Photovoltaic ~ 2013 ~

Lookout For Project

Developers, PV

Professionals,

Investors &

Stand-alone users

BEPMAX

DISCLAIMER

This is a Reference Guide for Investors, project Developers and PV professionals. This

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PHOTOVOLTAIC LOOKOUT

2013

Launched on 7th

DEC 2012

CD attached which contains the .pdf

file of this reference guide with many

more files like Govt. Policies, Drafts,

and Excel sheets for financial

assessment, MNRE documents and

Orders, Datasheets of Top Ten Solar

Panels and Inverters, and many.

~ INDEX ~

1 Technology market 1.1 PV Panels – Types, Comparison and Top

Manufacturers………………………..

1.2 Inverters – Type and Top Manufacturers……

1.3 Trackers & Mounting Structures

1.4 Certifications & Standards

2 Utility Scale Projects 2.1 Site Selection Factors and meteorology

2.2 Selecting Technology & EPC

2.3 Determining Generation and Losses

2.4 Project Development Stages

2.5 Operation and Maintenance

2.6 Project Financial Model

2.7 A Typical study on 1MW Plant

3 Photovoltaics in Small Scale 3.1 PV Applications in small scale

3.2 Grid Connected and Stand-Alone Systems

3.3 Government Subsidies and Tax benefits

3.4 Registration Procedure for SI, RESCO and other with

MNRE

3.5 Steps to Register the Solar Project

3.6 Benefits of using Solar

4 A lookout on REC 4.1 REC Mechanism

4.2 Different Project Models of REC.

Where

Are you

Investing?

Lookout

Your Opportunities

1

1.1 PV Panels – Types, Comparison and Top

Manufacturers

Mono-crystalline silicon solar modules are the workhorse of the solar industry. They are extremely durable and have the highest commercial power conversion efficiencies. However, growing the single crystalline structure in the manufacturing process is time consuming and extremely expensive. Poly-crystalline solar modules are made from a block of silicon that contains multiple crystals. These panels are square in shape with a mosaic-like structure. The poly-crystalline modules are much cheaper to produce than mono-crystalline due to their less stringent crystal structures. The trade-off for less expense with polycrystalline cells; however, is their lower efficiencies over mono-crystalline silicon modules.

Thin-film PV (CdTe, a-Si, CIGS) Thin-film PV is the fastest growing sector of the solar cell manufacturing industry. Thin-film cells are manufactured by applying very thin layers of semiconductor material to inexpensive materials such as glass, plastic or metal. Thin-film semiconductors absorb light more easily than c-Si, therefore requiring less semiconductor material, making them far less expensive than crystalline silicon modules. There are three leading manufactured thin-film PV modules presently: CdTe or Cadmium Telluride thin-film currently has the lowest Wp (watt peak) production cost due to a balance between ease of production and higher cell efficiency (currently 6 – 11%: limited to 31% maximum).

PV

Pan

el T

yp

es

Hybrid

Crystalline Silicon

Mono-Si

Poly-Si

Thin Film Family

a-Si

CIS / CIGS

CdTe

1

Poly

Crystalline

Panels are

being used

most and

are the most

reliable

panels

TECHNOLOGY

MARKET

2

a-Si or Amorphous Silicon thin-film uses a highly a proven but slower layer deposition manufacturing process which results in lower efficiencies (currently 6 – 8%: limited to 12% in-lab). Microcrystalline technology is used as an upgrading technology to boost the amorphous silicon products to efficiencies of around 10%. CIGS or Copper Indium Gallium Selenide thin-film has been able to reach the highest efficiencies in production: 13 – 14% max, and averaging around 10%. There are difficulties in controlling the uniformity of the active layer on larger formats, and this does not currently work on steel.

Comparing photovoltaic technologies

Parameter Crystalline Thin Film

Mono/Poly a-Si, CIGS, CdTe

Handling Better protection against breakage

Not Guaranteed

Power Efficiency 12-19% 6-9%

Irradiance Used particularly for Normal radiations

Better performance with diffuse radiations

Temperature effect Temperature can effect Output Lesser effect of temperature

Output High and stable High and Variable

Transportation Low Cost High Cost

Mounting Structure

Fewer Mounting structures required and Light weight AL structures can be used at best

More structures required, also high quality structures required

Land Required 5-5.5 Acres/ MW 7 Acres/MW

Inverter High Inverter Flexibility Limited Inverter Flexibility

Cost High Cost per Watt Low than Crystalline

Stabilization Stable output from initial stages onwards

Stability achieved after 4-6 Weeks

Availability Easily Available Limited Supply

Health Hazards Made From Non-Toxic Materials(Si)

Toxic materials used for thin film (Cds, CdTe)

Power Degradation Less High in initial 5-7 years

Plant maintenance Less maintenance required Highest maintenance required

Repair Relatively easy Difficult due to complex structure

Market Coverage 88% 11%

CIGS and

CdTe Panels

yield More

Production

and Give

good

results in

Diffuse

Radiation

Hybrid

Models are

less known,

yet they

have the

highest

efficiencies

3

The Top Ten

Top Ten By Module Efficiency (Poly-Si). Source: Solar Plaza, Datasheets

# Company Module Efficiency

Module Type

1. Solland Solar 16,00% Sunweb

2. Siliken

15,70%

SLK72P6L-305

3.

LDK Solar

15,67%

LDK-200P-24(s)

4. Vikram

15,63%

Eldora 280 (300)

5.

Wiosun

15,54%

E300P

6. A2peak

15,50%

P3-235-60 (250)

7.

CNPV

15,40%

CNPV-300P

8. Latitude Solar

15,30%

Latitude P6-60/6 (250)

9.

JA Solar

15,29%

JAP6-60-250

10.

CSUN

15,24%

CSUN295-72P

Top Ten Manufacturers By capacity. Source: Solar Plaza

# Company Capacity ( GW)

Country Type

1. LDK Solar 3.0 China m-Si, P-Si

2. Sharp Solar 2.8 Various m-Si, P-Si, Thin Film

3. Suntech 2.4 Various

m-Si, P-Si, Thin Film

4. First Solar 2.3 Various Thin Film

5. JA Solar 2.2 China m-Si, P-Si

6. Canadian Solar

2.0 Various m-Si, P-Si

7. Trina 1.9 China m-Si, P-Si

8. Yingli Green 1.7 China m-Si, P-Si

9.

Hanwa Solarone

1.5 China m-Si, P-Si

10. Jinko Solar 1.5 China m-Si, P-Si

Efficiency of

PV Panel is

stated as

production

per m2 . it is

inversely

proportional

to land used.

Cost per Wp,

Availability,

Support,

Technical

History and

Power Output

are some

factors to be

kept in mind

while

selecting A PV

panel.

4

1.2 Inverters – Type and Top Manufacturers

Basic Types. By size and Way of use

TYPE POWER DESCRIPTION

Central Inverter 100 kW – 2.25 MW

Commonly u s e d i n m e g a w a t t -scale

p h o t o v o l t a i c power plants in India and foreign

countries. A single inverter controls a large portion of the

plant.

String Inverter 5 – 40 kW A single inverter controls a

single or limited string of modules. They offer

multiple controls at a more basic level

compared to central inverters, hence, reducing module mismatch losses

and simplifying plant maintenance.

Domestic Inverter 1-5 kW Typically used for domestic

rooftop applications.

May be in a grid-tied or

stand-alone mode.

Micro-Inverter 100 – 400 W Used In Test Projects

Central Inverter Examples:-

Inverter is

heart of

solar power

Plant. Your

Inverter

output is

your Final

output of

Production

Inverter

selection has

to be done

after selecting

PV Panels, as

compatibility

with each

other is

necessary. Few

inverters are

compatible with

thin film panels

in comparison

of crystalline

5

String & Domestic Inverter Examples:-

The Top Ten

Top Ten by Efficiency (100 kW). Source: Solar Plaza and Datasheets

# Company Efficiency Model

1. Ingeteam 98.40% Ingecon Sun 100 TL

2. SAJ New Energy 98.10% Suntrio-TL100K

3. Power One 98.00% PVI-110.0-TL

4. ABB 98.00% PVS800-100kW

5. Samil Power 98.00% Solar Ocean 100TL

6. SMA 97.60% Sunny Central 100TL

7. ELTEK 97.60% Theia TL -100kW

8. TBEA 97.20% GC-100k3

9. Sungrow 97.00% SG-100K3

10. Santerno 97.00% TG 100 NA

Most of the

Domestic

Inverters

also Referred

as kW

inverters

includes

Charge

Controller

and MPPT

feature. MPPT

is Maximum

Power Point

Tracking

6

Top Ten by Sales.

# Company Country

1. SMA Germany

2. Power One USA

3. Kaco New Energy Germany

4. Satcon USA

5. GE Energy Global

6. Ingeteam Spain

7. ABB Global

8. Schnieder Electric Europe

9. REFU Europe

10. Sptunik Eng. Switzerland

As all commercial photovoltaic modules today generate only DC power,

photovoltaic inverter become essential to convert this DC into AC power for

either direct AC applications or feeding into the grid. Photovoltaic modules are

usually connected in series and then in parallel, which are then connected to the

photovoltaic inverter. The functionality of photovoltaic inverters includes: (i)

maximizing the output power from the modules by maximum power point

tracking (MPPT), (ii) converting the DC power into AC power, (iii) in case of

grid-tied inverters, synchronizing the output voltage and frequency to match the

grid parameters, and (iv) offer safety and protection to and from the photovoltaic

system. (v) Data Logging and SCADA Facilities for Plant Operation and

Production Overview

SCADA Technology Offered by Inverters

SCADA stands for Supervisory Control and Data Acquisition, a term used by

industry as a blanket term for the control systems employed across industrial

plants and the electrical grid.

SCADA technology has come a long way, from mechanical regulators and

analogue control wires to fully-digital controllers over fibre optics. This

tremendous progress in industrial control technology has made available low

cost and highly reliable control hardware and software for power plant

automation and utility control.

7

Example: Hierarchical Diagram showing the Data Acquisition from Field

level To Corporate Office by “Brilliance Solar Inverters & SUNIQ, by

GE Energy”.

Most of the

central

inverters

are bundled

with SCADA

Software

and Data

logging

Equipment.

Inverter

Output, Daily

Weather

report,

Production,

Plant

Supervision,

Voltage and

Current

Levels, etc. are

Some features

of SCADA used

in Solar Plants

8

1.3 Trackers and Mounting Structures

Theory of Mounting Structures

PV modules must be mounted on a structure, to keep them oriented in the correct direction and to provide them with structural support and protection. Mounting structures may be fixed or tracking. Taking Example of INDIA, it is situated in Northern Hemisphere, so the sun will

be seen towards south Direction. The Fact Behind this is that sun rises from EAST

at the Equator and sets at WEST at equator, so if you are situated in north of

equator than u will see sun in southern direction. So the panels should be leaned

according to the tilt angle depending on the location in south direction.

E

N S

W

PV Panel

Mounting

Structure

W

EARTH

TILT

Angle

Generalised tilt

Angles

T.M = 17o-19

o

A.P = 19 o

– 20 o

M.H = 21 o

– 23 o

Gujarat = 23 o

-25 o

M.P = 23 o

-25 o

R.J = 25 o

– 27 o

Delhi = 30 o

9

Need of Sun Tracking

A solar tracker is a device for orienting a day lighting reflector, solar photovoltaic panel or concentrating solar reflector or lens toward the sun. The sun's position in the sky varies both with the seasons and time of day as the sun moves across the sky. Solar powered equipment works best when pointed at or near the sun, so a solar tracker can increase the effectiveness of such equipment over any fixed position, at the cost of additional system complexity. There are many types of solar trackers, of varying costs, sophistication, and performance. One well-known type of solar tracker is the heliostat, a movable mirror that reflects the moving sun to a fixed location, but many other approaches are used as well.

General Types

Fixed Structures: -Fixed mounting systems keep the rows of modules at a Fixed tilt angle while facing a fixed angle of orientation. The tilt angle and orientation is generally optimised for each PV power plant according to location. This helps to maximise the total annual incident irradiation And total annual energy yield. For Indian sites, the optimum tilt angle is generally between 10º and 35º, facing true south. Fixed Structures are Cheaper and require less maintenance. Seasonal Trackers – This type of tracker have the facility of adjusting the face according to season to season. These trackers are based on hydraulic Technology. By using this tracker there will be 7 to 9% Increase in Production. Single Axis Trackers – This Type of trackers provides a facility of Adjustment of Tilt and Angle of Orientation according to the Movement of Sun. So this Provides Annual increases of 25% In Production. Also the Cost of Single Axis Trackers is high and it requires More Land than Normal. Dual Axis Trackers – Adjustment of Tilt, Azimuth and Angle of Orientation with back tracking is done by using this trackers, they are very costly and requires much Space. Production increases by 36% annually by using Dual axis trackers

Mounting Structures

Trackers

Seasional Trackers

Single Axis Trackers

Dual Axis Trackers

Fixed Structures

Galvanised Steel

Structures

Aluminium Structures

Single axis

Trackers

are the

best.

Though the

project

cost

increases by

20% but the

productio

n increases

by 25%

annually

10

1.4 Certifications & Standards

PV Module Standards

TEST Description Comment

IEC 61215

Crystalline silicon terrestrial photovoltaic (PV) modules – design Qualification and type approval.

