CONFERENCE ON ROOFTOP SOLAR POWER BEST PRACTICES ON

CONFERENCE ON ROOFTOP SOLAR POWER BEST PRACTICES ON ROOFTOP SOLAR POWER MNRE, NEW DELHI 20 September, 2016

Outline 1. Pillars of a Rooftop Solar Programme 2. Business Models 3. Implementation Process Flow 4. Best Practices 5. Specific Initiatives Omkar. J@germi. res. in "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 2

Evolution of PV Generation w. r. t. End Use 7% 19% 63% 10% 23% 56% 12% 26% 13% 51% 27% 15% 47% 29% 44% 11% 12% 13% Source: International Energy Agency (IEA) Omkar. J@germi. res. in "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 3

Pillars of a Rooftop Solar Programme Policy Regulation Implementation Process Capacity Building Coordination Business Model(s) Financing Omkar. J@germi. res. in "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 4

Evolution of Rooftop Solar PV Installations for Gujarat Ø Model I: Capital cost borne by the Government o Advantage: • Ease of implementation, and widely implemented. o Challenges: • Ownership issues, and hence, maintenance suffers. o Example: Most rooftop solar installations by various State Nodal Agencies (SNA). Ø Model II: Public Private Partnership o Advantage: • • o No upfront cost to Government/ Utility. Generation-based incentive ensures long-term utilization. Government interaction with limited number of credible Developers. Standard quality and optimization of PV installations. Challenges: • Property owners unwilling to sign long-term lease agreements. • Incentives from solar generation not enough compared to real-estate lease. o Omkar. J@germi. res. in Example: 5 MW Gandhinagar Rooftop Solar Programme. "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 5

Model III: Individual Ownership (Proposed in Current Rooftop Solar Policy) Ø Advantage: o o o Equal opportunity to smaller rooftop owners. Ownership of individual is well-defined. Investors reap the direct benefit of electricity and also become energy aware/ efficient. Potential for widespread public deployment. Model successful globally. Other models (e. g. Third Party Ownership) are subsets. Ø Challenge: o o o Omkar. J@germi. res. in Government OWNERSHIP o Investment expected from someone who does not understand technology. Capital subsidies required to incentivize participation (under net-metering scheme). Coordination among multiple parties (Consumer, SNA, Dis. Com, Electrical Inspector). "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. Third-Party/ Installer Premise Owner 6

Sample Administrative Process for RTPV MNRE / SNA Verify: 1. Dis. Com approval 2. Fund availability SNA Empanelment I 7 days STEP 2* Pre-approval for subsidy I In-principle approval C I Installs Verify: 1. Installation 2. Commissioning C 7 days SNA Verify: 1. Drawings 2. Installation Employs EI STEP 3* Dwg. & safety approval EI SNA STEP 5* Request for subsidy 1. Approve PV capacity 2. Draft interconnection agreement D Verify: 1. Customer & Load 2. DT capacity D C 3. System strengthening* 90 days I C 7 days Charging certificate STEP 1 Appl. for net-metering I C 7 days I C STEP 4 Request for interconnection & sign/ submit agreement Commissioning Replace meter D D 1. Verify Installation & Relevant approvals 2. Register PV system O&M SNA Disburse subsidy Billing D LEGEND: C: Customer, I: Installer, D: Dis. Com, SNA: State Nodal Agency, EI: Electrical/ 3 rd Party Inspector , *If applicable Omkar. J@germi. res. in "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 7

Conclusion: Develop… Simplify… Simplify! (Domain) (Body) 1. Policy/ Regulation Govt. / SERC 2. Implementation/ Approvals Dis. Coms 3. Subsidy (Simplification Scale) SNA/ MNRE 4. Technical Standards IEC/ IS 5. Skilled Manpower SCGJ* 6. General & Social Awareness All of the Above? Develop Simpler Simplest! *Skill Council for Green Jobs Omkar. J@germi. res. in "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 8

