Orissa (Odisha) Solar Policy, Solar energy Projects and Solar Business Opportunities in Orissa, Steps Involved in Roof-top Solar PV System Designing with Battery Backup

Posted by aathmika on 22nd Aug, 2012

TABLE OF CONTENTS

1.LATEST SOLAR NEWS AND VIEWS IN ORISSA

2.CAPITAL COST OF SOLAR PV MW SCALE POWER PLANTS

CAPITAL COST AS PER CERC

CAPITAL COST OF TIER 1/ TIER 2

BEST PRACTICES AND WORST PRACTICES

CAPITAL COST OF SOLAR THERMAL CPV/CSP /MICRO CSP

3.TWO ROUTES TO SOLAR POWER GENERATION :

PPA / REC

PPA AND 3RD PARTY PPA

APPC PLUS REC

AMENDMENTS TO REC

THIRD PARTY PPA PLUS REC

CAPTIVE POWER PLANT PLUS REC

4.IDEAL LAND FOR SOLAR POWER PLANTS

SOIL TESTING

CAPITAL GAINS TAX

MODES OF ACQUIRING LAND FOR SOLAR POWER PLANTS

LAND ISSUES

LAND CONVERSION PROCEDURE AND FORM

5.SOLAR POWER GENERATION PROJECT FINANCING

LINKS TO BANKS THAT LEND LOAN FOR SOLAR

PRE FINANCING BY EPC COMPANIES

SUPLIERS CREDIT

EXIM FINANCING-LOW COST INTERNATIONAL FUNDING - PRACTICAL !?

LIBOR

NON-RECOURSE PROJECT FINANCING

COMMISSION FOR GETTING BANK LOANS

LINKS TO BANKS THAT LEND IN ORISSA

6.REC

REC ACCREDITATION

REC REGISTERATION

REC TRADING

REC - OBLIGATED ENTITIES

REC NEWS.

7.APPC COST PER UNIT STATE WISE

8.ACCELERATED DEPRECIATION

WHAT IS AD ?

STIPULATION OF 31st March and 1st Sept

SUDDEN CHANGE OF DEPRECIATION POLICY ! ?

HOW TO BENEFIT FROM AD ?

9.SUBSTATION LOCATIONS AND POWER GENERATION POTENTIAL

11.GRID CONNECTIVITY AND EVACUATION PROCEDURE

12.SOLAR PARK : AVAILABILITY IN ORISSA

ADVANTAGES

DISADVANTAGES

13.STEPS FOR SOLAR CAPTIVE FOR FACTORY

14.SOLAR NEWS

15.ORISSA SOLAR POLICY

ELIGIBLE DEVELOPERS

SOLAR POWER PROJECTS FOR CAPTIVE USE

SOLAR POWER PROJECTS DIRECT SALE TO 3RD PARTY

SOLAR POWER PROJECTS FOR SALE THROUGH RE(SOLAR) CERTIFICATE MECHANISM

OPEN ACCESS FOR THIRD PARTY SALE

MAIN ATTRACTIONS

16.DESIGN OF ROOF TOP

17.OTHER SOLAR BUSINESS OPURTUNITIES

18.REGISTERED SPV SUPPLIERS

19.DNI DETAILS SOLAR NEWS AND GENERATION POTENTIAL IN DISTRICTS IN ORISSA

20.GROUND ZERO AND ENTIRE BUSINESS OPPORTUNITIES

21.FAQ'S

22. ALL RELATED LINKS

LATEST NEWS AND VIEWS

NEW FUND TO REDUCE COSTS FOR SOLAR POWER PROJECTS

A demand for the creation of a separate window under the National Clean Energy Fund (NCEF) has been made by the industry. It may provide a boost to the country’s domestic solar energy projects by providing easy access to finance for such clean energy technology, the industry has stated in a FICCI white paper.The paper on reducing the cost of finance for solar energy projects through NCEF has been submitted to the government for consideration.

The Fund was announced in the budget 2011-12 and is expected to be a step for funding research and innovative projects in clean energy technology. The white paper in essence, suggests innovative models for sharing and distribution of risk and cost of financing through NCEF as the cost of financing from the domestic Financial Institutions is high. MORE..

The ministry is gradually running out of funds allocated for giving subsidies , this is a fact .But the advise by FICCI is not germane as it was already commented by joint secretary Tarun Kapoor in RENERGY 2013 in chennai "We are currently getting part of the funds used for subsidy from the National Clean Energy Fund and we are talking to them for more funds," he added.

ORISSA SOLAR POLICY OUT BY AUGUST!!?

Bhubaneswar, May 3 -- Odisha government is formulating a policy to promote generation of solar energy to meet the demand of rising power requirement in the state.Science and Technology Secretary D N Gupta said the drafting of the policy was at its final stage and efforts were on to finalise the policy in next three months.As per the proposed policy the government would provide 30 per cent of the total cost for installation of solar panels at the rooftops and solar water pumps.MORE..

SOLAR CAR BY KIIT UNIVERSITY CAN GO 40KM/HR???

Report by Odisha Diary bureau, Bhubaneswar: Another success in the hand of KIIT Engineering students by designing a Solar Car, which is a completely electrical and electronic vehicle powered by solar energy is the Solar Car, which is a completely electrical and electronic vehicle powered by solar energy is the future of automobile industry globally.The Solar car ‘Yuva’ is consists of solar panels overhead it has a power intake of 80W each, it charges 4 batteries each "I delivering an output of around 40 Amp Hr. MORE..

Two solar powered cars designed by students of Orissa Engineering College, Bhubaneswar

Report by India Education bureau, Bhubaneswar: Two solar powered cars have been designed, fabricated and assembled by the Mechanical Engineering Department of Orissa Engineering College, Bhubaneswar. These two cars were inaugurated on 24th April 2013 on the eve of “ZAZEN” 2013. On this occassion Principal of the college Prof. (Dr.) T. C. Panda, Director Administration, Mrs. Suprita Patnaik, Director Public Relation, Mrs. Sonya Patnaik, Director Student Welfare, Er. S. P. Patnaik, Senior Professors, all faculty members and students of the institute were present. MORE...

2.Cost of a 1 MW Solar Power Plant : Estimate

ITEM	Rs (in lakhs)
Supply, Installation, Erection & Commissioning of Modules	345 (REC orEquivalent)
Module Mounting Structure and associated civil works	90
Installation, Erection & Commissioning of Inverters	65 (AEG or Equivalent)
Cables and associated civil works	40
Testing & Commissioning of Transformer	18
H. T. Panel and associated civil works	15
Meters with *C.T. & P.T., Isolators, four pole structure & related evacuation system with switchyard lighting* and civil works	18
SCADA, Weather station, Earthing & Lighting Protection	25
ACDB, DCDB, Batteries with Chargers, Control Panel etc.	08
String Combiner Boxes	12
Inverter & Control room, Boundary wall work, approach road with water tank	35
*Insurance*	09
Engineering & Men Power & Out of Pocket Expenses	15
Miscellaneous

Total 695 lakhs (6.95 Crores)

Mounting Structurers (with tracking - Single Axis)	80
Mounting Structurers (with tracking - Dual Axis)	140

Its a known fact that single axis and dual axis tracking technologies provide more than 15% additional generated power. However technical experts choose to operate without both single axis and dual axis tracking systems, simply to avoid any moving part in the plant. They want to avoid the risk of a breakdown ever.

Even CERC has estimated the cost of a solar power plant without taking tracking systems.

There are some newer Tracking systems which claim lower costs and higher efficiencies. Costing less than 10 % of the project cost and providing more than 25 % efficiency. These seem pretty good to go.

Here’s a breakup of the costs for Solar PV projects as recommended by CERC:

SNO	Particulars	Capital Cost Norm for Solar PV project (Rs.Lakh/MW)	% of total cost
1	PV Modules	344.50	43%
2	Land Cost	16.80	2%
3	Civil and General Works	94.50	12%
4	Mounting Structures	105.00	13%
5	Power Conditioning Unit	60.00	7%
6	Evacuation Cost up to Interconnection point (Cables and Transformers)	105.00	13%
7	Preliminary and Pre-Operative Expenses including IDC and contingency	80.00	10%
	Total Capital Cost	805.80	100%

COST OF 1MW WITH CNPV/ CSUN

ITEM	Rs (in lakhs)
Supply, Installation, Erection & Commissioning of Modules	305
Module Mounting Structure and associated civil works	95
Installation, Erection & Commissioning of Inverters	65 (BONFIGLIOLI or Equivalent)
Cables and associated civil works	35
Testing & Commissioning of Transformer	18
H. T. Panel and associated civil works	15
Meters with *C.T. & P.T., Isolators, four pole structure & related evacuation system with switchyard lighting* and civil works	15
SCADA, Weather station, Earthing & Lighting Protection	20
ACDB, DCDB, Batteries with Chargers, Control Panel etc.	08
String Combiner Boxes	10
Inverter & Control room, Boundary wall work, approach road with water tank	35
*Insurance*	09
Engineering & Men Power & Out of Pocket Expenses	15
Miscellaneous

Total 645 lakhs (6.45 Crores)

Cost of a 1 MW Solar Power Plant

with TIER2 PANELS & PRACTISES

ITEM	Rs (in lakhs)
Supply, Installation, Erection & Commissioning of Modules	300
Module Mounting Structure and associated civil works	90
Installation, Erection & Commissioning of Inverters	55
Cables and associated civil works	35
Testing & Commissioning of Transformer	18
H. T. Panel and associated civil works	10
Meters with *C.T. & P.T., Isolators, four pole structure & related evacuation system with switchyard lighting* and civil works	18
SCADA, Weather station, Earthing & Lighting Protection	15
ACDB, DCDB, Batteries with Chargers, Control Panel etc.	08
String Combiner Boxes	12
Inverter & Control room, Boundary wall work, approach road with water tank	30
*Insurance*	09
Engineering & Men Power & Out of Pocket Expenses	15
Miscellaneous

Total 615 lakhs (6.15 Crores)

This is avoidable , solar power generation is a profitable project. with an investment of Rs.2 Crores one can earn upto 40 crores and more in the ensuing 25 years, so its better to go with tier 1 panels, BOS and practises.

Look for EPCs that use best brands. Best practices. With proven performances.

Not just the best price.

Accelerated Depreciation of 80 % of the capital to companies with tax liability

REC route ideal for Companies with high tax liability, with AD benefit

Promoter’s equity approx Rs 2.1 cr/ MW

Detailed Project report cost included in the project cost

Bank loan can be 70%, with collateral security from promoter

Project viable even with own capital without bank loan

It takes 6 months to complete a project

As per REC route Rs 12.60/ unit (discom2.60 cdm.70 rec9.30) can be realised

, REC price range of Rs9.30-13.40 will be valid till 2017 march. Post 2017 march the price band will be announced by mnre .It is likely to be low to very low approx Rs 2-3.

1 MW can generate approx 1.5- 1.7million units per year

Govt selling price of electricity to go up to Rs 13 to Rs 14 per unit: The Hindu

Judgement of Rajasthan High Court on RPO REC asking Vedanta for failing to meet RPO

COMPANIES INTERSTED IN SETTING UP A SOLAR POWER PLANT ,

EMAIL mano@eai.in

CALL MANOHAR 91 90435 39679

Two routes in which you can produce solar power PPA &REC:

PPA Projects

Through competitive bidding
Average but fixed returns
Minimum 5 MW
Allotment not assured
No trading
Fixed tariff
Limited allotments
Tariff to be below INR 14 per unit

No Accelerated Depreciation benefit.

Viable only to companies/ countries with lower

time value for money.

REC Projects

Open access

High but variable returns
Any capacity above 500 Kw
Allotment is assured
Certificates to be traded
Variable tariff
Unlimited allotments due to huge demand

STATES LIKE RAJASTHAN , MAHARASHTRA AND MADHYA PRADESH ARE LEADING IN REC MECHANISM

REC based Solar PV Accredited Capacity

(23.04.2013)

Third Party PPA is a power purchase agreement which a developer can use and claim REC. Third party PPA rec is normally got by goverment authorised power trading companies. Companies that set up large solar plants of size 10MW and above, can approach these comapnies to avail the 3rd party PPA for their solar project in ORISSA.The current third party PPA for solar power doing the rounds in ORISSA is Rs 4.50 - 5 per unit with 5% escalation once or twice a year. This third party PPA is available for 5 and 10 years tenure. Companies that avail 3rd Party PPA for thier solar project in ORISSA can also avail REC benefits.

List of inter-State trading licensees or power trading trading companies :

These companies are eligible to provide third part PPA . Third party PPA plus REC route provides probably the best revenue model among the other sources of revenue in Solar energy power generation.Companies in orissa desirous of monetizing, having strong balance sheets and are capable of investing in large projects like 15MW and above can reach out to them to get a third party PPA.

COMPANIES INTRESTED IN SETTING UP A SOLAR POWER PLANT

EMAIL mano@eai.inor

call manohar 91 90435 39679

The power trading companies are divided into four categories and the list is given below.

(15.3.2013 )

CATEGORY I

Tata Power Trading Company Ltd.

Adani Enterprises Ltd.

PTC India Limited

Reliance Energy Trading Ltd.

NTPC Vidyut Vyapar Nigam Ltd.

National Energy Trading and Services Ltd.

