Presentation on theme: "Solar Energy and PV Rooftop in India"— Presentation transcript:
1 Solar Energy and PV Rooftop in India Grid-connected SPV Rooftop systemsMNRESolar Energy and PV Rooftop in IndiaGovernment of IndiaMinistry of New and Renewable Energy
2 WHY RENEWABLES ? Increasing energy demand - supply gap Need to reduce dependence on fossil fuelsIncreasing cost of electrification to cover villages in far-flung and remote areasHigh availability of solar, wind, biomass and hydel resources in IndiaSmall size, modularity and low gestation periods which favour quick capacity additionsSuccessful demonstration of renewable energy technologies and their viability with declining costsIncreasing environmental concerns which favour renewables as they are environmentally benign
3 WHY RENEWABLES FOR INDIAN RAILWAYS/METRO Railway sector growth 8-9%. Metro very fast rateProgressive shift of freight traffic to railways80% of rail freight and 60% passenger traffic on electric energy by 2030Electricity demand to go 100 billion kWh by 2030 for railway sector alone in India.The current trends indicates constraints in indigenous availability of conventional energy resources.Increasing cost of Conventional Power and decreasing trend in cost of Renwable PowerWorld trend to achieve min. 25% through RE by in transport sector leader Germany, Sweden, USA.Current share of RE Power is 13%(installed Capacity) which is planned to 20% by 2030Fuel diversityNo space constraint in Railways
4 Indian Power Sector at a Glance FuelMW%ageTotal Thermal1,77,74269.70 Coal1,53,57160.20 Gas229719.00 Oil12000.50Hydro (Renewable)4079916.00Nuclear4,7001.90RES** (MNRE)3169212.40Total2,55,013100.00Renewable Energy Sources(RES) include SHP, BG, BP, U&I and Wind EnergySHP= Small Hydro Project ,BG= Biomass Gasifier ,BP= Biomass Power,U & I=Urban & Industrial Waste Power, RES=Renewable Energy Sources
5 Estimated Renewable Power Potential S. No.ResourceEstimated Potential(In MWeq.)1.Wind Power (as per C-WET estimates at 80 m hub height)~ 100,0002.Solar Energy> 7,50,00030-50 MW/ sq. km.3.Small Hydro Power (up to 25 MW)20,0004.Bio-Power:Agro-Residues17,000Cogeneration - Bagasse5,000Waste to Energy:- Municipal Solid Waste to Energy- Industrial Waste to Energy2,6001,280Total>8,95,880
6 Grid-connected SPV Rooftop systems MNREIndian solar PV market has seen significant growth with the installed capacity rising from under 40 MW to more than 2,000 MW in last four yearsSolar power generation is expected to be 12,500 MW by , whereas only roof top solar is estimated to be 4,000 MW.Rooftop SPV will drive solar power capacity additions given the acute power shortage in several states and also reduce transmission and distribution losses.
7 Grid-connected SPV Rooftop systems MNREConcept of Rooftop PVRefers to SPV systems installed on rooftops of residential, commercial or industrial premises.Electricity generated could be-fed into the grid at regulated feed-in tariffs or-used for self consumption with net- metering approach
8 Grid-connected SPV Rooftop systems MNREComponents
9 PV system configurations Grid-connected SPV Rooftop systemsMNREPV system configurationsType-I: Electricity from PV system - not directly supply to the loadsIt is a simple and most cost effective Rooftop Solar PV system which doesn’t affect household grid connection and wiring.
10 PV System configurations (cont..) Grid-connected SPV Rooftop systemsMNREPV System configurations (cont..)Type-II: Grid-tie without battery backup – do not supply during outageType-III: Grid-tie with battery backup – supply during outageSites with reliable grid power, this is usually the logical system choice as It doesn’t provide backup power during a power outage even if the Sun is shiningIt has the added feature of batteries in order to power some selected backup loads when there is power outage.