The standard certification uses a 2,400 Pa pressure. Modules in heavy snow locations may be tested under more stringent 5,400 Pa conditions.

IEC 61646

Thin-film terrestrial photovoltaic (PV) modules – design qualification And type approval.

very similar to the IEC 61215 certification, but an additional test specifically considers the additional degradation of thin Film modules.

En/IEC 61730

PV module safety qualification. Module safety qualification.

Part 2 of the certification defines three different Application Classes: 1). Safety Class 0 – restricted access applications. 2). Safety Class II – General applications.

3). Safety Class III – Low

voltage applications.

IEC 60364-4-41 Protection against electric shock.

Module safety assessed based on: 1). durability. 2). High dielectric strength. 3). Mechanical stability. 4). Insulation thickness and distances.

IEC 61701 Resistance to salt mist and corrosion

Required for modules being installed near the coast or for Maritime applications.

Conformité Européenne (EC)

The certified product conforms to the EU health, safety and environmental Requirements.

Mandatory in the European Economic Area.

UL 1703

Comply with the national Electric Code (nEC), oSHA and the national Fire Prevention Association. The modules perform to at least 90% of the manufacturer‘s nominal power.

Underwriters Laboratories Inc. (UL) is an independent U.S.based product safety testing certification company which Is a nationally recognised Testing Laboratory (nrTL). Certification by a nrTL is mandatory in the U.S.

These

standards

are accepted

in India and

one should

buy products

with the same

standards

11

Inverter Standards

TEST Description

En 61000-6-1: 2007

Electromagnetic compatibility (EMC). Generic standards. Immunity for residential, Commercial and light-industrial environments.

En 61000-6-2: 2005

Electromagnetic compatibility (EMC). Generic standard Immunity for industrial Environments.

En 61000-6-3: 2007

Electromagnetic compatibility (EMC). Generic standards. Emission standard for residential, commercial and light-industrial Environments.

En 61000-6-4: 2007

Electromagnetic compatibility (EMC). Generic standards. Emission standard for industrial environments.

En 55022: 2006

Information technology Equipment. Radio disturbance characteristics. Limits and Methods of measurement.

En 50178: 1997

Electronic equipment for use in power installations.

EC 61683: 1999

Photovoltaic systems – Power conditioners – Procedure for measuring efficiency.

It is Mandatory in

India to Procure

Panels and

Inverters

according to

Government

recognized

certifications

and standards

otherwise your

application for

setting utility

scale plant will

be rejected and

you will not get

subsidy in case of

Captive stand-

alone user

12

2.1 Site selection Factors and Meteorology

Key Parameters for Selection of Land

# Parameter Comment

1 Solar irradiation This is most important factor; first you should have irradiation data of land.

2 Land Terrain and Nearby Shadows

Flat, Rocky, Slope etc. Any obstacle blocking sun and terrain needs to be studied

3 Clear Optimization and Horizon

Check weather south direction has any obstacle. And study the horizon

4 Storm and Earthquake history Check the record of natural calamities on location of land

5 Soil Test Do soil test on Land, Depending on which the Mounting Structures can be decided

6 Adequate Land

Per MW Requirement Mono-Si – 5 Acres Poly-Si – 6 Acres Thin Film – 7.5 Acres Single Axis Trackers – Add. 1.5 Acres of Land Dual Axis Trackers – Add. 2.3 Acres of Land

7 Legal Factors and Surroundings

Check whether Development is allowed on Land. Check whether land is not located in forest, civil aviation or reserved area. If located get Permissions from concerned Agency

8 Water and Electricity Availability

Check whether Plenty of Water and Electricity is available, If not get permissions for the same or use the alternative way

9 Distance From Substation

This is to be the most priority parameter to be kept in mind. The land should be nearby 66KVA or More Substation, otherwise transmission can be a bottleneck for your Project

10 Transportation

It would be good if there is would be a facility of broad road accessing location and the estimate the distance of Location from nearest metro city.

11 Cost

Always this factor would be the first parameter to keep in mind. The land cost should not be more than 15 Lacks per Acre to get a good Investment returns.

2 Utility Scale

Projects

Solar

Irradiation,

Distance

from

Substation

and Cost of

land are the

first three

factors to be

considered

before

selecting a

land

13

Site Meteorology and Measurements

Solar radiation basics and definition

Solar radiation is a primary driver for many physical, chemical and biological processes

on the earth‟s surface, and complete and accurate solar radiation data at a specific region

are of considerable significance for such research and application fields as architecture,

industry, agriculture, environment, hydrology, agrology, meteorology, limnology,

oceanography and ecology. Besides, solar radiation data are a fundamental input for solar

energy applications such as photovoltaic systems for electricity generation, solar

collectors for heating, solar air conditioning climate control in buildings and passive solar

devices

Several empirical formulae have been developed to calculate the solar radiation using

various parameters. Some works used the sunshine duration others used the sunshine

duration, relative humidity and temperature, while others used the number of rainy days,

sunshine hours and a factor that depends on latitude and altitude.

The primary requirement for the design of any solar power project is accurate solar

radiation data. It is essential to know the method used for measuring data for accurate

design. Data may be instantaneously measured (irradiance) or integrated over a period of

time (irradiation) usually one hour or day. Data maybe for beam, diffuse or total

radiation, and for a horizontal or inclined surface. It is also important to know the types of measuring instruments used for these measurements.

For the purpose of this report, data sources such as NREL, NASA, IMD and so on were

compared. All these sources specify global irradiance, measured over one hour periods

and averaged over the entire month. The data is available for horizontal surfaces and must

be suitably converted for inclined solar collectors. Monthly average daily solar radiation

on a horizontal surface is represented as H, and hourly total radiation on a horizontal

surface is represented by I. The solar spectrum, or the range of wavelengths received

from the Sun are depicted in the figure below. Short wave radiation is received from the

Sun, in the range of 0.3 to 3 µm, and long wave radiation (greater than 3 µm) is emitted

by the atmosphere, collectors or any other body at ordinary temperatures.

Definitions and terminology

Beam Radiation – solar radiation received from the Sun without being scattered by the

atmosphere and propagating along the line joining the receiving surface and the sun. It is

also referred as direct radiation. It is measured by a pyrehiliometer.

Diffuse Radiation – the solar radiation received from the Sun after its direction has been

changed due to scattering by the atmosphere. It does not have a unique direction and also

does not follow the fundamental principles of optics. It is measured by shading

Pyrenometer.

Total Solar Radiation – the sum of beam and diffused radiation on a surface. The most

common measurements of solar radiation is total radiation on a horizontal surface often

referred to as „global radiation‟ on the surface. It is measured by Pyrenometer.

Irradiance (W/m2) – the rate at which incident energy is incident on a surface of unit area. The symbol G is used to denote irradiation. Irradiation (J/m2) – the incident energy per unit area on a surface, found by integration

of irradiation over a specified time, usually an hour (I) or a day (H).

Diffuse

Radiation in

simple word is

the Radiation

which hits the

earth after

passing

through

cloud. Thin

film panels give

good

performance

in such kind of

conditions

14

Solar Constant - The solar constant is the amount of incoming solar radiation per unit

area, measured at the outer surface of Earth‟s atmosphere, in a plane perpendicular to the

rays

Direct Normal Insolation (DNI) - It is the direct component of the solar radiation

incident normal to the collector; that is, the angle of incidence of solar radiation with the

normal of the collector is zero throughout the day.

Below Factors are need to be assessed while conducting site meteorology

Measurements may be direct or indirect. Direct methods are those involving the

use of devices such as Pyroheliometers and pyranometers at radiation stations. Indirect methods use satellite data, the number of sunshine hours, or extrapolation to arrive at values for radiation at a place. The solar radiation data should be measured continuously and accurately over the long term. Unfortunately, in most areas of the world, solar radiation measurements are not easily available due to financial, technical or institutional limitations. Solar radiation is measured using Pyroheliometers and pyranometers. Ångström and Thermoelectric Pyroheliometers are used for measurement for direct solar radiation and global solar radiation is measured using the Thermoelectric Pyranometer. A Thermoelectric Pyranometer with a shading ring is used for measurement of diffuse radiation. Inverted pyranometers and Sunphotometers are used for measuring reflected solar irradiance and solar spectral irradiance and turbidity respectively.

In India, large scale measurements are carried out by the India Meteorological Department at 45 radiation observatories with data loggers at four of these stations.

The stations are depicted on the map below (Fig ), obtained from the IMD Pune website.

Another method of acquiring data is through mathematical modelling and extrapolation of data using variables such as sunshine hours, cloud cover and humidity. This modelled data generally is not very accurate for

Site meteorology

Solar Irradiation

Horizontal and diffuse irradiation

Wind Speed

Air temperature

Sunrise and Sunset

Your

Generation

mainly

depends on

the

Meteorology

Factors

mentioned to

right

15

several reasons. Models require complex calibration procedures, detailed knowledge of atmospheric conditions and adjustments to produce reasonable results. Further inaccuracies arise in micro-climates and areas near mountains, large bodies of water, or snow cover.

The third source of radiation data is satellite measured data such as that provided by NASA. NASA data is available for any location on Earth, and can be obtained by specifying the coordinates of the location. The data is available in near real time for daily averages and for 3 hour intervals. Also, this data can be accessed free of cost online

Sources

Sources of radiation data

Radiation data is available from various sources, such as IMD, NREL, Meteonorm, NASA, WRDC (World Radiation Data Centre) and so on. Some of these agencies provide data free of cost and with others, the data needs to be purchased. The following are the key features of the some data sources considered Meteonorm Provides data of more than 8,055 weather stations. The measured parameters are

monthly means of global radiation, temperature, humidity, precipitation, days with precipitation, wind speed and direction, sunshine duration. Time periods

16

1961-90 and 1996-2005 for temperature, humidity, precipitation and wind speed are available. Satellite data is used for areas with low density of weather stations. Interpolation models are provided in the software to calculate mean values for any site in the world. The user may import data for use in the models. This data is not freely available, and must be purchased along with the Meteonorm software. RETScreen RETScreen is Canadian software which holds a complete database for any location in the world, optimised for using the best available data at each location from about 20 sources, the main ones being the WRDC and the NASA irradiance data. Temperatures and wind velocities are also provided probably with good reliability. NASA and WRDC data are available free of cost, and hence RETScreen data is also free. IMD IMD has 45 radiation observatories recording various radiation parameters. At all these stations, measurement of global solar radiation is being carried out while at a few selected stations other parameters like diffuse, direct, net, net-terrestrial and reflected radiation and atmospheric turbidity are also measured. Data loggers have been introduced at four stations viz. New Delhi, Patna, Jaipur and Thiruvananthapuram. Besides the measurements on the surface, fortnightly airborne soundings are made with radio metersondes to measure directly the vertical distribution of the infrared radiation flux and radiation cooling from surface up to a height of 20 Km or more in the free atmosphere, at New Delhi, Srinagar, Thiruvananthapuram, Pune, Nagpur, Jodhpur, Calcutta and Bhuvaneshwar. Radiometersonde ascents are being conducted regularly at Maitri, the Indian Antarctic station also. NASA NASA provides over 200 satellite-derived meteorology and solar energy parameters. These are monthly averages from 22 years of data. Global solar energy data is available for 1195 ground sites. These data are available free of cost. 3TIER 3TIER provides custom reports enabling assessment for commercial and utility-scale solar projects. This organization provides Full View Solar Site Climate Variability Analysis (CVA) which describes a complete picture of the solar resources at required site. Based on a satellite derived 11 to 13-year time-series, this product includes the intensity and variability of irradiance values and additional data on wind Speed and temperature

Data from

RETScreen and

NASA are

available for

free, but they

have data till

1997 and 2005

respectively

3TIER Provide

the Present date

Data and

meteorology

and are best

and accurate.

They had a

charge for this

service. But for

large scale

projects 3TIER

meteorology

consultation in

must

17

Solar Irradiation map of India. Source SolarGIS © 2012 GeoModel Solar s.r.o

Variability in Solar Irradiation

In terms of irradiation, the solar resource is inherently intermittent. In any given year, the total annual global irradiation on a horizontal plane varies from the long term average due to climatic fluctuations. This means that though The plant owner may not know the energy yield to expect in any given year, he can have a good idea of the expected yield averaged over the long term. To help lenders understand the risks and perform a sensitivity analysis, it is important to quantify the limits of the inter-annual variation. This can be achieved by assessing the long-term irradiation data (in the vicinity of the site) Sourced from nearby MET stations or satellites. At least 10 years of data are usually required to give a reasonably confident assessment of the variation.

18

2.1 Selecting technology and EPC Contractor

Module Selection

Source and Reference: utility scale solar power plant by International Finance Corporation

This makes choosing a module a more difficult process than it may first appear. Many developers employ the services of an independent consultant for this reason. When choosing modules, the following key aspects should be considered: The aim is to keep the levelled cost of electricity (LCoE) at a minimum.

When choosing between high efficiency-high cost modules and low efficiency low

Cost modules, the cost and availability of land and plant components will have an impact. High efficiency modules require significantly less land, Cabling and support structures per MWp installed than low efficiency modules.

