Download Rooftop solar

Rooftop solar – the business and
its financing
February 2017
Strictly Private & Confidential
About CleanMax Solar
• Largest rooftop solar developer in India with ~25% all India market
share
• All India presence with 5 offices and solar plants across 15 states
• Clients across MNCs, universities, large corporate groups
• Largest rooftop/ onsite plants in many states including Karnataka,
Maharashtra, Gujarat
•Team of 105 people, with ~500 crore of annual revenues
•Focus on being “sustainability partner” of large corporates and private
users in their journey, with offerings across rooftop solar, grid connected
solar, energy storage.
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Solar has caught the imagination of India
Bangalore Airport – 500 kWp
IIT – BHU 1500 Kwp
Viviana Mall, Mumbai – 1000 kWp
New Delhi Office Building – 600
kWp
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India’s stretch aspiration require greater efforts to reach
global averages of rooftop solar
Rooftop volumes lag targets …
MWp capacity
… and India’s share of rooftop solar in
overall solar mix is low
Percent, rooftop solar/total solar
45,000
70%
65%
40000
40,000
60%
35,000
30,000
50%
25,000
40%
20,000
15,000
12700
35%
30%
20%
10,000
5,000
40%
10%
~ 1000
< 10%
0
2012 - Oct
2016
2022 Target Industry 2022
Estimates
0%
India
Germany
USA
Spain
Source: Bridge to India Solar Rooftop Map 2016 and future growth estimates
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Indian rooftop market likely to see greater growth in
industrial, educational and commercial segments
Due to tariff differentials, initial rooftop solar take-off
likely in educational, industrial and commercial
segments
Electricity Price by Segment: India vs. USA*
INR/kWh
India**
10
8
6
4
2
0
8.20
6.90
6.70
4.46
5.30
5.37
3.89
3.87
Karnataka
Maharashtra
Tamil Nadu
Gujarat
Cents/kWh
USA
20
15
10
5
0
18.30
18.76
18.00
13.30
15.30
11.41
6.15
New England
New York
8.06
Michigan
California
* Source: EIA (USA), Individual discoms (India)
Residential
Industrial
** India residential rates are on a slab system; rates shown are
weighted average cost per kWh for 150 kWh consumption/month
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Three benefits to Discoms through rooftop solar
1
Avoided Capex and
lowered T&D losses
• Localised generation reduces systemic T&D losses
(reduced transmission and distribution requirements)
• Select capacity additions can be avoided
• USA discoms saved USD 1.5 billion in avoided
capex last year through solar/ storage based peak
shaving
• India example: Congested IT areas (e.g. Hinjewadi,
Pune/ Whitefield, Bangalore) can meet day time
peak load requirements through rooftop solar
Surplus Summer
time power
• Universities represent large possible rooftop consumers (200
mwp already identified in govt segment). Net metering
coupled with their summer holidays means that much free
generation during summers for discoms – and discoms give
them power during rainy/ winter seasons which is a win-win
Fiscal / green
compliance benefits
• Central government financial assistance scheme for discoms
providing net metering benefits to consumers launched
• In most cases, discoms can account for net metered energy
in their RPO benefits
2
3
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Central government roles in financing of private sector
rooftop projects
1
Enable lower
financial costs/
investment
incentives
2
• Continuation of AD and tax incentives for renewable energy
industry in India (also suggestion of Niti Aayog Committee on
Renewable Energy)
• GREAT JOB: Getting low cost loan lines for rooftop solar: 9000
crore lending lines available within 18 months at low cost.
• Enabling norms for Investment trusts for solar and rooftop solar
in conjunction with MOF/ SEBI. Create investment tax breaks
for investors investing into such schemes
Draft ‘model’ net
metering codes/
guidelines for state
adoption
• Can document and disseminate best practices on net metering
codes including technical guidelines, timeframe for grant and
implementation of net metering
• Suggest guidelines for state regulators on Cross subsidy, ED for
net metering of electricity
Create state
comparison and
improvement
enablers
• Partner with rating/ ranking/ consulting agencies to publish
“Ease of rooftop solar indices” Measuring state-wise
performance on rooftop solar in conjunction with industry bodies
• Benchmarking and publish data on rooftop solar grants
• Provide fiscal incentives to Discom for grant of solar power
approvals, and have incentives diminish with delay in grant of
approval
3
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