Solar Rooftop Targets – Status,
Opportunities & Challenges
Presented by:
20th July’17
Randeep Bora
AGENDA
[Link] CleanMax Solar
2. JNNSM- Government Vision, Initiatives and Schemes
3. Rooftop Current Status, Challenges & Opportunities
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CMES – Company Overview
o Clean Max Enviro Energy Solutions Pvt Ltd (CMES) is promoted by top industry professional
(Kuldeep Jain – Ex Partner, McKinsey & Co) and backed by team of professionals having strong
operating experience in renewable energy industry
o Largest player in B2B onsite solar market (24% market share)
o 80MW of onsite plants for players including GE, Nestle, Tata Motors, Asahi Glass, SKF, Tata
Communications, Tata Reality & Infrastructure, HCL, Pune University, Tata Motors, Gabriel, NBC,
Manipal Group, BHU , AMU, NIT, etc.
o Strong customer recall with repeat business from its clients like SKF, Asahi, Tata Group companies,
NBC, Manipal Group etc.
o Operating power plant in key industrial clusters of the country including Pune, Delhi, Chennai,
Bangalore and in process of adding additional cluster such as Ahmedabad, Jaipur, Baroda &
Hyderabad
o Over 120+ employee strength
o The company has PAN India presence with headquarter in Mumbai and offices in Pune, Bangalore,
Gurgaon & Chennai
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Select client list of CleanMax Solar
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Enabler – Best Quality Team
Kuldeep Jain Sushant Arora
Founder & Managing Director Business Development Head – West & North India
MBA from IIM Ahmedabad and a qualified CA Engineering graduate from IIT Bombay
Prior experience as Partner at McKinsey & Company Previously worked with Milestone Ecofirst, a cleantech firm
(Head of Energy and Corporate Finance in India) specializing in environment solutions
Nikunj Ghodawat
Andrew Hines
Finance Head
Business Development Head – South India
PGDBA, M.S. (Finance) and level III CFA candidate
MBA from the University of Pennsylvania (The Wharton School)
Prior experience with Yes Bank (renewable energy advisory in in Strategic Management
Investment Banking Division)
Prior experience with Suzlon and BP Alternative Energy
Randeep Bora
Nitai Vijay
AGM - Business Development & Regulatory Affairs
Senior Vice President
Master’s degree in Energy Efficiency from University Of
MBA from ISB Hyderabad, Chartered Accountant
Petroleum & Energy Studies, Dehradun and PGDM in Financial
Prior experience with several equity hedge funds and KPMG Management
Prior experience with Centre for Alternate Energy Research
(CAER), FICCI and Mahindra Cleantech
Manu Karan
Indukalpa Saikia
Vice President – Business Development
AGM – Business Development
MBA from ISB, Hyderabad, M.S. from North Carolina State
M.S. from University of Pertroleum and Energy Studies
University
9 + years of experience in solar, cleantech and carbon
12+ years of experience in renewable energy and
markets ; precviously worked with Bridge to India
semiconductor field; worked with Sun Edison, India
R Raja Singarayar Umakant Shende
Senior Manager – Sales (TN & Kerala) COO
BE., MBA with 10+ years of experience in Renewable power PMP certified by PMI USA and MBA from NMIMS
project cum energy sales
25+ years of experience in operations management
Previously worked with global renewable majors Vestas,
Prior experience with Thermax (Solar PV Business)
Gamesa Wind and SunEdison
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Pan India Presence Ensures Highest Client Service,
Standard & Project Management
Delhi
Regional HQ – north
region business
development & project
management functions
Mumbai
HQ with finance,
accounts, legal &
business development
(west & north) functions
Pune Chennai
HQ for EPC function Regional office for
with COO office & project management &
regional office for business development
business development
Bangalore
Regional HQ - south
region business
development & project
management functions
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IIT-BHU (1.5 MWp)
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Manipal University, Jaipur (800 kWp)
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Aligarh Muslim University (1.5MWp)
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Asahi Glass, Taloja (1 MWp)
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GE, Pune (500 kWp)
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Gabriel, Hosur (265 kWp)
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NBC Bearings, Jaipur (500 kWp)
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AGENDA
[Link] CleanMax Solar
2. Government Vision & Current Status
3. Challenges & Opportunities
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GOVERNMENT VISION
100GW by 2022
Utility + Targets
Rooftop
5GW 9 GW
2010-13 1-2 GW Rooftop
Grid 2015-2017
connected
Target
2013-17 4-10 GW target
2017-2022 20 GW
48 GW
35 GW Grid
Initial targets 2017-2022 Rooftop connected
Target target
40 GW 60 GW
Rooftop Grid Total Target
Solar connected
Revised targets Projects projects 2010-2022
Source: Kapoor, Tarun (1 July 2015). "Scaling up of Grid Connected Solar Power Projects" (PDF). Ministry of New and Renewable Energy. Archived from the
original (PDF) on February 26, 2017
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• According to the year-wise targets announced by MNRE show that
there is an expected rise in the growth of the rooftop solar segment.