When choosing between module technologies such as mono-crystalline

silicon, multi crystalline silicon and thin film amorphous silicon, it should be realised that each technology has examples of high quality and low quality products from different manufacturers.

Different technologies have a differing spectral response and so will be

better suited for use in certain locations, depending on the local light conditions.

Amorphous silicon modules generally perform better under shaded

conditions than crystalline silicon modules. Many of them show a better response in low light levels.

When ordering a large number of modules, it is recommended to have a

sample of modules independently tested to establish the tolerance. The value of the temperature coefficient of power will be an important

consideration for modules installed in hot climates. The degradation properties and long term stability of modules should be

understood. Product guarantee – Manufacturers provide a product guarantee

ensuring that modules will be fully functional for a minimum of 3 years. Some companies guarantee a longer period, with 5-6 years being the usual duration. Some manufacturers Provide 10 Year Warranty on Workmanship.

Power guarantee – In addition to the product guarantee, most

manufacturers grant nominal power guarantees. These vary between manufacturers but atypical power guarantee stipulates that the modules will deliver 90% of the original nominal power after 10 years and 80% after 25 years. So far no module manufacturer has offered a power output guarantee beyond 25 years. The conditions listed in both the power guarantee and product guarantee are Important, and vary between manufacturers.

Chinese Modules

from good

Manufacturer

are the best

Choice for

Economic

project. They do

provide good

Production and

also are

technically

sound

19

Inverter Selection

Source and Reference: utility scale solar power plant by International Finance Corporation

Criteria Description

Project size

Size influences the inverter connection concept. Central inverters are commonly used in large solar PV plants.

Performance

High efficiency inverters should be sought. The additional yield usually more than compensates for the higher Initial cost. The way the efficiency has been defined should be carefully considered.

MPP range A wide MPP range allows flexibility and facilitates design.

3-phase or single phase output

national electrical regulations might set limits on the maximum power difference between the phases in the case of An asymmetrical load.

Module technology

The compatibility of thin-film modules with transformer-less inverters should be confirmed with manufacturers.

National and international regulations

A transformer inverter must be used if galvanic

isolation is required between the DC and AC

sides of the inverter.

Grid code

The grid code affects inverter sizing and technology. The national grid code might require the inverters to be capable of reactive power control. In that case, over-sizing inverters slightly could be required. The grid code also sets requirements on THD, which is the level of harmonic content allowed in the inverter‘s AC power output.

Product reliability

High inverter reliability ensures low downtime and maintenance and repair costs. If available, inverter mean Time between failures (MTBF) figures and track record should be assessed.

Module supply

If modules of different specifications are to be used, then string or multi-string inverters are recommended, in order to Minimise mismatch losses.

Maintainability and serviceability

Ease of access to qualified service and maintenance personnel, and availability of parts is an important dimension to consider during inverter selection. This may favour string inverters in Certain locations.

System Availability

If a fault arises with a string inverter, only a small proportion of the plant output is lost. Spare inverters could be kept locally and replaced by a suitably trained electrician. With central inverters, a large proportion of the plant output would be lost (for example, 100 kW) until a replacement is obtained.

Modularity

Ease of expanding the system capacity and flexibility of design should be considered when selecting inverters.

Shading conditions

For sites with different shading conditions or orientations, String inverters might be more

In a Solar

project

Inverter

needs to be

replaced at

12th

or 13th

year. The

replacement

cost is 4% of

the total

project cost

20

suitable.

Installation location

Outdoor/indoor placement and site ambient conditions influence IP class and cooling requirements.

Monitoring/recording/telemetry

Plant monitoring, data logging, and remote control requirements define a set of criteria that must be taken into Account when choosing an inverter.

Mounting Structure Selection

Source and Reference: utility scale solar power plant by International Finance Corporation

Mounting structures will typically be fabricated from steel or aluminium. A good quality mounting structure may be expected to: Have undergone extensive testing to ensure the designs meet or exceed

the load conditions experienced at the site. Allow the desired tilt angle to be achieved within a few degrees. Allow field adjustments that may reduce installation time and

compensate for inaccuracies in placement of foundations. Minimise tools and expertise required for installation. Adhere to the conditions described in the module manufacturer‘s

installation manual. Allow for thermal expansion, using expansion joints where necessary in

long sections, so that modules do not become unduly stressed. Purchasing good quality structures from reputable manufacturers is generally a low-cost, low-risk option. Some manufacturers provide soil testing and qualification in order to certify designs for a specific project location. Alternatively, custom-designed structures may be used to solve specific engineering challenges or to reduce costs. If this route is chosen, it is important to consider the additional liabilities and cost for validating structural integrity. This apart, systems should be designed to ease installation. In general, installation efficiencies can be achieved by using commercially available products. The topographic conditions of the site and information gathered during the geotechnical survey will influence the choice of foundation type. This, in turn, will affect the choice of support system design as some are more suited to a particular foundation type.

Foundation options for ground-mounted PV systems include: Concrete piers cast in-situation – These are most suited to small systems

and have good tolerance to uneven and sloping terrain. They do not have large economies of scale.

Pre-cast concrete ballasts – This is a common choice for manufacturers having large economies of scale. It is suitable even at places where the ground is difficult to penetrate due to rocky outcrops or subsurface obstacles. This option has low tolerance to uneven or sloping terrain but requires no specialist skills for installation. Consideration must be given to the risk of soil movement or erosion.

Driven piles – If a geotechnical survey proves suitable, a beam or pipe driven into the ground can result in low-cost, large scale installations that can be quickly implemented. Specialist skills and pile driving machinery are required; these may not always be available.

21

Earth screws – Helical earth screws typically made of steel have good economics for large scale installations and are tolerant to uneven or sloping terrain. These require specialist skills and machinery to install.

Selecting the Consultant There are many to execute a project with assigning consultant/ Contractor. But first we categorise the consultants. Category 1 (All – in – one)

This type of consultant has got its own Technical Team or has tie-up with Experience EPC player.

They can arrange debt financing on behalf of Developer OR takes responsibility of Debt and Equity financing both.

Prepares the project Feasibility report on behalf of client and also takes responsibility of project accreditation.

Does Government Liaising work and takes responsibilities of required permission and transmission

Will be responsible for supply, deign, erection and commission of plant from concept to production. This includes all works

Will be responsible for overall maintenance, manpower allocation and other process

Category 2 (The EPC)

They will be responsible for supply, deign, erection and commission of plant only technical side. This includes all technical and civil works

They can maintain the plant very well according to contract years.

22

Category 3 (Erection Contractor)

These types of Players are only responsible for erection and commission works.

Category 4 (The Non-technical)

They would be only responsible for Non- technical works like Land purchasing and legalities, Government Liaising and permissions and paper work for Client.

Some of these also provide Debt Finance Consultancy also.

Strategies Taking the above four category of consultant there are different strategies for a developer to go with. Below are few of them. Strategy 1

Only arrange the Equity/ Margin required and leave all up to category 1 consultant.

Strategy 2

Developer does the permission work and arranges the finance. The whole technical side will be responsibility of Category 2 type consultant.

Strategy 3

Arrange the Finance and hire Category 2 and Category 4 type of Consultants to commission the Project.

Strategy 4

Arrange Finance, Do Government legalities and take permission. Negotiate with Manufacturers and procure the Equipments and Hire Category 3 Type of Consultant for Erection, commission and maintenance.

Strategy 5

Hire Category 3 and Category 4 type of Consultants and Procure the Equipments on own. Also arrange the finance on own.

Strategy 6

Hire a Category 4 consultant for permission work, Purchase land from Land Consultants, negotiate with Manufacturers and do the needful Procurement, Hire a design Renewable consultant, an electrical consultant, a civil consultant and Commission the project.

23

FLOW Chart for Selection and Execution

2.3 Determining Generation and losses

Losses in a PV Plant Source and Reference: utility scale solar power plant by International Finance Corporation

LOSS Description

Air pollution

The solar resource can be reduced significantly in some locations due to air pollution from industry and agriculture.

Shading

Due to mountains or buildings on the far

horizon, mutual shading between rows of

modules and near shading due to trees,

buildings or overhead cabling.

Incident angle

The incidence angle loss accounts for

radiation reflected from the front glass

when the light striking it is not

perpendicular. For tilted Pv modules, these

losses may be expected to be larger than

the losses experienced with dual axis

tracking systems, for example.

Low irradiance

The conversion efficiency of a Pv module

generally reduces at low light intensities.

This causes a loss in the output of a

module compared with the standard

conditions at which the modules are tested

(1,000W/m2). This 'low irradiance loss'

depends on the characteristics of the

Select Your Strategy and Prepare an EOI document for invitation of consultants to provide their offers

Short list, Negotiate and select your Consultant

Financial Closure and Government Permissions. Plant design, Procurement, erection and Commissioning

24

module and the intensity of the incident

radiation.

Module temperature

The characteristics of a Pv module are

determined at standard temperature

conditions of 25°C. For every degree rise in

Celsius temperature above this standard,

crystalline silicon modules reduce in

efficiency, generally by around 0.5%. In

high ambient temperatures under strong

irradiance, module temperatures can rise

appreciably. Wind can provide some

cooling effect which can also be modelled.

Soiling

Losses due to soiling (dust and bird

droppings) depend on the

environmental conditions, rainfall

frequency and on the cleaning strategy

as defined in the O&M contract. This

loss can be relatively large compared to

other loss factors but is usually less than

4%, unless there is unusually high

soiling or problems from snow settling

on the modules for long periods of

Time. The soiling loss may be expected

to be lower for modules at a high tilt

angle as inclined modules will benefit

more from the natural cleaning effect of

rainwater.

Module quality

Most Pv modules do not match exactly

the manufacturer‘s nominal

specifications. Modules are sold with a

nominal peak power and a guarantee of

actual power within a given tolerance

range. The module quality loss

quantifies the impact on the energy yield

due to divergences in actual module

characteristics from the specifications.

Module mismatch

Losses due to ―mismatch‖ are related to

the fact that the modules in a string do

not all present exactly the same

current/voltage profiles; there is a

statistical variation between them which

gives rise to a power loss.

DC cable resistance

Electrical resistance in the cable between

the modules and the input terminals of

the inverter give rise to ohmic losses

(I2r). This loss increases with

temperature. If the cable is correctly

sized, this loss should be less than 3%

annually.

Inverter performance

Inverters convert from DC into AC with an efficiency that varies with inverter load.

This includes transformer

25

AC losses performance and ohmic

losses in the cable leading

to the substation.

Downtime

Downtime is a period when the plant

does not generate due to failure. The

downtime periods will depend on the

quality of the plant components, design,

environmental conditions, diagnostic

response time and the repair response

time.

Grid availability and

disruption

The ability of a Pv power plant to

export power is dependent on the

availability of the distribution or

transmission network. Typically, the

owner of the Pv power plant will not

own the distribution network. He,

therefore, relies on the distribution

network operator to maintain service

at high levels of availability. Unless

detailed information

is available, this loss is typically based

on an assumption that the local grid

will not be operational for a given

number of hours/days in any one year,

and that it will occur during periods of

average production.

Degradation

The performance of a Pv module

decreases with time. If no independent

testing has been conducted on the

modules being used, then a generic

degradation rate depending on the

module technology may be assumed.

Alternatively, a maximum

degradation rate that conforms to the

module performance warranty may be

considered.

MPP tracking

The inverters are constantly

seeking the maximum power

point (MPP) of the array by

shifting inverter voltage to the

MPP voltage. Different inverters

do this with varying efficiency.

Curtailment of

tracking

Yield loss due to high winds enforcing the stow mode of tracking systems.

Auxiliary power

Power may be required for electrical

equipment within the plant. This may

include security systems, tracking

motors, monitoring equipment and

lighting. It is usually recommended to

meter this auxiliary power requirement

separately.

26

Grid Compliance Loss

This parameter has been included to draw

attention to the risk of a Pv power plant

losing energy through complying with

grid code requirements. These

requirements vary on a country to country

basis.

How to determine Generation Solar Simulation Software like PVsyst and RETscreen are available Through which the losses can be determined and changes depending on studies, you have to just input the Site Co-ordinates, Irradiation data, Air- Temperature, Select your Panels and inverters, Create a shading Diagram and that‘s it. You will get the result in minutes. The output of PVsyst is more accurate, all you need to take care is that your inputs should be accurate. Please refer section 2.7 for example.

PVsyst 5.05 or

Higher is the

best software

used in solar

industry for

simulation and

has immense

options and

user-friendly

27

2.4 Project development Stages Contract for Sale OR PPA

If you are planning for a utility Scale Projects in India than these are your Options.

Requirements for Power sale or PPA # Requirement Stage 1 Land Prior to PPA

2 Project Pre-Feasibility Report Prior to PPA

3 Technical Tie-up (If Any) Prior to PPA

4 Margin Money Prior to PPA

5 EMD and other securities Prior to PPA

6 Project Debt and financial Closure

After PPA

Utility Scale Projects

REC Based Project

PPA with State Agency at APPC

rates and Accrediation

REC Registration

Registration With NLDC for Net

Metering

PPA With State Government

According to their Policy

Registration with SLDC for

transmission and Metering

PPA in Scheme of JNNSM

Some State

Governments

have a scheme

of reverse

bidding for

tariff and

PPA.

