Solar Energy and PV Rooftop in India Grid-connected SPV Rooftop systems MNRE Solar Energy and PV Rooftop in India Government of India Ministry of New and Renewable Energy

WHY RENEWABLES ? Increasing energy demand - supply gap Need to reduce dependence on fossil fuels Increasing cost of electrification to cover villages in far-flung and remote areas High availability of solar, wind, biomass and hydel resources in India Small size, modularity and low gestation periods which favour quick capacity additions Successful demonstration of renewable energy technologies and their viability with declining costs Increasing environmental concerns which favour renewables as they are environmentally benign

WHY RENEWABLES FOR INDIAN RAILWAYS/METRO Railway sector growth 8-9%. Metro growth @ very fast rate Progressive shift of freight traffic to railways 80% of rail freight and 60% passenger traffic on electric energy by 2030 Electricity 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 Power World trend to achieve min. 25% through RE by 2020 in transport sector leader Germany, Sweden, USA. Current share of RE Power is 13%(installed Capacity) which is planned to 20% by 2030 Fuel diversity No space constraint in Railways

Indian Power Sector at a Glance Fuel MW %age Total Thermal 1,77,742 69.70                                              Coal 1,53,571 60.20                                              Gas 22971 9.00                                              Oil 1200 0.50 Hydro (Renewable) 40799 16.00 Nuclear 4,700 1.90 RES** (MNRE) 31692 12.40 Total 2,55,013 100.00 Renewable Energy Sources(RES) include SHP, BG, BP, U&I and Wind Energy SHP= Small Hydro Project ,BG= Biomass Gasifier ,BP= Biomass Power, U & I=Urban & Industrial Waste Power, RES=Renewable Energy Sources

Estimated Renewable Power Potential S. No. Resource Estimated Potential (In MWeq.) 1. Wind Power (as per C-WET estimates at 80 m hub height) ~ 100,000 2. Solar Energy > 7,50,000 30-50 MW/ sq. km. 3. Small Hydro Power (up to 25 MW) 20,000 4. Bio-Power: Agro-Residues 17,000 Cogeneration - Bagasse 5,000 Waste to Energy: - Municipal Solid Waste to Energy - Industrial Waste to Energy 2,600 1,280 Total >8,95,880

Grid-connected SPV Rooftop systems MNRE Indian 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 years Solar power generation is expected to be 12,500 MW by 2016-17, 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.

Grid-connected SPV Rooftop systems MNRE Concept of Rooftop PV Refers 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

Grid-connected SPV Rooftop systems MNRE Components

PV system configurations Grid-connected SPV Rooftop systems MNRE PV system configurations Type-I: Electricity from PV system - not directly supply to the loads It is a simple and most cost effective Rooftop Solar PV system which doesn’t affect household grid connection and wiring.

PV System configurations (cont..) Grid-connected SPV Rooftop systems MNRE PV System configurations (cont..) Type-II: Grid-tie without battery backup – do not supply during outage Type-III: Grid-tie with battery backup – supply during outage Sites 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 shining It has the added feature of batteries in order to power some selected backup loads when there is power outage. 

Comparison of three types of Rooftop PV system configurations Grid-connected SPV Rooftop systems MNRE Comparison of three types of Rooftop PV system configurations Type-I Type-II Type-III Simple and most cost-effective PV system It supplies surplus excess electricity produced to the utility grid  Doesn’t affect the household grid connection and wiring Sites with reliable grid power, this is usually the logical system choice It 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 point It doesn’t provide backup power during power outage even if the Sun is shining The benefit of supplying backup power increases complexity and maintenance requirements Electricity generated from PV system is lost during power outage This system is expensive than other two types of systems