Year-wise targets (in MW)
12000
10000
8000
6000
4000
2000
0
15-16 16-17 17-18 18-19 19-20 20-21 21-22
Rooftop Solar Ground Mount Solar Projects
Source: Bridge to India Solar Rooftop Map 2016 and future growth estimates
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Total solar energy installed in 2016-17
Almost 50% more than 2015-16
was ~5,525 MW
CURRENT SOLAR
STATUS
Cumulative capacity reached ~12,300 Fell short by ~4,700 MW of target set
MW for FY 2016-17
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CURRENT ROOFTOP SOLAR STATUS
India added 678 MW of rooftop capacity in the
year 2016-17, growing at 81% Y-o-Y
Total installed rooftop capacity is approximately
1396 MW as of March 31, 2017
Capex has been the more popular model, but
Opex has been gaining popularity over the
last few years. Resco/Opex mode has share of
around 25% and is likely to increase further
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DISTRIBUTION OF CAPACITY
Rooftop Solar Annual Capacity Addition
14%
INDUSTRIAL
RESIDENTIAL
42%
COMMERCIAL
23%
GOVERNMENT
21%
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CURRENT MARKET SHARE
Source: Bridge to India Solar Rooftop Map 2016 and future growth estimates
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State-wise capacity installed
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AGENDA
[Link] CleanMax Solar
2. Government Vision & Current Status
3. Challenges & Opportunities
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CHALLENGES
Inadequate implementation of net metering and grid integration
of renewable capacity. Restriction on size, no flexibility.
Financially unstable DISCOM’s, despite UDAY scheme.
Contract enforceability - India ranks amongst the worst in-terms
of contract enforceability. This needs to improve to build
investor confidence
Lack of awareness amongst consumers about benefits available
to them on adoption of solar as well as the quality of
components, in their premises.
Creating Level playing field for Solar - Timeline payments
Enforcing quality
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India’s stretch aspiration require greater efforts to reach
global averages of rooftop solar
… and India’s share of rooftop solar in
Rooftop volumes lag targets …
overall solar mix is low
MWp capacity Percent, rooftop solar/total solar
45,000 70% 65%
40000
40,000
60%
35,000
30,000 50%
25,000 40%
40% 35%
20,000
15000 30%
15,000
10,000 20%
5,000 10%
~ 1300 < 10%
0
2012 - March 2022 Target Industry 2022 0%
2017 Estimates 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*
India**
10 8.20
8 6.70 6.90
INR/kWh
5.30 5.37
6 4.46 3.87 3.89
4
2
0
Karnataka Maharashtra Tamil Nadu Gujarat
USA
18.30 18.76 18.00
20 15.30
Cents/kWh
13.30
15 11.41
8.06
10 6.15
5
0
New England New York Michigan California
* Source: EIA (USA), Individual discoms (India)
** India residential rates are on a slab system; rates shown are
Residential Industrial weighted average cost per kWh for 150 kWh consumption/month
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Targets Vs Actual projected
• Rooftop solar is poised to grow
rapidly. However, reaching 40GW
looks impossible
• Currently, the growth has been
triggered by industrial &
commercial segment
• Unless the residential market is
trapped as well, growth in tier- &
tier-3 cities will not happen as
expected.
• Concurrence of Central & State
policies is crucial to the overall
growth
Source: Bridge to India Solar Rooftop Map 2016 and future growth estimates
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OPPORTUNITIES
Several
Consumers are Expansion into Provision of
financial
fast adopting Decrease in energy storage REC benefits to
incentives and
and module prices systems will RTS projects,,
schemes made
implementing by more than allow for grid- strong pull in
available by
solar rooftop 50% in 3 years parity status terms of
GoI to
programs by 2022 enforcing RPO
promote RTS
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OPPORTUNITIES- Clients
• Govt. allocated subsidy of INR 5000Cr for 4200MW (on opex basis) in December 2015: Of this,
3300MW is allocated for Government buildings by 2019-2020.
