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Industry Assessment for
Solar Energy Market
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A basic introduction to theindustry...
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Solar TechnologiesThere are two primary ways of using Solar Energy for different applications
Solar
Technologies
SolarPhotovoltaic
(SPV)
PowerGeneration
Lighting
Water Pumping
Solar Thermal
(CSP)
Cooking
Water Heating
Energy Source Technology Selective Applications
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Industry is pursuing a host of promising
technologies in Photovoltaics...
Concentrated
Photovoltaic
Ground
Mounted
Roof
Mounted
Market
Thin Films
Amorphous
Silicon
Material
CdTE/
CIGS Organic
Crystalline Silicon
Mono-
Crystalline
Multi-
Crystalline
Structure
Setting up a solar PV manufacturing unit can cost around Rs 90 crores for a25MW capacity but the figure can vary depending on govt subsidies, locations,suppliers, etc.,
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...and in Concentrated Solar Power (CSP)
Trough Tower Linear Fresnel Dishes
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Classifying various applications
Solar PV System Size
Small Systems (1MW)
SystemT
yp
e
Roof topRural Off grid lighting, Urban
and Residential
Urban residential,
Commercial,
Industrial applications
Grid Connected Plants
Ground BasedRural Off grid lighting, Urban
and Residential
Village Electrification,
Industrial applications
Industrial applications,
Grid
connected Plants
Near ApplicationIrrigation pumps, Public area
applications
Cell Towers
Typical rule of thumb for Solar installations other than at utility scale is Rs. 3 Lakhs fora 1 KW system. This can vary by (+/- ) 25% depending on the margins, sourcing ofpanels, scale, etc.,
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The Indian scenario The entire public policy on Solar for India is dictated by the Jawaharlal
Nehru National Solar Mission launched in 2009.
It talks about achieving 20,000MW of energy generation through Solarin three phases:
1000 MW by 2013
Additional 3000 MW by 2017
Finally reach 20,000 MW by 2022
For this to become a reality, significant investments to the tune of Rs.250 billion are required over the next 2-3 years.
In January 2011, NVVN (NTPC Vidut Vyapar Nigam Ltd) selected 37companies to set up solar power projects to the tune of 704 MW forphase 1 of JNNSM.
Rajasthan accounts for 81% or 571MW of the entire capacity above.Rajasthan, Gujarat and AP are now the favoured destinations of projectdevelopers.
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The Indian scenario Prices paid by the grid for such projects typically range from
18.45/KWH to 10.95/KWH for Photovoltaic generation based onbidding.
On another scale Rooftop Solar projects, both feeding into the gridtype and off grid type have huge potential.
Part of JN National Solar Mission with objectives 10 MW Kitty Size as of now
Individuals 1 KW array size
Organizations 100 KW array size
Central Financial assistance of INR 75 per Wp for battery less and
INR 90 per Wp for battery based systems.
Off grid applications too hold huge potential because of around1lakh villages without electricity. Need a good model in this area.
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Typical finances of a 1MW PV plant Energy Generation: 1.5 Million KWH/MWp /year
PPA Rate: Rs. 18.45 / KWH 25 years
1st year Revenue/MW: Rs 2.76 Cr
Subsequent 25 years as per module degradation rate
Capital Cost: Rs.13.5 Cr + Land= Rs.14 cr Appr
70:30 D/E Ratio assumed Debt component: Rs.11.9 Cr
Terms 11.5%, 10 years with 1 year moratorium
Interest 1st year: Rs. 1.37 Cr
O&M / Misc: 12 Lacs typically
Margin After Tax: 20%
General RoE ranges from 18 to 20% based on moratorium, CER, interest,transmission line etc
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Financing the projects
Institutions are ready to fund projects that show a good returns and that arebacked by sound companies with experience in delivering large projects ontime and satisfactorily.
Project
Financing
Commercial
Banks
International
development
banks / agencies
IREDA, NABARD,
NHB, SIDBI, etc.,Public Markets
Govt lending /
subsidies
Internal reservesPrivate Equity /
VCs / Angels
PFC and other FIsFIIs
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Factors for Success through Execution Excellence
Project Management Knowledge of Indian conditions
Land acquisition and development EPC Contracting
Tax / Duty implications
Cost Control / Local Contracting
On Time Delivery
EPC Monitoring Long lead time Items
Inverter and Cable Trenching
Handling and Logistics
Commissioning Plans
Performance Site Survey and Analysis
Civil / Structural Design
Optimized Array Configuration
Power Output / Monitoring
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The Key Dynamics
POLICY CUSTOMERS
EXECUTION EXCELLENCE
FINANCING
TECHNOLOGY
Typically we see good policies, project plans and funding plans given but theexecution on the ground is delayed due to host of issues like land acquisitions,financial planning, technology issues etc.,.
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How can we help you in thismarket?EfficientCarbon can provide you with comprehensive research on the SolarIndustry in India and give you its understanding, expertise and contacts tohelp you flourish in this industry. We would start by typically answering thefollowing questions
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Questions to Answer Is this the best time to enter the Solar market in India?
If so, what is the core business model (mfg, trading, EPC, anciliary, etc.,)
What should you consider before you make a foray? Capital and Operating Costs
Locations
Technology
Govt Policies
The National Solar Mission
Who are the already existing players and what is their might?
Competition analysis
Alternate, substitute technologies
What are the detailed costs and returns?
Capital costs
Operational costs
Financial modelling
Financing options
What are the govt policies regulating the solar industry?
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Questions to Answer What should I consider while preparing Pre-Feasibility and Feasibility
reports?
What are the product/project development stages? Who and where are the suppliers?
Raw materials
International trade policies, etc.,
What are the entire gamut of opportunities available in the ancillary
industries supporting the Solar Industry?
EPC
Inverters
Batteries
Tracking systems
Lighting,
Servicing, etc.,
EfficientCarbon would help you answer these questions through primary andsecondary research and put you in direct presence of collaborators, fundingsources, existing players in the market, to help you make more informeddecisions etc.,
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Thank You
"Sustainability is not only absolutely necessary considering the situation our
planet is in, we as companies are also overdue to take responsibility. We
can't wait for governments. Companies have to lead the way
- Jochen Zeitz, CEO, Puma
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