Grid-connected SPV Rooftop systems Dr. Arun K Tripathi Director, - PowerPoint PPT Presentation

MNR 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 Concept… MNR MNRE  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 MNR MNRE Concept…

Grid-connected SPV Rooftop systems MNR 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 860.4 41.0% Rajasthan 656.15 31.2% 2101 Maharashtra 207.25 9.9% Madhya 162.315 Pradesh 7.7% 1684 Andhra Solar Capcity (MW) 68.9 Pradesh 3.3% Uttar 17.375 Pradesh 0.8% Tamil Nadu 28.18 1.3% 936 Jharkhand 16 0.8% Karnataka 24 1.1% Orissa 15.5 0.7% Punjab 9.325 0.4% Haryana 7.8 36 0.4% 11 3 West Bengal 7.05 0.3% 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 A & N Island 5.1 0.2% Uttarakhand 5.05 0.2% Chhattisgarh 7 0.3% Delhi 2.6 0.1% Lakshadwee 0.8 p

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 • According to 2011 Census India is having – 330 million houses. – 166 million electrified houses. – 76 million houses uses kerosene for lighting. – 1.08 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 MNR MNRE World- wide Experience …..  Germany, USA and Japan are leaders in adopting grid- connected SPV Rooftop systems.  Germany has highest PV installed capacity of 36.0 GW of which 71% is in rooftop segment (as on 31.05 .2014).  Italy has 12.7 GW PV installation with over 60% rooftop systems  In Europe of total 50.6 GW PV installation, over 50% in in rooftop segment.  FIT is norm in Europe while net-metering is popular in USA.

PV market segments in Germany MNR MNRE Building integrated <1% Image: Grammer Image : Schüco 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 2011 Image: Image : Geosol Geosol Source: BSW-Solar, E.Quadrat GmbH

Germany …1000 Roofs Programme MNR 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 MNR MNRE  Loan Programme through KfW  300 MW of newly installed capacity from PV  Loans at reduced rate of interest (soft loan)  Interest rate of 1.91%  Installations of min. 1kWp of individuals, Freelansers or SMEs

MNR MNRE TOP 3 PV success factors in Germany EEG – Feed-in law (20 year state guaranteed FIT , RE feed-in priority, 1. one simple national binding scheme) Attractive business case for all kind of investors from  house owner to international investment trusts created Long term & stable legal framework 2.  Non-recourse project financing enabled Quality standards (establishment of high technical standards & 3. development of qualified technical resources e.g. EPCs / integrators)  Secure long term yields and system security

Grid-connected SPV Rooftop systems MNR MNRE World- wide Experience ….. USA  Net metering is popular in 43 States but specific rules defer from States to States.  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 MNR 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 MNR MNRE Consumer end model Consumers are owners of the C1 facility Challenges: C2  Limited know-how of installing and DISCOM operating  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 MNR  Capacities may be bundled by a Representative facilitator/ representative who C1 undertakes necessary formalities and may avail subsidy for consumers  Administration cost of utility less C2 compared to earlier model  Utility needs to interact with DISCOM facilitator/ representative of C3 consumers/owners  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 MNR MNRE RESCO/3 rd party model based on FIT  RESCO/3 rd party shall supply electricity to the DISCOM at determined FIT DISCOM C1  DISCOM may also call for competitive bidding for selection of RESCO/3 rd Party C2  RESCO makes investments for installing facilities at consumers’ roof 3 rd Party  Consumers get suitable rent for C3 lending their roofs  3 rd 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 3 rd Party model based on consumer tariff bidding MNR MNRE  Selection of RESCO/3 rd Party at DISCOM upper cap estimated by DISCOM C1  Consumer gets net energy metered at its premise  Consumers get suitable rent for C2 using their roofs which shall reflect 3 rd in their electricity bills Party  3 rd 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. Depreciation to be increasing benefit etc.

Grid-connected SPV Rooftop systems MNR 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 MNR MNRE Indian Experience: Initiatives by West Bengal  As per recent policy All existing and upcoming commercial and business establishments having more than 1.5 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. establishments having more than 0.5 MW contract demand to install SPV rooftop systems to meet at least 1.5% of their total electrical load.  Policy targets 16 MW of rooftop and small PV installations by 2017.