GMR Energy Limited

Karam Chand Thapar & Bros. (Coal Sales) Limited

JSW Power Trading Company Limited

Shree Cement Limited

Global Energy Private Limited

Knowledge Infrastructure SystemsPvt. Ltd.

GMR Energy Trading Limited

SN Power Markets Pvt. Ltd., Noida

CATEGORY II

RPG Power Trading. Co. Ltd.

Mittal Processors Private Limited

MMTC Limited

CATEGORY III

Patni Projects Pvt. Limited .

Instinct Infra & Power Ltd.

Essar Electric Power Development Corporation Limited

DLF Power Limited

Jindal Steel & Power Limited

Vandana Global Limited

Indiabulls Power generation Limited

Indrajit Power Technology Pvt. Ltd.

Jain Energy Ltd.

PCM Power Trading CorporationLtd., Kolkata

Jay Polychem (India) Limited, New Delhi .

My Home Power Limited,Hyderabad.

Manikaran Power Limited, Kolkata

BS TransComm Ltd., Hyderabad

DLF Energy Private Limited,Gurgaon

Sarda Energy & Minerals Ltd. ?

CATEGORY IIII

Subhash Kabini Power Corporation Ltd.

Special Blasts Ltd.

Maheshwary Ispat Limited

Suryachakra Power Corporation Ltd.

Visa Power Limited.

Pune Power Development Private Limited

Ispat Energy Limited

Greenko Energies Private Limited

Vandana Vidhyut Limited

Adhunik Alloys & Power Ltd.

Indiabulls Power Trading Limited

Ambitious Power Trading Company Limited

Shyam Indus Power Solutions Pvt. IV Ltd.

Abellon Clean Energy Limited, Ahmadabad

Customized Energy Solution India Private Limited, Pune

GEMAC Engineering Services Private Limited, Chennai

Greta Power Trading Limited .

Green Fields Power Services Private Limited, Visakhapatnam

HMM INFRA LIMITED, Chandigarh .

The Central Electricity Regulatory Commission (CERC) has released (apr 2013) a second set of (draft) amendments to their REC guidelines.

REC and Reverse Bidding/Tendering – Projects which have signed a PPA through any state tendering mechanisms (reverse bidding) would be ineligible for procuring RECs. The objective of REC is to fund the gap between APPC and the viability.
APPC – The guidelines now clarify that the PPA would have to be signed at a price equal to the APPC price which was prevelant the previous year.
Electricity duty and captive generators - CERC has now proposed to remove the electricity duty exemption as a disqualification criterion as the quantum of contribution to final tariff is quite miniscule. The other criteria for disqualification such as concessional wheeling/banking would still be in force.

Time period for availing RECs – current regulations state that there is a three month time window after approval from the SLDC to get the required clearance from the central agency. However since the receipt of information from the SLDC sometimes takes more than three months to reach the central agency, it has been proposed to extend the window to six months. In addition to this, currently the application for receipt of the certificates can be made only on the 1st and 15th of each month. This has been revised to the 10th, 20th and last day of each month.
No cap on minimum capacity – previously, it was proposed that RE power plants with a capacity of 250 kW and above would only be eligible for certificates under the REC mechanism (subject to approval by MNRE) even though the CERC guidelines do not dictate a minimum requirement. CERC has clarified that there is no minimum capacity and that ANY RE generator would be eligible to claim REC provided they satisfy the prescribed criteria.

Retention of RECs – CERC has now clarified that all RECs generated through a RE captive power plant can be retained by the developer (to fulfill their obligations) thereby reducing the overheads which is subject to verification by the SNA.

Shelf-life of RECs – as reported earlier, RECs would now have a shelf-life of two years as opposed to one year and the regulations would be amended accordingly.
Date of issuance – any powerplant setup under the REC mechanism would be eligible for RECs from the date of commercial operation or from the date of registration of such plant by the Central Agency whichever is later.

All RE Generators are requested to pay fees & charges related to Registartion/Issuance inclusive of service tax @12.36% with immediate effect:

1. The details of fees and charges of REC payable to Central Agency are as under:

Registration Charges

Sr.No.	Fee and Charges towards Registration	Amount in	Amount including Service @ 12.36%
1.	Application Processing Fees (One Time)	1,000	1,124
2	Registration Charges (One Time)	5,000	5,618
3	Annual Charges	1,000	1,124
4	Revalidation Charge at the end of five (5) years	5,000	5,618

Issuance Charges (Service tax @12.36% will be applicable on total amount)

Sr.No.	Fee and Charges towards Issuance of REC	Amount in
1.	Fees per Certificate	10

All fees and charges shall be payable by way of Electronic Clearing System (ECS) only and Payment shall be made as per the details given below

Sr.No.	Name of the Account Holder	Account No	Account Type	Bank Name	Branch Name and Code	IFSC Code	PAN of POSOCO
1.	NLDC REC FEES & CHARGES	931764650	Current Account	Indian Bank	Mehrauli Institutional Area & 943	IDIB000M089	AAFCP2086B

Companies Intersted in setting up a solar plant Call Manohar 90435 39679 or better still email <mano@eai.in>

MAJOR STEPS TO MW SCALE SOLAR

Designing and Planning

Detailed Project Report, power evacuation planning,
DPR preparation, Codes & Standards interpretations
Regulatory approvals,

Power Purchase Agreement (PPA) facilitation, Technology Tie Ups

Banking documentation, Financial closure, Security cover & major clause
Project Structuring & Designing, electrical works,
Project Management , Project commissioning

Want to set up a solar plant!?

Call Manohar 90435 39679 or better still email < mano@eai.in >

====================================================================================

Rocky lands are not ideal for solar power generation.Many times soil testing of the land is done before deciding the feasibility

Ideally the land has to be very close to a substation. 11 kva, 33 kva, 66 kva, 132 kva, etc

For a 1 mw plant 11 kva is ok.

For each km the substation is away from your land, one has to incur about Rs 10 /12 lakhs for

laying the transmission lines. Better than that is to buy up the land between your land and the substation.

If there is some land between your land and the substation, there will ROW ie right of way issues.

Download google earth and note the longitude and latitude of your land.

If you inform the above information a good Consultant will be able to assess the potential number of units that can be produced per annum

With the above information, it is possible to make the feasibility report for the state nodal agencies, as well as detailed project report for the banks for solar

power generation business.

CAPITAL GAINS TAX

At times some land brokers buy agricultural land and sell and want to sell it of as agricultural land itself to avoid short term capital gains tax. It is adivisable for the potenial developers to buy the converted land by sharing the short term capital gains tax with land broker.

MODES OF ACQUIRING LAND FOR SOLAR POWER GENERATION

Got Land for Solar power generation !!

Those of you who have large acres of non cultivable lands in orissa State near substations and do not have the resources to develop a solar power plant, can register their lands here for

a. out right sale, b. lease for 26 years c. partnership with the power plant and d. any other suggestion from the land owner

We need the following information. Wherever u dont know the information, pl write
'I dont know'

Exact location of the land: Address of land including district and taluk,

Total area in acres

Boundaries marked in google map or in google earth: Mark your land in
google map/ google earth and email along with this form.

Right of way. ( ROW)*

Proof of its ownership.

Name, address including district and taluk, mobile no

DNI of the location: If you dont know, send us the longitude and latitude of the lands
( If you dont know, how to get this, say : I dont know)

Type of the land in gov records.

**Agricultural/ non agricultural/ barren/ rocky/industrial/ waste/ dry/ anyother specify
KVA rating of substation nearby and distance.
Capacity available in the substation
List of solar projects in the neighbourhood, if you know.
Rate per acre. ie current market price of land available nearby, adjoining your land
Expected sale price : minimum price expected per acre.
Open for partnership:Open for leasing for 26 years ? Yes / No
Are there lands available nearby : how many acres: how much do these lands cost

* ROW - if you have direct access to the substation, it is fine. But if electricity produced has to go thru the neighbouring lands, that means
you have a ROW issue.

**
Agricultural lands are not permitted to set up a solar plant, even if there is no water and no agriculture has been done for years.

If you are going to convert, your land from agricultural land to any other, say so.

LAND CONVERSION APPLICATION FORM

COMPANIES INTERSTED IN SETTING UP A SOLAR POWER PLANT ,

EMAIL mano@eai.in

CALL MANOHAR 91 90435 39679

5.Solar Power Project Financing

Various options available for getting funding for your Solar Power projects are,

1) Asset / Collateral based Funding
2) Balance Sheet based Funding
3) Project Funding

1) Asset Based Funding: Individuals and Companies
In asset based funding the lender provides loan for solar power plants based on valuation of the assets that your company has or you have and that you can offer as collateral security for the loan.

You can even get 100 % funding depending upon the value of the collaterals.

Normally for most projects, the banks may demand 30 % equity and loan can be given for 70%.

Some banks in Hyderabad , demand 35 % equity. But if the value of the collateral is high, it can be as said before, 100 % loan..

Many banks ask for Urban property as collateral. It is not actually necessary. Once the banks get used to the performance of solar power generation plants, they will minimise the need for collaterals.

Already many banks are accepting less than 70 % of collaterals when the projects are pledged.

2) Balance Sheet Based Funding: Companies only
The profit that your company has made in the last three years. The reserves and surplus it has etc will be taken into account and the bank can then fund.

Companies that can avail Accelerated Depreciation for solar power generation will find it easier to avail loans and lower rates.

Companies should note that it is not a fixed rate of interest. Good rapport based on good performance in the past can bring the interest percentage down.

3)Project Funding: Companies and Individuals
The projected cash flow of the project or more specifically the PPA will determine the decision to fund. Payment security is important.
Many of these types of funding can be got from India as well as from abroad.

With hedging the cost of international funds also tend towards 11% . Indian banks are now getting closer to 12.5 % and if the asset / balance sheet / ppa are sound one could look at lower rate of interest.

The project cash flow is much better in companies that can avail accelerated depreciation for solar power generation.

COMMISSION FOR GETTING BANK LOAN.

There are many Chartered Accountants who help individuals form a company and they also act as agents to get bank loans.

Commission for getting bank loan is approximately 1- 2% at present in Orrisa.

These agents normally help put the loan application for solar power generation plant and submit with two to three banks. This helps them get the best interest rate for solar power generation plants in ORISSA.

For companies, this may not be the ideal route, as they themselves will have a finance /accounts department with access to several banks. Whereas for individuals and NRI's, it makes more sense to go thru such chartered accountants who also help get loans, than trying it on their own.

Individuals, can try on their own, if they have 30% or more equity and or good collaterals. They can then go to more than one bank and try to get the best rate of interest.

CHECK LIST FOR COMPANIES AND INDIVITUALS FOR GETTING BANK LOAN TO SET UP A SOLAR POWER PLANT IN orissa

Solar power plant projects for loan proposal are new to orissa and particulary to the bankers.It is difficult for them to comprehend a business proposition with no raw material and little capital like a solar power generation project.After a few years, once several loan sanctions happen for solar power projects. The process will become mores simple as the bankers will have a better idea.

A. CONSTITUTION:

A solar power generation plant can be started in any one of the following constitutions i.e.

(1) Proprietary Concern,

(2) Partnership Firm,

(3) Private Limited/Limited Companies,

GENERAL REQUIREMENT

1. Proprietory Concern

Bio-data of the proprietor by way of copies of PAN Card/ Passport/ Voters identity card/ Bio-data with photo and signature attestation by Gazetted Officer.

2. Partnership Firms that are applying for a bank loan for a solar power generation plant

a. Copy of Partnership Deed

b. Copy of Firm Registration Certificate

c. Extract of Form-A from Registrar of Firms (for old firms and in case of additional loans) regarding existing partners as on date.

d. Bio-data of partners and copies of PAN card/passport/voters identity card/bio data with pass port size photograph and signature duly attested

3. Private Ltd Companies or Public limited companies applying for a loan for solar power generation plants

a. Memorandum & Articles of Association.

b. Bio-data of Promoter Directors affixing colour photo duly attested /

Copies of PAN Card/Copies of Passport./voters identity card.

c. Resolution of Board of Directors of the company authorising two directors to raise loans from and sign necessary loan security documents and affix common seal thereof.

d. Copy of certificate of incorporation if it is a Private Limited Co.

e. Copy of Certificate of Incorporation and Commencement of Business in the case of Limited companies.

f. Copy of General Body Resolution u/s.293 (i) (d) of Companies Act in case of Limited Companies, permitting the company to borrow in excess of paid-up capital and free reserves and Resolution u/s.293 (1) (a) of Companies Act for mortgaging the fixed assets of the company in favour of the Corporation.

g. Consent letters from the Directors about furnishing of their personal guarantee with copies of property documents.

h. Search Report from CA/Extract of register of charge from ROC in case of existing companies and companies seeking additional loans.

B. PRIMARY SECURITY:

The primary security can be either leasehold interest or freehold interest . If the unit is going to be started in a leasehold premises, it is called leasehold and if the unit is going to be started in own premises, it is called freehold.