• SECI has already announced 1000MW with government buildings identified (revised to
realistic capacity of 500MW in 9 ministries. However there are 53 ministries identified for
rooftop solar, and a total of 9 PSUs (including SECI) have been identified to help the Ministries
to implement the solar projects.
• Indian Railway announced 7.7 GW to be executed immediately. Over 100MW allocated.
Another 200 MW under various stages of tendering
• Commercial & Industrial has huge potential. Over 2000 customer who can be still trapped for
Opex/Resco model. For capex, potential is unlimited.
• Institutional customers – Entities like Amity & Manipal have taken a leap ahead and installed
multiple MWs of rooftop projects. This will have a ripple effect on our institutions across the
country, with several other institutions adopting the solar.
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OPPORTUNITIES- Discom’s
•Localised generation reduces systemic T&D losses (reduced
Avoided Capex and transmission and distribution requirements)
lowered T&D •Select capacity additions can be avoided
losses •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
•Universities represent large possible rooftop consumers (200
Surplus Summer MWp already identified in govt segment). Net metering coupled
time power 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 •Central government financial assistance scheme for discoms
providing net metering benefits to consumers launched
compliance •In most cases, discoms can account for net metered energy in
benefits their RPO benefits
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Discoms need three key moves to accelerate net metering which is
a key measure for growth of rooftop solar sector
• Capacity allowed in net metering restricted to low values (e.g. 0.5/ 1
Remove artificial MWp in most states). Restrictions on capacity, if any, should be technical
capacity constraints on (e.g. allotments restricted to 40% of transformer rated capacity).
net metering; only • Very large university complexes (e.g. BHU, AMU, Pune University, Shivaji
University) that can do 20-30 MWp of rooftop are getting constrained by
technical restrictions
this restriction
• Net metering up to 2 MWp can be allowed on LT basis (technically
feasible and cost beneficial) – many states today allow net metering
Make technical above 250 kWp only on HT basis
restrictions on net • Avoid difficult implementation requirements, such as:
metering cost - All solar meters should be next to discom meter at factory gate
economical (creates losses and costs) – can be done through remote
monitoring as well
• Quicker implementation can be managed through:
Measures for timely - Online/ single stop approval for net metering within 3 weeks vs. 4-6
months. In many states, no approval is granted or response provided
approval and
though policy allows it.
implementation of net - Training for linesmen/ Discom staff through ITIs/ NPTI in how to
metering implement net metering (today it takes over 6 months leading to
commercial losses)
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THREE KEY MEASURES TO ACHIEVE 2022 TARGET
1
• Incentivise consumers/ discoms with a tariff rebate (e.g. Haryana’s 25p/ kwh
Extra incentives for
discount for rooftop solar generated power)
Discoms / consumers • Count all of rooftop solar power generated for self- consumption in Discoms
with rooftop solar RPO obligation (not just net metered electricity). Will bring Discom's cost of
meeting RPO down dramatically (Rs. 4.5 per kwh tariff vs. free compliance)
2 • Regard net metering as a consumer right (similar to access to electricity) and
Recognise net
metering as a evaluate Discom’s performance (# days) on grant of application permission and
consumer right and also on providing net metering connection; with penalties imposed from June
2017 on failure to provide timely approval/ connection
measure/ enforce
accordingly
3 • Evaluate discom guidelines on net metering and benchmark to international/
other state guidelines on consumer friendliness
Enforce consumer -Technical restrictions only, not capacity restrictions
friendly rooftop solar - Connectivity at LT levels
guidelines
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Contact details
MUMBAI
• Sushant Arora – Head of Business Development in West India
+91-9870056580; sushant_arora@[Link]
Delhi/ NCR
• Randeep Bora – AGM, Business Development
+91-9910084922; randeep_bora@[Link]
BANGALORE
• Andrew Hines – Head of Business Development in South India
+91-9483539660; andrew_hines@[Link]
CHENNAI
• Dinesh Soundappa – City Head, Chennai
+91-9994514689; dinesh_soundappa@[Link]
PUNE
• Ayush Misra – City Head, Pune
+91-9769369624; ayush_misra@[Link]
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