28

What Does Pre-feasibility Contains? Refer the Chart for Contents of Pre-Feasibility. This process is the first process to be done for checking viability of project and the Report for the same has to be submitted first for Getting PPA.

Pre-Feasibility

Land Location, Total area

and Related Documents of

Ownership Site

Meteorology in Detail

Report On proposed

Technology and Technical Information

of Equiptments

Annual Generation Estimation

Report Rough Plan of

Development and

estimated time of

Completion

Capability in terms of

Finance and Size of Plant

Related land Clearance

Documents and its

Distance from Substation

DEBT Options, Financial

model and Plan

Club the study on

all the factors

shown in figure

Altogether in a

report which is

called a Pre-

feasibility Report.

29

Other Required Permissions Source and Reference: utility scale solar power plant by International Finance Corporation

District Advisory Committee

A clearance may be required from the district collector confirming that the project would not have an adverse impact on its surroundings.

Planning Department

The project will normally require prior approval from the relevant planning department at town and district levels.

Archaeological Department

Consultation and approval from the relevant archaeological department will confirm that the land acquired for the project is not of historical significance.

Fire Safety Authority

Consultation and approval from the relevant authority may be required with respect to relevant fire safety requirements during construction and operation of the project.

Forest Authority

Consultation and approval from the relevant forest authority may be required if trees are to be felled to prevent any shading of PV plant. It may also be prudent to confirm that the land to be developed has not been reserved for future forestry operations.

Pollution Control Board

Consent from the local pollution control board may be required with respect to wastewater management and noise emission control, particularly during the construction phase of the project.

Irrigation Department

In addition to confirming that land is not subject to any relevant reservation, consultation with the irrigation department May ensure water availability during construction and operation.

Industrial Development Corporation

Early consultation with such authorities at state level may yield indirect benefits to the project, depending on various initiatives taken up by local governments for industrial development.

Local Governing Bodies

In some areas, a project may fall under the jurisdiction of governing bodies for small villages. Consultation with these local bodies

All

permissions

are not

mandatory,

only

required

permissions

out of which

is mention

needs to be

taken

30

is key to getting consent for the project from the local population. Their approval can facilitate work in the construction and operation phases

Construction power requirements

This specific licence is normally obtained from the state distribution utility for obtaining power required during construction of the plant. Otherwise, stand- alone diesel generators can be utilised with prior permission from the pollution control board.

SLDC/NLDC

In addition to the power purchase agreement, a grid connection permit from the transmission utility is required for exporting power. This normally specifies and confirms the point and voltage level of connection.

Electrical Inspectorate

Electrical inspectorate approvals ensure safety on all electrical installations. The approvals are likely to be mandatory requirements of the public works department of the state in which the plant is built. These are required through the life cycle—from pre-construction to post-commissioning—of the project.

From Concept to Construction (Major Works)

# ACTIVITY DETAILS

EXECUTIVE PROJECT

Project writing Selection Of land Getting PPA with State Agency Other required Permissions Selecting EPC Project Finance Bank Guarantee Designing the Project

SYSTEM DESIGN AND APPROVALS

Site Details Energy Estimation Electrical Schematics Mechanical Schematics Inverter Details & Confirmation Module Manufacturer Details &

Confirmation Mounting Structures Details and

Confirmation

31

Confirmation of Other BoS

SITE PREPARATION

Site Survey & Contour Mapping Soil Test Water Analysis Boundary Fencing Electric Resistance Test Arrangement of Electricity for

Construction from State Board or Using Diesel Generator

Arrangement of Adequate Water for Construction

DESIGN LAYOUT

Structure Foundation Design Structure Layout Design Inverter Layout Design Lightning & Earthing Mat

Layout 360/11Kv Transformer Layout

Design Cable Trenches & JB Layout Plumbing Layout Monitoring System Wiring

Layout

CIVIL WORKS

Civil Works Vendor Finalization Site JCB Levelling Foundation marking with levels Bore wells & Pumps Site office and Warehouse Control Room Construction Plumbing Works Statutory Permissions for Civil

Works Area Grading, Internal Roads

INVERTERS HOUSES, SECURITY, AUXILIARY SERVICES

Inverter selection and Finalization

Transformer Finalization Transformers Housings,

Invertors housings, and auxiliary services allocation (including inverters)

Middle Voltage Electrical installation IN housings

Low Voltage Electrical installation IN housings. Including General Protections.

Inverter and Transformer Installation

32

ELECTRICAL INSTALLATION

Modules Cabling Cable connection to the DC

connection boxes (including fuse protection)

Cable connection from DC protection boxes TO the inverters.

Installation of the DC protection boxes

AC cabling FROM inverters TO transformers

Middle Voltage cabling Lightning, Earthing & Other

Utilities Installation

SWITCHYARD

Switchyard Design & Approval Vendor Offers and finalization Sub-station Civil Works Utility Approval Switchyard Installation

COMMUNICATIONS

Communication systems installation

Communication systems programming

CONNECTION & TESTING

Installation tests Grid Connection

Some of the Required Designs & Drawings # Name Of Drawing

Drawing Of Civil work and Array Yard

1

Map showing the results of Pre-Construction survey of the project site showing location of control room, Array yard, Power evacuation arrangement, Switch gear room, transformer bay etc.

2

General layout drawing of solar PV power plant locating control room building, Module yard, Internal roadways, Drainage system, Fencing, gate, Water distribution line mentioning all lines and levels

3 General equipment layout drawing for control room, Transformer bay, switch gear room etc.

4 General layout of solar PV module yard locating Earth Pits & Earth continuity, cable trenches, yard lighting, lightning conductors with its corresponding earth pits and cable trays.

5 Foundation details of lightning conductors, Yard lighting posts.

6 Topographical survey for proposed area & Civil drawing for Array yard

33

7 Array yard layout

8 Module structure foundation drawing

9 Approach roadway and pathway

10 Water arrangement for module cleaning

11 Water sewage and drainage system

12 Fencing to Yard

13 Watch towers

14 Scope of civil work for core area land development

15 Model mounting structure and design data

Drawing of electrical work for Array yard

16 Drawing for cable trenching and wiring

17 Drawing for Junction box

18 Drawing for array yard lightning

19 Array Yard lightning protection

20 Drawing for earthing system for array yard

Power Control Unit

21 Drawing for main control unit

22 Drawing for unit control room

23 Drawing for security cabin and Gate

24 Drawing for DC bus panel

25 Drawing for AC bus panel

26 Drawing for circuit Breaker

27 Drawing for DC battery & Charger

28 Drawing for protection system

29 Drawing for auxiliary power supply

30 Drawing for string monitoring & system

31 Drawing for web box & Remote monitoring system

32 Drawing for lighting fixtures

Power control unit for Main control room

33 Drawing for control panel monitoring desk

34

Structural details of construction works includes foundation, tie beam, column, lintel, chajja, roof beam with roof, and water storage tank with supporting structure details, parapet, plinth protection

35 Details of power conditioning unit/Inverter (bill of material, schematic diagram, wiring diagram, Internal layouts etc.)

36 Drawing for Cable and wires layout

37 Drawing for control electrical wiring

38 Drawing for auxiliary power supply

34

39 Drawing for DC battery and Battery Charger

40 Drawing for control room lighting fixture

41 Line diagram, block diagram& circuit diagram for surveillance camera desk

Switchyard for unit control room & Main control room

42 Drawing for land development plan for 1MW unit control room & Main control room

43 Earthing system for switchyard

44 Drawing for Lightning arrestors

45 Drawing for transformer

46 Circuit breakers for Main control room

47 Drawing for isolators of switchyard & Main switchyard

48 Switchyard lightning for 1MW unit

49 Switchyard single line diagram for 1MW unit control room

50 Switchyard single line diagram of main control room

Utility & communication drawings

51 Material drawing of whole project

52 Drawing for surveillance includes cabling and placement of related equipments

Project Timeline. Reference of 1MW Plant Work Day No

10 20 30 40 50 60 70 80 90 100

EXECUTIVE PROJECT

SYSTEM DESIGN AND APPROVALS

SITE PREPARATION

DESIGN LAYOUT

CIVIL WORKS

INVERTERS HOUSES, SECURITY, AUXILIARY SERVICES

ELECTRICAL INSTALLATION

SWITCHYARD

COMMUNICATIONS

CONNECTION & TESTING

35

Commissioning the Project Follow Below steps for a successful commissioning of Project.

IEC 62445 Criteria The power plant is structurally and electrically safe.

The power plant is sufficiently robust (structurally and electrically) to operate for the specified lifetime of a project.

The power plant operates as designed and its performance is as expected.

IEC 62445 Criteria

Open Circuit Voltage Test

Short Circuit Voltage Test

Areas of Commissioning Check Module Strings and its Performance

Checking of Inverter Cabling, its AC/DC Voltage levels and Mountings

Transformer Voltage Check and Cabling Check

Switchgear Check

Test Check the Lightening Protection system

Test Check Earthing Protection System

Interface Test results with Monitoring Systems results

Post Connection Test DC Current Test

Performance Ratio Test

For better

practices a

report on test

results and

procedure must

be made. This will

be your

commissioning

report

36

2.5 Operation and Maintenance

Operation and Maintenance be categorized in two sections

1) Planned O&M – Planned in advance and aimed at preventing faults from Occurring, as well as keeping the plant operating at its optimum level.

2) Unplanned O&M – Carried out in Response to Failures.

Planned O&M O&M service Activities

Solar PV Panels

Cleaning of Modules Module Junction Box check Check of Connectors, Module Defect and Cracks and other

Structures

Checking of Earthing Lugs Checking in deformation and Imbalance in level of structures

Inverters Cleaning air filters Checking Cables and Loose connections

Transformer

Performance Monitoring Voltage level Checks Cabling Checks

Monitoring

Weather and Radiation Monitoring Every Day Generation Monitoring Performance Monitoring Continuous Surveillance

Management

Monthly maintenance Plan Every Day MIS Daily Reporting to Higher Authorities Expert Visit on Breakdown

Insurance All risk Insurance for Plant Insurance for Workmen

General & HR

All Housekeeping Activities Procurement of Required Stationary, Provision, consumables and Spares for Replacement Health and Safety measures Building maintenance Security personnel management

Material management

Management and maintenance of resources and Materials

37

Unplanned O&M Source and Reference: utility scale solar power plant by International Finance Corporation

Unscheduled maintenance is carried out in response to failures. As such, the key parameter when considering unscheduled maintenance is diagnosis, speed of response and repair time. Although the shortest possible response is preferable for increasing energy yield, this should be balanced against the likely increased contractual costs of shorter response times. The majority of unscheduled maintenance issues are elated to the inverters. This can be attributed to their complex internal electronics, which are under constant operation. Depending on the nature of the fault, it may be Possible to rectify the failure remotely – this option is clearly preferable if possible. Other common unscheduled maintenance requirements include:

Tightening cable connections that have loosened.

Replacing blown fuses.

Repairing lightning damage.

Repairing equipment damaged by intruders or during module cleaning.

Rectifying SCADA faults.

Repairing mounting structure faults.

Rectifying tracking system faults.

Always have a

support

agreement with

Inverter

manufacturer,

as most of the

break downs

and issues are

due to

malfunctioning

of inverter

38

2.6Project Financial Model

Capital Cost Capital Cost of Project involves the Total expense done in setting up the project from concept to production. This typically involves following

LAND Cost

Cost of all supply

Design and labour Cost

Erection Cost

Process, Legal and Permissions Cost

Other Contingencies Out of these LAND cost should not be involved in calculations of return as it is an appreciation asset.

LTV Ratio - The loan-to-value (LTV) ratio is a financial term used by commercial lenders to express the ratio of a loan underwritten to a value of an asset purchased. If cost of an item is Rs 100 for which Loan/Debt is given 80 Rs than the LTV ratio is 80/100 or 80%

Margin Money / Equity - The Amount of Money an Investor/Developer invests as a margin required other than debt or to acquire debt. For an example if Project cost is 10 Cr and to acquire loan/debt of 8 Cr you should have or Invested 2 Cr which is Equity of Developer or Margin Money Invested.

Annual Interest - For Solar Debts are available at an Annual interest rate of 8-9%. This means if you have taken 100 Rs Loan than your annual interest will be Rs 8-9.

Loan/debt tenure – The Period for which you have taken debt/loan for your project is called loan tenure. Ex 7 years or 10 Years. During these period you will Pay every year interest + Principle according to decided amortization schedule. If a Project has taken debt, than every year payment of Principe + Interest is considered in expense

Depreciation – The decrease in value of assets is called depreciation. In Gujarat you can avail depreciation of 6% on assets for first 10 years and 2% on remaining useful years. In case of Accelerated depreciation you can involve 80% depreciation first year itself in your book of accounts.

Return on Equity – In a project where you have invested 20% of the total project cost as equity or a part of expense, when this project goes into production you will earn something. So RoE is the rate per year you get your investments back. In financial terms it is calculated as Net Profit after Tax RoE = ------------------------------ Equity Invested

Insurance Cost – Every year insurance Premium is about 0.35%of the capital cost of assets.

39

Degradation – This is a phenomenon in which the Power output of a PV panel Decreases every year at an average of 0.7% to 1% depending on the quality and type of PV panels.