In case unit is coming up in a leasehold premises, the Corporation will insist for equitable mortgage of leasehold interest. If there is no loan on civil works, the lease period shall be repayment period plus two years. If loan is provided on the civil works then lease shall be for a period of 30 years. Please note that lease for any period is compulsorily registerable affixing required stamp duty. Then the documents that are required are as under:

a. Registered Lease Deed in the standard format given by agencies for the period prescribed in the sanction letter i.e. loan period plus two years if no loan is provided on civil works and if loan is sanctioned on civil works, 30 years lease deed is required.

b. Copy of lessor title deed in proof of ownership and in the absence of title deed, revenue records or ownership certificate issued by local Government or property tax receipts.

For creation of equitable mortgage in case of freehold interest in land and buildings.

If vacant land is acquired and buidings are to be constructed:

a. Original Regd. title deed in the name of the Proprietor/ Firm / Company along with certified copy having clear approach road.

b. Pattadar Pass Book/title deed issued by MRO/RDO in the name of the proprietor/firm/company/society.

c. Original/Copies of link documents (Vendor’s title deed) pertaining to the property under the scheme along with copies of Pass Book and Title Deed reflecting the sale entry. If pass book and title deeds are not issued, a certificate from MRO to that effect is required.

d. Extracts of revenue records i.e. Khasra Pahani for 1954-55

f. E.C for 13 years (or) from the date of document if title deed is of beyond 13 years to the date of deposit disclosing all transactions.

g. ULC permission u/s.26/exemption under ULC Act as the case may be in case the land is within urban agglomeration.

h. Permission from Urban Development Authority/ Building Plans if the site is within the Master Plan of Urban Development Authority.

i. Affidavit by promoters to the effect that there are no court cases pending against the property under the scheme.

C. COLLATERAL SECURITY:

Generally, the Corporation insists for Collateral Security and the percentage of Collateral Security is dependent upon the location and the nature of industry and the nature of loan. Also the Corporation insists for preferably urban immovable property towards Collateral Security and preferably belonging to the borrowers. The Collateral Security can be either in the form of vacant land, house, apartment, fixed deposits, Bank Guarantee.

If it is vacant land:

a. Original Regd. title deed in the name of the surety along with certified copies.

b. Original link documents (Vendor’s title deed).
c. Extracts of revenue records i.e. Khasra Pahani for the year 1954-55

e. E.C for 13 years from the date of document and in case title deed is beyond 13 years from the date of document to the date of deposit disclosing all transactions.

f. ULC permission u/s.26/exemption under ULC Act as the case may be in case the land is within urban agglomeration.

g. Copy of the Approved Layout/Sketch drawn by Mandal Surveyor demarcating the site/plot with Sy.No and boundaries and a land mark for identification.

If it is house:

a. Original Regd.Conveyance Deed along with certified copy.
b. All the relevant Link Documents.
c. EC for 13 years (or) from the date of document in case title deed is beyond 13 years to the date of deposit disclosing all transactions.

d. Tax Demand & Receipt/Ownership Certificate/ Extract of property tax demand register for the last 13 years.

e. Approved building plans from Competent Authority.

If it is an Apartment:

a. Original Registered Sale deed in the name of the surety.

b. Copy of the development agreement and link documents.

c. Copy of the approved building plan.

d. Encumbrance Certificate for the last 13 years.

e. It shall be established that the original title deeds of the project are not mortgaged to bank or any financial institution availing project finance, by way of declaration from Builder/Landlord.

f. Mutation in favour of the surety.

g. Tax Demand and Receipt / Ownership certificate/ EPPDR.

If it is FDR:

a. The beneficiary/payee of fixed deposit should give a consent letter for pledging the fixed deposit with the Corporation as Collateral Security in consideration of sanction of loan to the unit to which the security is being offered.

b. The beneficiary/payee of the fixed deposit should also assign the proceeds of fixed deposit in favour of the Corporation by a proper endorsement by the concerned bank.

c. A discharge voucher from the beneficiary/payee of fixed deposit duly affixing necessary revenue stamp (without mentioning the date) on the backside of the FDR.

If it is Bank Guarantee:

The collateral security can be offered by the borrower by way of Bank guarantee also in such a case the following documents shall be submitted:

1 Bank guarantee executed by the concerned Bank on required stamp paper by the authorized signatories of the Bank affixing their rubber stamp containing the serial number of the signatory as per the Bank rules.

2 A confirmation copy shall be forwarded by the Bank Manager to the Corporation in a sealed cover by post.

3 A letter from the Bank that they will pay the amount in case the Bank guarantee is invoked in time.

4 If the amount guaranteed is Rs.1.00 lakh and above, the Guarantee Agreement shall be signed by 2 Authorised Officers of the Bank.

D. GENERAL GUIDELIENS:

a. If the borrower is proposing to purchase the property standing in the name of minor, permission from the Court shall be obtained.
b. For purchase of land, which is an Inam land, occupancy certificate/Form-B patta from competent authority shall be obtained.

c. Assigned lands should not be purchased without prior written permission of RDO.

d. For purchase of joint family property, the borrower should ensure that all the co-parceners of the vendor family join in the execution of the sale deed.

e. For purchase of lands covered under Master Plan of the respective Urban Development Authority, the borrower shall ensure that the proposed land is falling within the Industrial Zone.

f. If the borrowers are seeking loans on land & buildings, the borrower shall purchase the lands in the name of proprietor/firm/company/ society as the case may be.

g. Generally, the Corporation will not accept third party collateral security.

The following are the loan security documents to be executed by the borrowers in favour of the Corporation and the required documents for a particular loan are to be taken from amongst the documents mentioned below:

1. Deed of Hypothecation
2. Memorandum of Deposit of Title Deeds
3. Guarantee Agreement
4. Loan Agreement
5. Promissory Note
6. Assignment of Development Rights

SANCTION

Brief project report
Copy of ssi registration certificate
Bio-data of proprietor / partners / directors with 2 pasport size colour photographs as per proforma alongwith copies of certificates regarding academic qualifications, experience etc.
Solvency declaration of proprietor / partners / directors as per proforma (on rs.20 non-judicial stamp paper)
C0py of partnership deed & firm registration in respect of firms/memorandum and articles of association & certificate of incorporation in respect of companies.
Copy of land sale deed/ sale agreement / allotment letter of apiic ltd.
Building plans (approved plans in respect of hotels/nursing homes/commercial & residential complexes proposals)
Civil estimates
Letter from the lessor expressing willingness to let out the building and execution of regd. Lease agreement for 7 years in the unit is proposed in leasehold buildings with rough plan.
Quotations for machinery and equipment from standard suppliers alongwith comparartive quotations.
Copy of panchayat / municipal approval.
Copy of power feasibility letter from a.p.transco.
Copies of collateral security property documents.
Working results (audited balance shdeets and profit & loss accounts) for the last 3 years in respect of existing units and the provisional for the current year with all schedules.
Working results (audited balance shdeets and profit & loss accounts) for the last 3 years of associated concerns of promoters.
Particulars of available assets (land, buildings, machinery) in respect of existing unit.
Other details such as raw material & market tie-ups, technology tie-up with background of technical consultant etc.
Copy of PPA

Credentials of the party providing PPA

URL of the party providing PPA
Service charge @ 0.5% of loan applied 12.36% service tax on the service charges at the time of filing the application.
Upfront fee @ 0.5% of the loan sanctioned 12.36% service tax on upfront fee at the time of first disbursement.

Steps involved

1) Register a company (Proprietorship or Partnership or Pvt Ltd or Public Limited) for setting up Solar power Project. Get accredition. Get registered with mnre. Preferred for REC projects.

2) Open a bank account in the new company name if you are an individual . Old name will do if you intend running the solar power generation in the old company’s name.

3) Acquire adequate land on your company name for setting up Solar Power Project. Create provision for evacuation or atleast get flow study done.

3) Deposit 10% of the project cost in the bank account on company name and take proof of funds from the bank.

4) GET Accredition from local NLDC. GET “ flow study “ approval from Transco. Prepare DPR

5) PPA copy to be there in the DPR or bank loan application. Get permission to feed power to the T&D network

Bank loan application to have

1) Proof of Land Ownership , patta, unencumberance certificate
2) DPR,
3) PPA /
4) Company incorporation certificate by an auditor
5) Bank Balance in the new bank account.

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Equity funding: This is probably the best way to fund and manage a solar power project. Not many developers will have their own funds.

Pre financing by EPC companies: This can be done by EPCs.But mostly most EPCs operate on tight budgets. The profits in EPC business is not much and hence to expect funding from them is not right.

Suppliers credit : Normally given by module manufacturers from usa and china to large customers, it is not equity funding, but it helps a lot. It is also possible to get such credits from Inverter makers and Tracking systems makers. That is in case you are going for a tracking system. Especially those tracking systems that claim over 25 % increase in efficiency can afford to give some credit as they can recover their money from the increased power generated. Many of these companies are funder by VCs and may have provision to give suppliers credit.

Non-recourse project financing –

This is the preferred financing structure, wherein the lending institutions would provide debt to a special purpose vehicle set-up for the project and would have a lien on the project’s cash-flows. However as this structure does not provide recourse to the developer’s balance sheet, lending institutions require rock-solid agreements for revenues from the projects. The above structure gives an option for obtaining non-recourse Project Financing. However the developer needs to ensure that the following are in place to make the

lending institutions comfortable Performance – Contractual guarantees from technology providers for the long-term performance of the plant revenues – Long-term power purchase agreements with credible consumers, i.e. direct power sale to the consumer. As discussed above, the current structure of the JNNSM PPA may not be bankable due to the credibility of many states. The government has been contemplating a tri-partite agreement between the developer, state discom and the Reserve Bank of India to ensure the PPAs bankability, however this is not confirmed yet.

RenewableEnergy Certificate – developers can forego the preferential tariff and trade the RECs on the energy exchange. However the market is in its nascent stage and depends on the state’s renewable purchase obligations.

Project viability – In addition to the above, developers must convince lenders that projects are viable and have the capability of repaying debt without outside assistance. This could mean that the project has to fund a Debt-Service-Reserve-Account in addition to having healthy

Debt-ServiceCoverage-Ratios.

Other options for financing

Other non-conventional options for financing include:

EXIM financing – the United States export-import bank provides financing for

projects which import a substantial part of the project components from US.

This is a good option in case the main technology provider is from the US and has relations

with the EXIM bank.

Foreign funding – Large project developers can tap international banks to get

lower rates of finance.

However, hedging can put a substantial dent in the rate differential and only someone ready to take

the currency risk should resort to this option.

The idea of collecting large number of small projects and approaching exim bank or LIbor , doesnt make much

sense. it can probably operate as suppliers credit. At best.

SBICAPS SBI Capital Markets (SBICAPS)

finances solar projects. Foreign banks in general are open to lending to Indian investment banks for a portfolio of similar projects. This debt is then passed on to the developers with a margin and a hedging charge. The actual lending to the developer takes place based on RBI guidelines. SBICAPS has been involved with the financing of projects developed by Tata Power Co., Kiran Energy, Sunborne, Alex Astral and Acme Tele Power. Other investment banks operating in India include the Bank of America, Barclays Capital, BNP Paribas, Lazard, Credit Suisse, Export credit agencies / International investment cum insurance agencies US EXIM 0.7% (LIBOR27) 3.5% (Margin) 6.5% (Hedging) = 10.7% Loan Up to 80�sed on value of imports 9 – 16 years duration Approx. 1.45 DSCR Borrowing from the US EXIM bank has certain limitations for projects. The total consideration of project cost for debt can only be a maximum of 30% over and above the cost of imports from the US. As this financing option is usually based on module imports and prices for modules account for only around 40% of the total project cost, the developer will need to club a US EXIM loan with another source of finance, thereby potentially increasing the cost of procuring debt. The timelines for financial closure for projects under different policies in India range from six to eight months. Typically, the US EXIM bank can take between six to nine months to process loan requests, straining developers’ execution timelines. Developers aiming for a US EXIM loan usually have to arrange for alternative bridge financing to carry on the procurement and construction work before the disbursement of the debt amount. The long processing time is attributed mostly to the lengthy legal, technical and financial due diligence undertaken by the bank. Further, the due diligence can increase transaction costs. US EXIM financing is ideal for projects of size 10 MW and above. Only such projects can bear the high transaction costs. Moreover, to qualify for US EXIM financing, the project developer must import modules and in some cases other equipment from the US.

Important International export credit agencies/export insurance agencies are: Euler Hermes Kreditversicherungs-AG (Germany), China Export & Credit Insurance Corporation (China), Nippon Export and Investment Insurance (Japan), Korea Trade Insurance Corporation (South Korea), Swiss Export Risk Insurance (Switzerland), Export Finance and Insurance Corporation (Australia), OesterreichischeKontrollbank AG (Austria), Export-Import Bank of Malaysia Berhad, (Malaysia), Export Development Canada (Canada), Hong Kong Export Credit Insurance Corporation (Hong Kong).

OPIC The Overseas Private Investment Corporation (OPIC)is the U.S. government’s development finance institution. OPIC supports solar in India by providing financing, guarantees, political risk insurance, and support for private equity investment funds. OPIC has committed Rs 55 billion to the renewables sector globally last year and nearly one-quarter of it had been earmarked for India. OPIC is involved in financing of projects by Azure Power and Sun Edison in India.

