer strings, implying lesser strings, and 33% lesser junction boxes
• Lesser monitoring, and economical installation
• IEC certifications are in place
• Higher yield
Disadvantages
• Component availability limited at present, thus driving BOS costs higher
• Higher inverter costs due to 1500V components

14. 14P R I V A T E & C O N F I D E N T I A L
Commercial Comparison: 1500V v/s 1000V
Comparison of 1500V v/s 1000V
Item Remarks Savings (%) Savings
(INR/Wp)
Saving
Trend
PV Modules 0.5 USD cents higher for 1500V -1.15% -0.34
DC Cables
Quantity Saving ~30%
Unit Cost considered 10% extra
for 1500V
22.22% 0.16
SCB
Quantity Saving ~32%
Unit Cost considered 25% extra
for 1500V
15.70% 0.05
AC Subsystem
Inverter Trafo, LT Cable, Aux.
Trafo
11.44% 0.08
Inverter 25% higher cost -25.00% -0.44
Civil & Labour
Inverter Pad for 1500V, Room
for 1000V. Installation Labour
work reduction by 10% assumed
31.08% 0.22
Overall -0.83% -0.28

15. 15P R I V A T E & C O N F I D E N T I A L
Future Trends
Main Drives of BOS Cost Reduction in future
• Best practices assimilation across the industry
• Module efficiency
• Technological developments
• Incremental design improvements, such as higher overloading, mounting
structure, block size, etc
• Localization including streamlined logistics
• Increase in market volume
• Automation in production, development and installation
Based on the above factors and historical trends, we foresee a BOS cost
reduction of 30%-35% by 2020

16. Solar Power Sector
Bankable Solar Project: Techno commercial Pre feasibility analysis

17. 17P R I V A T E & C O N F I D E N T I A L
The need of Pre feasibility analysis:Non Solar Park Projects
• Land Requirement
• Capacity Estimation
• Minimize radiation risk thus energy yield
• Technology selection
• BoS optimization
• Project Economics
• Infrastructure (Connectivity, Mobility)
• Availability of Man-power/Machinery
• Power Evacuation
• Project implementation strategy

18. 18P R I V A T E & C O N F I D E N T I A L
Pre Feasibility and commercial evaluation
1. Site Visit
2. Executive summary
3. Radiation, Energy Yield and Land assessment
4. Comparative Analysis of States
5. Comparative Analysis of Policy
6. Power Sale Arrangement
7. Technology Selection
8. Project Cost estimation
9. Risk assessment and plan
10.Project Financials
1. Selection of States
• High Solar radiation availability
• Availability of
barren/government/waste land
• Suitable Policy of State
2. District wise Metrological Data
Comparison
• Solar Radiation
• Temperature
• Wind Speed
• Seismic zone
• Rainfall
• Humidity
3. Type of Land
Type of Ownership
Private
Government
Type of Soil
Distance from Sub-
Station
4. Power Evacuation
5. Region wise Generation
Comparison

19. 19P R I V A T E & C O N F I D E N T I A L
Identified land parcel & suitability
• Accessibility to Port, Highway, Airports
• Geo Coordinates
• Land area
• Soil Strata & Shadow objects
• Encroachment
• Water availability
• Nearest Grid substation
• Land cost (Lease v/s acquisition )

20. 20P R I V A T E & C O N F I D E N T I A L
Capacity Estimation & area requirement
• Land requirement is based on Type of Module Mounting system selection
• GCR (Pitch )
• Shadow limiting factor
• Efficiency of Module
Higher the GCR lower the land requirement
• Fixed tilt ( Based on optimal tilt selection ) lower GCR in North
• Seasonal tilt
• Single axis tracker ( Rotational angle +/- 45 Degree or +/- 60 degree) (0.43-0.48)
Type of MMS Land requirement (in acre/MWp)
Fixed tilt 3.80-4.20
Seasonal tilt 4.20-4.50
Single axis tracker 4.50- 4.80

21. 21P R I V A T E & C O N F I D E N T I A L
PV Module & BOS(balance of system)
Module
• Select Higher efficiency/ Higher wattage module
• Tier 1, Annual Degradation, LID rate
• Due to High efficiency/lesser area requirement , long term performance proven
technology , Effective cost /Wp and Energy generation
• Techno Commercial analysis
Inverter
• Central inverter with IGBT technology has been proposed
• Selected based on modular in nature ,reduce down time ,Max. efficiency
• Cost per Wp is less compare to string inverter
• Monitoring is easy
DC Cable ,AC cables, Inverter duty transformer, Power transformer, Earthing strips , LT
and HT panel , switch Yard ,SCADA & PLC etc.