11 Comparison of three types of Rooftop PV system configurations Grid-connected SPV Rooftop systemsMNREComparison of three types of Rooftop PV system configurationsType-IType-IIType-IIISimple and most cost-effective PV systemIt supplies surplus excess electricity produced to the utility grid Doesn’t affect the household grid connection and wiringSites with reliable grid power, this is usually the logical system choiceIt has the added feature of batteries in order to power some selected backup loads during outage. Solar energy can’t be used directly at the consumer pointIt doesn’t provide backup power during power outage even if the Sun is shiningThe benefit of supplying backup power increases complexity and maintenance requirementsElectricity generated from PV system is lost during power outageThis system is expensive than other two types of systems
12 Existing policies in different states Grid-connected SPV Rooftop systemsMNREExisting policies in different statesSl. No.StateSolar rooftop targetMetering mechanis mSolar tariff (Rs.)EligibilityIncentives1Karnataka400 MW byNet and Gross metering(without subsidy), (with subsidy)Individual’s residential/ commercial/Institut ional/Govt. building owners, Industrial unitsTax concession on stamp duty, entry tax, and registration charges2West Bengal34 MW byNet metering(100kW- 2MW capacity)Residential, commercial, industrial and institutional building ownersRE support from green energy funds will be provided by state, exemption from demand cut up to 50% of installed capacity3Chhattisga rhMW (total solar installa tions)8.69 (FY )Residential, commercial, and industrial building ownersInterest subsidy, fixed capital investment subsidy, stamp duty exemption, VAT exemption, Exemption from electricity duty
13 Existing policies in different states Grid-connected SPV Rooftop systemsMNREExisting policies in different states4Tamil Nadu350 MW byNet metering(average tariff)Residential, commercial, and institutional ownersGeneration based incentive of (GBI) of Rs. 2 per unit for first 2 years, Re1 per unit for next 2 years, and Re 0.5 per unit for subsequent 2 years. Capital subsidy of Rs. 20, per kW in addition to 30% MNRE subsidy, exemption from electricity tax, exemption from demand cut,5KeralaNot specifi ed(without AD), (with AD)Not specifiedNo open access &wheeling charges, exemption from electricity duty, conditional banking facility, Incentives to panchayats for promoting solar installations, incentive to convert existing solar installation to solar one6Gujarat30 MW in 6 citiesFeed-in tariff11.14 (with AD), (without AD)Residential, industrial, commercial and institutional building owners2% wheeling charge of the energy fed to grid, exemption from payment of electricity duty and demand cut, high feed-in tariff for 25 years, open-access to third party sale
14 Existing policies in different states Grid-connected SPV Rooftop systemsMNREExisting policies in different states7DelhiNot specifie dNet meteringNot specifiedExemption from wheeling, banking, cross subsidy and other charges for a period of 5 years8Andhra Pradesh(without AD), (with AD)Residential, commercial, industrial and institutional buildingThe State Govt. will provide 20% subsidy for installation of roof top system up to 3 KW capacity in domestic sector only. This will be in addition to that eligible Central Financial9Haryana50 MW till11.11 (PV Crystalline), (thin- film)Residential, commercial, industrial and institutional building owners10% state subsidy in addition to 30% MNRE subsidy, exemption from external development charges, scrutiny fee and infrastructure development charges, no application and processing fee
15 Existing policies in different states Grid-connected SPV Rooftop systemsMNREExisting policies in different states10RajasthanNot specifie dNet meterin g8.42 (with AD), (without AD)All consumer(s) of the DiscomsIncentives available to industrial units under Rajasthan Investment Promotional Scheme available to industrial solar power projects, Banking will be allowed11Uttarakha nd5 MW ( )8.15 (with AD), (without AD)Residential, commercial, industrial and institutional building ownersNo transmission and wheeling charges12Uttar Pradesh20 MW (by )Not specifiedState funds for technical assessment and deployment of rooftop SPV on government owned/Public Institutions
16 Grid-connected SPV Rooftop systems MNREGrid-connected SPV Rooftop systems Indian Experience: Initiatives by West BengalGrid connected rooftop is allowed only for institutional consumers with kW sizeConnectivity is allowed at low or medium voltage (6 kV or 11 kV) of distribution systemSolar injection is permitted only up to 90% of annual electricity consumption.Net energy supplied by the utility to be billed as per existing slab tariffs.Solar generation to offset consumption in the highest tariff slab and then the lower slab.