IREDA The Indian Renewable Energy Development Agency (IREDA) is a development funding institution but operates as a NBFC under the administrative control of MNRE for providing term loans for renewable energy and energy efficiency projects. IREDA has received a Rs 13 billion of credit from KfW for a broad mandate of promoting renewable power in India but has not been particularly active in financing utility scale solar projects till date. IREDA also provides loans to other banks at interest rates as low as 2-5% so as to incentivize them to finance renewable projects. Your bank manager can work with IREDA to get low cost funding. It is a less known and less used route.

ADB ADB provides financing support under the India Solar Generation Guarantee Facility (ISGGF), under its Asia Solar Energy Initiative (ASEI) . Apart from providing debt as per ADB’s LIBOR-based lending facility towards solar transmission infrastructure in Gujarat, ADB also considers direct financing and/or guarantees for projects greater than 25 MW. Reliance Power’s 100 MW CSP plant has been partially financed with both debt and equity participation by ADB. Under ISGGF, ADB provides partial credit guarantees (PCGs) available to local and foreign commercial banks that finance private sector solar power plants in the country. This guarantee covers up to 50% of the payment default risk on bank loans made to project developers. Currently, two commercial banks have been approved by ADB as eligible partner banks: L&T Infrastructure Finance Company Limited (India) and the NorddeutscheLandesbank (abbreviated Nord/LB, Germany). ADB aims to support 3 GW of solar power capacity in developing member countries by May 2013.

KfW and DEG Germany’s KfW and DEG are also invest in the Indian solar market. KfW is involved in lending to a 125 MW project by Mahagenco in Maharashtra and DEG has provided Rs 6.80cr risk capital in the form of Compulsory Convertible Debentures (CCDs) to Azure Power Other active sources for funds Japan International Cooperation Agency (JICA), U.K Department for International Development Cooperation (DFID), Netherlands Development Finance Company (FMO), the European Bank for Reconstruction and Development (EBRD), the European Investmet Bank (EIB) and the Islamic Development Bank (IsDB)

Indian banks are being very conservative, insisting on 1.2-1.3 DSC ratio. For project economics to look more attractive to developers, DSC ratios should be at a minimum of 1.1-1.15. At this rate, the attractiveness of several projects begins to change substantially.

L&T Infrastructure Finance Company (subsidiary of L&T Financing Holdings),

Power Finance Corporation (PFC),

Mahindra Finance,

IDFC,

IL&FS,

SBI Capital Markets and

Indian Renewable Energy Development Agency (IREDA).

US EXIM bank an active Export Credit Agency (ECA). IFC,

a member of the World Bank Group

has provided financing for projects by developers such as Green Infra, Mahindra Solar, Azure Power and SunEdison India.

ADB provides financing support under the India Solar Generation Guarantee Facility (ISGGF), under its Asia Solar Energy Initiative (ASEI) to promote the development of solar energy in India. Currently, two commercial banks have been approved by ADB as eligible partners: L&T Infrastructure Finance Company Limited (India) and the Norddeutsche Landesbank (abbreviated Nord/LB, Germany).

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REC

Only Maharashtra, Orissa and Jammu and Kashmir have set the minimum size as 250kW. All other states do not specify a minimum size for REC projects.

The RECs must be sold within one year from the date of issuance, failing which
the RECs will lapse.

Checklist to be submitted by State Agency to Central Agency:

To be submitted on letter head of concerned State Agency

Checklist to be submitted by State Agency to Central Agency while recommending project for Registration under REC Mechanism

Name of RE Generator:

Accreditation Number:

Source :

Total Capacity of Project (MW)

Accredited Capacity (MW)

Accredited Capacity under third party/ APPC sale (MW),

if applicable

Accredited Capacity utilized for self consumption (MW),

if applicable

S.N.	Checklist	Yes (Please tick, if applicable )	No (Please tick, if correct)	Remark / Any other information
1.	Is RE Generator opting for third party sale
	Is RE Generator selling power to discom at APPC
2.	Is RE Generator a CPP opting for self consumption
3.	Is RE Generator a CGP opting for for self consumption
4.	Whether all procedures for accreditation according to CERC REC Regulations and approved REC Procedures have been followed
In case RE Generator is CPP/ CGP/ RE Generator opting for REC Scheme for self consumption then please provide following details:
a	Whether electricity duty is leviable and being paid. If not, then reasons along with documentary support be furnished by the said CPP/CGP/RE Generator
b.	Whether benefits of concessional/promotional transmission or wheeling charges are availed
c.	Whether banking facility benefit is availed

It is also certified that all procedures for accreditation according to CERC REC Regulations, approved REC Procedures have been followed at our end.

Place: Name of Authorised Signatory

Date: Name of State Agency

POINTS TO REMEMBER:

•All communication regarding REC Mechanism is to be addressed as follows: "The Nodal officer, REC Mechanism,1st Floor National Load Despatch Centre (NLDC) office,Power System Operation Corporation Limited (POSOCO),B-9, Qutab Institutional Area, KatwariaSarai, New Delhi-110016".

•All dak regarding REC Mechanism shall be accepted only through services of India Post and no dakshall be accepted by hand or through courier services.

•The Application(s) for issuance of RECs/Registration of Project or other issues should be sent by the RE generator(s) on individual project basis and the name of the RE Generator and 'Accreditation number' / 'Registration number', as applicable has to be clearly stated on the envelope.

7. APPC:-AVERAGE POOLED PURCHASE COST

State	Current purchase price by state discoms/ ebs
	Rs per unit
Andhra Pradesh	2.50
Gujarat	2.98
Haryana	2.77
Himachal Pradesh	2.23
Karnataka	2.66
Kerala	1.99
Madhya Pradesh	2.09
Maharashtra	2.62
Punjab	2.71
Rajasthan	2.60
Tamil Nadu	3.38
Uttarakhand	2.34
Uttar Pradesh	2.62
West Bengal	2.43

ADVANTAGES AND DISADVANTAGES OF SETTING YOUR SOLAR PLANT IN A SOLAR PARK

ADVANTAGES OF A SOLAR PARK

1. Ready to move & start facility for any solar power developer with clear title land.

2. Proper North-South oriented plots to be allotted so as to reduce land wastage, which are ideal for solar plant designing

3. Reduction in time to both start and execute the project.

4. No ROW (right of way) issue will be there for laying of transmission line, which will be done only once and common to all.

5. Ease of work execution and management will be there.

6. Relief from local issues which again will result into time and money saving in project execution.

7. Evacuation from individual project will be done right from the individual plot to the discom’s substation at 132KV level.

8. Reduced transmission losses to the tune of 1/16th of the normal at 33KV.

9. Individual plant metering at pooling substation for ease of billing.

10. Security, preventive maintenance of approach roads & transmission line etc. will be done on periodic basis.

11. Grid down time is also minimum for 132 kV sub-station, which means higher revenue
generation

12. Better financials than in your own lands.

DISADVANTAGES OF A SOLAR PARK

1. Your project is not in your state, benefitting your people

2. Your project is not in your lands. Absence of Prestige value in the neighbourhood.

3. You can’t to do the maintenance of the solar power plant directly and daily in your village

* Don’t have lands? See solar as a business opportunity. Go for Solar park.

* Want to invest in and reap regular dividends with least hassles. Go for Solar park

* Interested in availing accelerated depreciation and making decent safe returns, invest in a solar park.

Want to set up a

Plug and play solar park?

250 KW onwards

Call Manohar 90435 39679 or better still email < mano@eai.in >

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SEVEN STEPS TO DESIGNING

A SOLAR CAPTIVE POWER PLANT FOR A FACTORY

There are seven steps involved in designing a successful captive solar PV installation

Scoping of the project
Calculating the amount of solar energy available
Surveying the site
Calculating the amount of energy needed
Sizing the solar system
Component selection and costing
Detailed design

Step 1 –SCOPING THE PROJECT

As with any project, you need to know what you want to achieve. This basically involves detailing what you want from the captive PV installation, once installed. Do you want it to completely provide your day time electricity usage? Or do you want it to support a part of your usage? To start with, the scope of the project can be simple and later as we progress we can flesh it out to suit the requirements.

Defining the scope is in fact the most important step because once the basic scope is wrong, we might not be able to get the system do, what we exactly want it to do.

Step2 - CALCULATING THE SOLAR POWER AVAILABLE

Solar insolation is the amount of electromagnetic energy (solar radiation) incident on the surface of the earth. Basically that means how much sunlight is shining down on the area under consideration.

The values are generally expressed in kWh/m²/day. This is the amount of solar energy that strikes a square metre of the earth's surface in a single day. Of course this value is averaged to account for differences in the days' length. There are several units that are used throughout the world.

By knowing the insolation levels of a particular region one can determine the number of PV modules that are required. An area with poor insolation levels will need a larger number of PV modules than an area with high insolation levels. Once the region’s insolation level is known, one can more accurately calculate collector size and energy output.

The typical thumbrule that is used for the amount of electricity that solar PV can produce is as follows: On average, 1 W of solar PV, at current crystalline silicon panel efficiencies, can produce about 4 Wh of electricity per day. This is however only an average estimate and based on the location, this could be a bit lower or higher than the average.

Step 3 – SURVEYING THE SITE

A site survey basically consists of a brief interview with the developer to get a feel for their electricity needs and a physical inspection of the proposed array site to see if it is suitable for solar. When a qualified photovoltaic design professional visits a potential solar site, he or she has many things to watch out for.

Primarily, they will be checking the roof's orientation (azimuth) and solar access. Orientation refers to the direction the roof faces - directly south is ideal, with some leeway to the Southwest or Southeast.

Solar access quantifies the percentage of time when the proposed array location will be receiving the full unshaded power of the sun during different days of the year. A shady roof might disqualify a site from receiving incentive money from the state, and is not a responsible choice for solar anyway. There are ways to get around shade issues - either by looking at alternate sites, trimming or removing trees, or by using micro-inverters in the system design rather than one large central inverter.

Step 4 - CALCULATING THE AMOUNT OF ENERGY NEEDED

The next big task for any photovoltaic system designer is to determine the system load. This load estimate is one of the key factors in the design and cost of the stand-alone PV system.

A simple way to determine the approximate ceiling for the solar PV system capacity for all electricity needs is as follows:

1. Find out your total monthly electricity consumption. Let’s say it is 100000 kWh

2. Divide it by 30 to get an approximate daily consumption. In the example, it is about 3300 kWh.

3. Using the thumb rule that 1 W of solar PV can approximately produce 4 Wh of electricity per day, you can determine the approximate maximum solar PV capacity you will require to power all your systems using solar PV. In this case, if the total daily consumption of electricity is 3300 kWh, you will require a maximum of 3300/4 = 825 kW.

4. It is however very unlikely that you would require such a high capacity for solar PV as you will need solar PV primarily as a backup power source, perhaps as a replacement for diesel based power generation.

Ceiling for the solar PV required for complete diesel replacement

In most cases, you will be using solar only as a backup power source to replace diesel based power production.

6. One simple way to determine the amount of solar PV for this purpose is to determine the total amount of electricity you produce using diesel every month. In the example provided, out of the 100000 kWh of total electricity you consume every month, let’s say 10% or 10000 kWh is generated from diesel gensets. This provides you the ceiling for the solar PV system capacity for complete diesel replacement. In this case, it is 82.5 kW.

7. As a thumb rule, one litre of diesel produces 4 kWh, so you can also compute the above with the data for the amount of diesel used every month.

While estimating the load, the designer should consider energy conserving substitutes for items that are used often. Identifying large and/or variable loads and determining if they can be eliminated or changed to operate from another power source will save cost.

Step 5 – SIZING THE SYSTEM

From the results obtained in step 2 and step 4, we can determine the size of the solar system that will be needed to power the site. The necessary systems involved in the setting up of captive power plants are:

1) Array(collection of solar PV modules)

2) Charge controllers

3) Batteries

4) Inverters

5) Mounting systems

Note: The exact procedure for sizing of a solar system has to begin with calculating the amphere hour (Ah) of each load under consideration. Without knowing this it is impossible to size the PV system.

PV array sizing – Array sizing is determined by taking into account the daily energy requirement (in Kilowatt hours) and average daily peak sunshine hours in the design month.

No part of a PV array can be shaded. The shading of small portions of a PV module may greatly reduce output from the entire array. PV modules connected in series must carry the same current. If some of the PV cells are shaded, they cannot produce current and will become reverse biased. This means the shaded cells will dissipate power as heat, and over a period of time failure will occur. However, since it is impossible to prevent occasional shading, the use of bypass diodes around series - connected modules is recommended

Hybrid Indicator

At this point, the basic PV system configuration and size have been determined. Before proceeding to specify components for the system, a simple test is recommended to see if the application might be a candidate for a hybrid system.

Two main indicators work together to alert the designer to a possible hybrid application; the size of the load, and the seasonal insolation variability at the site. The larger the load the more likely a hybrid PV-generator system will be a good economic choice. Likewise, in cloudy climates you need a larger system to meet the load demand; thus having a higher array/load ratio. Plotting the load versus the array/load ratio gives an indication of whether a hybrid system should be considered. There may be other reasons to consider a hybrid system: for example, systems with high availability requirements or applications where the load energy is being provided by an existing generator. A word of caution--the controls required for a hybrid system are more complex because the interaction between engine generator, PV array, and battery must be regulated. Obtaining advice from an experienced designer is recommended if you decide to install a hybrid system.

