1. Presentation on solar rooftop Abhilakh Singh General Manager 9 th October, 2015

2. Power Scenario  India, energy demand which was nearly 700 mtoe in 2010 is expected to cross 1500 mtoe by 2030. Dependence on imports for energy requirements is expected to increase from 30 per cent to over 50 per cent.  At the estimated 51% primary energy imports, India will be one of the most import-dependent countries in the world.  India’s per capita electricity consumption reached 1010 kilowatt-hour in 2014-15, as per CEA figures, yet is among the lowest in the world. China has a per capita consumption of 4000kWh, with developed nations averaging around 15,000kWh per capita.  The current installed capacity, as of August, 2015 is 276,783 MW. Immediate goal is to generate two trillion units (kilowatt hours) of energy by 2019 so as to be able to provide 24x7 electricity for residential, industrial, commercial and agriculture use.

3. Renewable Energy  It is in this context that the country has rightfully embraced renewable energy which is now seen as complimenting and supplementing the conventional sector.  Renewable energy with its huge untapped potential, shall be playing a significant role in the plans of the Government to provide 24 x 7 power to every home, factory and farm, Wind and Solar Energy being the predominant sectors.

4. Target 2022 Private Sector Commitment of 252 GW from 319 Companies PSUs Commitment of 19 GW from 24 PSUs Manufacturing Commitment of 62 GW from 17 Manufacturing Companies Finance Commitment for financing 69 GW from 27 Banks

5. 100 GW Solar by 2022 Unemployed Graduates Village Panchayat SSI Units Synergy with MSME, MoRD Green Energy Certificates Large Private sector corporations Green Energy Certificates SECI: 2000 MW NVVN: 3000 MW States: 2000 MW Already installed: 3000 MW States to install projects under their own policies Large Scale Rooftop Power producers under VGF scheme with DCR and prior commitments. * Stand by Capacity : 50000MW

6. Rooftop Projects Target40,000 MW by 2022 Current supportFinancial assistance of 30% of the benchmark Current Status Projects sanctioned – 1426.35 MWp Projects installed – 98.75 MWp Categories of Rooftops Institutional ( Govt. Bldgs., hospitals, warehouses, schools etc.): 7500 MW Industrial & commercial sector: 20,000 MW Housing Sector: 12,500 MW 20 states have specified tariffs for rooftop projects.

7. Solar Rooftop – Game changer  Solar Roof-top segment has a great potential in India and can indeed be a game changer in attaining these challenging targets.  Rooftop Solar in India has mostly revolved around various demonstration projects, although, things have changed radically in the last 2-3 years with sharp drop in prices of various components, increased support from the Government and positive regulatory regime.  As per the Report’ India Solar Rooftop Map’, 1.5 GW of solar roof-top installation is predicted by 2018  There is now a realization that the Rooftop Solar can help earn money besides generating power at the place of use and in fact, a profit-making proposition for the building owners by renting their rooftops for solar installations.

8. State Policies

10. Business Models for Solar Rooftop  2 Business models based on the ownership of the rooftop solar PV system  Self-owned solar PV system ◦ Roof owner owns, operates, and maintains the Rooftop SPV system. Generated electricity is either consumed by the end-use loads or supplied to the utility grid or combination of both.  Third party owned solar PV system ◦ Solar Developer/System Integrator or any other company owns the Rooftop Solar PV system and sell electricity either to the roof owner or consumer or both. Third party owned model does not allow roof owner to avail certain financial benefits, such as tax benefits, capital subsidy.

11. Financing based on System Ownership

12. Project Financials for PV System for Residential Sector System Capacity~ 2 kWp Monthly generation in Delhi~ 241 units Energy loss due to grid outage in Delhi~ 9.6 units Net generation~ 231 units/month Grid electricity rate ~ Rs. 5.4 / unit Waived off electricity bill ~ Rs. 1238 / month Total benefit per year ~ Rs. 14851 Payback period for the investment ~ 10 years Grant / Subsidy / Bulk Purchases may further help in reducing the capital cost of the System and further reduce the Payback period

13. Project Financials for PV System for Commercial Sector

14.  RE now a priority sector as per RBI notification.  Supplementing the above and to support Government’s initiative for achieving targets, a new loan scheme launched for setting up of Solar PV Rooftop Power Projects by Industrial, Institutional and Commercial Sectors. Salient Features  Applications through Rooftop Solar Aggregators  Single or different locations  Minimum total size of the project ≥ 1000 kWp, each system capacity ≥ 20 kWp  Aggregators to provide credit rating from IREDA empaneled credit rating agencies  Aggregators responsible for execution & operational performance commitments. IREDA’s loan scheme for Rooftop Solar PV Power Projects

15. Eligibility conditions: Applications to be submitted under following categories:- 1.Aggregator Category: a)Can submit application as borrower for either single project or multiple sub-projects as per eligibility guidelines. b)Minimum total project capacity ≥ 1000 kWp. c)Minimum sub-project capacity under this mode ≥ 20 kWp. 2.Direct Category a)Applicants can submit applications for a project ≥ 1000 kWp on a single roof/ contiguous roofs b)Applications to be rated by IREDA empaneled Credit Rating Agencies. IREDA’s loan scheme for Rooftop Solar PV Power Projects

16. Project Ownership Model Rooftops owned by single party Rooftops owned by multiple parties Revenue Model Captive power generation by roof owner Sale to grid under Net Metering/PPA Sale to Grid under Gross Metering PPA Distribution licensee/ Govt. / Semi Government bodies/institutions Any other viable model Eligibility Business Models

17. IREDA’s loan scheme for Rooftop Solar PV Power Projects 9.90% to 10.75% p.a. based on the Credit Rating. Interest Rate Up to 9 years Loan Repayment Period 6 to 12 months from the date of COD Moratorium 70% of the total project cost with min. promoter’s contribution of 30% of the project cost. Quantum of Loan Terms & Conditions

18. Conclusion  Solar Rooftop PV Systems have great potential, however, there is a need for awareness creation both about Rooftop Solar PV Systems/ technology packages as well as about the financing avenues available.  Policy support is essential in terms of regulations for net metering, grid interconnection and energy accounting  Need for promoting large scale, local manufacturing of dual function inverters (functionality of both grid-tied and hybrid inverters) to reduce cost.  Need for technical innovations in storage technologies - mainly to reduce costs and improve efficiency.

19. Indian Renewable Energy Development Agency Limited www.ireda.gov.in Thank You