government of india ministry of new and renewable energy grid-connected spv rooftop systems mnre

Solar Energy and PV Rooftop in India

Government of IndiaMinistry of New and Renewable Energy

Grid-connected SPV Rooftop systems

MNRE

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 %ageTotal 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 2,55,013 100.00Renewable 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

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 > 7,50,00030-50 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

2,6001,280

Total >8,95,880

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.


MNRE

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

Concept of Rooftop PVGrid-connected SPV Rooftop systems

MNRE

Components 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.


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.


MNRE

Type-I Type-II Type-III

Simple and most cost-effective PV system

It supplies surplus excess electricity produced to the utility grid

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

Comparison of three types of Rooftop PV system configurations


MNRE

Sl. No.

State Solar rooftop target

Metering mechanism

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/Institutional/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 Chhattisgarh

500-1000 MW (total solar installations)

Net and Gross metering

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


MNRE

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 specified

Net metering

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 statesGrid-connected SPV Rooftop systems

MNRE

7 Delhi Not specified

Net metering

Not specified Not specified Exemption from wheeling, banking, cross subsidy and other charges for a period of 5 years

8 Andhra Pradesh

Not specified

Net metering

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

Net metering

11.11 (PV Crystalline), 10.75 (thin-film)


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


MNRE

10 Rajasthan Not specified

Net metering


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 Uttarakhand

5 MW (2013-2015)

Net metering



No transmission and wheeling charges

12 Uttar Pradesh

20 MW (by 2016-17)

Net metering

Not specified


State funds for technical assessment and deployment of rooftop SPV on government owned/Public Institutions

Existing policies in different statesGrid-connected SPV Rooftop systems

MNRE

Grid-connected SPV Rooftop systemsIndian 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.


MNRE

Grid-connected SPV Rooftop systemsIndian 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.


MNRE

Grid-connected SPV Rooftop systemsIndian 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 systemsIndian 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.


MNRE

Grid-connected SPV Rooftop systemsIndian 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.


MNRE

Grid-connected SPV Rooftop systemsIndian 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 systemsIndian 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.


MNRE

Grid-connected SPV Rooftop systemsIndian 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.


MNRE

Grid-connected SPV Rooftop systemsIndian 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


MNRE

Grid-connected SPV Rooftop systemsIndian 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


MNRE

Parameters Gross Metering Net Metering

Purpose Sale of electricity to utility

Consumption at the consumer’s end

Preferred consumer category

Residential, Commercial & Industrial

Residential, Commercial & Industrial

Tariff plan PPA, FiT Energy settlement, FiT

Energy accounting

Two separate meters

A bidirectional meter

Operating cost Low Low

Type of metering facility


MNRE

Gross metering- Self owned


MNRE

Gross metering- Third party owned


MNRE

Net metering- Self owned


MNRE

Net metering-Third party owned


MNRE

Comparison between gross and net metering


MNRE

International experience


MNRE

International experience: Net metering with individual system capacity limits adopted by most US States


MNRE

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

International experience: Tariff settlement


MNRE

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

German

yIta

lyChina

USAJap

an

Australi

a

Spain

*05

101520253035

TotalRooftop

Inst

alle

d ca

paci

ty (G

W)

* Data not available

In India market potential for rooftop SPV is 124 GW.

All-India Rooftop SPV Potential

0 50 100 150 200 250 300 350 400

124210

352

GW

Technical Potential Economic Potential Market Potential


MNRE

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 No requirement of additional land Low gestation time Local employment generation

Advantages of rooftop solar


MNRE

Business Models for Rooftop SPV Rooftop Solar PV System

Self-Owned Third Party Owned

100% Equity Debt & Equity Debt & Equity100% Equity

Self BankGovt. financing

Self BankGovt. financing

Pro

ject

O

wners

hi

p

Fin

anci

ng

Op

tions

Mod

es

of

Fundin

g

PACE PACEOn-bill financingUtility-owned distributed solar

Morris Model

Solar PPA Solar

Leasing

Morris Model Solar PPA Solar

Leasing

Exam

ple

s


MNRE

Business Model Gross Metering – Self Owned

System Owner

Bank

Utility

Installer

EMI Payments

Loan

Consumption Payment

Generation RevenueInstallation

Payment

Subsidy


MNRE

Business Models Net Metering – Self Owned

System Owner

Bank

Utility

Installer

EMI Payments

Loan

Consumption Payment

Installation

Payment

Subsidy


MNRE

Business Models Gross Metering – Third Party Owned

Roof Owner

Bank

Utility

Third Party

RepaymentLoan

Generation

PaymentRoof Rent

Subsidy


MNRE

Business Models Net Metering – Third Party Owned

Roof Owner

Bank

Utility

Third Party

RepaymentLoan

Consumption Payment

PPAConsumption

Payment

Subsidy


MNRE

Largest rooftop installations


MNRE

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

USA 2.6

Southern California Edison, Fontana, CA

USA 2

Success story of India: Largest single rooftop plant in the world• 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.

MNRE


Sl. No.

State/UTsTotal

Sanctioned (MWp)

Achievements*As on

15.10.20141 Andhra Pradesh 13 1.852 Bihar 1 03 Chhattisgarh 7.05 0.84 Chandigarh 8.56 2.15 Delhi 10 3.076 Gujarat 7.75 9.757 Goa 2 08 Jharkhand 2 09 Haryana 9 1.1310 Kerala 6.28 011 Karnataka 4 1.512 Madhya Pradesh 6.25 0.113 Maharashtra 5 0.67

Status of Grid Connected SPV Rooftop Projects Sanctioned to States/UTs/SECI/PSUs and Other Government Agencies

Sl. No.

State/UTsTotal

Sanctioned (MWp)

Achievements*As on 15.10.2014

14 Odisha 5 0.8615 Punjab 7 7.5216 Rajasthan 10.25 0.317 Tamil Nadu 19.74 4.418 Tripura 1 019 Telangana 4 020 Uttarakhand 7 021 Uttar Pradesh 11.5 1.0822 West Bengal 4 0.6323 Ministry of Railways 2.5 024 Pending Allocation

by SECI under NCEF151.5 0

Sub Total [A] 305.38 35.76

Status of Grid Connected SPV Rooftop Projects Sanctioned to States/UTs/SECI/PSUs and Other Government Agencies

* Including their own resources in addition to MNRE and SECI installations

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

Recommendations


MNRE

Area of intervention


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

Recommendations


MNRE

Area of interventi

on


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

Recommendations


MNRE

Thank you


MNRE

government of india ministry of new and renewable energy grid-connected spv rooftop systems mnre

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