Controllers - Charge controllers are included in most photovoltaic systems to protect the batteries from overcharge or excessive discharge. Overcharging can boil the electrolyte from the battery and cause failure. Allowing the battery to be discharged too much will cause premature battery failure and possible damage to the load. The controller is a critical component in your PV system. Thousands of rupees of damage may occur if it does not function properly. In addition, all controllers cause some losses (tare loss) in the system. One minus these losses, expressed as a percentage, is the controller efficiency. The cost of the controller increases rapidly as the current requirement increases. Controllers for 12-volt and 24-volt systems with currents up to 30 amperes are available at a reasonable cost. Controllers with 30- 100 amperes are available but 2-5 times more expensive. Controllers that will switch currents over 100 amperes are usually custom designed for the application. One way to work with currents over 100 amperes is to connect controllers in parallel. It is often less expensive to use five 20- ampere rated controllers in parallel than one 100-ampere unit.

The controller must be installed in a weather resistant junction box and can be located with other components such as diodes, fuses, and switches. Excessive heat will shorten controller lifetime so the junction box should be installed in a shaded area and venting provided if possible. Controllers should not be mounted in the same enclosure with batteries. The batteries produce a corrosive environment that may cause failure of electronic components.

Battery sizing - To determine the size of the battery storage required for a stand-alone PV system, it is required to make a number of decisions. Before making these choices, one should study and understand battery parameters and the concept of system availability. First, you must choose the amount of back-up energy you want to store for your application. This is usually expressed as a number of no sun days, in other words, for how many cloudy days must your system operate using energy stored in batteries. There is no “right answer” to this question. It depends on the application, the type of battery, and the system availability desired.

Inverters - Power conditioning units, commonly called inverters, are necessary in any stand-alone PV system with ac loads. The choice of inverter will be a key factor in setting the dc operating voltage of your system.

When specifying an inverter, it is necessary to consider requirements of both the dc input and the ac output. The choice of inverter will affect the performance, reliability, and cost of your PV system. Usually, it is the third most expensive component after the array and battery.

The selection of the inverter input voltage is an important decision because it often dictates the system dc voltage.

An inverter should be installed in a controlled environment because high temperatures and excessive dust will reduce lifetime and may cause failure. The inverter should not be installed in the same enclosure with the batteries because the corrosive gassing of the batteries can damage the electronics and the switching in the inverter might cause an explosion. However, the inverter should be installed near the batteries to keep resistive losses in the wires to a minimum.

Mounting structures- Ground mounting of PV arrays is recommended for stand-alone systems. Regardless of whether you buy or build the mounting structure make sure it is anchored and the modules are restrained. Many module manufacturers and distributors sell mounting hardware specifically designed for their modules. This hardware is intended for multiple applications and different mounting techniques and considerations like wind loading have been included in the design. Using this mounting hardware is the simplest and often the most cost effective. Customized array mounting structures can be expensive.

Others- It is important to select wire, connectors, and protection components such as switches and fuses that will last for twenty years or more. To obtain this long life, they must be sized correctly, rated for the application, and installed carefully. Connections are particularly prone to failure unless they are made carefully and correctly.

Step 6 – COMPONENT SELECTION AND SIZING

Once the various components have been sized, the next important step is the selection and costing of the components.

There are many players in the market vying to establish their products. At this juncture, the system developer has to select components by taking into account factors like technical specifications, reliability, and lifetime of the components in addition to the cost.

Investment for the solar modules is for a period of 25 years, so selecting a high efficient solar panel is of prime importance. The manufactures of the batteries claim a lifetime of about 7 years, whereas inverters guarantee at most 2 years. As can be seen from these numbers, selection becomes a crucial part of the captive solar PV installation.

Step 7 – DETAILED DESIGN

Now that the major components have been sized and selected, it is time to consider how to interconnect everything as a working system.

The detailed design is the more actionable form of the captive solar PV installation. The system developer accumulates all the data collected from the previous 6 steps and prepares a layout of the installation on paper. The developer removes obvious engineering fallacies and prepares a corrected version of the layout on paper.

The confirmed design will have all the necessary data like the average consumption per day(kWh), the insolation levels at the area under consideration(in hours) , the optimal plant size, the area required for the same, the number of panels required to be installed in that area, the number of charge controllers, batteries, inverters required for the determined plant size, the cost of all the components and many more intricate details like the viability of installing tracking systems etc.

Stand-alone PV systems will be reliable power producers for more than two decades if properly sized for the application, engineered well, and installed carefully. PV arrays for stand-alone systems are installed in many unique and innovative ways. However, there are common issues involved in any installation, whether the array is fixed or tracking, mounted at ground level, or on a pole or building.

Preventive Maintenance

The integral part of any completed installation is the periodic checks that are recommended for any stand-alone PV system so that little problems can be found and corrected before they affect system operation. The system should be checked soon after installation when it is presumably operating well.

Interested in setting up a Captive solar power for your factory? Send mail to mano@eai.in subject Factory power

STEPS INVOLVED IN DESIGNING

A ROOF-TOP SOLAR PV SYSTEM WITH BATTERY BACKUP

A stand-alone PV plant for AC and DC loads:

The broad steps involved in designing a roof-top stand-alone solar PV plant are:

Estimation of total loads and energy
Selection of an inverter
Sizing of battery bank
Sizing of PV array
Selection of other components
Installation and commissioning
Testing and evaluation

Estimation of total loads and energy:

Sum the total AC connected watts
Sum the total DC connected watts
Calculate the AC average daily energy requirement
Divide this by the inverter efficiency to obtain the DC energy required to the AC load
Calculate the total energy requirement due DC loads
Add the DC energies obtained by step 4 and step 5
This quantity is the total DC energy load on the battery bank

Selection of inverter:

The capacity of the inverter must be more than that of the total daily average AC loads, including their surge requirement
The nominal DC input voltage of the inverter will be the battery bank voltage and is decided by the design of the inverter
The output will be single phase or three phase , 230/440V & 50Hz, to be compatible to the AC loads requirement
The conversion efficiency at minimum load (10%) should be 80%
Total Harmonic Distortion (TDH) < 3%
The wave shape, crest factor, power factor etc, to be as per the load requirements.

Battery bank sizing:

The total DC energy ÷ the nominal input voltage gives the daily Ampere Hour (AH) requirement from the battery bank
The daily AH hours X autonomy ÷ discharge limit provides the battery bank Ampere hour capacity
Battery bank AH capacity/Individual battery AH gives the number of batteries in parallel (generally it is 1)
DC system voltage ÷ the battery voltage gives number of batteries in series

PV array sizing:

Average daily AH requirement from the battery ÷ battery columbic efficiency gives the AH to be put in by the PV array in a day
AH required from PV array ÷ average peak sun hours in a day of the site gives Amperes required from PV array
Amperes from array peak ÷ panel (or module) peak ampere gives number of PV panel strings required in parallel
Nominal system DC voltage ÷ nominal operating module voltage gives the number of SPV modules in one series string
Number of modules in one series string X number of parallel strings gives the total number of SPV modules in the power plant
Number of PV modules X PV module wattage is the total PV array wattage

Other components:

Charge controller maximum current capacity should be one and half times that of total short circuit current of all parallel strings
The total open circuit voltage of all the modules in series should give the maximum voltage of the charge controller
The cables connecting the module to Junction boxes, to that of DC board and battery bank should be selected as per the standards
Cut-outs, fuses and other control components should be as per the National standard of Electrical current ratings

^{Key words: Solar PV, photovoltaic system design, PV arrays, total AC and DC loads, selection of inverter for SPV, battery bank sizing, SPV array sizing, charge controller, SPV module, ampere hours (AH)}

Easy Steps to Plan your solar roof top solution

Solar power energy systems are not inexpensive.
Nor are they too expensive.
At present many households and factories, just need power.
Not many are asking as to when they will get the capital back.

Here is a news item in The Hindu saying that in a few years
the electricity tariff will be Rs 13 or Rs 14/- (http://www.thehindu.com/news/cities/Madurai/small-units-plan-to-tap-solar-power-in-a-big-way/article4002924.ece)

So, it makes sense to go solar right away.

Fill and

get your house rooftop solar power estimate

by specialists !

Step 1: List your equipment

Number of Fans and no of hours u need it per day

Similarly list all electrical devices at home that u need to run in solar power

Lights, Refrigerator, grinder, oven, etc.,

Approx electricity bill per month

Step 2: Roof area you have in square feet

Step 3: Do you want a battery? If yes, for how many hours.

Fill the above information and email with address and mobile no to

< marketing.rooftop@gmail.com >

with subject

Rooftop requirement

========================================================================================================================================

If you are an installer/integrator, register with us

with address , experience and geographical area of operations

by sending a mail to

< marketing.rooftop@gmail.com >

with the subject installer/ integrator and location .......

We can send u customers who need solar energy !!

---------------------------------------------------------------------------------------------------------------------------------------------------

Some quotes

Installer 1

1KW system for Rs.2,10,000 (two lakh ten thousand only).

In this Govt. is offering Rs.70,000 as subsidy for 1KW system.

So, the customer has to pay only Rs.1,40,000 to us, we will get the subsidy directly from government.

2KW system will be Rs.2,70,000.

The break up is as follows:

Solar panels- Rs.60,000 (1000W)

Battery Rs.50,000 (400AH Solar Battery)

Inverter Rs. 30,000 (1KVA)

Mounting structures Rs.25,000

Cable and others Rs.20,000

VAT Rs.12,000

For 2KW system just double.

----------------------------------------------------------------------------------------------------------------------------

Installer 2

1 KW (Without Battery) in Rs.
================== =====
1 KWp Solar Panels 51000
1 KVA PCU 24000
Junction Box (4:1) 4500
MS Structure 15000
Solar PV Cable 3000
Installation - Civil 10000
Installation - Wiring 8000
======
115000
======

1 KW (With Battery) in Rs.
=============== ====
1 KWp Solar Panels 51000
1 KVA PCU 24000
2 X 200 Ah C10 Battery 35000
Junction Box (4:1) 4500
MS Structure 15000
Solar PV Cable 3000
Installation - Civil 10000
Installation - Wiring 10000
======
152000
======

======================================================

Solar Irradiation in Bhubaneswar, Odisha (Orissa), India

DNI of Bhubaneshwar, Odisha
January	4.53
February	5.26
March	5.82
April	6.34
May	6.18
June	4.5
July	3.88
August	3.8
September	4.15
October	4.57
November	4.43
December	4.38
Annual Average	4.82

Lat/Long Information
Latitude	20.290
Longitude	85.82

Soleckshaw, the non polluting tricycle introduced in Bhubaneswar

Rickshaw pullers in the city may soon join the green brigade. With a view to promote clean energy transport, the state government is exploring the feasibility of promoting solar-fuelled rickshaws in Bhubaneswar, which can drive up to a speed of 35 km per hour.

Christened as 'Soleckshaw' and designed and promoted by Council of Scientific & Industrial Research ( CSIR), the non-polluting tricycle was introduced in several metros, including Delhi recently.

The Bhubaneswar Municipal Corporation (BMC) has invited CSIR-recognized dealer HBL Power System Ltd and its strategic partner Prabhadeep Industries Limited to show a demonstration of the vehicle on November 30. "We have heard of the solar rickshaw becoming popular in Delhi, Chandigarh and some other cities. If the vehicle has green features, we will also promote it in Bhubaneswar," BMC mayor A N Jena told TOI.

The rickshaw, which can be driven by solar-powered battery, can carry nearly 250 kg of load. "Solar energy apart, the battery can also be charged by electricity. When the battery backup goes out, the driver can use the pedal," said HBL vice-president (Odisha and Chhatisgarh markets) Sanjay Parija.

"The tricycle is used for commuting small to medium distance. In Delhi and other places, the concerned state government has been providing subsidy to poor rickshaw pullers to purchase the vehicle," said Anand Parija, a functionary of Prabhadeep Industries. "We would urge the BMC and transport department to help rickshaw pullers purchase the eco-friendly tricycle through subsidy," Parija said. The price of the two-seater Soleckshaw, which is manufactured in different models, starts from Rs 70,000. Apart from ferrying passengers, the tricycle can be used to transport goods and garbage.

Rickshaw, which until a few years ago was a major medium of public transport in Bhubaneswar, has almost vanished from the streets after being outnumbered by auto-rickshaws and city buses. Only around 150 rickshaws are now available at railway station. "We face difficulty to pull the rickshaw due to heavy traffic on roads. Our service is only required in early morning and late night," said Sanatan Naik, a rickshaw puller. "We will feel dignified to raise the accelerator of Soleckshaw. People will not look down upon us. But the government should provide us subsidy to afford the rickshaw," he added.

Source

Governor of Odisha sets an example by adopting solar power

The Raj Bhawan in Bhubaneswar is all set to make a green statement by embracing solar power, which is regarded as one of the most non-polluting sources of energy.

Officials said a 30 kilowatt solar power plant will be set up on the premises of the governor's house at an estimated cost of Rs 1 crore by the Odisha Renewable Energy Development Agency(OREDA). "Raj Bhawan was covered under the central government's Special Area Demonstration Programme. Majority of the project has been completed and the solar power plant is likely to be commissioned by this December," said OREDA chief executive Anirudh Rout.