Existing policies in different states Grid-connected SPV Rooftop systems MNRE Existing policies in different states Sl. No. State Solar rooftop target Metering mechanis m Solar tariff (Rs.) Eligibility Incentives 1 Karnataka 400 MW by 2018 Net and Gross metering 9.56 (without subsidy), 7.20 (with subsidy) Individual’s residential/ commercial/Institut ional/Govt. building owners, Industrial units Tax concession on stamp duty, entry tax, and registration charges 2 West Bengal 34 MW by 2018 Net metering 16.13 (100kW- 2MW capacity) Residential, commercial, industrial and institutional building owners RE support from green energy funds will be provided by state, exemption from demand cut up to 50% of installed capacity 3 Chhattisga rh 500- 1000 MW (total solar installa tions) 8.69 (FY 2013-14) Residential, commercial, and industrial building owners Interest subsidy, fixed capital investment subsidy, stamp duty exemption, VAT exemption, Exemption from electricity duty

Existing policies in different states Grid-connected SPV Rooftop systems MNRE Existing policies in different states 4 Tamil Nadu 350 MW by 2015 Net metering 8.15 (average tariff) Residential, commercial, and institutional owners Generation 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, 000 per kW in addition to 30% MNRE subsidy, exemption from electricity tax, exemption from demand cut, 5 Kerala Not specifi ed 17.91 (without AD), 14.95 (with AD) Not specified No 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 one 6 Gujarat 30 MW in 6 cities Feed-in tariff 11.14 (with AD), 12.44 (without AD) Residential, industrial, commercial and institutional building owners 2% 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

Existing policies in different states Grid-connected SPV Rooftop systems MNRE Existing policies in different states 7 Delhi Not specifie d Net metering Not specified Exemption from wheeling, banking, cross subsidy and other charges for a period of 5 years 8 Andhra Pradesh 17.95 (without AD), 14.95 (with AD) Residential, commercial, industrial and institutional building The 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 Financial 9 Haryana 50 MW till 2017 11.11 (PV Crystalline), 10.75 (thin- film) Residential, commercial, industrial and institutional building owners 10% state subsidy in addition to 30% MNRE subsidy, exemption from external development charges, scrutiny fee and infrastructure development charges, no application and processing fee

Existing policies in different states Grid-connected SPV Rooftop systems MNRE Existing policies in different states 10 Rajasthan Not specifie d Net meterin g 8.42 (with AD), 9.63 (without AD) All consumer(s) of the Discoms Incentives available to industrial units under Rajasthan Investment Promotional Scheme available to industrial solar power projects, Banking will be allowed 11 Uttarakha nd 5 MW (2013- 2015) 8.15 (with AD), 9.20 (without AD) Residential, commercial, industrial and institutional building owners No transmission and wheeling charges 12 Uttar Pradesh 20 MW (by 2016- 17) Not specified State funds for technical assessment and deployment of rooftop SPV on government owned/Public Institutions

Grid-connected SPV Rooftop systems MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by West Bengal Grid connected rooftop is allowed only for institutional consumers with 2-100 kW size Connectivity is allowed at low or medium voltage (6 kV or 11 kV) of distribution system Solar 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.

Grid-connected SPV Rooftop systems MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by West Bengal As 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 load All 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.

Grid-connected SPV Rooftop systems MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Gujarat Gandhinagar 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. 12.44/kwh. Torrent Power will buy from Azur @ Rs. 11.21/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.

Grid-connected SPV Rooftop systems MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Karnataka As per new RE policy 2009-14, State to promote rooftop with net metering. System size to be 5-100 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.

Grid-connected SPV Rooftop systems MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Karnataka 25000 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.

Grid-connected SPV Rooftop systems MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Tamil Nadu As per ‘State Solar Policy 2012’ 350 MW SPV rooftop targeted during 2012-2014. 50 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

Grid-connected SPV Rooftop systems MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Tamil Nadu Interconnection to be as follows: < 10 kW - connection at 240 V 10 to 15 kWp - connection at 240/415 V 15 to 50 kWp - connection at 415 V 50 to 100 kWp - connection at 415 V 100 kWp - connection at 11 kV Exemption 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.

Grid-connected SPV Rooftop systems MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Chandigarh 3.14 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.

