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

Grid-connected SPV Rooftop systems

• Dr. Arun K Tripathi

Director,

Government of India Ministry of New and Renewable Energy

MNR MNRE

Grid-connected SPV Rooftop systems Concept…

 These are SPV systems installed on rooftops

• f 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

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Grid-connected SPV Rooftop systems Concept…

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Grid-connected SPV Rooftop systems 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

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Growth of Solar Capacity (MW)

3 11 36 936 1684 2101

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Solar Capcity (MW) State MWp

%

Gujarat 860.4 41.0% Rajasthan 656.15 31.2% Maharashtra 207.25 9.9% Madhya Pradesh 162.315 7.7% Andhra Pradesh 68.9 3.3% Uttar Pradesh 17.375 0.8% Tamil Nadu 28.18 1.3% Jharkhand 16 0.8% Karnataka 24 1.1% Orissa 15.5 0.7% Punjab 9.325 0.4% Haryana 7.8 0.4% West Bengal 7.05 0.3% A & N Island 5.1 0.2% Uttarakhand 5.05 0.2% Chhattisgarh 7 0.3% Delhi 2.6 0.1% Lakshadwee p 0.8

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

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.

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PV market segments in Germany

Image : Solarwatt

Private buildings: 1-10 kWp Social, commercial, agricultural buidlings: 10-100 kWp

Image : Solarwatt Image: Sharp Image : BP

Large commercial buildings: > 100 kWp

Image : Schüco Image : Geosol Image: Geosol Image: Grammer

10% 38% 23%

Source: BSW-Solar, E.Quadrat GmbH

Ground-mounted Rooftop Building integrated

<1% 71% 28% Market share in %

• f MW installed in

2011

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Germany …1000 Roofs Programme 1991-1995

 Only German producers (local contentCapital Grant

• f 70% of investment provided(50% by the federation

and 20% by Federal States)

 Grid connected PV installation with 1-5 kWp rooftops

• f 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

• ver 5 years monthly meter results

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 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

Germany …100,000 Roofs Programme 1999-2003

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TOP 3 PV success factors in Germany

1.

EEG – Feed-in law (20 year state guaranteed FIT , RE feed-in priority,

• ne 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 e.g. EPCs / integrators)

 Secure long term yields and system security

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Grid-connected SPV Rooftop systems

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.

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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

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Business Models for Net Metering – 1 Consumer end model

C1 C2 C3 Cn

DISCOM

Consumers are owners of the facility

Challenges:

• Limited know-how of installing and
• perating
• Limited know-how for requirements of

approvals and clearances Administration cost of utility may increase

• Utility needs to interact with consumers,

energy accounting on individual basis

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C1 C2 C3 Cn

DISCOM

Business Models for Net Metering – 2

Consumer end Community based model

Representative

• Capacities may be bundled by a

facilitator/ representative who undertakes necessary formalities and may avail subsidy for consumers

• Administration cost of utility less

compared to earlier model

• Utility needs to interact with

facilitator/ representative of consumers/owners

• Energy accounting at community level
• Sharing of benefits among consumers

may take place on the basis of their contribution

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Business Models for Net Metering – 3 RESCO/3rd party model based on FIT

C1 C2 C3 Cn

3rd Party

• RESCO/3rd party shall supply

electricity to the DISCOM at determined FIT

• DISCOM may also call for competitive

bidding for selection of RESCO/3rd Party

• RESCO makes investments for

installing facilities at consumers’ roof

• Consumers get suitable rent for

lending their roofs

• 3rd Party gets subsidy from the MNRE
• Energy accounting takes place at

consumer end

• Utility purchases solar electricity for

meeting RPO

DISCOM

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Emerging Market Models for Net Metering – 4 3rd Party model based on consumer tariff bidding

C1 C2 C3 Cn

3rd Party

• Selection of RESCO/3rd Party at

upper cap estimated by DISCOM

• Consumer gets net energy metered at

its premise

• Consumers get suitable rent for

using their roofs which shall reflect in their electricity bills

• 3rd Party gets subsidy from MNRE
• Streams of revenue include,
• Sale of electricity to DISCOM
• Sale of RECs
• Tax Benefit, Accel. Depreciation

benefit etc.

