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

Grid-connected SPV Rooftop systems Concept… MNRE Grid-connected SPV Rooftop systems Concept… These are 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 Concept… MNRE Grid-connected SPV Rooftop systems Concept…

Grid-connected SPV Rooftop systems Advantages ….. MNRE Grid-connected SPV Rooftop systems Advantages ….. 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

Grid-connected SPV Rooftop systems Advantages ….. MNRE Grid-connected SPV Rooftop systems Advantages …..

Grid-connected SPV Rooftop systems World-wide Experience ….. MNRE Grid-connected SPV Rooftop systems World-wide Experience ….. Germany, USA and Japan are leaders in adopting grid-connected SPV Rooftop systems. Germany has highest PV installed capacity of 32.8 GW of which 70% is in rooftop segment (as on 31.12.2013). Italy has 12.7 GW PV installation with over 60% rooftop systems In Europe of total 50.6 GW PV installation, over 50% in in rooftop segment. FIT is norm in Europe while net-metering is popular in USA.

PV market segments in Germany MNRE <1% Image : Schüco Image: Grammer Image: Sharp Social, commercial, agricultural buidlings: 10-100 kWp Large commercial buildings: > 100 kWp Private buildings: 1-10 kWp Ground-mounted Rooftop Building integrated 10% 38% 23% 71% Looking to the distribution of installed capacity to the different market segements – here by installed capacity 2011 – the importance of the rooftop segment becomes obvious As you can see the vast majority of 71% is realized as PV roof top systems within the rooftop segment small commercial buildings with 10 to 100 kWp capacity have the largest share Image : Solarwatt Image : Solarwatt Image : BP Market share in % of MW installed in 2011 28% Image: Geosol Image : Geosol Source: BSW-Solar, E.Quadrat GmbH 9

Germany …1000 Roofs Programme 1991-1995 MNRE Germany …1000 Roofs Programme 1991-1995 Only German producers (local contentCapital Grant of 70% of investment provided(50% by the federation and 20% by Federal States) Grid connected PV installation with 1-5 kWp rooftops of single and two family houses were eligible Every installation had to install 3 meters: - Generation meter, metering at production - Feed-in-Meter, metering at fed electricity - Import Meter, metering the purchased electricity Obligation for installation operators to record over 5 years monthly meter results

Loan Programme through KfW 300 MW of newly installed capacity from PV MNRE Germany …100,000 Roofs Programme 1999-2003 Loan Programme through KfW 300 MW of newly installed capacity from PV Loans at reduced rate of interest (soft loan) Interest rate of 1.91% Installations of min. 1kWp of individuals, Freelansers or SMEs

International Examples of Solar Rooftop business Models Country Implementation Model Key Driver – Implementation Model Key Enabier Key Driver – Business Model Ownership of Assets Germany Gross metered self owned Feed in Tariff Interconnection Agreement Self Owned Japan Net metered – self owned Net metering – capital subsidy Interconnection Agreement – Net Metering Savings in cost of energy United States (Colarado) Net metering – tax rebates (ITC/ PTC) – RECs Capital subsidy, Sale Tax exemption to Owners, Income Tax Credit, Production Tax Credit

International Examples of Solar Rooftop business Models United States (California) Net metered – self owned Net metering – tax rebates (ITC/ PTC) – RECs Interconnection Agreement – Net Metering Property tax exemption, Subsidized PV system for low income household, Performance based incentives to builders Self Owned United States (New Jersey) Net metered – third party owned Net metering – tax rebates (ITC/ PTC / Depreciation) Sales Tax exemption, Property Tax incentive Third Party Owned