Source

============================================================================

Odisha (Orissa) Solar inverter and panels Dealers

Aaaabe Groups

Link Road, Cuttack - 753012

Call: (91)-9937246599

Cabella Marketing Pvt Ltd

NR Bose Engineering College, Barage Colony, Sana Jobra, Cuttack, Cuttack - 753007

Call: (91)-(671)-2427120, (91)-9437062712

Surya Sevak Electronics

22,East, Janpath Tower, Ashok Nagar, bhubaneshwar airport, Bhubaneshwar - 751009

Call: (91)-9861385389

Aaaabe Groups

Ainthapali, Ainthapali, Sambalpur - 768004

Call: (91)-9937246599

Aadi Solutions & Services

Bhadrak Bypass, Bhadrak - 756181

Call: (91)-9853159743

A 1 Solutions

Station Road, Baripada H O, Baripada - 757001

Call: (91)-9437166629

================================================================================================

Odisha 25 MW tender (Orissa 25MW tender)

The Developer is free to identify land for the project anywhere within the State.
The developer will remain responsible for acquisition of land or obtaining right of way for erecting transmission lines from the project site till the point of evacuation.
Designing, constructing, erecting, testing and commissioning of the 25 MW Solar PV Project including all necessary electrical equipment for metering, transmission and evacuation of electricity to nearest grid (33KV or 132 KV) and supply of Contracted Capacity.
Scope of work includes operation and maintenance of the Solar PV Project for 25 years after commissioning of the project.
The developer should also ensure protection of life and property likely to be endangered due to the installed solar power plant.
The RfS document is available at www.oredaorissa.com and can also be obtained from OREDA office from 29.9.2012 till 15.11.2012 on submission of an application by the bidding company along with a payment of Rs 10,000/-in shape of Demand Draft payable to OREDA at Bhubaneswar. The document has to be purchased in the name of the bidding company /Lead member of the bidding consortium only.
In case of downloading the RfS document from the web site the bidding company/lead member of the bidding consortium should submit a demand draft of Rs.10,000/- payable to OREDA at Bhubaneswar, towards cost of the document in the 1st Envelop as detailed under section 3.13.
Bidders are required to submit their RfS document along with a non-refundable processing fee of Rs 5 lakhs in shape of Demand Draft payable to OREDA at Bhubaneswar. RfS submitted without processing fee shall be liable for rejection.
The net worth of the company should be equal to or greater than the value calculated at the rate of Rs 3 Crore per MW i.e. Rs 75.00 Crore.
The successful bidder will be required to submit all the relevant documents to prove his Net Worth on any date within 7 days prior to submission along with bank statement and Chartered Accountant’s Certificate within 21 days of issue of LoI. Besides, all the relevant documents as stipulated in the RfS Document are to be submitted within 21 days of issue of LoI.
The selected bidder shall pay a non-refundable Monitoring and Supervision Fee to OREDA of Rs 25 Lakhs. The payment has to be made in shape of DD within 21 days of issue of LoI.
PPA: For non-submission of performance guarantee or any required document as per the provisions of RfS, OREDA will cancel the LoI and take necessary action as per the provisions of RfS.
PoP: Variation of 10% either side (±) in the rated output (taking 15.61 lakh kWh /MW/Year) for the first year will be permissible. Besides annual deration of 1% in the rated capacity of the power plant starting from second year onwards will also be permissible.
GRIDCO will not be obliged to purchase beyond 17.17 [15.61 (plus)1.56] lakh kWh/MW/year for the first year. For the subsequent years, GRIDCO will not be obliged to purchase beyond maximum electricity generation after taking into account ( ) 10% variation and annual deration of 1%, keeping in view 15.61 lakh units / MW/year for the first year (Year wise details given in the table below). For any shortfall below minimum level of electricity generation per MW per year (as per table below) developer will be required to pay penalty if the same is not attributable to GRIDCO or Force Majeur events.
However, for the first year, the scheduled Commercial Operation Date (COD) as mentioned in the RfS document will be taken as the 1st day of the year irrespective of actual date of commissioning if the project is commissioned after the due date.
Penalty shall be computed by multiplying the total shortfall recorded during a tariff year with the difference in quoted price of electricity by the Developer and forbearance price of RECs(as determined by CERC from time to time) provided the quoted price is less than the forbearance price of RECs. Such penalty will be imposed at the end of every tariff year.
Additionally, In case of any shortfall below the minimum level of electricity generation in any given year as shown above the developer/successful bidder will be required to pay Rs 0.50 per unit for every unit of shortfall to OREDA.
Apart from those mentioned above, in case, there is any penalty imposed by OERC on
GRIDCO due to any shortfall in supply of solar electricity to GRIDCO by the Developer, such penalty will also be borne by the Developer.
The developer shall have to pay at a uniform rate of Rs0.01/- for every kWh of power generated through the project on a monthly basis to OREDA for various services to be rendered by OREDA under the above clause. GRIDCO will ensure deduction of this amount from the tariff payable to the Developer and pass on the same to OREDA on a monthly basis.
Clarifications / Doubts, if any on RfS document may be addressed to Chief Executive, Odisha Renewable Energy Development Agency at the address mentioned above on or before 11.10. 2012 OREDA will respond to the same in the Pre Bid Meeting to be held on 16.10.2012 at 4:00 P.M. in the OREDA Conference Hall, S-59, Mancheswar Industrial Estate, Bhubaneswar-751010, and Odisha.
No bids are to be submitted before the pre-bid meeting. The bidders are advised to submit bids only after the issue of corrigendum , if any.
Bank Guarantee would be required to be submitted in the form of Performance Bank
Guarantee (PBG) at the time of signing of PPA and the Total Performance guarantee of Rs 3000 lakhs shall be submitted in three Numbers of Bank Guarantee in the ratio of 20%, 40% and 40% to OREDA, at least 7 days before signing of PPA with GRIDCO.
The selected bidder shall pay a non-refundable Monitoring and Supervision Fee to OREDA of Rs 25 Lakhs. The payment has to be made in shape of DD within 21 days of issue of LoI.
Commissioning of the project in phases below 5 MW is not permitted.

The government of Odisha has decided to form a separate company, Odisha Green Power Corporation Ltd (OGPCL), exclusively for the purpose of promoting large-scale solar power plants and other renewable energy projects.

The decision to form OGPCL was announced by the State’s Energy Minister, Mr Arun Kumar Sahu, at a solar conference organised in Bhubhaneswar by the local chapter of TiE along with Canyon Consultancy Pvt Ltd, a firm that focuses on renewable energy technologies on Saturday. (TiE, or The Indus Entrepreneurs, is a global non profit organization that aims to foster entrepreneurship.)

The new company is expected to be a subsidiary of Odisha Hydro Power Corporation (OHPC), which has substantial lands on which to put up solar projects. OHPC intends to put up a 22.5 MW solar project, spread over three of its hydro project locations, through its green power subsidiary. OHPC is also discussing with Water Resource department to have solar projects on the canals of Odisha for multiple benefits.

Speaking at the conference, Mr B K Misra, Member, Odisha Electricity Regulatory Commission, called upon the major industries in the State such as NALCO, Hindalco and Vedanta, to put up rooftop solar plants in their industrial units, which could help them meet their ‘renewable purchase obligation’.

TiE Bhubhaneswar has recommended to the State government to declare 2013 as the ‘Solar Year of Odisha’ and also to set up a 100 MW solar park during the year. It has further suggested that the solar plant capacity in the State could be raised to 1,000 MW by 2017.

"Looking at the current scenario of non-availability of coal for Captive Power Plants of various industries, we have developed the concept of putting up solar parks in different locations, each of more than 100MW,” said Mr Chandrashekhar Mishra, Managing Director, Canyon Consultancy.

Odisha has joined a growing list of States that have big solar ambitions. Gujarat is the leader, with about 700 MW of installed capacity (about 70 per cent of all solar power capacity in the country.) Rajasthan had announced a solar programme, but later shelved it. Uttar Pradesh, Chhattisgarh and Andhra Pradesh have announced their own policies/programmes. Odisha, which had earlier awarded a 25 MW project to a company called Alex Green (a subsidiary of Shree Ganesh Jewellery), recently announced the opening of bids for another 25 MW.

ramesh.m@thehindu.co.in

===============================================

* subsidy for installing the home solar power system, Orissa homes

BHUBANESWAR: If you are upset with frequent power cuts and increasing power bills, then go for solar energy. Opting for electrification through solar energy will not only ensure better electricity supply but also bring relief from load shedding.

The Odisha Renewable Energy Development Agency (OREDA) is encouraging this option by providing subsidy for installing the home solar power system.

"The home solar power system is fast catching up in the city due to its long-term benefits, affordability and solution to frequent power cuts. Presently those who install one MW power plant, the cost of energy will be Rs 7 per unit. But within a year it will be at par with the electricity bills. The government is providing subsidy for installing the power plants," said OREDA deputy director (technical) B K Swain.

B K Tripathy of Samantarapur, who has installed an one KW capacity solar photovoltaic power plant on his rooftop, said "After its installation, I have not experienced any power disruptions and my electricity consumption, through the conventional EB source, has come down perceptibly. Many in my locality have now evinced interest to shift to solar power." "The reliability of power supply and the contribution towards environment protection are the factors that encouraged me to consider solar power. I have managed to save four to five units of power daily," he adds.

For one kilowatt power plant the capital cost was Rs. 2.5 lakh and the consumer's cost is Rs. 1.7 lakh after the subsidy of Rs 80,000. There is a person in the city who has installed a seven KW power plant with huge subsidy from the government, Swain said.

The solar power supply system is quite successful in interior areas of the state where electricity has not reached so far. "We have installed solar power plants in more than 400 villages of the state. During the day, the power plant light the house and during night, the converter takes over and powers the house by drawing power from the batteries," said Prasant Panigrahi of Gayatri Solar, a company that installs these systems.

source 22/12/12

This blog consists of three parts

Part I deals with latest solar energy news from Orissa

Part II deals mostly with the Government regulations and guidelines for solar energy in Orissa.

Part III deals with solar energy business opportunities, solar energy business strategy, and solar energy investment required for different types of businesses all catering to the Private sector from large corporates to small medium ones.

Part I

Latest News – Orissa Solar Energy

Part II

Solar irradiation in Orissa

Demographics of Orissa

OREDA

Solar projects in Orissa

Part III

The solar energy business potential in Orissa and Business opportunities in Orissa

==========================================

* Solar business opportunity in Odisha

In Buildings

Rooftop solar power plants, Solar Water Heaters,

Energy Efficient Lights, Energy efficient designs,

GRIHA Ratings. Solar air conditioning etc.

Solar business opportunity Odisha

In Shopping Malls

Rooftop Solar Power Plants, Solar Garden lights,

Solar Road Studs, Solar Water Heater for Canteens,

kitchen waste plants etc.

Solar business opportunity Bhuvaneshwar , cuttack etc.,

In University/Colleges

Rooftop Solar Power Plants, Solar Garden lights,

Solar Road Studs, Solar Water Heater for Canteens

and Hostels, Solar Cooking, Solar Lightings, solar

street lightings, Kitchen waste plants etc.

Solar business opportunity in cuttack, bhuvaneshwar, Odisha

In Hostels

Solar Water Heaters, Biomass gasifier based cooking,

Solar Cooking, Kitchen Waste based plants, Solar

Lightings,

Solar business opportunity solar business in odisha

In Vegetable Markets

Solar Lanterns for Road Shops, Market Waste based

Plants, Solar lightings, Solar cold storages etc.

Solar business opportunity

In Sewage Treatment Plants

Biogas Generation Plants, Power Generation from

Biogas, Biogas Cooking, Solar lightings etc.

Solar business opportunity solar potential in odisha

In Roads

Solar Street Lighting Systems, Road Studs, Solar

Traffic Signals, Solar Street Light Controls etc.

Solar business opportunity , solar energy market in odisha

In Transportation

Battery Operated Vehicles, Biodiesel based Buses/

Vehicles etc.

Solar business opportunity

In Residential Houses

Solar Water Heaters, Solar Power Generators, Solar

Invertors, Solar Home Lighting System etc.

Solar business opportunity , solar energy business in odisha

In Advt. Hoardings

Solar Hoardings, CFL/LED replacement in hoardings

Solar business opportunity

In Markets

Solar Generators, Solar Water Heaters, Solar Power

Plants, Solar Lighting Systems, Solar Lantern etc.

Solar business opportunity

In Hotels

Solar Water Heaters for water preheating ( airconditioning plant, laundry , kitchen, swimming

pool), Waste based Plants, Solar Garden Lights, Solar

Road Studs, solar streetlights with automatic control,

Solar business opportunity

In Hospitals

Solar Water Heaters ( air-conditioning plant, laundry

, kitchen, incinerators/autoclaves), Solar Roof Top

Power Plants, Solar Lightings, Solar Street Lights,

Road Studs

Solar business opportunity

In Restaurants

Solar Water Heaters, Solar Lightings, Solar Cooking,

Gasifier Based Cooking

Solar business opportunity

In Schools

Solar Cooking for Midday Meals, Solar Lightings,

Solar business opportunity

In Data Center

Solar lighting , solar air conditioning

Solar and other business opportunity

In MSW Sites

Suitable Technology for MSW Treatment i.e.,

Inciration, Landfill, Biomethanation, Palletization

Solar and other business opportunity

In Industry

Waste heat recovery, process heat recovery, biogas

production for thermal and captive power plant

,biomass gasification, cogeneration , biomass based

power plants, SPV power plants inplaceof

conventional diesel generation, Solar Water Heaters,

solar street lights for industry campus with automatic

control, solar drying, Solar air conditioning etc.