DISCOM

Consumer tariff assumed to be increasing

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Grid-connected SPV Rooftop systems 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.

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Grid-connected SPV Rooftop systems 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.

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Grid-connected SPV Rooftop systems 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 2.5 MW each selected

through reverse bidding with GERC cap of rs. 12.44/kwh.

 Torrent Power will buy from Azur @ Rs. 11.21/kWh for

25 years and Azure will pass on Rs. 3.0/kWh to rooftop owner as roof rent.

 Recently 5 more cities-Bhavnagar Mehsana, Rajkot,

Surat and Vadodara started installing pilot rooftop projects.

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Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Karnataka

 As per new Solar Policy 2014-21, State to

promote rooftop with net metering.

 Interconnection : Upto 5kWp-240V/single

phase ; 5-50 kWp- 415 V/3 phase; above 50kWp-11kV

 Maximum energy injection allowed upto

70% of energy usage at site from DISCOM.

 Energy injection to be settled on net basis

in each billing period, no carry forward.

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Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Karnataka

 400 MWp Grid Connected Rooftop

targeted by 2018.

 Grid connected PV rooftop projects to be

given priority under Green Energy Fund.

 Pilot projects may come up in Mysore and

Hubli-Dharwad solar cities.

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Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Tamil Nadu

 As per ‘State Solar Policy 2012’ 350 MW

SPV rooftop targeted during 2012-2014.

 50 MW rooftop to be supported through

GBI @ Rs. 2.0/kWh for the first 2 years,

• Rs. 1.0/kWh for the next 2 and Rs.

0.50/kWh for other 2 years.

 Net metering will be allowed at multiple

voltage level

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Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Tamil Nadu

 Interconnection to be as follows:

< 10 kW

• connection at 240 V

10 to 15 kWp

• connection at 240/415 V

15 to 50 kWp

• connection at 415 V

50 to 100 kWp

• connection at 415 V

100 kWp - connection at 11 kV

 Exemption from payment of electricity tax will be

allowed for 5 years for 100% solae electricity used for self/sale to utility.

 All new Govt./Local body buildings shall

necessarily install PV rooftops.

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Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Chandigarh

 5.14 MW projects of SPV grid connected

PV rooftops projects sanctioned for model solar city are under installation of which 2.00 MW commissioned.

 DISCOMS agreed to purchase power and

JERC has given rates for a project.

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Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Chandigarh

 Interconnection to be as follows:

• Upto 10 kW

: Low voltage single phase

• 10 kW to 100 kW :3 phase low voltage supply
• 100 kW to 1.5 MW : Connection at 11 kV level
• 1.5 MW to 5.o MW : Connection at 11 kV/33

kV/66kV as per site conditions

 Petition filed with the JERC and the

finalization of rate in progress

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Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Kerala

 10,000 solar PV rooftops recently launched

with 1.0 kWp each system of total 10 MW

 At present only off grid system covered but

Kerala has plans to launch 75,000 grid connected rooftops soon.

 Rs. 39,000/- state subsidy is available for

each 1.0 kWp system

Grid-connected SPV Rooftop systems Action being initiated …..

 CEA has notified “Technical Standards for

Connectivity of the Distibuted Generation Resources-CEA Regulations 2013” in October 2013 which permits the grid connectivity of SPV rooftop also.

 CEA has submitted a draft “CEA (Installation and

Operation of Meters- Regulation 2013” to M/o Power for approval for metering arrangement for inter connection of SPV rooftop with grid.

 CERC has brought out the draft guidelines for

grid connectivity and metering arrangements for SPV rooftops.

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Grid-connected SPV Rooftop systems Action being initiated …..



MNRE has included Grid connected SPV rooftops in the “off grid and decentralised solar Applications” scheme vide ammend no. 5/23/2009-P&C dated 30th October 2012 for SPV plants upto 100 kW capacity.