Operational Expense – This is a periodical expense needs to be done to maintain, operate your Plant. Also includes the purchase of items and other contingencies. The operational expense includes.

O&M Cost decided with EPC

Transportation Cost

Salaries

Other Fixed costs like Telephone, internet, housekeeping, etc.

Purchase of Spares and other items

Carbon Credit/ CDM benefit – According to Kyoto Protocol, the RE generators can get CDM benefit on RE they produced. Per 1MW of Energy produces I CDM is availed. This CDM can be traded for which one can get 5 to 8 Euros (According to Present rate).

Revenue from Sale – The amount generated from sale of total electricity according to the Agreement rate of sale/kWh.

How to make a Simple financial Model A Draft Financial Model is provided in Attached CD in excel format

Example for the same is given in section 2.7

Follow these steps (Yearly Calculation) (Indian rupees) (1 Euro = 71 Rs) Step 1 – Calculate your average generation. Multiply it by rate of sale. You will get your Revenue from sale of Electricity. Let‘s say it‘s A Step 2 – Divide your generation by 1000, and the number which you get is your no of CDM. Multiply that CDM no‘s with 568(8 Euros). You now get your Revenue from CDM. Let‘s Say its B Step 3 - Every Year Instalment – Online or use the spread sheet contained in CD with this manual and calculate the Amortization schedule. The Figure of Principle + Interest paid each year is to be taken in account and let‘s say it‘s C. Step 4 – Add all your Operational Expenses which includes O&M every year, Insurance, Salaries, Purchase of Spares and Contingencies. Let‘s say the Total Operational expenditure as D Step 5(Net Profit) – Let‘s Say its E

E = A+B – C – D Step 6 - Take 6% of the Project cost as Depreciation and Subtract it from E, the Amount generated will be your Net Profit in Book of Accounts, from which Applicable taxes are to be paid and the final amount after paying taxes is your Profit after Tax.

An excel

sheet of

Simple

financial

model and

CERC

financial

model sheet

is included

in the CD

with this

document

40

2.7 A typical Study on 1MW Plant Based on Gujarat’s Solar Policy, New tariff order

This is only a Reference project and explanations are only in brief

SITE Location and Meteorology

Location: Bajana, Dist.: Surrendranagar, Gujarat

Latitude 23.7 / Longitude 71.46

Unit Climate data

location

Latitude °N 23.7

Longitude °E 71.46

Elevation m 73

Heating design temperature °C 16.61

Cooling design temperature °C 37.26

Earth temperature amplitude °C 19.36

Frost days at site day 0

Month Air

temperature

Relative humidit

y

Daily solar

radiation -

horizontal

Atmospheric pressure

Wind

speed

Earth temperatur

e

Heating

degree-days

Cooling

degree-days

°C % kWh/m2/

d kPa m/s °C °C-d °C-d

January 21.9 33.0% 4.65 100.6 3.3 21.4 0 368

February 24.0 29.3% 5.3 100.5 3.4 22.5 0 389

March 28.7 27.2% 6.2 100.2 3.5 33.6 0 570

April 31.4 32.6% 6.7 99.9 3.8 39.4 0 635

May 32.1 43.8% 6.7 99.6 4.4 40.0 0 687

June 30.7 61.0% 5.7 99.2 4.2 34.5 0 623

July 28.7 73.0% 4.7 99.2 3.8 31.0 0 580

August 28.4 71.2% 4.5 99.5 3.3 30.8 0 568

September 29.4 58.4% 5.2 99.8 3.0 32.7 0 582

October 30.0 38.4% 5.2 100.1 2.7 33.2 0 615

November 27.1 28.6% 4.7 100.5 2.8 29.6 0 511

December 23.4 31.4% 4.31 100.7 3.0 25.4 0 419

Annual

28.0

44.0%

5.31

100.0

3.4

31.5

0

6547

Measured at (m)

10.0 0.0

Source: NASA

& RETscreen

International

41

SUN Paths Diagram Courtesy: PVsyst 5.05

Land Feasibility (Brief) General Characteristics

The Land is near Bajana Village of Surrendranagar District , Gujarat

The land is located at the Main road and the distance from Ahmedabad

103 Kms which facilitates the transportation.

Nearest Substation

The distance of substation from Land is 7 Km. Substation Type: 66 kV

There will be no Wheeling charge

According to Government:- At 66 kV voltage level and above:

As per the scope of the current Discussion Paper, this clause will be applicable to solar

Plants of capacity greater than 4 MW.

For wheeling of power to consumption site at 66 kV voltage level and above, the wheeling of electricity generated from the Solar Power Generators to the desired location(s) within the State shall be allowed on payment of transmission charges and transmission losses applicable to normal Open-Access Consumer.

As a promotional measure for solar power which is still in its nascent stage. No cross-subsidy Surcharges would be levied in case of third-party sale.

42

The control period proposed for the solar energy tariff order is from 29th January, 2012 to 31st March, 2015.

Considering the nature of solar energy, all solar energy power plants will be considered as ‗must run‘ facilities, and the power generated from such power plants will be kept out from the merit order dispatch principles.

Type Of soil and Terrain

The type of soil is yellow type of Semi rigid Soil and has a good

properties of holding structures

The terrain is flat and there are no mountains in nearby district, so no

shadows and no Blocking of sun as there is No constructed building or

infrastructure near land which blocks the sun.

Also there are no Water blockage problems.

History and Surroundings.

In past 20 years, a 4.7 Richter scale earthquake was experienced over land

and nearby area, According to reports there was no damage.

No storm has been recorded in history of this land

There is no forest area near to land, no river of lake and No mountains.

So there is much less possibility of having a natural calamity or natural

hazard.

Availability

As there is a nearby substation and nearby village having electricity in all

areas, we can get electricity easily without adding any infrastructure, so

the same will be useful in Construction. The Electricity Required Will be

taken from Gujarat Electricity Board OR Diesel Generator Can be kept in

case of scarcity of Electricity

There is plenty of water available as there are 7 wells in land and as the

area around land is farming area, we can get plenty of water. Also

government has the facility of proving a special line of water if needed.

Other

Out of 365 days in a year, we have taken only 330 days as useful days of

production

The ideal time is 7.00 am to 6.30pm. This is the average time considered as sunrise and sunset timings of every month are different.

43

Technical

Plant Size 1MW

Land Contour Flat

Technology Poly-Crystalline

PV Panels Jinko Solar JKM 250P-60

Total No of panels 4000

Inverter SMA Sunny Central 1000MV-11 with multi MPPT feature

Total No of Inverter

1

Structures Galvanised Steel Fixed Structures

Generation Typical PVsyst Loss diagram and Production Every Year

Datasheets of

most used

Panels &

Inverters are

included in

the CD with

this

Document

44

Overview Table

25 Year Generation (Degradation @ 0.8% every year)

Year No Performance Ratio Generation

1 100% 1714076

2 99.200% 1700363

3 98.400% 1686651

4 97.600% 1672938

5 96.800% 1659226

6 96.000% 1645513

7 95.200% 1631800

8 94.400% 1618088

9 93.600% 1604375

10 11

92.800% 1590663

11 92.000% 1576950

12 91.200% 1563237

13 90.400% 1549525

14 89.600% 1535812

15 88.800% 1522099

16 88.000% 1508387

17 87.200% 1494674

18 86.400% 1480962

19 85.600% 1467249

20 84.800% 1453536

21 84.000% 1439824

22 83.200% 1426111

23 82.400% 1412399

24 81.600% 1398686

25 80.800% 1384973

E_Array is

the energy

output

which u get

before you

power is feed

in inverter.

Your actual

generation

will be

E_Grid

45

Financial Analysis Project Cost ( Excluding Land)

9 Cr

Equity 1.8 Cr

Debt 7.2 Cr

Loan tenure 10 years

Interest Rate 8%

Insurance Premium 315000 annually

Operational Expense including O&M

6 Lakhs

Escalation In Op-ex 3% Annually

Project Life 25 years

Tariff 11.25 for 12 years and 7.50 for next 13 years

Step 1 & 2 – Revenue Year No Generation Revenue

from Tariff

Revenue from CDM ( 1CDM =8 euros)

Total Revenue

1 1714076 19283355 973595.2 20256950 2 1700363 19129084 965806.2 20094890 3 1686651 18974824 958017.8 19932842 4 1672938 18820553 950228.8 19770781 5 1659226 18666293 942440.4 19608733 6 1645513 18512021 934651.4 19446673 7 1631800 18357750 926862.4 19284612 8 1618088 18203490 919074 19122564 9 1604375 18049219 911285 18960504

10 11

1590663 17894959 903496.6 18798455 11 1576950 11827125 895707.6 12722833 12 1563237 11724278 887918.6 12612196 13 1549525 11621438 880130.2 12501568 14 1535812 11518590 872341.2 12390931 15 1522099 11415743 864552.2 12280295 16 1508387 11312903 856763.8 12169666 17 1494674 11210055 848974.8 12059030 18 1480962 11107215 841186.4 11948401 19 1467249 11004368 833397.4 11837765 20 1453536 10901520 825608.4 11727128 21 1439824 10798680 817820 11616500 22 1426111 10695833 810031 11505864 23 1412399 10592993 802242.6 11395235 24 1398686 10490145 794453.6 11284599 25 1384973 10387298 786664.7 11173962

If you want

the same

financial

model on

system using

single axis

tracker,

other

specified

products or

in other

financial

terms and

Heads than

fell free to

mail us.

info@bepmax.com

46

Step 3, 4 & 5 (Net Profit) Year No Total

Revenue Every Year Principle + Interest

Insurance Operational Expenditure

Net Profit (without Tax)

1 20256950 10730123 315000 600000 8611827 2 20094890 10730123 315000 618000 8431767 3 19932842 10730123 315000 636540 8251178 4 19770781 10730123 315000 655636.2 8070022 5 19608733 10730123 315000 675305.3 7888304 6 19446673 10730123 315000 695564.4 7705985 7 19284612 10730123 315000 716431.4 7523058 8 19122564 10730123 315000 737924.3 7339516 9 18960504 10730123 315000 760062 7155319

10 11

18798455 10730123 315000 782863.9 6970468 11 12722833 315000 806349.8 11601483 12 12612196 315000 830540.3 11466656 13 12501568 315000 855456.5 11331111 14 12390931 315000 881120.2 11194811 15 12280295 315000 907553.8 11057741 16 12169666 315000 934780.4 10919886 17 12059030 315000 962823.9 10781206 18 11948401 315000 991708.6 10641693 19 11837765 315000 1021460 10501305 20 11727128 315000 1052104 10360025 21 11616500 315000 1083667 10217833 22 11505864 315000 1116177 10074687 23 11395235 315000 1149662 9930573 24 11284599 315000 1184152 9785447 25 11173962 315000 1219676 9639286

Step 6 - Depreciation, Taxation, PAT and Actual PAT

FACT FIGURES

Depreciation 6% for 10 years

2% for next 15 years

MAT 18% for first 10 Years

Income Tax 30% For next 15 years

Equity Investment 1.8 Cr

Table in next Page

47

Year No

Net Profit (without Tax)

Depreciation Profit Before Tax ( In Book of Accounts)

TAX Actual Net Profit

ROE ( Return on Equity)

1 8611827 5400000 3211827 578128.9 8033698 44.63% 2 8431767 5400000 3031767 545718 7886049 43.81% 3 8251178 5400000 2851178 513212.1 7737966 42.99% 4 8070022 5400000 2670022 480603.9 7589418 42.16% 5 7888304 5400000 2488304 447894.8 7440410 41.34% 6 7705985 5400000 2305985 415077.3 7290908 40.51% 7 7523058 5400000 2123058 382150.4 7140907 39.67% 8 7339516 5400000 1939516 349113 6990404 38.84% 9 7155319 5400000 1755319 315957.3 6839361 38.00% 10 11

6970468 5400000 1570468 282684.3 6687784 37.15% 11 11601483 1800000 9801483 2940445 8661038 48.12% 12 11466656 1800000 9666656 2899997 8566659 47.59% 13 11331111 1800000 9531111 2859333 8471778 47.07% 14 11194811 1800000 9394811 2818443 8376368 46.54% 15 11057741 1800000 9257741 2777322 8280419 46.00% 16 10919886 1800000 9119886 2735966 8183920 45.47% 17 10781206 1800000 8981206 2694362 8086844 44.93% 18 10641693 1800000 8841693 2652508 7989185 44.38% 19 10501305 1800000 8701305 2610392 7890914 43.84% 20 10360025 1800000 8560025 2568007 7792017 43.29% 21 10217833 1800000 8417833 2525350 7692483 42.74% 22 10074687 1800000 8274687 2482406 7592281 42.18% 23 9930573 1800000 8130573 2439172 7491401 41.62% 24 9785447 1800000 7985447 2395634 7389813 41.05% 25 9639286 1800000 7839286 2351786 7287500 40.49%

Land Value Calculation Area Purchase Cost Escalation Every

year. Estimated Land Cost after 25 years

1 Acre 10,00,000 10% 9849733

6 Acres( 1MW) 60,00,000 10% 5909840

48

3.1 PV applications in Small Scale Here we are talking about the PV system which generates Electricity. There are Systems Available in market which are pre-configured and Plug and play. It includes PV panels, Inverters, AC and DC boxes, Balance of systems. The same types of solar ―KITS‖ are been manufactured and supplied. The same Bepmax is marketing. These are available in different sizes of 1kW, 2.2kW, 5 kW and 10kW. Typical Applications of PV kits are described in below chart

PV KITS

Residence

Club houses &

Party plots

Schools and Colleges

Common Lighting for

Flats

Commercial Offices and

Complex

Industry Rooftops

For power to Telecom

towers

For Rural areas

3 Photovoltaics in

small Scale

49

3.2 Grid Connected and Stand-alone Systems For Applications involving Residential and Industrial where Electricity is to be

Generated from solar and has to be used for own purpose Solar Kits are been

used. These Solar Kits are Pre-Engineered and uses Tier-1 Solar Modules.