Some Best Practices (Provisions) Ø Broaden the definition of ‘Rooftop’ o o o ‘Rooftop’ should imply ‘small’ PV plants (1 k. W to 1 MW) Need not be on a ‘roof’ Grid-connected, hybrid, stand-alone Ø Group net-metering o o o Install RTPV at a common/ single location with a combined billing meter Individual Consumers to distribute benefit Ref. DERC Regulation Ø Virtual net-metering o o o Omkar. J@germi. res. in RTPV installation at an ‘away’ location (typically in the same Distribution Network) Consumer to benefit from solar energy injected into the grid. Ref. DERC, JERC "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 9

Some Best Practices (Capacity Limitations) Ø Limitation of PV system capacity (Consumer-based) o o o Contract load/ demand? Fraction of contract load/ demand? Any? Ø Limitation of PV system capacity (Distribution Transformerbased) o o Omkar. J@germi. res. in 30% of DT capacity? 50% of DT capacity? 80% of DT capacity? 100% of DT capacity? "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 10

Some Best Practices (Promotional) Ø Banking: o o o Billing cycle? 6 months? 12 months? Ø Exemption from wheeling/ banking charges, cross-subsidy surcharges Ø Clarity on duration of exemptions o o Control period of the regulation? Life of the project (25 years) Ø Capacity building & handholding o o Omkar. J@germi. res. in Dis. Com Engineers, Bankers Consumers "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 11

Some Best Practices (Payments) Ø What should be the monthly settlement period? o o Monthly Annual? Ø What should be the remuneration for surplus generation? o o APPC? Actual tariff? Preferential tariff? None? Credit into next billing cycle? Ø Who pays for network augmentation, if required? o o Omkar. J@germi. res. in Consumer? Discom? Adjust in the ARR. "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 12

Please Download 1. Introduction 2. Business Models 3. Policy & Regulation 4. Technical Standards & Specifications 5. Administrative Processes 6. Project Financing http: //www. pace-d. com/best-practices-manual-for-implementation-of-state-level -rooftop-photovoltaic-programs-in-india/&rqid=A 9 Ud. On. CO&geid=ene Omkar. J@germi. res. in "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 13

Manual snapshots Omkar. J@germi. res. in "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 14

AHA! Solar App (All Help Available!) � Estimate � Find a Rooftop PV Cost PV Installer � Know About Financial Incentive � Rate Installer � Manage Projects*

4. Techno-commercial Report 5. Contact Installer 3. Consumer Inputs 2. Locate Roof 1. Start Estimation

Sample Consumer Report Page 1 Page 5 Page 2 Page 6 Page 3 Page 7 Page 4 Page 8

CONFERENCE ON ROOFTOP SOLAR POWER BEST PRACTICES ON ROOFTOP SOLAR POWER MNRE, NEW DELHI 20 September, 2016

Backup Slides Omkar. J@germi. res. in "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 19

5 MW GANDHINAGAR ROOFTOP PROGRAMME “Kilowatt Programme at a Megawatt-Scale” Ø Immediate Objectives: o o o Achieve 5 MW on rooftops in Gandhinagar Promote even residential systems Encourage public investments (hence, PPP) (Govt. may only fund the viability gap) No Capital Subsidy (Hence, only generation-based incentive) Ø Greater Objectives: o o Omkar. J@germi. res. in Establish a benchmark for large-scale rooftop PV programmes Address all technical issues related to grid-connected rooftop PV Streamline administrative processes for implementation & approvals Encourage social participation "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 20

Typical PV System Architecture Photovoltaic Modules (Approx. 1 – 100 k. WP) Grid-tied inverter Meter 2: Solar Electricity Generation Meter 1: Conventional Electricity Consumption Omkar. J@germi. res. in Transformer "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. Grid 21

Advantages of PV System Architecture Ø Relatively simple to install, operate and maintain. Ø Most popular and globally accepted configuration. Ø Disadvantage: No availability when grid is down. Photovoltaic Modules (Approx. 1 – 100 k. WP) Grid-tied inverter Meter 2: Solar Electricity Generation Meter 1: Conventional Electricity Consumption Omkar. J@germi. res. in Transformer "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. Grid 22

