Grid-connected SPV Rooftop systems - mpcz.co.in

1 MNRE. Grid-connected SPV Rooftop systems Dr. Arun K Tripathi Director, Government of India Ministry of New and Renewable Energy Grid-connected SPV Rooftop systems MNRE. Concept . These are SPV systems installed on rooftops of residential, commercial or industrial premises. Electricity generated could be . -fed into the grid at regulated feed-in tariffs or -used for self consumption with net-metering approach Grid-connected SPV Rooftop systems MNRE. Concept . Grid-connected SPV Rooftop systems MNRE. Advantages .. Savings in transmission and distribution losses Low gestation time No requirement of additional land Improvement of tail-end grid voltages and reduction in system congestion with higher self-consumption of solar electricity Local employment generation Growth of Solar Capacity (MW). State MWp %. Gujarat Rajasthan 2101 Maharashtra Madhya Pradesh 1684.

2 Andhra Solar Capcity (MW). Pradesh Uttar Pradesh 936 Tamil Nadu Jharkhand 16 Karnataka 24 Orissa Punjab 11 36 Haryana 3. West Bengal 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 A & N Island Uttarakhand Chhattisgarh 7 Delhi Lakshadwee Roof top PV-Towards grid parity Source:KPMG. By 2017 roof top solar power cost will reach the grid parity. Benefits of Roof top PV. On national level, reduces requirement of land for addition of solar capacities. For consumers, it Reduces the dependency on grid power. Mitigates diesel generator dependency. Long term reliable power source. For Discoms, it reduces Day Peak load Demand T&D and conversion losses as power is consumed at the point of generation. Most suitable for commercial establishments Max generation during peak usage time. Solar power cost is close to the commercial power cost. Roof top PV potential in INDIA.

3 According to 2011 Census India is having 330 million houses. 166 million electrified houses. 76 million houses uses kerosene for lighting. million houses are using solar for lighting. 140 million houses with proper roof (Concrete or Asbestos / metal sheet). 130 million houses are having > 2 rooms. Average house can accommodate 1-3 kWp of solar PV system . The large commercial roofs can accommodate larger capacities. As a conservative estimate, about 25000 MW. capacity can be accommodated on roofs of buildings having > 2 rooms alone if we consider 20% roofs. Grid-connected SPV Rooftop systems MNRE. World-wide Experience .. Germany, USA and Japan are leaders in adopting grid - connected SPV Rooftop systems . Germany has highest PV installed capacity of GW of which 71% is in Rooftop segment (as on .2014). Italy has GW PV installation with over 60% Rooftop systems In Europe of total GW PV installation, over 50% in in Rooftop segment.

4 FIT is norm in Europe while net-metering is popular in USA. PV market segments in Germany MNRE. Building integrated <1%. Image : Sch co Image: Grammer Image: Sharp Social, commercial, Large commercial Private buildings: agricultural buidlings: buildings: 1-10 kWp 10-100 kWp > 100 kWp 10% 38% 23%. Rooftop 71%. Image : Solarwatt Image : Solarwatt Image : BP. Ground-mounted Market share in %. 28% of MW installed in Image: 2011. Image : Geosol Geosol Source: BSW-Solar, GmbH. Germany 1000 Roofs Programme MNRE. 1991-1995. Only German producers (local contentCapital Grant of 70% of investment provided(50% by the federation and 20% by Federal States). grid connected PV installation with 1-5 kWp rooftops of single and two family houses were eligible Every installation had to install 3 meters: - Generation meter, metering at production - Feed-in-Meter, metering at fed electricity - Import Meter, metering the purchased electricity Obligation for installation operators to record over 5 years monthly meter results Germany 100,000 Roofs Programme 1999-2003 MNRE.)

5 Loan Programme through KfW. 300 MW of newly installed capacity from PV. Loans at reduced rate of interest (soft loan). Interest rate of Installations of min. 1kWp of individuals, Freelansers or SMEs TOP 3 PV success factors in GermanyMNRE. 1. EEG Feed-in law (20 year state guaranteed FIT , RE feed-in priority, one simple national binding scheme). Attractive business case for all kind of investors from house owner to international investment trusts created 2. Long term & stable legal framework Non-recourse project financing enabled 3. Quality standards (establishment of high technical standards &. development of qualified technical resources EPCs / integrators). Secure long term yields and system security Grid-connected SPV Rooftop systems MNRE. World-wide Experience .. USA. Net metering is popular in 43 States but specific rules defer from States to States.