Success of Gross Metering Model - Germany 1991 1993 Mid 1990s 1999 2000 2003 Started with the 1000 roofs programe in 1991 Government subsidy provided to individuals to cover cost of installation for a grid tied system In range of 1.5 kWp Systems titled with three meters measuring generation, supply and demand Cost for a 2.2 kW system around 30000 (Modules around 15000) owners participation around 9000 2000 Grid connected PV systems installed 100,000 roofs program started marked with less interest in credit program funded by kfW bank for private persons, free lance individuals and SMMEs New Energy law (EEG) introduced setting FiT for 20 years FiT paid by the distributor to customer, and then rolled up to utility authority, where additional costs of RE are spread out into the overall cost of electricity to all consumers Program ended with successful installations reaching a limit of 300 MW

TOP 3 PV success factors in Germany MNRE TOP 3 PV success factors in Germany EEG – Feed-in law (20 year state guaranteed FIT , RE feed-in priority, one simple national binding scheme) Attractive business case for all kind of investors from house owner to international investment trusts created Long term & stable legal framework  Non-recourse project financing enabled Quality standards (establishment of high technical standards & development of qualified technical resources e.g. EPCs / integrators)  Secure long term yields and system security

Grid-connected SPV Rooftop systems World-wide Experience ….. USA MNRE Grid-connected SPV Rooftop systems World-wide Experience ….. USA Net metering is popular in 43 States but specific rules defer from States to States. Energy Policy Act 2005 mandates all public electricity utilities to make net metering options available to all customers. California had maximum installed onsite customer generated solar capacity of 991 MWp with 1,01,284 net metering consumers from 115000 sites.

Net Metering mechanism MNRE Net Metering mechanism The Net Metering mechanism shall allow the consumer to reduce its electricity import The utility benefits by avoiding purchase of electricity from short term market Electricity generation at load center also minimises the loss of electricity in wires Capacity for development under Net Metering Mechanism may be allowed in phases to take care of the following aspects. Equivalent to suitable percentage the utility propose under the intra state network losses or Capacity projected for purchase of Short Term market Financial viability

Net – Metering Arrangements – United States Country /States Limit on System Capacity Limit on Aggregate Capacity Access Generation Meter Aggregation Connecticut 2 MW No limit specified Credited to customer’s next bill at retail rate, excess reconciled annually Yes (virtual net metering allowed for municipal customers) Hawaii 50 to 100 kW 15% per circuit distribution threshold for distributed generation penetration Credited to customer’s next bill at retail rate, granted to utility at end of 12 month billings cycle Not addressed Michigan 150 KW 0.75% of utility peak load during previous year Credited to customer’s next bill at retail rate for systems 20kW or less credited to customer’s next bill at power supply component of retail rate for larger systems. Carries over indefinitely New Jersey No capacity limit specified, but energy production should not exceed customer’s annual on-site energy consumption No limit specified (BPU may limit to 2.5% of peak demand) Generally credited to customer’s next bill at retail rate excess reconciled annually at avoided-cost rate Permitted for public entity PV systems (implementing rules not yet in place)

Key issues in Solar Rooftop Development – Case of Hawaii Each Hawaiian island has its own small grid. Hawaii also has the highest residential electric power rates in the United States, at over 37 cents per kwh. This is about 3 times the national average and over 4 times the cost of electric power in Washington state. These islands have access to very good levels of solar insolation which coupled with very high retail electricity prices – solar provides an ideal setting for solar. The number of solar power systems across the island state has doubled every year since 2007, with nearly 20,000 units installed. Homeowners and businesses now produce nearly 140 megawatts of their own power Solar tax credits have started biting into the state budget Solar plants are now threatening the stability of the grid as solar is measuring the 15% limit imposed by the regulator Hawaiian Electric proposed a moratorium on solar installation, however this had to be taken back after outrage from consumers Utilities have now shifted to requiring expensive “Interconnection” studies

Evolution of Solar PV based Decentralized Business Models 1st Generation – End User Owned System Supply 2nd Generation – Third Party Owned & Operated 3rd Generation - Fully Integrated with Utilities system Pioneering business model Focus on direct ownership of systems by building rooftop owners End user is either the user or the utility through feed in tariff Institutions limited to financing, designing, deploying & maintaining systems Business model addresses through third parties market barriers which were not there with individual owners – scale, technical expertise, optimization Third parties install systems on residential & commercial rooftop, earn a lease payment/ tariff from owner for use of energy generated. Hybridized business models emerging with greater variation in ownership, control and operation Movement by utilities to capture more value through involvement like utility’s own FiT, bidding processes Power fed into the grid where it becomes a part of the utilities supply.