Transaction Structure among Stakeholders Go. G/ EPD GEDA (Project Proponent) (Nodal Agency) G. R. GERMI 2 MW Govt. Rooftops (Project Str. , Bid Process) n ject ntatio o r e P lem ent p Im em e Agr ) (PIA 0. 5 MW Private Rooftops 2 MW Govt. Rooftops 0. 5 MW Private Rooftops Green Incentive 2. 5 MW Screening & Selection Go. G Selection through RFP Azure Sun Energy (Capacity: 2. 5 MW) SPV by Sun. Edison (Capacity: 2. 5 MW) (For Govt. Approval) Approvals (Implementing Agency) 2. 5 MW (Transaction Str. Advisor) Funding GPCL Omkar. J@germi. res. in IFC & Consultants GERC (For Regulatory Approval) PPA, based on GERC solar tariff Torrent Power Ltd. (Off-taker) "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 23

5 MW Gandhinagar Rooftop Solar Programme The Math! Dis. Com (Torrent Power) 11. 21 Quoted Tariff 11. 14 Regulator’s Tariff 8. 21 Realized Tariff 0. 07 VGF 3. 00 Rent Project Implementation Agreement (PIA) GPCL (Govt. Agency) for Viability Gap Funding Omkar. J@germi. res. in • • ds: c Awar sia-Pacifi nal of A ure Jour s l a 0 de truct Top 1 by Infras -2015 ) rd (2012 are Awa C Earth Power Purchase Agreement (PPA) Tariff determined by Regulator Rooftop Solar Project Developer Rooftop Lease Agreement @ Rs. 3/- per k. Wh Rooftop/ Terrace Owner "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 24

Green Incentive: Aid to Roof-owners Ø ‘Green Incentive’ is the minimum generation-based incentive for participating Roof-owners specified by Go. G. Ø Advantages: o o o Encourage awareness and participation among roof-owners. Will be correlated to home-owner’s electricity bill. Should not be compared to ‘constant’ (or ‘dead’) lease rental. Plot Size (Sq. m. ) Built-up Area (60%) Typical Solar Area (30%) Typical PV Capacity (k. W) Monthly Generation (k. Wh) 50 30 9 1 135 70 81 90 135 200 250 330 42 48. 6 54 81 120 150 198 12. 6 14. 58 16. 2 24. 3 36 45 59. 4 1. 5 2 3 4 6 7 8 202. 5 270 405 540 810 945 1080 Omkar. J@germi. res. in Green Incentive (Rs. ) @ Rs. 2/ k. Wh @ Rs. 3/ k. Wh @ Rs. 4/ k. Wh 270 405 540 810 1080 1620 1890 2160 405 607. 5 810 1215 1620 2430 2835 3240 540 810 1080 1620 2160 3240 3780 4320 "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 25

Capacity Split Azure Power Sun. Edison Sector No. of Installations Net Capacity Government 21 2, 001 k. W Government 17 1, 685 k. W Residential 161 501 k. W Residential 113 501 k. W Total 182 2, 502 k. W Total 130 2, 186 k. W TOTAL Omkar. J@germi. res. in Sector No. of Installations Net Capacity Government 38 3, 686 k. W Residential 274 1, 002 k. W Total 312 4, 688 k. W "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 26

PV Installation in Gandhinagar Omkar. J@germi. res. in "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 27

Several Initiatives Thereafter… Ø Replication in several cities within and outside Gujarat. Ø Acceptance and inclusion in national and state-level policies. Ø Installer Certification: National Certification Programme for Rooftop Solar Photovoltaic Installer Ø Best Practices Manual for Implementation of State-Level Rooftop Solar Photovoltaic Programmes in India Ø Advisory to several other rooftop PV programmes Ø More business models: o o Microgrid approach Solar agriculture cooperative Ø STREAMLINING OF APPROVAL AND INSPECTION PROCEDURES Omkar. J@germi. res. in "Best Practices on Rooftop Solar Power", MNRE Workshop, New Delhi, 20 Sep. 2016. 28