6 Energy Policy Act 2005 mandates all public electricity utilities to make net metering options available to all customers. California had maximum installed onsite customer generated solar capacity of 991 MWp with 1,01,284 net metering consumers from 115000 sites. MNRE. Net Metering mechanism The Net Metering mechanism shall allow the consumer to reduce its electricity import The utility benefits by avoiding purchase of electricity from short term market Electricity generation at load center also minimises the loss of electricity in wires Capacity for development under Net Metering Mechanism may be allowed in phases to take care of the following aspects. Equivalent to suitable percentage the utility propose under the intra state network losses or Capacity projected for purchase of Short Term market Financial viability Business Models for Net Metering 1.

7 Consumer end model MNRE. Consumers are owners of the C1. facility Challenges: C2. Limited know-how of installing and operating DISCOM. Limited know-how for requirements of C3. approvals and clearances Administration cost of utility may increase Cn Utility needs to interact with consumers, energy accounting on individual basis Business Models for Net Metering 2. Consumer end Community based model MNRE. Capacities may be bundled by a Representative facilitator/ representative who undertakes necessary formalities and C1. may avail subsidy for consumers Administration cost of utility less compared to earlier model C2. Utility needs to interact with DISCOM. facilitator/ representative of consumers/owners C3. Energy accounting at community level Sharing of benefits among consumers Cn may take place on the basis of their contribution Business Models for Net Metering 3 MNRE.

8 RESCO/3rd party model based on FIT. RESCO/3rd party shall supply electricity to the DISCOM at determined FIT DISCOM. DISCOM may also call for competitive C1. bidding for selection of RESCO/3rd Party RESCO makes investments for C2. installing facilities at consumers roof 3rd Party Consumers get suitable rent for lending their roofs C3. 3rd Party gets subsidy from the MNRE. Energy accounting takes place at Cn consumer end Utility purchases solar electricity for meeting RPO. Emerging Market Models for Net Metering 4. 3rd Party model based on consumer tariff bidding MNRE. Selection of RESCO/3rd Party at upper cap estimated by DISCOM DISCOM. C1. Consumer gets net energy metered at its premise Consumers get suitable rent for C2. using their roofs which shall reflect 3rd in their electricity bills Party 3rd Party gets subsidy from MNRE C3. Streams of revenue include, Sale of electricity to DISCOM Cn Sale of RECs Consumer tariff assumed Tax Benefit, Accel.

9 Depreciation to be increasing benefit etc. Grid-connected SPV Rooftop systems MNRE. Indian Experience: Initiatives by West Bengal grid connected Rooftop is allowed only for institutional consumers with 2-100 kW size Connectivity is allowed at low or medium voltage(6 kV or 11 kV) of distribution system Solar injection is permitted only upto 90% of annual electricity consumption. Net energy supplied by the utility to be billed as per existing slab tariffs. Solar generation to offset consumption in the highest tariff slab and then the lower slab. Grid-connected SPV Rooftop systems MNRE. Indian Experience: Initiatives by West Bengal As per recent policy All existing and upcoming commercial and business establishments having more than MW contract demand to install SPV Rooftop systems to meet at least 2% of their total electrical load All existing and upcoming schools and colleges, hospitals, large housing societies, and and Govt.

10 Establishments having more than MW. contract demand to install SPV Rooftop systems to meet at least of their total electrical load. Policy targets 16 MW of Rooftop and small PV. installations by 2017. Grid-connected SPV Rooftop systems MNRE. Indian Experience: Initiatives by Gujarat Gandhinagar city initiated a 5 MW(4 MW in Govt. buildings and 1 MW in private homes) Rooftop PV. programme based on FIT/sale to utility. Two project developers for MW each selected through reverse bidding with GERC cap of rs. Torrent Power will buy from Azur @ Rs. for 25 years and Azure will pass on Rs. to Rooftop owner as roof rent. Recently 5 more cities-Bhavnagar Mehsana, Rajkot, Surat and Vadodara started installing pilot Rooftop projects. Grid-connected SPV Rooftop systems MNRE. Indian Experience: Initiatives by Karnataka As per new RE policy 2009-14, State to promote Rooftop with net metering.