Business Models for Net Metering – 1 Consumer end model MNRE Business Models for Net Metering – 1 Consumer end model Consumers are owners of the facility Challenges: Limited know-how of installing and operating Limited know-how for requirements of approvals and clearances Administration cost of utility may increase Utility needs to interact with consumers, energy accounting on individual basis C1 DISCOM C2 C3 Cn

MNRE Business Models for Net Metering – 2 Consumer end Community based model Capacities may be bundled by a facilitator/ representative who undertakes necessary formalities and may avail subsidy for consumers Administration cost of utility less compared to earlier model Utility needs to interact with facilitator/ representative of consumers/owners Energy accounting at community level Sharing of benefits among consumers may take place on the basis of their contribution Representative C1 C2 C3 Cn DISCOM

MNRE Business Models for Net Metering – 3 RESCO/3rd party model based on FIT RESCO/3rd party shall supply electricity to the DISCOM at determined FIT DISCOM may also call for competitive bidding for selection of RESCO/3rd Party RESCO makes investments for installing facilities at consumers’ roof Consumers get suitable rent for lending their roofs 3rd Party gets subsidy from the MNRE Energy accounting takes place at consumer end Utility purchases solar electricity for meeting RPO DISCOM C1 C2 3rd Party C3 Cn

Consumer tariff assumed MNRE Emerging Market Models for Net Metering – 4 3rd Party model based on consumer tariff bidding Selection of RESCO/3rd Party at upper cap estimated by DISCOM Consumer gets net energy metered at its premise Consumers get suitable rent for using their roofs which shall reflect in their electricity bills 3rd Party gets subsidy from MNRE Streams of revenue include, Sale of electricity to DISCOM Sale of RECs Tax Benefit, Accel. Depreciation benefit etc. DISCOM C1 C2 3rd Party C3 Cn Consumer tariff assumed to be increasing

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 upto 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.

Policy targets 16 MW of rooftop and small PV installations by 2017. 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 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.

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.

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 upto 70% of energy usage at site from DISCOM. Energy injection to be settled on net basis in each billing period, no carry forward.

Pilot projects may come up in Mysore and Hubli-Dharwad solar cities. 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.

Net metering will be allowed at multiple voltage level 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

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.

DISCOMS agreed to purchase power and rates yet to be finalized. 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.

Interconnection to be as follows: MNRE Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Chandigarh Interconnection to be as follows: -Upto 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 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

State initiatives for promoting Solar Rooftop PV projects States Metering Programme Capacity (MW) Project Owner Energy Off taker Initiatives for Rooftop Owners Gujarat Gross Metering 30 Third Party Distribution Licenses FiT/ Green Incentive Karnataka 1.3 Self/ Third Party MNRE + FiT Tamil Nadu Net Metering 350 Household Owner Self/ Distribution Licenses MNRE + State (Rs. 20,000) Andhra Pradesh 2 MNRE + State (Rs. 20,000 Uttarakhand 5 MNRE+ FiT (compensation for excess power 50% of installed capacity for captive use West Bengal 16 Institutional Consumers only Extension of demand cut to 50% of installed capacity for captive use Punjab 60 Self MNRE + State (Feed in Tariff)

State initiatives for promoting Solar Rooftop PV projects States Metering Programme Capacity (MW) Project Owner Energy Off taker Initiatives for Rooftop Owners Gujarat Gross Metering 30 Third Party Distribution Licenses FiT/ Green Incentive Karnataka 1.3 Self/ Third Party MNRE + FiT Tamil Nadu Net Metering 350 Household Owner Self/ Distribution Licenses MNRE + State (Rs. 20,000) Andhra Pradesh 2 MNRE + State (Rs. 20,000 Uttarakhand 5 MNRE+ FiT (compensation for excess power 50% of installed capacity for captive use West Bengal 16 Institutional Consumers only Extension of demand cut to 50% of installed capacity for captive use Punjab 60 Self MNRE + State (Feed in Tariff)

