De-centralized grid-connected business models for rooftops and IP Sets Swarup Mavanoor
Contract enforceability – (Residential) Low consumer tariff User dependent revenue De Centralized Generation Business Models - Basics 2 Model Basics and Enablers End user purchase of PV System Net-metering policy Effective warranty and QoS Developer owned + operated system/ leased system FiT policy / Split tariff scheme Contract enforcement mechanisms 1 1 Solar as a service 2 2 System Sale – User owned Key Challenges Up-front capital cost Cost of consumer finance Tariff subsidy provided by utilities
Financing options and models for rooftop systems Cash Purchase Bank Loan Self Financed DISCOM Loans - On-bill financing DISCOM Lease – Generation financing DISCOM Financed Developer Lease Power purchase agreements (PPA) Solar Service Roof Rental Community Generation Other 3
Financing options and models for IP sets 4 Cash Purchase Bank Loan Self Financed DISCOM Loans - On-bill financing DISCOM Lease – Generation financing DISCOM Financed Developer Lease Power purchase agreements (PPA) Solar Service Roof Rental Community Generation Other
Self Financed Models – Loan based 5
DISCOM Financed 6
Service Model - Lease 7
Service Model - PPA 8
9 66/11kV PTC DTC C2 CN C1 66/11kV MUSS P2 P3 P1 PN IN CN Community Generation Model Utility Developer
Key enablers to drive adoption Policy LegislationTariffTechnology Access to finance 10 !
Tariff Gross Generation - Distributed generators compensated for energy generated Eliminates revenue variability associated with net-metering Increased ability to bring in developer finance – predictable IRRs for developers What is the right tariff? Gross generation + feed-in incentive ( Hybrid tariff model) Potential model for residential and IP sets Gross generation compensated for at APPC/Cost-to-serve Additional tariff for net-generation 11
Net Vs. Gross Metering 12
References and Sources Solar PV Business Models and Key Policy Considerations, Sopitsuda Tongsopit, Ph.D. University of Chulalongkorn - Link to fileLink to file Photovoltaics Business Models, L. Frantzis, S. Graham, R. Katofsky, and H. Sawyer, NREL - Link to fileLink to file Models for rooftop Solar (PV) Development, Dr. Omkar Jani, GERMI - Link to fileLink to file Forum of regulators working group - Link to fileLink to file 13