More opportunities of solar power business in Odisha is discussed in the later part of the blog. You will get lots of latest news first.

Solar irradiation in Orissa:

The average annual solar radiation in Orissa is between 5 to 6 kW-h/m2/day. Orissa, because of its sub-tropical geographical location between the latitudes of 17 to 23oN, receives an abundance of solar radiation throughout the year except for some interruption during the monsoon and winter seasons.

With a total land area of 155,707 square kilometers, Orissa holds a vast potential for harnessing very large quantities of solar power.

Moreover, large portions of the western part of the state, far away from the coasts, are in rain shadow areas, which receive solar radiation round the year, virtually, without any interruption.

According to Orissa Renewable Energy Development Agency (OREDA) estimates, the potential of solar photovoltaic power of Orissa is 14,000 MW.

Solar irradiation in Orissa cities monthwise:

City

Jan

Feb

Mar

Apr

May

Jun

July

Aug

Sep

Oct

Nov

Dec

Avg

Bhubaneswar

4.5

5.22

5.75

6.23

6.15

4.48

3.86

3.72

4.09

4.53

4.4

4.24

4.76

Brahmapur

4.69

5.38

5.9

6.25

6.12

4.28

3.73

3.6

4.04

4.45

4.41

4.33

4.77

Cuttack

4.5

5.22

5.75

6.22

6.15

4.48

3.86

3.72

4.09

4.53

4.4

4.24

4.76

Solar irradiation measured in kwh/m2/day onto a horizontal surface

Sun path chart program

This program creates sun path charts in Cartesian coordinates for: (1) "typical" dates of each month (i.e.; days receiving about the mean amount of solar radiation for a day in the given month); (2) dates spaced about 30 days apart, from one solstice to the next; or (3) a single date you specify. You can select whether hours are plotted using local standard time or solar time. In addition, there are a number of options available to allow you to alter the chart's appearance.

http://solardat.uoregon.edu/SunChartProgram.html

From NASA

Solar radiation and solar geometry data from derived from satellite observations. Provides data for anywhere in the world.

Provides solar parameters for solar thermal, PV, solar cooking, etc. based on 10 year history for your exact location.

http://eosweb.larc.nasa.gov/cgi-bin/sse/sse.cgi?na s01#s01

Demographics:

Odisha or Orissa which is the 8th largest (155,820 km2 (60,162.4 sq mi) state in India has population of 36,706,920.

Odisha has been divided into five major morphological regions: 1) the Odisha Coastal Plain in the east, 2) the Middle Mountainous and Highlands Region, 3) the Central plateaus, 4) the western rolling uplands and 5) the major flood plains.

There are three major seasons – Summer (March-June), Rainy Season (July-September) and the Winter (October-February). Orissa lying just South of the Tropic of Cancer, has a tropical climate. It is warm almost throughout the year in the Western districts of Sundergarh, Sambalpur, Baragarh, Bolangir, Kalahandi and Mayurbhanj with maximum temperature hovering between 40-46⁰C and in winter, it is intolerably cool. In the coastal districts, the climate is equable but highly humid and sticky. The summer maximum temperature ranges between 35-40⁰ C and the low temperatures are usually between 12-14⁰ C. Winter is not very severe except in some areas in Koraput and Phulbani where minimum temperature may drop to 3-4⁰ C.

The average rainfall is 150 cm, experienced as the result of south west monsoon during July-September. The month of July is the wettest and the major rivers may get flooded. The state also experiences small rainfall from the retreating monsoon in the months of October-November. January and February are dry.

Known Renewable Energy potentials in the State: Odisha from the point of view of its geographical location has been endowed with plenty of Renewable Energy Resources. The resource was estimated potentials and achievements are as under :--
Resource Potentials

Biogas Plants 6,05,500

Improved Chullahs 54,85,000

Solar PV power 14,000 MW

Small Hydros 156.76 MW

Wind Energy 236 MW

Biomass power 350 MW

Waste to Energy 28.5 MW

Orissa Renewable Energy Development Agency (OREDA):

OREDA was constituted as a state nodal agency in the 1984 under aegis of Dept. of Science and Technology, Govt. of Orissa with the view to popularize the exploitation and use of renewable energy resources in the state. OREDA’s mission is to promote research, development and popularization of non-conventional and renewable sources of energy.

Contact:

Orissa Renewable Energy Development Agency

S-59 Mancheswar Industrial Estate

Bhubaneswar - 751010

Solar energy projects in Orissa:

Eight solar power projects in Orissa have been cleared by State level Technical Committee, Government of Orissa.

These power plants will generate 230MW of power in aggregation. It included 2 solar thermal plants with a combined generation capacity of 125MW.

The first solar plant in Orissa has been commissioned in July 2011. Hyderabad based Raajratna Energy Holdings Private Limited commissioned its 1MW solar power plant in Bolangir district. The estimated cost of this project is Rs 16-17 crore. It has been implemented under the Jawaharlal Nehru National Solar Mission of Rooftop PV and Small Solar Power Generation Programme Scheme of the MNRE.

ACME Tele-powers would set up a 100MW solar thermal power plant either in Bolangir or in Khurda district, GRD Power Private Ltd would set up a 25 Mw solar thermal power plant in Khurda district. DUET Solar Projects Private Ltd would set up solar power plants in six locations like Nawarangpur, Koraput, Phulbani, Bolangir, Dhenkanal and Sambalpur with a combined generation capacity of 60 MW.

The other projects cleared by STC included EIO Six Orissa Private Ltd (20 Mw, Bolangir), Cambridge Energy Pvt Ltd (5 Mw, Ganjam), Abacus Holding Private Ltd ( 5 Mw, Nawarangpur), Green O Projects (10 Mw, Khurda) and Green O Lite (5 Mw, Kalahandi).

Reliance Industries Limited has come forward to set up a 5MW solar energy unit in Khurda district. The project would involve an investment of around Rs. 100 crore.

To give a boost to solar power generation, Gridco had signed PPAs with 8 solar developers, each with a capacity of 1MW. It had also signed an MOU with IREDA to avail generation based incentive under MNRE through IREDA under Rooftop Photovoltaic and Small Solar Generation Programme scheme. Gridco had also entered in to power sale agreement with NTPC Vidyut Vyapar Nigam Limited to avail solar power bundled with equivalent capacity of thermal power from unallocated share of upcoming NTPC stations under ‘New Solar Projects’ scheme of MNRE. Under this scheme, 20MW of solar power has been allocated to Gridco.

Tata BP Solar has commissioned its first solar PV plant in Orissa under JNNSM in August, 2011. The project is owned and developed by S N Mohanty at Cuttack. The project is designed to run for 25 years. It uses 4,400 crystalline silicon modules of 230 watts each spread out over an area of 5 acres. The solar power plant is expected to generate 1.41 million units of electricity in the first year. S N Mohanty has signed PPA with Orissa State Electricity Board for 25 years to supply this power to them.

*Kolkata-based Alex Astral Power Private Ltd has plans to invest close to Rs 300 crore to set up 25 MW solar power project in Orissa, the company said.

“Considering the amount of solar radiation we get in Orissa, we will be needing nearly Rs 12 crore for 1 MW power generation. So, the total project cost would be some where between Rs 280-300 crore including land and equipments,” Pratyush K Sureka, senior vice president (Projects) of Alex Astral said.

The company, which has 25 MW solar plant functioning in Gujarat and another 5 MW plant working in Rajasthan, bagged the contract to set up the Orissa project out of 15 other participants in a tariff-based bidding process.

After the completion of the project, Alex will sell solar energy at Rs 7 per unit to Grid Corporation of Orissa Ltd (Gridco) and in turn, the bulk power power purchaser will agree to buy power from Alex for a period of 25 years. The Power Purchase Agreement (PPA) is expected to be signed in the last week of April this year. “After signing the PPA papers, we will have to set up the plant within 18 months. We have not identified the location for the project , but we hope to find it by May,” Sureka said. source

The Odisha Renewable Energy Development Agency (OREDA) was established during 1984 under the Science and Technology Department, Government of Odisha with a view to promote research & development and popularize Non-Conventional and Renewable Sources of Energy in the State.

Since its inception ,OREDA has provided renewable energy solutions to more than 2.00 lakh households in the state by providing photovoltaic power plants, home light systems , street light systems, Biomass gasifiers and Biogas plants.

VISION

Provision of minimum illumination to all Remote Un-electrified Villages by 2012.

Increase the share of Renewable Energy to 10% of the total power mix by 2020.

Accelerated use of RE Technology in all sectors of economy.

Major Programs being implemented by OREDA:

• Remote Village Electrification

• Decentralized Distributed Generation

• Renewable Energy Power Projects

• Off-grid Solar Power Projects

• National Biogas and Manure Management Program

• Solar Photovoltaic Program

• Energy plantation and Bio-diesel production

Remote Village Electrification Program:

The Remote Village Electrification Program of Odisha began in the year 2006-07. So far electrification of 589 villages is complete and the same for 11 villages is under progress. During the current financial year 770 more villages have been sanctioned for which work orders have been placed on M/s Central Electronics Limited and M/s Bharat Electronics Limited on 29.6.2011 and 12.7.2011 respectively. The firms have communicated their acceptance of the order and are arranging to send materials by 4th week of August and start installation of systems in the first week of September. It has been scheduled to complete the work by end of December 2011.
Besides, the State Energy Department and REC have communicated a list of 530 more villages where survey is now under progress. DPRs will be sent to MNRE in phases so as to complete the lot by October 2011. Upon sanction it is expected to complete the project by 31st March 2012.
During a review taken by Hon’ble Chief Minister on 5.8.2011 it was decided that all those villages which were programmed for coverage under RGGVY but could not be taken up due to want of forest clearance should also be covered under RVEP. It is expected that about 300 to 400 villages could come under this category. Once the firm list is available survey and DPR preparation work will be taken up forthwith.

Year wise status of implementation of projects:

FY	No. of villages sanctioned	No. of villages dropped due to grid connectivity and other reasons	No. of villages completed	Villages under progress As on 8.8.2011	Program for completion
FY	No. of villages sanctioned		No. of villages completed	Villages under progress As on 8.8.2011	31st Aug ‘11	15th Sep’11
2006-07	197	5	185	7	5	2
2007-08	0	0	0	0	0	0
2008-09	91	4	86	1	0	1
2009-10	371	50	318	3	1	2
Total	659	59	589	11	6	5

Note:
Solar Power plants are under installation in all these 11 villages. Civil works in most cases is complete. Erection of solar power plant, LT distribution line and house wiring is under progress. In village Tuluka of Angul District BEL has not yet sent the power plant materials although the rest of the works is complete. BEL has been requested to send the same at once and complete the work. Similarly in Madhichuan village in Balasore district the work was stopped half way due to want of forest clearance as the area is frequented by elephant. After agreeing to use sheathed cables in place of open conductors the matter was resolved and work is under progress. Three of the villages in Sundergarh district have become highly inaccessible due to incessant rains for which work had to be stopped half way. Work in these villages is expected to resume in the first week of September.

2010-11 Program:

During 2010-11 a total of 770 villages in 8 districts have been sanctioned by MNRE, GOI vide sanctioned Order No 21/5/2010-11/RVE dated 25.2011 and 21/09/2010-11/RVE dated 29.3.2011 . The total financial outlay of the program is Rs.3465 lakhs out of which Central Financial Assistance is Rs.2906 lakhs. Following tender the work of these villages have been distributed between M/s CEL and M/s BEL in the following manner.

DISTRIBUTION OF WORK BETWEEN BEL & CEL UNDER RVEP-2010-11

BEL,KOLKATA
Sl No	District	No. of village	No. of HLS	No. of SLS
1	Kandhamal	161	4382	421
2	Nayagarh	37	821	84
3	Rayagada	151	5063	470
	TOTAL	349	10266	975

CEL,SAHIBABAD
Sl No	District	No. of village	No. of HLS	No. of SLS
1	Angul	24	1016	103
2	Debagarh	17	510	48
3	Rayagada	233	6291	611
4	Sambalpur	27	714	69
5	Mayurbhanj	11	521	46
6	Gajapati	109	3374	318
	TOTAL	421	12426	1195
	GRAND TOTAL	770	22692	2170

Note:
Out of the above, orders for 51 villages to CEL and 8 Villages to BEL were given earlier to the tender in old rates to accommodate the surplus systems on account of dropped villages and start work immediately.

