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

Grid-connected SPV Rooftop systems Concept… 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 MNRE

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

Grid-connected SPV Rooftop systems World-wide Experience ….. Germany MNRE

PV market segments in Germany Image : Solarwatt Private buildings: 1-10 kWp Social, commercial, agricultural buidlings: kWp Image : Solarwatt Image: Sharp Image : BP Large commercial buildings: > 100 kWp Image : Schüco Image : Geosol Image: Grammer 10% 38%23% Source: BSW-Solar, E.Quadrat GmbH Ground-mounted Rooftop Building integrated <1% 71% 28% Market share in % of MW installed in 2011 MNRE

Germany …1000 Roofs Programme 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 MNRE

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 Germany …100,000 Roofs Programme MNRE

PV rooftop Germany 2012 PV capacity (cumulative) until August 2012: 30,050 MWp Number of grid connected PV systems until August 2012: 1,223,000 Share of national gross electricity consumption: 10% Share of rooftop systems: 71% CO2 savings in 2011: 12.8 million t Source: BSW (German solar industry association) / official register of Bundesnetzagentur MNRE

TOP 3 PV success factors in Germany 1. 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 2. Long term & stable legal framework Non-recourse project financing enabled 3. Quality standards (establishment of high technical standards & development of qualified technical resources e.g. EPCs / integrators) Secure long term yields and system security 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 sites. 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 MNRE

Business Models for Net Metering – 1 Consumer end model C1 C2 C3 Cn DISCOM 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 MNRE

C1 C2 C3 Cn DISCOM Business Models for Net Metering – 2 Consumer end Community based model Representative 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 MNRE

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

Emerging Market Models for Net Metering – 4 3 rd Party model based on consumer tariff bidding C1 C2 C3 Cn 3 rd Party Selection of RESCO/3 rd 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 3 rd Party gets subsidy from MNRE Streams of revenue include, Sale of electricity to DISCOM Sale of RECs Tax Benefit, Accel. Depreciation benefit etc. DISCOM 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 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. 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 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 /kwh. Torrent Power will buy from Rs /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 , State to promote rooftop with net metering. System size to be 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. MNRE

Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Karnataka 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 systems Indian Experience: Initiatives by Tamil Nadu As per State Solar Policy MW SPV rooftop targeted during MW rooftop to be supported through 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% solae electricity used for self/sale to utility. All new Govt./Local body buildings shall necessarily install PV rooftops. MNRE

Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Chandigarh 1.14 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 finalised. 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 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

Major Issues…. Notification of Technical Standards for connectivity of the Distributed Generation Resources Regulation by M/o Power. Norms for capacity restrictions (kWp) for connectivity at each voltage level Tariff fixation by CERC/SERCs with or without subsidy/incentives. Metering system, position of meters, authentication mechanism etc. RPO and REC issues connected with grid connected SPV Rooftops MNRE

Grid-connected SPV Rooftop systems Action being initiated ….. CEA has finalised Technical Standards for Connectivity of the Distibuted Generation Resources-CEA Regulations 2012 and is sending to M/o Power for notification. CEA constituted a committee for amendment in CEA Installation and Operation of Meters- Regulation 2006 for for metering arrangement for inter connection of SPV rooftop with grid. CERC will soon bring out the guidelines for grid connectivity and metering arrangements for SPV rooftops. 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 30 th October 2012 for SPV plants upto 100 kW capacity. MNRE subsidy upto 30% on the following benchmark cost of the projects is available : Upto 5 kWp : 160 Rs./Wp 5 to 100 kWp : 140 Rs./Wp 100 to 500 kWp : 130 Rs./Wp A separate scheme to come up on Grid connected SPV rooftops during MNRE

Grid-connected SPV Rooftop systems Action being initiated ….. NCEF has sanctioned 10 MW SPV grid connected rooftop project with crore which is being implemented by SECI SECI has invited RFS for six cities namely Delhi(1MW), Bhubaneswar/Cuttack(1MW), Raipur/Naya Raipur(2MW), Gurgaon(2MW), Channai(2MW), Bangaluru(2MW). MNRE

Grid-connected SPV Rooftop systems Actions required by States… States to announce suitable policies on grid connected PV rooftop systems States to establish dialogue with DISCOMs and finalize suitable tariff. DISCOMs to formulate and sign PPAs, States to set up few pilot projects. MNRE

Roof Space requirement for rooftop system sq. meter roof space is required for 1.0 kW system A 100 sq. meter roof space can have 5- 6 kW SPV system Cost of 1.0 kW system is about Rs to 1.60 lakh 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 MNRE

Thank You MNRE