These pre-engineered kits are PLUG and PLAY type & ready to install with all

necessary accessories and hardware which can be installed in many kinds of site

conditions. They are available in 2 types:

Stand-Alone with battery backup

In house Grid Connected

The use of these standardized kits gives the benefit of optimizing

the energy production and the costs involved in setting up such

small scale power plants.

50

In house Grid Connected Stand alone with battery backup

This electricity availability from this system is during daytime when sun is available. So the electricity can be utilized only at day-time

In a stand-alone Solar PV system the main objective is to utilize the solar energy during day time and also to charge the battery bank when generated solar energy is more than the load demand & use the stored energy during night time or during periods of low solar power.

There is wastage of electricity when there is less or No utilization, Also it has to be delivered to continuous load.

In less or No utilization stage, charge or Electricity can be stored in batteries for further utilization. Also Battery sizing can also be done depending upon requirement.

Cost of this system is less Cost of this system is high due to involvement of batteries in it.

A typical Example on roof

51

Space Required Size of Plant (kW)

Area Required (Sq.mtrs)

1 10

2.5 25

5 55

10 100

15 155-160

20 200-220

3.3 Government Subsidies and Tax benefits Subsidy of 30% is available from MNRE on both with and without battery

models on benchmark cost of Rs 270/Wp on battery model and Rs 190/Wp on

without Battery model.

For claiming subsidy under "MNRE off-grid and other application scheme" two

set of complete and duly signed application forms need to be submitted to State

Renewable Nodal Agency. From State level the application will be preceded to

central level for final approval from PAC (Project Approval Committee). The

application forms are available for download at official website of MNRE. Before

this the project proponent needs to appoint a consultant for proper pre-feasibility

study of the proposed project. The findings of this study are required at various

stages of application form filling. Once the project gets approval, funding can be

claimed through NABARD which has already got affiliation from IREDA, which

has been designated as central official body for managing funds granted under

this scheme.

Solar systems can be used to fulfil even smallest capacity power requirements

because of the flexible sizes in which solar photovoltaic panels are available these

days. Since a household system is typically an off-grid, one can avail the capital

subsidy benefits of a MNRE scheme also. This reduces the capital cost of the

system straight away by 30% along with the tax saving benefit in form of 80%

accelerated depreciation for 1st Year

Always check

your open

space, Shadings

and Clear

south

direction with

Horizon

(sunrise and

set times)

before you

plan to set

solar KITS on

your rooftop

52

Reference Table for Subsidies

SL. BENEFICIARIES / ENERGY SOURCES

INDUSTRIES LOCAL BODIES/ INSTITUTIONS

INDIVIDUALS COST/ SUBSIDY

A. SOLAR PHOTO VOLTAIC (SPV)

1 Solar Lighting -Emergency lamps in factories, offices, canteens, etc.

Emergency lamp, Security light

Emergency lamp.

Rs 81/watt with Battery Rs 57/Watt without Battery

(a) Lantern -Security lights at the gate

Farm operations at night.

(Portable Light) Pest catcher in farms/gardens

(b) Home lights (i) Parking Areas

Lighting for offices, other small buildings, Group houses, Multipurpose community centres, Guest houses, Parking areas, Corridors, Places of worship.

Individuals, Farm houses, Radio, T.V.

Rs 81/watt with Battery Rs 57/Watt without Battery

18 W panel (ii) Portico

1 light (iii) Canteens

37 W panel (iv) Guest Houses

2 lights (v) Toilets etc.

74 W panel

4 lights

(20W DC fan can also be used in place of one light)

(c) Street lights - Campus/factory lighting

Street lights, Parks & Play fields, Bus stands, Bus shelters, Petrol bunks, Resorts etc.

Garden/Security lights

Rs 81/watt with Battery Rs 57/Watt without Battery

(74 W)

- Approach road, garden lighting, parking areas, security lights, stores yard

Automatic ON/OFF

From dusk to dawn (10 hrs.)

2 Solar power pack (1 kWp )

Lighting for offices, corridors, parking areas, conference halls etc.

Small shops, Nursing Homes, Hospitals, Health centres, Resorts, etc.

Back-up supply for houses, clinics, shops.

Rs 81/watt with Battery Rs 57/Watt without Battery

53

3 Illuminated Hoardings up to 1 kWp

Illuminated Hoardings / Bill Boards

Advertising Agency, Traders enterprises

--

Rs 81/watt with Battery Rs 57/Watt without Battery

4 SPV Power Plant (1 kW and above)

Lighting for offices (higher load) campus, Security lighting, lighting for residential colonies.

Shopping complexes, Offices, Colleges, Street lights for local bodies, Community centres, Resorts etc.

--

Rs 81/watt with Battery Rs 57/Watt without Battery

5 SPV Water Pumps 200 to 3000 Watts (up to 3 HP 30 m depth) (more effective with drip irrigation)

- Drinking water supply

Small scale irrigation

Drinking water supply. Small scale irrigation

Rs 81/watt with Battery Rs 57/Watt without Battery

- Watering of plants/ gardens/orchards.

Drinking water supply, Public toilets, Resorts.

6

Building Integrated Photovoltaic (BIPV) up to 250 kWp

Administrative Buildings, Corporative Offices

Office, Residential buildings, Demo Solar Buildings

Mansions, Bungalows, Farm Houses.

Rs 81/watt with Battery Rs 57/Watt without Battery

7

Street light control system with 5 Wp SPV module to control 100 street lights

Campus, factory lights, Approach road, garden lighting, parking areas, security lights, stores yard

Street lights, Garden lights parks & play fields, bus stands, bus shelters, petrol bunks, Resorts etc.

Garden / Security lights

Rs 81/watt with Battery Rs 57/Watt without Battery

8 Solar Road Studs, blinkers

-- Traffic Police --

9 Solar Traffic signals 500 Wp (min)

-- Traffic Police --

B. SOLAR THERMAL

1 Solar Water Heating

(i) Process Industries viz. Breweries, Pharmaceuticals, Chemical, Dyeing etc.

(i) Hospitals, Primary Health Centres, Nursing Homes etc.

Bathing, Washing, Cooking (subject to quality of water)

Rs.3300 per Sq.m for FPC (Flat Panel Collectors)

- Temperature level up to 80oC

(ii) Boiler Feed Water Heating

(ii) Hostels, Lodges, Resorts etc.

- Capacity 100-5000, 25000 LPD (Litres per Day)

(iii) Pre-cooking in Canteens

(iii) Drying of Agro Produce in Small Scale.

Rs. 3000 per sq.m for ETC (Evacuated Tube Collector)

54

(iv) Dish washing etc.

(iv) Pilgrim centres

2 Solar Air Heating (i) Drying Agro products (i) Fish Drying

Not applicable Rs 2400 per sq.m

(Temperature range: 80 to 100oC) (ii) Drying of Fish

(ii) Drying of Appalams, Vadagams etc.

(iii) Preheating of withering air in Tea Industries.

(iii) Drying Agro products in Small Scale in co-operative Societies, Self Help Groups involved in Food processing Small & Medium Enterprises (SMEs)

(iv) Any other application requiring low temperature.

3 Solar Cooker

Item (i) & (ii) for families, Road

sides, Restaurants item (iii) & (iv) for

canteens

Noon-meal Centres, Hostels,

Community Kitchens, Hotels, Hospitals with

mainly community

cookers.

Domestic cooking with Box type or

Dish type cookers.

RS 2100 per sq. for manual

tracking Rs 5400 per sq. for single axis tracking Rs. 6000 per sq. for

double axis tracking system

(i) Box Type (5 persons)

Dish Type

(ii) (15 persons)

Community cookers

(iii) (50 persons)

Steam cooking (1000 to

(iv) 10000 persons)

4 Solar Stills (Distilled Water)

Laboratories, Battery Topping

Batteries of Topping in street lights.

Topping of Batteries in home lights

5

Energy Efficient Buildings (climate responsive architectural concept)

Office, factory buildings, Commercial complexes etc.

Office buildings, Community centres, other type of buildings Houses

II BATTERY OPERATED VEHICLE

Van, Auto-rickshaw, passenger car.

Campus use, transport with the factories

Urban/Rural transport, Hospital, Tourist sites etc. Passenger cars

Rs. 4000 for low speed vehicle Rs 5000 for high speed vehicle

55

3.4 Registration Procedure for SI, RESCO and other

with MNRE

The Jawaharlal Nehru National Solar Mission (JNNSM) is one of the eight

National Missions launched by the Government of India as part of the India‘s

National Action Plan on Climate Change. JNNSM aims to promote ecologically

sustainable growth, while addressing India‘s energy security challenge. The

immediate aim of the mission is to focus on promoting the use of renewable

sources of energy and setting up an environment, which will facilitate increased

penetration of solar technology in the country. In order to achieve this objective,

the mission envisages providing capital and interest rate subsidies with an

objective to make the solar off-grid projects commercially viable and workable on

a sustainable basis.

To scale up the said program and increase participation of capable entities as

well as reduce transaction time, the Ministry of New and Renewable Energy

(MNRE) has envisaged an alternative route wherein channel partners can

directly submit their project proposals to MNRE. This would enable a quicker

turnaround in project approval process as compared to submitting proposals

through the State Nodal agencies. In order to ensure that only capable and well-

meaning channel partners are allowed through this new route, the mission has

envisaged that such entities get an accreditation by reputed rating agencies

for submission of projects directly to MNRE.

Need for accreditation

The Mission envisages that the scheme would be implemented through multiple

channel partners so that there is a scaling-up of projects across geographies. For

the successful, wide-scale and meaningful implementation of the mission, it is

important that only credible channel partners are involved in the mission‘s

implementation. The accreditation process would categorize various entities into

grades which would help in identifying those channel partners which have the

capacity and capability to undertake these projects. This publicly available and

highly credible benchmarking exercise can act as a powerful tool for effective

promotion of best-practices in this sector. It will also ensure optimum and

effective use of the subsidies, resulting in an increase in the number of off-grid

solar projects. This will also function as a tool to monitor performance capability

over time, incentivize efficient players and at the same time penalize weaker

performance. For the entities submitting proposals and seeking subsidies, this

route of submitting projects, directly to the ministry will provide one more

channel and ensure faster turnaround for appraisal of projects & disbursal of

subsidies.

The grading will also enable the channel partners to showcase their

capability in executing projects to various other stakeholders like lenders,

customer, suppliers and community groups. The grading would also provide a

tool for comparison of these channel partners on a rational, scientific framework

and a commonly applicable scale. Further, in line with the objective of the

mission, the grading process also envisages the participation of start-ups with

requisite technical skills, and innovative entrepreneurs and accordingly factors in

the parameters. The grading would also facilitate rapid up-scaling of the scheme

56

in an inclusive mode and enable knowledge sharing between channel partners

and project developers.

Framework Development

A framework was developed based on discussions held with various

stakeholders to incorporate their views and opinions on the current scenario of

the sector, the best practices adopted by entities and the expectations of these

stakeholders. Interactions were conducted with manufacturers, system

integrators, bankers, industry associations, as well as government officials

involved in the solar sector. The framework was finalized based on the feedback

from all the above stakeholders.

The framework was also validated using a comprehensive testing exercise

which involved testing the framework on a sample list of entities identified by

the Ministry. The Ministry has adopted the framework and the framework would

henceforth be used for the grading of the channel partners.

Framework for assessment of System Integrators

1 Promoter Track Record

A Solar Capacity installed

B Promoters' relevant track record

C Quality of second tier management team

2 Technical Expertise and Adequacy of Manpower

A Technical Expertise

B Adequacy of Manpower

3 Quality of Supplier and Tie-Ups

A Quality of suppliers

B Supplier feedback

4 Customer and O&M Network

A Customer Feedback

B O&M capabilities

Performance Capability Grading

Financial Strength

1 Sales

2 Return on capital employed

3 Total Outside Liabilities/ Tangible Net worth

4 Interest Coverage

5 Net worth

6 Feedback of bankers on conduct of account and integrity

7 Current Ratio

Framework for assessment of RESCOs Promoter track record

1 Promoter‘s qualification and technical competence

2 Monetary value of capacity Installed

3 Promoter's track record

4 Quality of management

5 Tie-ups with system integrators

Project Management Capability

57

6 O&M capabilities and tie-ups

7 Quality of EPC contractors and equipment suppliers

8 Supplier/EPC feedback

Customer concentration, quality and ability to manage receivables

9 Quality of customers

10 Collection capability

Performance Capability Grading

Financial strength

1 Net worth

2 Bankers Feedback

3 Financial Flexibility

Project Related Assessment

4 Gearing

5 Debt Service Coverage Ratio

6 Interest Cover

7 Project IRR

Process for grading

Channel partners desirous of applying for CFA directly to MNRE would need to

obtain a grading from the credit rating agency selected by MNRE. Eligible

channel partners which will be considered by MNRE for providing subsidy

under this scheme.