17 Grid-connected SPV Rooftop systems MNREGrid-connected SPV Rooftop systems Indian Experience: Initiatives by West BengalAs per recent policy All existing and upcoming commercial and business establishments having more than 1.5 MW contract demand to install SPV rooftop systems to meet at least 2% of their total electrical loadAll existing and upcoming schools and colleges, hospitals, large housing societies, and Govt. establishments having more than 0.5 MW contract demand to install SPV rooftop systems to meet at least 1.5% of their total electrical load.Policy targets 16 MW of rooftop and small PV installations by 2017.
18 Grid-connected SPV Rooftop systems MNREGrid-connected SPV Rooftop systems Indian Experience: Initiatives by GujaratGandhinagar city initiated a 5 MW(4 MW in Govt. buildings and 1 MW in private homes) rooftop PV programme based on FIT/sale to utility.Two project developers for 2.5 MW each selected through reverse bidding with GERC cap of Rs /kwh.Torrent Power will buy from Rs /kWh for 25 years and Azure will pass on Rs. 3.0/kWh to rooftop owner as roof rent.Recently 5 more cities-Bhavnagar Mehsana, Rajkot, Surat and Vadodara started installing pilot rooftop projects.
19 Grid-connected SPV Rooftop systems MNREGrid-connected SPV Rooftop systems Indian Experience: Initiatives by KarnatakaAs per new RE policy , State to promote rooftop with net metering.System size to be kW and interconnection at 415 V, 3 phase or 11 kV.Maximum energy injection allowed up to 70% of energy usage at site from DISCOM.Energy injection to be settled on net basis in each billing period, no carry forward.
20 Grid-connected SPV Rooftop systems MNREGrid-connected SPV Rooftop systems Indian Experience: Initiatives by Karnataka25000 PV rooftops of 5-10 kWp size with net metering targeted during next 5 years with 250 MW potential and 350 MU generation.Grid connected PV rooftop projects to be given priority under Green Energy Fund.Pilot projects may come up in Mysore and Hubli-Dharwad solar cities.
21 Grid-connected SPV Rooftop systems MNREGrid-connected SPV Rooftop systems Indian Experience: Initiatives by Tamil NaduAs per ‘State Solar Policy 2012’ 350 MW SPV rooftop targeted during50 MW rooftop to be supported through GBI @ Rs. 2.0/kWh for the first 2 years, Rs. 1.0/kWh for the next 2 and Rs. 0.50/kWh for other 2 years.Net metering will be allowed at multiple voltage level
22 Grid-connected SPV Rooftop systems MNREGrid-connected SPV Rooftop systems Indian Experience: Initiatives by Tamil NaduInterconnection to be as follows:< 10 kW - connection at 240 V10 to 15 kWp - connection at 240/415 V15 to 50 kWp - connection at 415 V50 to 100 kWp - connection at 415 V100 kWp - connection at 11 kVExemption from payment of electricity tax will be allowed for 5 years for 100% solar electricity used for self/sale to utility.All new Govt./Local body buildings shall necessarily install PV rooftops.
23 Grid-connected SPV Rooftop systems MNREGrid-connected SPV Rooftop systems Indian Experience: Initiatives by Chandigarh3.14 MW projects of SPV grid connected PV rooftops projects sanctioned for model solar city are under installation of which 50 kW commissioned.DISCOMS agreed to purchase power and rates yet to be finalized.