MNRE subsidy upto 30% on the following benchmark cost of the projects is available :

Upto 100 kWp : 100 Rs./Wp 100 to 500 kWp : 90 Rs./Wp A separate scheme on “Grid connected rooftops and small solar systems” has been formulated which is under approval

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Grid Connected Rooftop and Small Solar Power Plants Scheme of MNRE

• Objective of the scheme is to promote the grid connected SPV

rooftop and small SPV power plants in the residential, community, institutional, industrial and commercial establishments.

• Project capacity of 1.0 kW to 500 kWp per project/system
• Implementation through programme (upto 50 kWp ) and

project modes(above 50 kWp)

• Implementing agencies- SNAs, Solar Energy Corporation of

India(SECI), Channel Partners, FIs/Financial Integrators, Other

• Govt. Departments/Agencies/PSUs etc.
• CFA is 30% of the benchmark for general and 70% CFA for NE

and Special Category States for Govt. projects.

• 300 MW target for the 12th FY Plan

Grid-connected SPV Rooftop systems Action initiated …..

 29.1 MWp SPV grid connected rooftop project

sanctioned under NCEF funding are under execution by SECI (26.6 MWp) and Ministry of Railways(2.5 MWp).

 50 MWp SPV grid connected rooftop project

approved under NCEF funding sanctioned to SECI.

 MNRE sanctioned 43.254 MWp projects to 10 States;

AP,MP, Rajasthan, Punjab, Chandigarh, Kerala, Uttarakhand, Gujarat, Uttar Pradesh, Tamil Nadu.

 4 MWp projects in Surat, Chandigarh and Nagpur Solar

Cities are under execution of which 2 MWp projects in Chandigarh completed.

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Grid-connected SPV Rooftop systems Actions required by States…

 Remaining States to announce suitable

policies on grid connected PV rooftop systems

 States to establish dialogue with

DISCOMs and finalize suitable tariff.

 DISCOMs to formulate and sign PPAs,  States to set up few pilot projects.

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Key Considerations…….

 Lack of public domain knowledge of technical standards

and guidelines for grid connectivity, metering, safety and security

 Energy accounting and commercial settlement

guidelines for grid connected solar rooftop projects still evolving

 Regulatory provisions relating to applicability of charges

relating to wheeling, open access, cross subsidy etc. for solar rooftop projects needs to be clarified

 Projects so far, implemented in India, have been either

under gross metering arrangement or on captive consumption arrangements

Roof Space requirement for rooftop system

 10-15 sq. meter roof space is required for

1.0 kW system

 A 100 sq. meter roof space can have

8- 10 kW SPV system

 Cost of 1.0 kW system is about

• Rs. 1.00 lakh

 30% CFA is available from MNRE

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Economics of Grid Connected Rooftop (100 kWp Rooftop Plant)

 Capital Cost

: Rs. 80 Lakh

 Subsidy (30%)

: Rs. 24 Lakh

 Net Cost to Customer

: Rs. 56 Lakh

 Avg. Annual Generation

: Rs.1,50,000 kWh

 Annual Revenue(@Rs.7.0/kWh): Rs 10.5 lakh  Simple pay back

: 5.33 years

 Avg. elect. generation cost : Rs. 8.0/kWh (without Subsidy)  Avg. elect. generation cost : Rs. 5.60/kWh (with Subsidy)

Potential of SPV rooftop

 One million industrial units and each

with average 500 sq. meter rooftop space can have about 25,000 MWeq Solar PV rooftop installations.

 Only 800 Kendriya Vidyalayas in India can

host about 20 MW eq. Solar PV rooftops.

 About 100 million houses can install 100

million 100,000 MW eq. Solar PV rooftops.

 ……and so on

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360 kWp Solar grid connected rooftop plants at Super Auto Forge, Chennai

Rooftop SPV system (50 kWp) at Paryawaran Bhawan, Chandigarh 25 KWp SPV Plant at Police Hq, Chandigarh

70 KWp SPV Plant at Govt Multi Speciality Hospital , sec-16, Chandigarh

Thank You

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