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By SMITA KUNDU, DGM (Commercial) & SAURABH SHARMA Mgr (Engg) NSPCL CC. ROOF TOP SOLAR A NEW BUSINESS OPPORTUNITY FOR NSPCL. PRESENT SCENARIO- ROOFTOP SOLAR. GOI Target 2022: 175 GW RE including 40 GW Roof top solar Installations till 2017 : < 1 GW (Source MNRE)
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By SMITA KUNDU, DGM (Commercial) & SAURABH SHARMA Mgr (Engg) NSPCL CC ROOF TOP SOLAR A NEW BUSINESS OPPORTUNITY FOR NSPCL
PRESENT SCENARIO- ROOFTOP SOLAR • GOI Target 2022: 175 GW RE including 40 GW Roof top solar • Installations till 2017: < 1 GW (Source MNRE) • MNRE Mandate: State wise Solar RPO target • Funding: World Bank sanctions $625 million loan to SBI for discounted finance for Rooftop Solar • SMART CITY: New Business Opportunity
Smart City (NCR) Potential • NCR: NDMC & Faridabad declared as SMART CITIES • Delhi’s : Total Solar Rooftop Potential: Delhi’s area 1483 sq km, 50% ie 700 sq km of built up rooftop available. 4.42% or 31 sq km available for Rooftop PV ie 2557 MW (Source: Delhi Solar Policy) Rooftop Capacity Available • Government buildings- 26% • Commercial & industrial building-25% • Residential- 49% • Very little grid downtime, ideal for grid connected solar systems with net metering system • Mandatory Rooftop Installation in Delhi, Haryana, UP, Chandigarh & Chattisgarh states (as per local building bye laws) (Source: Bridge to India)
POLICIES, MANDATES & INCENTIVES Delhi Solar Policy (2016-20) on Rooftop - Highlights • Mandatory for Govt Buildings with Rooftop Area > 500 m2 • Generation Based Incentive of Rs. 2/unit offered to domestic generator for 3 yrs with min 1100 units/year (capping 1500 units/year) • Evacuation infrastructure will be developed by state DISCOMs. • DISCOMs will give preference to source 75% of the RPOs from within the state. Incentives: • 10 year tax holidays & other Exemptions • Accelerated Depreciation • Concessional Customs & Excise Duty • Viability Gap Funding given • RBI mandates loans uptoRs 15 crs on Rooftop SPV as part of Home Loan • Direct subsidy from Centre – MNRE (30% capital subsidy on projects) • Leveraging Air Ambience fund in Delhi (funded buy a cess on diesel)
DERC AS ON SEPT 2017 • RPO’s Distributor licensee (DISCOM) RPO shall be computed as a % of Total sales of power to retail consumer excluding Hydro • RPO Target: • Renewable Energy Certificate: The distributor licensee may purchase REC if does not comply with RPO Target • Penalty: Non compliance of RPO target shall attract penalty as decided by DERC
NET METERING- DELHI SOLAR POLICY • Net Metering applicable for above 1KW connections • Group Net Metering and Virtual Net Metering available • System Transparency- Mandates DISCOMS to put all requests online • DISCOMS to pay for surplus energy at year end • DERC approval on case to case basis
SOLAR ROOFTOP CHALLENGES • Local Issues (Structure strengthing issues) • Non Uniformity of Policies & Initiatives in states • Power Evacuation by Discoms • Regulatory Clearances • Upfront Capital Costs • Inertia to Paradigm Shift • Lack of Implementation of Incentives • Net Metering Issues
NSPCL’S BUSINESS OPPORTUNITY FOR ROOFTOP SOLAR • Starting with Solar Rooftop installation in SAIL Plants • Similar Solar Rooftop installations in NTPC and its JVs • EPC Opportunity for Urban areas starting with SMART CITIES Catering to Categories: • Government Buildings & Institutions • Commercial Building • Industrial Building
Solar Rooftop Investment Models Rooftop Investments • CAPEX Model • Ownership- Rooftop Owner • O&M lifetime Responsibility (25 Years)- Rooftop Owner • RESCO Model (Renewable Energy Services Company Model) • Ownership- Developer • O&M lifetime Responsibility (25 Years)- Developer • BOOT Model (Build Own Operate Transfer Model) • Ownership- Developer (Initial Period), • Ownership Transfer- Rooftop Owner (After mutually agreed period) • O&M lifetime Responsibility (After mutually agreed period)- Rooftop Owner Source: https://energyforum.in
Conclusion • Normally 7-8 Years Payback Period • 4 units/day/kw generation • Funds are easily available • Policies ,Incentives & Penalties in most states are in place. • State wise RPO requirement • Focus on rooftop installations who are consuming power at Commercial rates.( Industrial & Commercial units) Big Opportunity for NSPCL as an EPC player to enter the Rooftop Solar Market as the largest PSU backed JV immediately to meet 2022 GOI target.