Following mentioned steps would be included in grading an entity by a credit

rating agency:

Step 1: Any entity interested to become channel partner will approach any of the

rating agencies like CRISIL and ICRA

Step 2: The rating agency will assign rating to the entity based on financial and

technical strength.

Step 3: The entity will approach the Ministry for accreditation based on the

obtained rating and the Ministry will do the needful

Step-4: After accreditation the entity will submit project proposal to Project

Approval Committee for approval. PAC will take necessary action.

Step-5: After approval of Project the entity will implement the project and

approach the Ministry for release of CFA

Step-6: The Ministry will get the project inspected through third party and

release the CFA Features of the Grading

Product Definition:

The grading will reflect ―The performance capability and financial strength of the

channel partner to undertake off-grid solar projects‖.

Product Scale:

The grading would be done on a 5x3 matrix (5x3). This matrix will assess the

entity on two broad parameters; performance capability and financial strength.

58

Financial Strength

High Moderate Low

P

erfo

rman

ce

Cap

abil

ity

Highest SP 1A SP 1B SP 1C

High SP 2A SP 2B SP 2C

Moderate SP 3A SP 3B SP 3C

Weak SP 4A SP 4B SP 4C

Poor SP 5A SP 5B SP 5C

Validity of Grading

The grading will be valid for a period of two years for entities with the highest

performance capability (graded 1A/1B/1C); for all other entities the grading will

be valid for a period of one year, to offer them an opportunity to move up the

grading scale.

The channel partners who wish to get themselves graded under this scheme can

contact the credit rating agencies listed below. For grading fees, please visit the

website of the respective rating agencies

CRISIL and

ICRA are the

Rating

agencies. Visit

their websites

for more

Information

59

3.5 Steps to Register the Solar project

First of all we recommend to see whether you size of project is eligible for

subsidy or not. As for residence subsidy is only available up to 1kW solar pack

but if anyone wants solar for their flats common lighting than subsidy is

available up to 100kW as it is considered in commercial

If you are the owner of the project than you can follow below steps

SI = System integrator, who will supply and install solar system

Select you size

Approach MNRE Registered SI

SI will directly submit proposal to MNRE

After the project is passed than your subsidy will be deposited in SI's

account and they can provide you back

Approach un-Registeres SI

They will prepare your Project proposal and will approach registered state

agencies

After the project is passed subsidy will be directly be deposited

in your account

Do your own paper work for Subsidy

In this case you have to prepare proposal

and have to approach state agencies

After the project is passed subsidy will be directly be deposited

in your account

Check if subsidy is available for your size

and entity

Registration

Procedure

Document

and Project

proposal

format is

included in

the CD

attached

with this

document

60

3.6 Benefits of Using Solar

Example

Entity Commercial office on top floor with terrace rights

State Electricity rate with taxes

` 7.80/Unit(kWh)

Annual Units used 12,000 Annual Bill ` 101400 Space Available 60 Sq.mtrs Proposed Size of Plant 5kW Proposed Type System without battery. As office being

closed at night hours. Overall cost with Consultation and installation

`6,00,000

Subsidy Available `1,80,000

Tax benefits from 80% AD benefit from 1st year

`1,00,800

Actual Cost after Savings `319200

Units generated every year 9000

Savings on electricity Bill every year

`70200

Break Even 4.5 years

Useful life of Solar 25 Years

Benefits

Decreases your Electricity bill

You will be on when power cuts off

Long life of panels and low

maintenance

30% MNRE subsidy available and 80%

Accelerated benefit for 1st year

61

4.1 REC Mechanism

What is RPO?

Renewable Purchase Obligation (RPO) – A mandate for obligated entities (OEs)

to purchase a percentage of the total electricity consumption

Mandated by Electricity Act 2003

Section 86(1) (e) - ―The State Electricity Regulatory Commission (SERC) should….

specify, for purchase of electricity from renewable energy sources, a percentage of

the total consumption of electricity in the area of a distribution licensee”

Section 61(h) – The CERC shall…specify the terms and conditions for the

determination of tariff, and shall be guided by … the promotion of co-generation

and generation of electricity from renewable sources of energy

Section 66 - The CERC shall endeavour to promote the development of a market

(including trading) in power in such manner as may be specified and shall be

guided by the National Electricity Policy

Obligated Entities like 1) Distribution companies 2) Open access Consumers 3)

Industries Consuming Captive Power Have to fulfil their RPO for which they can

do the following Process

– Generate their own renewable energy

– Purchase energy from RE sources that comply with RPO

regulations

– Purchase Renewable Energy Certificates(RECs)

In case an obligated entity does not meet its RPO, and even a single REC remains

Unsold on the exchange, a penalty of maximum cost of REC shall be imposed on

the Entity.

What is REC?

REC means Renewable Energy Certificate which is equal to 1MW energy

produced of 1000kWh.

It is Valid for 365 Days from the date of issuance.

This Certificate can be traded to Obligated Entities through Indian Energy

Exchange (IEX) and Power Exchange of India Ltd (PXIL)

REC Price (Source: REC registry)

Floor Price - ` 9300

Ceiling Price - ` 13400

Valid Period – April 2012 to March 31st 2017

4 A Lookout on REC

62

Future Expectations on Prices

It is an Assumption that Prices of REC will be halved after March 2017, so the

price will come down to `4600 - ` 6500

Minimum Required Capacity – 250kW

Objective - Renewable Energy Certificate (REC) mechanism is a market based

instrument to promote renewable energy and facilitate compliance of renewable

purchase obligations (RPO). It is aimed at addressing the mismatch between

availability of RE resources in state and the requirement of the obligated entities

to meet the renewable purchase obligation (RPO).

REC Registration Procedure Reference and Source: www.recregistryindia.nic.in

Accreditation

STEP 1: The applicant shall apply for Accreditation on the Web Based Application and shall also submit the same information in physical form with the State Agency. The application for accreditation shall contain (i) owners details, (ii) operator details (in case the owner and operator are different legal entities), (iii) Generating Station details, (iv) Connectivity details with concerned licensee (STU/DISCOM), (v) metering details, (vi) Statutory Clearance details, (vii) Undertaking of not having entered into PPA on preferential tariff for the capacity for which participation in REC. An application for availing accreditation shall be made by the generating company to the host State Agency, as defined under Clause 2(1) (n) of the CERC REC Regulations. The applicant shall apply for Accreditation on the Web Based Application and shall also submit the same information in physical form with the State Agency. The application for accreditation shall contain (i) owners details, (ii) operator details (in case the owner and operator are different legal entities), (iii) Generating Station details, (iv) Connectivity details with concerned licensee (STU/DISCOM), (v) metering

Accredation Registration Issuance of

REC Redemption

of REC

63

details, (vi) Statutory Clearance details, (vii) Undertaking of not having entered into PPA on preferential tariff for the capacity for which participation in REC scheme is sought as per the CERC REC Regulations and (viii) any other relevant information as per the enclosed format (FORMAT- 1.1 : Application for Accreditation of RE Generation Project). In case, the Applicant has multiple RE generation projects then, separate Applications will have to be submitted by the Applicant for each RE generation project. Accreditation of each RE generation project shall be carried out separately. The RE Generation Project shall comply with the requirements of Connectivity standards for Grid Connectivity at particular injection voltage/grid interface point as specified by State Transmission Utility or concerned Distribution Licensee, as the case may be. The Application made for accreditation of RE generation project shall be accompanied by a non-refundable processing fee and accreditation charges (one time and annual, if any) as determined by the Appropriate State Electricity Regulatory Commission from time to time. STEP 2: The State Agency shall assign a unique acknowledgement number to the Applicant for each application for accreditation of its RE generation project, for any future correspondence. STEP 3: After receipt of application in physical form for accreditation, the State Agency shall conduct a preliminary scrutiny to ensure Application Form is complete in all respect along with necessary documents and applicable processing fees and accreditation charges. The State Agency shall undertake preliminary scrutiny of the Application within 5 working days from date of receipt of such Application. STEP 4: After conducting the preliminary scrutiny, the State Agency shall intimate in writing to the Applicant for submission of any further information, if necessary, to further consider the application for accreditation or reject application. The reasons for rejecting the application for accreditation shall be recorded and intimated to Applicant in writing within 2 working days from date of receipt of the completed application by State Agency. STEP 5: While considering any application for accreditation of RE generation project, the State Agency shall verify and ascertain availability of following information:

a. Undertaking of 'Availability of Land' in possession for setting up

generating station

b. Power Evacuation Arrangement permission letter from the host State

Transmission Utility or the concerned Distribution Licensee, as the case

may be

c. Confirmation of Metering Arrangement and Metering Location

d. Date of Commissioning of RE project for existing eligible RE Project or

Proposed Date of Commissioning for new RE for accreditation

e. Undertaking regarding Off-take/Power Purchase Agreement

f. Proposed Model and Make for critical equipment (say, WTG, STG, PV

Module) for the RE Project. Confirmation of compliance of critical

equipment with relevant applicable IEC or CEA Standards

g. Undertaking for compliance with the usage of fossil fuel criteria as

specified by MNRE

h. Details of application processing fees/accreditation charges

64

STEP 6: The State Agency, after duly inspecting/verifying conditions elaborated in Step 5, shall grant 'Certificate for Accreditation' to the concerned Applicant for the proposed RE Generation project and assign a specific project code number to that effect which shall be used by the such Applicant (Eligible Entities) for all future correspondence with the State Agency. The process of accreditation shall normally be completed within 30 days from date of receipt of complete information by State Agency. In case accreditation is not granted at this stage, the reasons for rejecting the application for accreditation shall be recorded and intimated to Applicant in writing. STEP 7: If accreditation is granted, the State Agency shall also intimate accreditation of particular RE generation project to the following entities,

a. The Central Agency, as defined under Clause 2(1) (b)

b. The host State Load Despatch Centre

c. The distribution company in whose area the proposed RE generation

project would be located.

Registration

STEP 1: The applicant shall apply for Registration on the Web Based Application and shall also submit the same information in physical form with the Central agency. The application for registration shall contain the following information as submitted for Accreditation of the RE Generation project: (i) Owner details (ii) RE Generating Station details, (iii) certificate of accreditation by the State Agency, (iv) generating facility commissioning schedule (v) any other relevant information as per the enclosed format (FORMAT- 2.1 : Application for Registration. An application for availing registration shall be made by the RE Generating Company to the Central Agency, as defined under Clause 2(1) (b) of the CERC REC Regulations. The applicant shall apply for Registration on the Web Based Application and shall also submit the same information in physical form with the Central agency. The application for registration shall contain the following information as submitted for Accreditation of the RE Generation project: (i) Owner details (ii) RE Generating Station details, (iii) certificate of accreditation by the State Agency, (iv) generating facility commissioning schedule (v) any other relevant information as per the enclosed format (FORMAT- 2.1 : Application for Registration of Eligible Entity). The Application made for registration of RE Generating Company with the Central Agency as Eligible Entity shall be accompanied by a non-refundable registration fees/charges and annual fee/charges as determined by the Central Electricity Regulatory Commission, by order, from time to time. In case, the Applicant has multiple RE generation projects then, separate Applications will have to be submitted by the Applicant for each RE generation project. STEP 2: The Central Agency shall assign a unique acknowledgement number2 to the Applicant for each application for registration of its RE generation project, for any future correspondence. While registration of each RE generation project shall be carried out separately, unique number once assigned for a particular Eligible Entity shall remain same for all RE generation projects of the said Eligible Entity to be registered with Central Agency. A sequential number series shall be followed for distinguishing each RE generation project of the Eligible Entity to be registered under the unique number assigned to particular Eligible Entity. STEP 3: After receipt of application in physical form for registration, the Central

65

Agency shall undertake preliminary scrutiny to ensure Application Form is complete in all respect along with necessary documents and applicable registration fees and charges. The Central Agency shall undertake preliminary scrutiny of the Application within 2 working days from date of receipt of such Application. STEP 4: After conducting the preliminary scrutiny, the Central Agency shall intimate in writing to the Applicant for submission of any further information, if necessary, to further consider the application for registration or reject application. The reasons for rejecting the application for registration shall be recorded and intimated to Applicant in writing within 2 working days from date of receipt of the completed application by Central Agency. STEP 5: While considering any application for Registration, the Central Agency shall verify and ascertain availability of following information:

1. A Valid Certification of Accreditation by State Agency

2. Date of Commissioning or Proposed date of Commissioning or

Commissioning Schedule for new projects.