Grid-connected SPV Rooftop systems MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Chandigarh Interconnection 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 conditions Petition filed with the JERC and the finalization of rate in progress

Grid-connected SPV Rooftop systems MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Kerala 10,000 solar PV rooftops recently launched with 1.0 kWp each system of total 10 MW At 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

Type of metering facility Grid-connected SPV Rooftop systems MNRE Type of metering facility Parameters Gross Metering Net Metering Purpose Sale of electricity to utility Consumption at the consumer’s end Preferred consumer category Residential, Commercial & Industrial Tariff plan PPA, FiT Energy settlement, FiT Energy accounting Two separate meters A bidirectional meter Operating cost Low

Gross metering- Self owned Grid-connected SPV Rooftop systems MNRE Gross metering- Self owned

Gross metering- Third party owned Grid-connected SPV Rooftop systems MNRE Gross metering- Third party owned

Net metering- Self owned Grid-connected SPV Rooftop systems MNRE Net metering- Self owned

Net metering-Third party owned Grid-connected SPV Rooftop systems MNRE Net metering-Third party owned

Comparison between gross and net metering Grid-connected SPV Rooftop systems MNRE Comparison between gross and net metering

International experience Grid-connected SPV Rooftop systems MNRE International experience

Grid-connected SPV Rooftop systems MNRE International experience: Net metering with individual system capacity limits adopted by most US States

International experience: Tariff settlement Grid-connected SPV Rooftop systems MNRE International experience: Tariff settlement Italy Mechanism 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 time France Commercial 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 locations Virginia, 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 adjustment California Credited to customer's next bill at retail rate (Option of roll over credit indefinitely or settlement @ 12-month average spot market price) Hawaii Credited to customer's next bill at retail rate; granted to utility at end of 12- month billing cycle

Global Perspective The global PV installed capacity has reached more than 100 GW in 2013 Rooftop SPV is driving solar capacity additions in several countries * Data not available

All-India Rooftop SPV Potential Grid-connected SPV Rooftop systems MNRE All-India Rooftop SPV Potential In India market potential for rooftop SPV is 124 GW.

Advantages of rooftop solar Grid-connected SPV Rooftop systems MNRE Advantages of rooftop solar Savings in transmission and distribution losses Low gestation time No requirement of additional land Improvement of tail-end grid voltages and reduction in system congestion with higher self-consumption of solar electricity Local employment generation Reduction of power bill by supplying surplus electricity to local electricity supplier Battery elimination makes easy installation and reduced cost of system No storage losses leads to effective utilization of power Savings in transmission and distribution losses for the utility

Business Models for Rooftop SPV Grid-connected SPV Rooftop systems MNRE Business Models for Rooftop SPV Rooftop Solar PV System Self-Owned Third Party Owned 100% Equity Debt & Equity Self Bank Govt. financing Project Ownership Financing Options Modes of Funding PACE On-bill financing Utility-owned distributed solar Morris Model Solar PPA Solar Leasing Examples

Business Model Gross Metering – Self Owned Grid-connected SPV Rooftop systems MNRE Business Model Gross Metering – Self Owned System Owner Bank Utility Installer EMI Payments Loan Consumption Payment Generation Revenue Installation Payment Subsidy

Business Models Net Metering – Self Owned Grid-connected SPV Rooftop systems MNRE Business Models Net Metering – Self Owned System Owner Bank Utility Installer EMI Payments Loan Consumption Payment Installation Payment Loss of revenue is a long term risk for the Utility Subsidy

Business Models Gross Metering – Third Party Owned Grid-connected SPV Rooftop systems MNRE Business Models Gross Metering – Third Party Owned Subsidy Roof Owner Bank Utility Third Party Repayment Loan Generation Payment Roof Rent Risks are: Grid availability Loan default System performance and O&M

Business Models Net Metering – Third Party Owned Grid-connected SPV Rooftop systems MNRE Business Models Net Metering – Third Party Owned Roof Owner Bank Utility Third Party Repayment Loan Consumption Payment PPA Subsidy

Largest rooftop installations Grid-connected SPV Rooftop systems MNRE Largest rooftop installations PV POWER STATION COUNTRY Nominal Power (MWp) L&T Construction Punjab, India 7.52 Constellation energy- Toys R Us Flanders, NJ USA 5.38 Boeing 787 assembly building South Carolina 2.6 Southern California Edison, Fontana, CA 2

Success story of India: Largest single rooftop plant in the world Grid-connected SPV Rooftop systems Success story of India: Largest single rooftop plant in the world MNRE 7.52MW plant installed by Larsen & Toubro construction in Punjab L&T installed more than 30,000 PV panels on the rooftop Power 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.