State wise Interconnection / Technical Regulation Capacity Range Connecting Voltage Gujarat Up to 6 kW Single Phase 6 kW to 100 kW 415 V 100 kW to 1 MW 11 KV Kerala Up to 5 kW 1 Phase 230V 5 kW to 100 kW 3 Phase 415 V 3 Phase 11 KV Tamil Nadu Up to 10 kW 240 V 10 kW to 15 kW 240/ 415 V 15 kW to 100 kW > 100 kW Andhra Pradesh Up to 3 kW 1 Phase 230 V > 3 kW

State wise Interconnection / Technical Regulation Capacity Range Connecting Voltage Karnataka 1 kW to 5 kW 1 Phase 230V 5 kW to 50 kW 3 Phase 415 V 50 kW to 1 MW 11 KV Punjab Up to 7 kW Single Phase L T 230V 7 kW to 25 kW 3 Phase 415 V 25 kW and above West Bengal 100 KV – 2 MW LV or MV or 6 KV or 11 KV Uttarakhand Up to 4 KV Low Voltage Single Phase Supply Load > 4kW and up to 75 kW Low Voltage three phase supply Load > 75kW and up to 1.5 MW Load >1.5 MW and up to MW 11/33 KV or as per site con

Grid-connected SPV Rooftop systems Action being initiated ….. MNRE Grid-connected SPV Rooftop systems Action being initiated ….. CEA has notified “Technical Standards for Connectivity of the Distibuted Generation Resources-CEA Regulations 2013” in October 2013 which permits the grid connectivity of SPV rooftop also. CEA has submitted a draft “CEA (Installation and Operation of Meters- Regulation 2013” to M/o Power for approval for metering arrangement for inter connection of SPV rooftop with grid. CERC has brought out the draft guidelines for grid connectivity and metering arrangements for SPV rooftops.

Grid-connected SPV Rooftop systems Action being initiated ….. MNRE Grid-connected SPV Rooftop systems Action being initiated ….. MNRE has included Grid connected SPV rooftops in the “off grid and decentralised solar Applications” scheme vide ammend no. 5/23/2009-P&C dated 30th October 2012 for SPV plants upto 100 kW capacity. MNRE subsidy upto 30% on the following benchmark cost of the projects is available : Upto 100 kWp : 100 Rs./Wp 100 to 500 kWp : 90 Rs./Wp A separate scheme on “Grid connected rooftops and small solar systems” has been formulated which is under approval

Grid Connected Rooftop Scheme: of MNRE (Under Approval) Objective of the scheme is to promote the grid connected SPV rooftop and small SPV power plants in the residential, community, institutional, industrial and commercial establishments. Project capacity of 1.0 kW to 500 kWp per project/system Implementation through programme (upto 50 kWp ) and project modes(above 50 kWp) Implementing agencies- SNAs, Solar Energy Corporation of India(SECI), Channel Partners, FIs/Financial Integrators, Other Govt. Departments/Agencies/PSUs etc. CFA is 30% of the benchmark for general and 70% CFA for NE and Special Category States for Govt. projects. 300 MW target for the 12th FY Plan

Grid-connected SPV Rooftop systems Action initiated ….. MNRE Grid-connected SPV Rooftop systems Action initiated ….. 29.1 MWp SPV grid connected rooftop project sanctioned under NCEF funding are under execution by SECI (26.6 MWp) and Ministry of Railways (2.5 MWp). 50 MWp SPV grid connected rooftop project approved under NCEF funding sanctioned to SECI. 43.254 MWp projects to 10 States; AP,MP, Rajasthan, Punjab, Chandigarh, Kerala, Uttarakhand, Gujarat, Uttar Pradesh, Tamil Nadu MNRE sanctioned . Total 35.76 MWp projects completed.

