Detail | Customise | Optimise

GeWiS Milestone Serving from last 37 years towards precision products and services to create safe and cleaner future Detail | Customise | Optimise

Detail | Customise | Optimise BACKGROUND Total installed capacity of the country is 302 GW Renewable Energy contributes 43 GW (~14%) of the total installed capacity, out of which Solar Energy share is over 7 GW (~16.2%) Solar energy now represents 2.5% of total installed power capacity in India, up from 1.4% a year ago Source : Ministry of Power Detail | Customise | Optimise

NATIONAL SOLAR MISSION The GoI has revised the National Solar Mission (NSM) target of Grid Connected Solar Power projects from 20 GW to 100 GW by 2022. Category 1: Rooftop Projects (Target- 40 GW) Category 2: Large Scale Projects (Target- 60 GW) Detail | Customise | Optimise

Current Status - Installation With 2.2 GW installed to date; cumulative installations have surged to 7.5 GW as of May 2016 Solar development pipeline now stands at 22 GW with over 13 GW under construction Source : MNRE Detail | Customise | Optimise

BENEFITS FOR SOLAR POWER PROJECTS Accelerated Depreciation: For Solar Projects Industrial and Commercial consumers can claim 80% of Depreciation of Solar Assests in the first year itself Capital subsidy Govt. of India is giving 30% - 70% capital subsidy on Rooftop type of projects depending on the location. Applicable for rooftops other than Industrial and Commercial buildings. Net metering For rooftop type of projects almost all states of India have Net – metering policy in place. Financing : Soft loans IREDA provides debt at low cost for the Solar Power projects. For residential rooftop government provides soft loans. Reduction in Power cost As the Power generation cost by has reduced drastically, it can compete with present Industrial and Commercial tariffs in many states of the country. Detail | Customise | Optimise

VARIOUS SOLAR PROJECTS There are various options for development of Solar Projects. Following is the indicative representation. ROOF TYPE SOLAR PROJECTS Residential (1kWp to 30kWp) Small Industrial / Commercial (30kWp to 100kWp Large Industrial / Commercial (100kWp to 5MWp Solar Power plant to be developed adjacent or within the premises of the Unit Solar Power plant at different location but within the state Detail | Customise | Optimise

Detail | Customise | Optimise PROJECT MODELS CAPEX MODEL Roles Responsibilities: Client Investment required for the project. Procurement of Land for ground mounted projects and Building roof for Rooftop type of projects. GeWiS Site survey, Project feasibility and appropriate sizing of the project. Engineering, Procurement and Commissioning / Installation of the project O&M and maintenance of generation for the plant SOLAR POWER PLANT Detail | Customise | Optimise

Detail | Customise | Optimise BUSINESS MODELS BOOT / BOO MODEL Roles Responsibilities: Client Agreement GeWiS / Investor for long – term purchase of power at fixed rate for 20 – 25 years from Solar Power plant. Provide all time access to building roof for Rooftop type of projects. GeWiS Project feasibility after estimating existing Power consumption and overall benefits. Investment required for development of the project. Engineering, Procurement and Commissioning / Installation of the project O&M and maintenance of generation for the plant SOLAR POWER PLANT Abbrevations : BOOT – Build Own Operate Transfer BOO – Build Own Operate Detail | Customise | Optimise

CHALLENGES FOR SOLAR POWER ROOFTOP PROJECTS EXCISE & CUSTOMS DUTY BENEFITS: Not possible for smaller size projects as bought out items. CHANGE OF LAW – GST Might increase the cost of components making it a bit non – competitive. AD BENEFIT As per notification from FY 2017 – 18 AD benefit would be reduced to 40%. DEMAND AND FORECASTING Very difficult to forecast and this will pose the Grid management issue to regulators. Battery storage and hybrid systems. PPA – Terms Life of Building / rooftop is less than 25 years and PPA can’t be estimated at 25 years and therefore higher cost of generation compared to Ground mounted. Detail | Customise | Optimise

CHALLENGES FOR SOLAR POWER ROOFTOP PROJECTS DEBT FOR ROOF TOP PROJECTS In some cases cost of documentation and due diligence is more so banks don’t prefer to lend for projects less. Govt. should define processes for roofop projects. SKILLED LABOUR ITIs should start with crash course, else execution quality deteriorates and overall project performance. COMPETITIVE AND COST SENSITIVE Lot of players have emerged with limited expertise. Tend to quote low and then the client and project suffers NET METERING – SOLAR POLICY Non – uniform across the states wherein some allow banking, few have limit to 1MWp, multiple locations allowed or not. OPEN ACCESS – CAPTIVE & THIRD PARTY Not much clarity in Grid code for Industrial rooftops connecting to their own load along with Forecasting and Demand management. Detail | Customise | Optimise

Head- Renewable (Solar) Mr. Sumit Joge Head- Renewable (Solar) +91-20-4690 1500 (Ext : 576) Mobile: +91-9545556456 sumit.joge@gewisrenew.com Detail | Customise | Optimise