24 Grid-connected SPV Rooftop systems MNREGrid-connected SPV Rooftop systems Indian Experience: Initiatives by ChandigarhInterconnection to be as follows:-Up to 10 kW : Low voltage single phase-10 kW to 100 kW : 3 phase low voltage supply-100 kW to 1.5 MW : Connection at 11 kV level-1.5 MW to 5.o MW : Connection at 11 kV/33 kV/66kV as per site conditionsPetition filed with the JERC and the finalization of rate in progress
25 Grid-connected SPV Rooftop systems MNREGrid-connected SPV Rooftop systems Indian Experience: Initiatives by Kerala10,000 solar PV rooftops recently launched with 1.0 kWp each system of total 10 MWAt present only off grid system covered but Kerala has plans to launch 75,000 grid connected rooftops soon.Rs. 39,000/- state subsidy is available for each 1.0 kWp system
26 Type of metering facility Grid-connected SPV Rooftop systemsMNREType of metering facilityParametersGross MeteringNet MeteringPurposeSale of electricity to utilityConsumption at the consumer’s endPreferred consumer categoryResidential, Commercial & IndustrialTariff planPPA, FiTEnergy settlement, FiTEnergy accountingTwo separate metersA bidirectional meterOperating costLow
30 Net metering-Third party owned Grid-connected SPV Rooftop systemsMNRENet metering-Third party owned
31 Comparison between gross and net metering Grid-connected SPV Rooftop systemsMNREComparison between gross and net metering
32 International experience Grid-connected SPV Rooftop systemsMNREInternational experience
33 Grid-connected SPV Rooftop systems MNREInternational experience: Net metering with individual system capacity limits adopted by most US States
34 International experience: Tariff settlement Grid-connected SPV Rooftop systemsMNREInternational experience: Tariff settlementItalyMechanism does not result in direct payments and is based on the balance of the energy fed in and consumed - Credit is unlimited in terms of timeFranceCommercial settlement for a defined level of excess injection - limit is worked out according to formulas that take into account the installed peak capacity reached after a number of working hours for different types of installations and locationsVirginia, USA• Settlement Period: At the end of 12-month period, customer has the option of carrying forward eligible excess NEG to the next net metering 12-month period or Selling to utility.• Credit to be carried forward to subsequent net metering period can not exceed amount of energy purchased during the previous annual period.Arizona• Non Residential - Credited to customer's next bill at retail rate; excess reconciled annually at avoided-cost rate• Residential - Credited to customer's next bill at retail rate; excess reconciled annually in April at average annual market price minus price adjustmentCaliforniaCredited to customer's next bill at retail rate (Option of roll over credit indefinitely or 12-month average spot market price)HawaiiCredited to customer's next bill at retail rate; granted to utility at end of 12- month billing cycle
35 Global PerspectiveThe global PV installed capacity has reached more than 100 GW in 2013Rooftop SPV is driving solar capacity additions in several countries* Data not available
36 All-India Rooftop SPV Potential Grid-connected SPV Rooftop systemsMNREAll-India Rooftop SPV PotentialIn India market potential for rooftop SPV is 124 GW.
37 Advantages of rooftop solar Grid-connected SPV Rooftop systemsMNREAdvantages of rooftop solarSavings in transmission and distribution lossesLow gestation timeNo requirement of additional landImprovement of tail-end grid voltages and reduction in system congestion with higher self-consumption of solar electricityLocal employment generationReduction of power bill by supplying surplus electricity to local electricity supplierBattery elimination makes easy installation and reduced cost of systemNo storage losses leads to effective utilization of powerSavings in transmission and distribution losses for the utility
38 Business Models for Rooftop SPV Grid-connected SPV Rooftop systemsMNREBusiness Models for Rooftop SPVRooftop Solar PV SystemSelf-OwnedThird Party Owned100% EquityDebt & EquitySelfBankGovt. financingProject OwnershipFinancing OptionsModes of FundingPACEOn-bill financingUtility-owned distributed solarMorris ModelSolar PPASolar LeasingExamples
39 Business Model Gross Metering – Self Owned Grid-connected SPV Rooftop systemsMNREBusiness Model Gross Metering – Self OwnedSystem OwnerBankUtilityInstallerEMI PaymentsLoanConsumption PaymentGeneration RevenueInstallation PaymentSubsidy
40 Business Models Net Metering – Self Owned Grid-connected SPV Rooftop systemsMNREBusiness Models Net Metering – Self OwnedSystem OwnerBankUtilityInstallerEMI PaymentsLoanConsumption PaymentInstallation PaymentLoss of revenue is a long term risk for the UtilitySubsidy
41 Business Models Gross Metering – Third Party Owned Grid-connected SPV Rooftop systemsMNREBusiness Models Gross Metering – Third Party OwnedSubsidyRoof OwnerBankUtilityThird PartyRepaymentLoanGeneration PaymentRoof RentRisks are:Grid availabilityLoan defaultSystem performance and O&M
42 Business Models Net Metering – Third Party Owned Grid-connected SPV Rooftop systemsMNREBusiness Models Net Metering – Third Party OwnedRoof OwnerBankUtilityThird PartyRepaymentLoanConsumption PaymentPPASubsidy
43 Largest rooftop installations Grid-connected SPV Rooftop systemsMNRELargest rooftop installationsPV POWER STATIONCOUNTRYNominal Power (MWp)L&T ConstructionPunjab, India7.52Constellation energy- Toys R Us Flanders, NJUSA5.38Boeing 787 assembly building South Carolina2.6Southern California Edison, Fontana, CA2
44 Success story of India: Largest single rooftop plant in the world Grid-connected SPV Rooftop systemsSuccess story of India: Largest single rooftop plant in the worldMNRE7.52MW plant installed by Larsen & Toubro construction in PunjabL&T installed more than 30,000 PV panels on the rooftopPower from the plant being fed to the local grid through a power purchase agreement (PPA) signed with the state distribution company under the New and Renewable Sources of Energy (NRSE) Policy.