3. Undertaking that it has not entered into any Power Purchase Agreement

at preferential tariff as may be determined by the Appropriate

Commission

4. Details of payment of registration fees/charges

STEP 6: The Central Agency, after duly inspecting/verifying conditions elaborated in Step 5, shall grant 'Certificate for Registration' to the concerned Applicant as 'Eligible Entity' confirming its entitlement to receive Renewable Energy Certificates for the proposed RE Generation project and assign a specific entity-wise and project-wise code number to that effect which shall be used by the such Applicant (Eligible Entities) for all future correspondence with the Central Agency. The process of registration shall normally be completed within 15 days from date of receipt of complete information by Central Agency. In case registration is not granted at this stage, the reasons for rejecting the application for registration shall be recorded and intimated to Applicant in writing. STEP 7: If registration to Eligible Entity is granted, the Central Agency shall also intimate registration of Eligible Entity for particular RE generation project to the following entities,

a. The host State Agency

b. The host State Load Despatch Centre

c. The Power Exchanges, as defined under Clause 2(1) j of the CERC REC

Regulations

Issuance of REC

STEP 1: The eligible entity shall apply for Issuance of REC on the Web Based Application and shall also submit the same information in physical form with the Central Agency. The application for issuance of certificate shall include (i) Energy Injection* Report duly certified by the concerned State Load Despatch Centre (ii) Registration Certificate and shall be made in the specified format (FORMAT- 3.1: "Application for Issuance of Renewable Energy Certificates to the Eligible

66

Entities"). The application shall be accompanied by applicable fee & charges. An application for issuance of Renewable Energy Certificate shall be made by the Eligible Entity to the Central Agency. The eligible entity shall apply for Issuance of REC on the Web Based Application and shall also submit the same information in physical form with the Central Agency. The application for issuance of certificate shall include (i) Energy Injection* Report duly certified by the concerned State Load Despatch Centre (ii) Registration Certificate and shall be made in the specified format (FORMAT- 3.1: "Application for Issuance of

Renewable Energy Certificates to the Eligible Entities"). The application shall be accompanied by applicable fee & charges towards issuance of certificates as determined by CERC from time to time. While making application for issuance of RECs, the Applicant (Eligible Entity) shall quote the unique Registration Number assigned to it by Central Agency at the time of registration. Note :- Injection shall include self-consumption of the Captive Power Plant if it is separately metered and measurable. STEP 2: The Central Agency shall assign an acknowledgement number to the Eligible Entity for its registered application request for issuance of Renewable Energy Certificates, referring to Unique Number assigned to the concerned Eligible Entity at the time of registration, for any future correspondence. STEP 3: After receipt of application in physical form for issuance of renewable energy certificates from the Eligible Entity, the Central Agency shall undertake a preliminary scrutiny within 2 working days to ensure that the Application Form is complete in all respect along with necessary documents and applicable fees and charges. As part of preliminary scrutiny, the Central Agency shall ensure fulfilment of following conditions:

The application is made in the format specified by the Central Agency

from time to time.

The status of Accreditation of the Eligible Entity with the Central Agency

has not expired.

The status of Registration of the Eligible Entity with the Central Agency

has not expired.

The duly certified Energy Injection report by the concerned State Load

Despatch Centre is attached for the same period for which application is

made towards issuance of Renewable Energy Certificate by the Eligible

Entity.

The application is accompanied with fees & charges.

STEP 4: After conducting the preliminary scrutiny, the Central Agency shall intimate in writing to the Applicant for submission of any further information or seek clarification, if necessary, to further consider the application for issuance of Renewable Energy Certificates or reject application. The reasons for rejecting the application for issuance of Renewable Energy Certificates shall be recorded and intimated to Applicant in writing within 2 working days from date of receipt of the completed application by Central Agency. STEP 5: While considering any application for issuance of Renewable Energy Certificate, the Central Agency shall verify and ascertain availability of following information:

67

Verification of the time period for which the Central Agency may have

already issued Renewable Energy Certificates to the concerned Eligible

Entity.

Verification of Renewable Energy Certificates claimed by the Eligible

Entity from the duly certified Energy Injection Reports by the concerned

State Load Despatch Centre in respect of concerned Eligible Entity.

Details of fee & charges made for issuance of certificates.

Confirmation of Compliance Auditor report, if any.

STEP 6: The Central Agency shall only issue Renewable Energy Certificates to

the Eligible Entity after confirming, the claims made by the Eligible Entity, with

the Energy Injection Report submitted by the SLDC. In case of any discrepancy,

in the Energy Injection Report enclosed by the Eligible Entity along with

Application and regular Energy Injection Report received by Central Agency

from concerned State Load Despatch Centre, the information contained in

regular Energy Injection Report furnished by concerned State Load Despatch

Centre shall be considered as final and binding for the purpose of issuance of

Renewable Energy Certificates. However, in case energy units reported under

Energy Injection Report by concerned State Load Despatch Centre exceed that

claimed by Eligible Entity for same period then, Central Agency shall seek

necessary clarification from concerned State Load Despatch Centre before

issuance of the Renewable Energy Certificates. The denomination of each REC

issued would be as per the CERC REC Regulations and 1 REC would be taken as

equivalent to 1 MWh of energy injected into the grid. It is clarified that any

fractional component of energy as per the Energy Injection Report can be

accumulated and would be considered for issuance of RECs as per the CERC

REC Regulations.

STEP 7: The Central Agency shall issue the Renewable Energy Certificates to the

Eligible Entity within fifteen (15) days from the date of receipt of application

form along with complete information necessary for processing of application for

issuance of RECs.

STEP 8: In case the Eligible Entity is not fulfilling any of the conditions

mentioned under Step-5 and fails to provide necessary information/clarification

in the matter within stipulated timeframe, the Central Agency may reject the

application and shall intimate to the Eligible Entity, in writing, the reasons for

rejecting the application for issuance of RE certificates.

STEP 9: Upon issuance of RE Certificates to Eligible Entity, the Central Agency

shall also intimate about such issuance to the concerned State Agency.

Redemption of REC

STEP 1: The total quantity of Certificates ('Solar' and 'Non-Solar' separately)

placed for dealing on the Power Exchange(s) by the eligible entity shall be less

than or equal to the total quantity of valid Certificates held by the eligible entity

68

as per the records of the Central Agency. The renewable energy certificates shall

be dealt in the Power Exchange within the price band as specified by CERC from

time to time. The Eligible Entity shall place for dealing of renewable energy

certificates; both 'Solar' and 'Non-Solar' Certificates, on any Power Exchange

authorised to deal in renewable energy certificates by CERC. The total quantity

of Certificates ('Solar' and 'Non-Solar' separately) placed for dealing on the Power

Exchange(s) by the eligible entity shall be less than or equal to the total quantity

of valid Certificates held by the eligible entity as per the records of the Central

Agency. The renewable energy certificates shall be dealt in the Power Exchange

within the price band as specified by CERC from time to time.

STEP 2: During the time the bidding window opens in the Power Exchange, the

eligible entities shall place their offers and the buyers1 shall place their bids

through the trading platform of the respective Power Exchange.

STEP 3: On closure of the trading window, the Power Exchange(s) shall send the

maximum bid volumes for each of the eligible entity, which has placed offers on

that Power Exchange, to the Central Agency for verification of the quantity of

valid RECs available with the concerned eligible entity for dealing on the Power

Exchange(s).

STEP 4: The Central Agency shall check the combined maximum bid volume in

the Power Exchange(s) for each eligible entity against the quantity of valid RECs

for that entity for both 'Solar' and 'Non-Solar' Certificates. The Central Agency

shall send a report to Power Exchange(s) confirming the availability of the valid

RECs with the eligible entity. In case the combined maximum bid volume placed

for dealing in the Power Exchange(s) exceeds the quantity of valid RECs held by

the eligible entity as per the records of the Central Agency, then, the Central

Agency shall advise the Power Exchange(s) to exclude such bid(s) while working

out the Market Clearing Price and the Market Clearing Volume.

STEP 5: The Power Exchange(s) shall work out the Market Clearing Price and the

Market Clearing Volume taking into account the advice received from the

Central Agency and send the final cleared trades to the Central Agency for

extinguishing of the RECs sold in the records of the Central Agency. The

certificates will be extinguished by the Central Agency in the 'First-in-First-out'

order.

69

4.2 Different Project Models of REC

Model 1: Sale to Distribution Licensee and REC is availed

In this Model you can earn in three ways

1) APPC rate per unit – which is different for all states. In Gujarat the

rate is Appx `3.

2) REC sale - `9300 to `13400

3) CDM Benefit – 5 to 8 Euros per every 1MWH produced.

So per unit you can get (Till 2017)

Minimum/Unit = 3(APPC) + 9.3(REC) + 0.35 (CDM) = 12.65

Maximum/Unit = 3(APPC) + 13.4 (REC) + 0.56(CDM) = 16.96

Project

PPA with Discom at APPC rate

Power Sale through Grid

X/1000 = REC Availed

Sell of REC to obligated Entities Through IEX or

PXIL

X Units Generated

Visit website

of IEX and

pxil to see

analyse the

pattern of

sale of solar

REC’s and

the trade

rate.

70

Model 2: Built – Operate and Sale to 3rd Party with REC availed

3rd party could be industry or agency.

In this Model you can earn in three ways

1) 3rd Party PPA rate per unit – Assumed to be `5.30

2) REC sale - `9300 to `13400

3) CDM Benefit – 5 to 8 Euros per every 1MWH produced.

So per unit you can get (Till 2017)

Minimum/Unit = 5.30(PPA) + 9.3(REC) + 0.35 (CDM) = `14.95

Maximum/Unit = 5.30(PPA) + 13.4 (REC) + 0.56(CDM) = `19.46

Project

PPA with Discom at 3rd party rate

Power Sale through Direct mains

X/1000 = REC Availed

Sell of REC to obligated Entities Through IEX or

PXIL

X Units Generated

71

Model 3: Captive use and REC availed

Case Considered: Industry in Gujarat using Power of GEB (Gujarat electricity

Board) and feeds the RE generated power in Grid

In this Project you can have lots of benefit

1) You can get REC benefit or fi you are obliged entity than you can

used it for your own.

2) You can deduct your own usage from what u produced, so on

each unit deduction you will get profit equal to Present rate of

electricity for Commercial/Industrial which in any state will not

be less than 7.

3) As explained in Above Flow chart the remaining unit after

deduction can be traded (Only After having PPA with DISCOM)

at an APPC rate.

4) You can get CDM benefit

DEVELOPE

R

Y Units

Usage

Produces X

amount of

Units

through

REC

Availed

and Sold

Deducts Y

Units from

Generated X

units

GEB

Pays APPC

rate for X-Y

units

If you need a

detailed

report on

any of these

models with

figures on

any scale of

project than

mail us

info@bepmax.com

72

• Supply, design, erection and Consultation for subsidy for small scale solar PV systems

•Debt Consultation and fund raising consultation

•Debt Available at 7 to 9 % of annual interest

•Project Registration

•Land Consultation

•Permission works

•Turnkey Projects

•Solar project Consultation

•Feasibility Analysis

•Financial Analysis

EPC services and

Consultation

Project Laision work

Small Scale Solar

Finance

BEPMAX SOLAR (P) Ltd

“Energizing Nation Enligtening LIFE”

73

A letter from Managing Director

Energy and Energy production has a wide playing role in

today‟s life. It relates Human day to day life as well as

country‟s/states facilities as well as plays an important in

financial cycles and creating large manpower requirement and

thereby reducing poverty.

Commenting on clean energy, I recommend that this field is the

future of tomorrow‟s world. Most of the countries are using

renewable sources as 15% of their total energy requirement.

The day is not far for reaching the same at 50%.

Investment & Adaption of Solar is a profitable approach with

your dedication towards environment and helping keeping the

Globe clean.

We are working in many verticals for solar industry which

includes EPC services, Project Consultation, Finance

Consultation and also in nearby future we would be in a new

vertical called Project developer.

In and All, We Here are with a motto “Energizing Nation,

Enlightening LIFE “.

Bhupesh K Shah

MD & CEO

Bepmax Solar Pvt Ltd

md@bepmax.com

info@bepmax.com

74

A letter from Vice-President

RENEWABLES, it sound very onomatopoetic and Pleasant as

there is a work NEW & ABLE involved in it. New and

everlasting. Work-ABLE, feasi-ABLE and Sustain-ABLE

adding up.

Who might have thought before 18th century that people would

invest in Sun? But today Solar is the fastest growing Energy

sector. In addition of investment you are helping nature.

In this Reference manual PHOTOVOLTAIC LOOKOUT we

have tried to put a light on solar business by adding many brief

topics of this industry.

No-doubt it‟s the best investment industry in which you can

have long returns and a tag of “ Producer of Clean energy”

I am also thankful to Indian Government for aggressively taking

this field ahead and we expect more from you. Also I expect

more policies from other states like Gujarat.

We are Dedicating this to the people and their effort for making

solar successful. Cheers to all guys who is in industry and also

to those who want to be part of Industry.

Let‟s build, Lets earn and lets help our environment and keep

the beauty of Nature alive.

Also I would like to thanks my M.D. Mr.Shah for Motivating

me towards this field and making this happen

Rishi R Patel

Vice president-Operations

Bepmax Solar Pvt Ltd

Editor and Compiler of Photovoltaic lookout

rishi@bepmax.com

info@bepmax.com

75

Bepmax Solar Pvt Ltd

Contact us at:

+91-9825050867

+91-9428503868

info@bepmax.com

www.bepmax.com