Total Sanctioned (MWp) Status of Grid Connected SPV Rooftop Projects Sanctioned to States/UTs/SECI/PSUs and Other Government Agencies Sl. No. State/UTs Total Sanctioned (MWp) Achievements* As on 15.10.2014 1 Andhra Pradesh 13 1.85 2 Bihar 3 Chhattisgarh 7.05 0.8 4 Chandigarh 8.56 2.1 5 Delhi 10 3.07 6 Gujarat 7.75 9.75 7 Goa 8 Jharkhand 9 Haryana 1.13 Kerala 6.28 11 Karnataka 1.5 12 Madhya Pradesh 6.25 0.1 Maharashtra 0.67

Total Sanctioned (MWp) Status of Grid Connected SPV Rooftop Projects Sanctioned to States/UTs/SECI/PSUs and Other Government Agencies Sl. No. State/UTs Total Sanctioned (MWp) Achievements* As on 15.10.2014 14 Odisha 5 0.86 15 Punjab 7 7.52 16 Rajasthan 10.25 0.3 17 Tamil Nadu 19.74 4.4 18 Tripura 1 19 Telangana 4 20 Uttarakhand 21 Uttar Pradesh 11.5 1.08 22 West Bengal 0.63 23 Ministry of Railways 2.5 24 Pending Allocation by SECI under NCEF 151.5   Sub Total [A] 305.38 35.76 * Including their own resources in addition to MNRE and SECI installations

Roles and responsibilities Grid-connected SPV Rooftop systems MNRE Recommendations Area of intervention Action required Roles and responsibilities Creating awareness “Solar Shop” at commercial establishments Spread information through advertisements A dedicated website for rooftop SPV Design competitions Private developers to open Solar shops MNRE and SNAs to support private entities Promoting Standard PV systems 1-10kWp for residential 10-100kWp for commercial >100kWp for industrial Solar developers to manufacture & promote MNRE/SNAs to help for achieving economy of scale Technical standards for LT connectivity Need to follow, CEA guidelines, Net-metering guidelines, G83-1/1 (EN 50438), IEC 61727 & IEC 62116 CEA to strengthen technical standards Distribution company to specify upper limit for capacity addition

Roles and responsibilities Grid-connected SPV Rooftop systems MNRE Recommendations Area of intervention Action required Roles and responsibilities Self-consumption during power outage Grid interactive system with storage should be promoted. Promote indigenous manufacturing to reduce overall system cost Developers to manufacture, MNRE & SNAs to support developers & consumers Quality assurance for rooftop SPV Introducing star rated program for rooftop SPV system MNRE & BEE to take initiatives Creating infrastructure for after sales service National and regional level skill development and training centers Service centers by solar companies MNRE, SNAs, Technical Institutes, & Solar Companies to take initiatives Strengthen supply chain for rooftop SPV Availability of standard PV system packages at electrical shops / company outlets Solar Companies & Retail Outlets to take initiatives

Roles and responsibilities Grid-connected SPV Rooftop systems MNRE Recommendations Area of intervention Action required Roles and responsibilities Cost Different capital subsidy for different type of consumers More than one project can be bundled and procured together for cost reduction MNRE & SNAs to design subsidy mechanism Consumers to bundle projects Financing schemes Easy financing and EMI payment options MNRE subsidy for establishing distributorship / retailer ship MNRE & SNAs to initiate Rural and other nationalized & private banks to finance Generating funds Govt. or municipality can raise funds through green bonds MNRE, SNAs & Municipality to take initiatives Simple approval procedures Single window clearance Online processing of application Removal of unnecessary clearances MNRE & SNAs

Grid-connected SPV Rooftop systems MNRE Thank you