22. 22P R I V A T E & C O N F I D E N T I A L
Radiation resource assessment
“Solar GIS/Meteonorm 7.1/3Tier are reliable meteodata source ,
lender’s recognition ”
Period of record
Temporal resolution
Spatial coverage
Spatial resolution
Data element and source
Estimated uncertainty
Updates
Location Solar GIS Meteonorm 7.1
Telangana (Achampet) 1971 1952
Gujarat (Charanka ) 2006 2017
Punjab (Bathinda) 1767 1750
Bagbahara
(Chhattisgarh)
1908 1835
Variability of radiation is ~+/-4% of Solar GIS and
Meteonorm is ~ +/-5.5%-7.50% for India

23. 23P R I V A T E & C O N F I D E N T I A L
Expected energy yield, PR & Factors
Loss category Particular
Irradiance GHI
GHI on collector plane
IAM Factor
Soiling loss
Array Normal Energy
DC Field Losses PV Loss due to irradiance
PV Loss due to Temper.
Light induced degradation
Module Quality Loss
Array Mismatch Loss
Ohmic Wiring loss
Array virtual energy
Inverter Inverter loss during operation
AC field Losses Aux Consumption
System Unavailability
AC Ohmic Loss
External T/F Loss
T/L Line Loss
Expected CUF (in %)
Specific Yield
CUF
Performance ratio
Probabilistic Yield analysis
Uncertainty calculation
PVsyst Software for Energy Generation assessment-
a complete software for Meteorogical analysis and
Energy Yield calculation
Type of MMS Incremental in Yield
Fixed tilt Base case
Seasonal tilt 2.50%-3.80%
Single axis tracker 13.50%-16.50%

24. 24P R I V A T E & C O N F I D E N T I A L
Sr. No Transmission Line
1 GSS Geo Coordinate
2 Substation owned by
3 GSS Voltage Level
4 Evacuation voltage
5 GSS Location
6 Transmission line length (Ariel )
7 Crossing
8 Connectivity approval status
9 GSS Uptime
10 GSS Capacity
11 Load flow studies
12 Selection of Conductor (specific to state)
Transmission Line & GSS Summary

25. 25P R I V A T E & C O N F I D E N T I A L
Estimated project cost and head wise break up
Project cost
• EPC Cost
• Land Cost
• Soft cost
• Total project cost
Financing
• Debt %:
• Equity %:
• Debt Interest rate :
• Debt repayment tenure:
• Moratorium period:
• EIRR :
• PIRR:
• Min DSCR :
• Avg. DSCR:
• Payback :

26. 26P R I V A T E & C O N F I D E N T I A L
Power sale arrangement
• PPA Tenure
• Power Off taker creditworthiness
Demand growth
Loss reduction
UDAY progress
Financial performance
Payment security
• Receivables timelines
• PPA Rate (in INR/kWh)
• Key PPA terms
• SECI/NTPC are AAA credit rating
• 41 DISCOMs (5 A+, 6 A, 8 B+, 10 B, 5
C+, 7 C-)
• Tamilnadu, Uttar Pradesh,
Rajasthan are among the worst

27. 27P R I V A T E & C O N F I D E N T I A L
Risk Assessment: Project Completion Risk
 Project implementation period (10 MW) is nearly 3-5 months
with the construction period of 1-2 months.
 However, the completion of the power project can get
delayed due to the following reasons:
 Delay in achieving financial closure
 Energy Purchase Agreement
 Long lead time for imported plant & machinery.
 First of its kind for the developer
• Project Completion Risk –
Medium/Low
• Land acquisition
• Technology Risk
• Cost over-run Risk
• Generation Assurance
• Force Majeure Risk
• Operating Risk
• Plant Performance Risk
• Transmission Line RoW