45 Total Sanctioned (MWp) Status of Grid Connected SPV Rooftop Projects Sanctioned to States/UTs/SECI/PSUs and Other Government AgenciesSl. No.State/UTsTotal Sanctioned (MWp)Achievements*As on1Andhra Pradesh131.852Bihar3Chhattisgarh7.050.84Chandigarh8.562.15Delhi103.076Gujarat7.759.757Goa8Jharkhand9Haryana1.13Kerala6.2811Karnataka1.512Madhya Pradesh6.250.1Maharashtra0.67
46 Total Sanctioned (MWp) Status of Grid Connected SPV Rooftop Projects Sanctioned to States/UTs/SECI/PSUs and Other Government AgenciesSl. No.State/UTsTotal Sanctioned (MWp)Achievements*As on14Odisha50.8615Punjab77.5216Rajasthan10.250.317Tamil Nadu19.744.418Tripura119Telangana420Uttarakhand21Uttar Pradesh11.51.0822West Bengal0.6323Ministry of Railways2.524Pending Allocation by SECI under NCEF151.5Sub Total [A]305.3835.76* Including their own resources in addition to MNRE and SECI installations
47 Roles and responsibilities Grid-connected SPV Rooftop systemsMNRERecommendationsArea of interventionAction requiredRoles and responsibilitiesCreating awareness“Solar Shop” at commercial establishmentsSpread information through advertisementsA dedicated website for rooftop SPVDesign competitionsPrivate developers to open Solar shopsMNRE and SNAs to support private entitiesPromoting Standard PV systems1-10kWp for residential10-100kWp for commercial>100kWp for industrialSolar developers to manufacture & promoteMNRE/SNAs to help for achieving economy of scaleTechnical standards for LT connectivityNeed to follow, CEA guidelines, Net-metering guidelines, G83-1/1 (EN 50438), IEC & IEC 62116CEA to strengthen technical standardsDistribution company to specify upper limit for capacity addition
48 Roles and responsibilities Grid-connected SPV Rooftop systemsMNRERecommendationsArea of interventionAction requiredRoles and responsibilitiesSelf-consumption during power outageGrid interactive system with storage should be promoted.Promote indigenous manufacturing to reduce overall system costDevelopers to manufacture,MNRE & SNAs to support developers & consumersQuality assurance for rooftop SPVIntroducing star rated program for rooftop SPV systemMNRE & BEE to take initiativesCreating infrastructure for after sales serviceNational and regional level skill development and training centersService centers by solar companiesMNRE, SNAs, Technical Institutes, & Solar Companies to take initiativesStrengthen supply chain for rooftop SPVAvailability of standard PV system packages at electrical shops / company outletsSolar Companies & Retail Outlets to take initiatives
49 Roles and responsibilities Grid-connected SPV Rooftop systemsMNRERecommendationsArea of interventionAction requiredRoles and responsibilitiesCostDifferent capital subsidy for different type of consumersMore than one project can be bundled and procured together for cost reductionMNRE & SNAs to design subsidy mechanismConsumers to bundle projectsFinancing schemesEasy financing and EMI payment optionsMNRE subsidy for establishing distributorship / retailer shipMNRE & SNAs to initiateRural and other nationalized & private banks to financeGenerating fundsGovt. or municipality can raise funds through green bondsMNRE, SNAs & Municipality to take initiativesSimple approval proceduresSingle window clearanceOnline processing of applicationRemoval of unnecessary clearancesMNRE & SNAs
50 Grid-connected SPV Rooftop systems MNREThank you