Grid Connected SPV Rooftop Projects Sanctioned to States/ UTs/ SECI (As on 10.09.2014) Sl. No. State/UTs Projects Sanctioned by MNRE (MWp) Projects* implementation by SECI Total Sanctioned Achievements** (in MWp) 1. Andhra Pradesh 5.00 2.00 7.00 1.85 2. Chhattisgarh -- 2.05 0.80 3. Chandigarh 6.06 0.50 6.56 2.10 4. Delhi 3.07 5. Gujarat 5.75 9.75 6. Haryana 1.13 7. Kerala 1.28 8. Karnataka 1.50 9. Madhya Pradesh 0.25 5.25 0.10 10. Maharashtra 0.67 11. Odisha 1.00 0.86

Grid Connected SPV Rooftop Projects Sanctioned to States/ UTs/ SECI (As on 10.09.2014) Sl. No. State/UTs Projects Sanctioned by MNRE (MWp) Projects* implementation by SECI Total Sanctioned Achievements** (in MWp) 12. Punjab 5.00 -- 7.52 13. Rajasthan 6.00 3.25 9.25 0.30 14. Tamil Nadu 6.74 11.74 4.40 15. Tripura 1.00 16. Uttarakhand 17. Uttar Pradesh 2.00 1.50 3.50 1.08 18. West Bengal 0.63 19. M/ o Railways 2.50* 2.50   Sub Total 50.33 25.55 75.88 35.76 20. Many States by SECI under NCEF 50.00 Grand Total 75.55 125.88

Grid-connected SPV Rooftop systems Actions required by States… MNRE Grid-connected SPV Rooftop systems Actions required by States… States to announce suitable policies on grid connected PV rooftop systems SERCs to notify regulatory orders for grid connectivity, net metering, gross metering, tariff etc. States to establish dialogue with DISCOMs and SERCs DISCOMs to promote rooftop in States States to set up few pilot projects.

Key Considerations……. Lack of public domain knowledge of technical standards and guidelines for grid connectivity, metering, safety and security Energy accounting and commercial settlement guidelines for grid connected solar rooftop projects still evolving Regulatory provisions relating to applicability of charges relating to wheeling, open access, cross subsidy etc. for solar rooftop projects needs to be clarified Projects so far, implemented in India, have been either under gross metering arrangement or on captive consumption arrangements

Roof Space requirement for rooftop system MNRE Roof Space requirement for rooftop system 10-15 sq. meter roof space is required for 1.0 kW system A 100 sq. meter roof space can have 8- 10 kW SPV system Cost of 1.0 kW system is about Rs. 1.00 lakh 30% CFA is available from MNRE

Economics of Grid Connected Rooftop (100 kWp Rooftop Plant) Capital Cost : Rs. 80 Lakh Subsidy (30%) : Rs. 24 Lakh Net Cost to Customer : Rs. 56 Lakh Avg. Annual Generation : Rs.1,50,000 kWh Annual Revenue(@Rs.7.0/kWh): Rs 10.5 lakh Simple pay back : 5.33 years Avg. elect. generation cost : Rs. 8.0/kWh (without Subsidy) Avg. elect. generation cost : Rs. 5.60/kWh (with Subsidy)

Potential of SPV rooftop MNRE Potential of SPV rooftop One million industrial units and each with average 500 sq. meter rooftop space can have about 25,000 MWeq Solar PV rooftop installations. Only 800 Kendriya Vidyalayas in India can host about 20 MW eq. Solar PV rooftops. About 100 million houses can install 100 million 100,000 MW eq. Solar PV rooftops. ……and so on

360 kWp Solar grid connected rooftop plants at Super Auto Forge, Chennai

Rooftop SPV system (50 kWp) at Paryawaran Bhawan, Chandigarh 25 KWp SPV Plant at Police Hq, Chandigarh

70 KWp SPV Plant at Govt Multi Speciality Hospital , sec-16, Chandigarh

MNRE Thank You