28. 28P R I V A T E & C O N F I D E N T I A L
Risk Assessment: Project Completion Risk
Land Acquisition
EPC Contractor /
Equipment Selection
Financial Closure
Plant Construction (EPC)
Buffer
1 2 3 4 5 6 7 8 9 10 11 12 13
Months
Identification of Land Parcels
Techno Commercial Evaluation
Negotiation, Mutation & Registration
Technology Finalization
Invitation of Quotations & Meetings
Negotiation & Finalization
Preparation of DPR
Project Financial & Technical Assessment
In Principle Sanction & Disbursement
Basic & Detailed Engineering
Equipment Procurement
Construction & Commissioning
Panic
Zone
Assuming a 50 MW Project taking 6 months in construction and 2 month for planning

29. 29P R I V A T E & C O N F I D E N T I A L
S. No. Risk Category Residual Risk
1 Technology Risk Medium
2 Implementation Risk Low
3 Evacuation Risk Medium
4 Financial Risk Low
5 Regulatory risk Low
6 Power Offtake risk Low
7 Credit risk Low
8 Radiation risk Medium
Risk Analysis (Summary)

30. 30P R I V A T E & C O N F I D E N T I A L
Project implementation strategy

31. Solar Power Sector
Solar in India: Phase of Project development ( Utility scale prospective )

32. 32P R I V A T E & C O N F I D E N T I A L
Phase of Project Development
90D 240D 30D
• Techno commercial
Prefeasibility analysis
• Company formation
• Land Identification
• Signing of PPA
• Financial closure
• Permit and License
• EPC contractor selection
• Planning and Construction
• Commissioning
• O&M contractor
selection
• Plant handover
• Revenue
Pre Development During Development Post Development
• EPC contract is responsible for Engineering design, Procurement of Balance of system
component and Construction activities
• Typically 200-250 Workers /15-20 MWp Projects are required on daily basis in the mid
of development

33. 33P R I V A T E & C O N F I D E N T I A L
EPC construction Phase & handover protocol
Constru
ction
Mecha
nical
installat
ion
Pre
commis
sioning
activitie
s
Provisio
nal
accepta
nce (15-
20
Days)
Financi
al
accepta
nce test
Plant
handov
er
O& M
(DLP)
Defect Liability period

34. 34P R I V A T E & C O N F I D E N T I A L
Site Survey & Boundary work

35. 35P R I V A T E & C O N F I D E N T I A L
Site Levelling & grading

36. 36P R I V A T E & C O N F I D E N T I A L
Auguring, Pilling & MMS

37. 37P R I V A T E & C O N F I D E N T I A L
Structure Errection

38. 38P R I V A T E & C O N F I D E N T I A L
Module Mounting

39. 39P R I V A T E & C O N F I D E N T I A L
Inverter installation

40. 40P R I V A T E & C O N F I D E N T I A L
SCB, LA and Earthing

41. 41P R I V A T E & C O N F I D E N T I A L
Transformer Installation

42. 42P R I V A T E & C O N F I D E N T I A L
Weather Monitoring Station

43. 43P R I V A T E & C O N F I D E N T I A L
DC Cable trenching & laying

44. 44P R I V A T E & C O N F I D E N T I A L
Switch yard

45. 45P R I V A T E & C O N F I D E N T I A L
Main Control Room

46. 46P R I V A T E & C O N F I D E N T I A L
Transmission Line

47. 47P R I V A T E & C O N F I D E N T I A L
Bird view of Key Projects
Welspun 50 MW
Baramati MH
10 MW First Solar,
Telangana
Hindustan Clean Energy
50 MWp Charanka

48. 48P R I V A T E & C O N F I D E N T I A L
Role of stakeholders
Role of Stakeholders
Stakeholder Developer Government EPC contractor O&M
Contractor
Lenders
Development
phase
Pre Development
During Development
Post Development
Pre Development
During Development
Post Development
During Development
Post Development
Post
Development
During
Development
Role &
Responsibiliti
es
Pre feasibility
Government liasoning
Debt/ Equity
arrangement
Assets owner
Land procurement
Permit and License
Procurement assistance
PPA signing
Long term ESCROW
Land Development
Component
Procurement
Design Engineering
Construction and
Commissioning
Operation and
Maintenance of
Plant
Debt

49. Discussion….