Progress of work:

S/N	District	No of Villages	Status of constitution of VEC
			till end of June	during july	Total	Balance	Schedule
			till end of June	during july	Total	Balance	Aug	Sep	Oct
1	Gajapati	109	46	43	89	20	20	0	0
2	Deogarh	17	11	0	11	6	6	0	0
3	Rayagada	384	98	74	172	212	50	100	62
4	Kandhamal	161	10	28	38	123	40	40	43
5	Mayurbhanj	11	11	0	11	0	0	0	0
6	Nayagarh	37	5	17	22	15	15	0	0
7	Angul	24	24	0	24	0	0	0	0
8	Samabalpur	27	5	2	7	20	10	10	0
	Total	770	210	164	374	396	141	150	105

New program:

Apart from the above 770 villages the State Energy department and REC have given a list of 530 villages where survey is under progress. The details are given below:

New villages identified for coverage during 2011-12 in in LWE Districts

Sl No	District	No. of Villages Identified		Remarks
1	Keonjhar	96		LWE
2	Sundergrah	89		LWE
3	Kalahandi	137		LWE
4	Malkangiri	47		LWE
5	Nuapada	10	LWE
6	Bolangiri	2	LWE
7	Nawarangpur	4	LWE
8	Deograh	6	LWE
9	Koraput	139	LWE
	Total	530	LWE
10	Ganjam	73	Non -LWE
11	Angul	1	Non - LWE
12	Bargarh	2	Non -LWE
13	Khurda	3	Non -LWE
14	Total	79	Non -LWE
	Grand Total	609

Year wise physical &Financial Achievement

Physical and financial achievement for FY 2006-07

Villages sanctioned	197
Villages completed	185
Villages dropped	05
Villages under progress	07*
Total Amount sanctioned by MNRE (Rs)	11,68,00,044
Amount released	9,95,68,172
Amount to be refunded on account of dropped villages	60,78,610
Actual amount available for expenditure	9,34,89,562
Expenditure incurred	7,87,46,780
Balance amount available	1,47,42,782
UC submitted	6,84,32,344
Percentage of expenditure	84.23 %

Physical and financial achievement for FY 2008-09

Villages sanctioned	91
Villages completed	86
Villages dropped	04
Villages under progress	01
Total Amount sanctioned by MNRE (Rs)	3,44,02,100
Amount released	2,40,81,000
Amount to be refunded on account of dropped villages	32,01,068
Actual amount available for expenditure	2,08,79,932
Expenditure incurred	2,38,67,364
Balance amount available	(-) 29,87,432
UC submitted	2,38,67,364
Percentage of expenditure	114.30

Physical and financial achievement for FY 2009-10

Villages sanctioned	371
Villages completed	318
Villages dropped	50
Villages under progress	03*
Total Amount sanctioned by MNRE (Rs)	24,37,06,436
Amount released	17,05,92,000
Amount to be refunded on account of dropped villages	4,48,09,910
Actual amount available for expenditure	12,57,82,090
Expenditure incurred	11,34,34,005
Balance amount available	4,01,22,287
UC submitted	11,34,34,005
Percentage of Expenditure	90.18%

Abstract of physical and financial achievement up to 2009-10

Villages sanctioned	659
Villages completed	589
Villages dropped	59
Villages under progress	11
Total Amount sanctioned by MNRE (Rs)	39,49,08,580
Amount released	29,42,41,172
Amount to be refunded on account of dropped villages	05,40,89,588
Actual amount available for expenditure	24,01,51,584
Expenditure incurred	21,60,48,149
Balance amount available	05,18,77,637
UC submitted	16,79,59,511
Percentage of Expenditure	89.96%

2010-11

Villages sanctioned	770
Villages completed	33
Villages dropped	0
Villages under progress	0
No. of villages for which work orders placed	770
Total Amount sanctioned by MNRE (Rs)	33,73,98,480
Amount released	23,60,20,405
Expenditure incurred	81,25,032
Balance available	22,78,95,373
Percentage of Expenditure	3.44%

Year wise coverage of Remote Villages

Orissa Renewable energy agency

Part III

Solar Business Opportunities in Orissa:

The Solar business opportunities mentioned below are not specific to Orissa. They are industry specific opportunities.

Polysilicon manufacturing

Polysilicon is used to manufacture crystalline wafers. Around a quarter of the cost of a Crystalline module goes just for polysilicon.

The Ministry is providing soft loan at 5% annual interest rate through IREDA for setting up manufacturing facilities for manufacture of poly silicon material, silicon ingots and wafers, solar cells or integrated solar cell-module plants. No soft loan is available for setting up manufacturing unit for module manufacture or PV system manufacture. The proposals are considered by IREDA as per their lending and project appraisal norms. The details of the scheme are available with IREDA. http://www.mnre.gov.in/spv-fin.htm

Type of entrepreneurs/ investors who can benefit - Entrepreneurs keen on building up capital intensive manufacturing facilities for an emerging market. The industry is dominated by a few companies that supply around 90% of the total polysilicon market. Some of the prominent companies are Hemlock, OCI, Wacker Chemie Tokuyama, REC (subsidiary SGS and ASiMI), and MEMC.

Scale of investment - Typical investments of $500 million - $1 billion for building a polysilicon production plant.

Indian scenario - Companies such as Lanco, Bhaskar Solar, Tata BP Solar and Acharya are reportedly setting up polysilicon manufacturing plants in India, though these are pretty much early days for polysilicon in India.

It is not advisable to enter into this market at present. That is why I have not even updated some of the information given above. Everyone needs to know that Polysilicon manufacture is an opportunity for those in the solar industry.

The prices are falling, efficiencies are increasing, machineries getting outdated, and thus it is a dynamic industry.

Avoidable

Ingot and wafer manufacturing

The process of melting polysilicon into ingots and subsequently cutting them into wafers is wedged between polysilicon production and cell manufacturing.

Yet, it is a distinct process that does not require physical proximity to upstream or downstream processing. Consequently, some companies specialize in just doing that. Typically, ingot and wafer manufacturing are done by the same company.

Type of entrepreneurs /investors who can benefit - Companies that have been operating in metal cutting and finishing, abrasives and related industries could be ideally suited to enter this segment.

This too is avoidable.

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Solar Cell Manufacturing:

Cell manufacturing involves creating the all-important pn-junction, coating and layering. It is an important step in the value chain that is responsible for about 15% of a solar PV module cost and it is here where significant technical differentiation is created.

Avoidable

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Crystalline Cell Manufacturing:

Type of entrepreneurs / investors who can benefit - Ingot and wafer manufacturers who are keen on forward integration can exploit this opportunity.

Scale of investment - Medium-Large. A rule of thumb guide to the capital investment in building a solar cell plant is US$1-1.25 million/MW for crystalline silicon and US$ 2 million/MW or more for thin films. The minimum economical size for a solar cell factory is about 20 MW.

Avoidable

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Thin-film Solar Cell Manufacturing

Manufacturing thin-film modules comprises depositing photovoltaic material on a substrate, structuring it into cells to form an electric circuit and wire and frame it depending on application. The key suppliers for the thin-film industry are chemical companies that produce high-purity metals such as CdTe, GaAs etc. The supply chain is less constrained than that for polysilicon (used in crystalline solar) and therefore much more reliable. This industry experiences a diverse mix of big-hitters (Sharp), start-up companies and universities. Companies with a long-term vision should start investing in this field.

Type of entrepreneurs / investors who can benefit - Chemical companies that produce high-purity metals such as CdTe, GaAs are in a good position to exploit this opportunity. Glass manufacturers are also in a good position to exploit this opportunity. Equipment firms that have traditionally supplied printing machinery or manufacturing equipment to the semiconductor and display industry see the burgeoning thin film industry as a potentially lucrative market, especially as their hardware can often be easily adapted to manufacture thin film cells and panels. At the same time, these equipment manufacturers are not finding it that easy to enter the TFPV space because module manufacturers are choosing to design and build proprietary equipment rather than buy it in.

Scale of investment - This industry experiences a diverse mix of big-hitters (Sharp), start-up companies and universities. A rule of thumb guide to the capital investment in building a solar cell plant is US$1-1.25 million/MW for crystalline silicon and US$ 2 million/MW or more for thin films. The minimum economical size for a solar cell factory is about 20 MW.

High R&D or commodity manufacturing? - Opportunities exist for R&D and innovation in this exciting sector. Prominent segments where significant innovation possibilities exist are: efficiency, new thin film materials, design and process.

Bottlenecks/threats/barriers - For development and small-scale production, there are few barriers, as companies like Aja International specialize in providing small-scale sputtering equipment. However, when scale becomes important, access to capital might become a barrier.

Competition - This is a very dynamic segment with lots of startup companies, some venture-funded. There are also a number of companies that also produce crystalline technologies. Those companies tend to be in the amorphous silicon thin-film segment. The organic photovoltaics segment is mostly covered by research institutes rather than private companies.

Market size - The production volume has increased steadily as 165MW in 2007 and 357 MW in 2008. The share of thin films is expected to increase significantly and expected to reach about 25% of total in 2013. (EPIA data).

Supply and demand - The thin film solar cell production reached a consolidated figure of 1.68 GW in 2009 out of the total 3.58 GW capacity available, indicating that there is some amount of surplus capacity. However, the demand supply gap could look very different in future with enhanced offtake of thin film world over.

Indian scenario - There are only a few Indian companies such as Moser Baer and HHV Solar that make thin film solar cells. A few others such as Kirloskar are also exploring this field.

First solar, Abound solar, GE's Primestar etc will soon find inroads into India.

CIGS, CdTe and amorphous silicon a-si are the three types.

NOT Worthwhile pursuing opportunity.

First solar, Abound Solar, Primestar of GE are the companies to associate with.

It is a difficult manufacturing process.

You may also want to study the below given not yet proven cos.

Miasole, (counselled by Intel)

Sulfurcell,

AQT,

Telio,

Global solar

ISET

Odersun,

Wuerth Solar etc

All the above are CIGS manufacturers. Some of them are startups and you need to study their production process and record well.

May make sense to tie up with any one of them, who is doing well, now, than going in of your own manufacturing.

CdTe thin film companies are CdTe: Abound Solar, Primestar, Solexant, Bloo Solar, Willard and Kelsey, Xunlight26

a-Si - Sharp solar

Ascent solar tipped to have the highest upside in the stock market is another company to watch out for.

As per the JNNSM guidelines, thin film can be imported for its Phase I Batch I and II as there are no manufacturers.

Some of the thin films have been found pretty efficient in India. Viz First Solar.

To repeat

NOT. Worthwhile pursuing opportunity. Required deep pockets. Global play.

First solar the leader of the pack had its shares selling in 2011 at $ 140 per share and is now being traded at $ 14/ share.

Industry is dynamic. Avoid. Not sure if thin films can be winners.

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CSP

CSP is an umbrella term for CSTP and CPV.

That is the way I am taking it.

The purists may not agree.

For the purpose of this note, it is fine to define CSP as above.

In concentrating PV (CPV), concentrators use optics to concentrate sunlight onto a small area of solar cells, thus allowing for a decrease in cell size. Because a CPV module needs less cell material than a traditional PV module, it is cost effective to use higher quality cells to increase efficiency. However, the technology makes up a very small portion of the solar industry.

CPV system manufacturers assemble the solar cells, concentrator unit and heat sink to form a module. Where applicable, companies will either integrate a tracking device or offer it as a separate product for free-standing module installations.

CPV is currently quite R&D driven, with a number of innovations taking place in this area. The types of entrepreneurs who will find this domain suitable are those who have scientific R&D backgrounds and have access to funds for significant R&D investments.

As a rather recent technology (being commercialized), there are new entrants, many of whom are venture funded. Some of the prominent ones are: Amonix (California), SolFocu (California), GreenVolts (San Francisco), Concentrix Solar (Germany) etc.

CSP

Interesting opportunity area for large companies. Very soon India will need utility scale solar energy plants with molten salt so that they can provide electricity 24 hours. As per the Renewables Purchase Obligation, RPO, all utilities are expected to buy 0.25 % every year and that is a considerable amount for each state.

This is the only solar technology that allows for storage naturally. Since the solar radiation is indirectly converted to electricity, there is an opportunity to store the collected heat in molten salts, before converting the heat to electricity.

The cost of setting up the molten salt system is exorbitant.

The common understanding is CSP is cheaper than PV due to the use of off-the-shelf, commodity components like mirrors, turbine, etc. It also was known to have higher efficiencies in solar to electricity conversion (~15%).

Due to the global oversupply in PV panels and reduced demand due to the financial crisis, the prices of the panels have drastically reduced. On the efficiency front, the PV at 15-20% efficiency is typical now, further adding the cost parity. The result is that PV is now at parity or close to parity with CSP. One western region utility claimed that they pay 0.16 c/Kwh for CSP and 0.14 c/Kwh for PV. This difference was attributed to the timing of the PPAs; generally the difference is not significant anymore.

A CSP project in USA has shifted to PV. Actually it is world's largest project that has shifted from CSP to PV

http://www.eai.in/club/users/Nithya/blogs/7417

BHEL has tied up with a CSP major.

The ability to provide “firm power” is a clear advantage of CSP at this time. Due to the output being provided by a steam turbine (and not directly from the field) and a ~2 hour built-in buffer in the trough technology, small variations in the in insolation do not affect the turbine output – like a passing cloud.

CSP will also be needed for many townships, industrial estates etc

Large companies which want to take less risk and are happy with predictable rewards can go for this.

Here are a list of CSP companies with a note for each of them. You may want to work with one of the best, than go it alone.

Abengoa SA, Acciona Energia, Acquasol, Amonix, Aora, Archimede Solar Energy, Arxiel Ventures, Ausra Inc., Bright Source Energy, Capital Sun Group, Circadian Solar, Concentrix Solar, Cool Earth Solar, Enel, Enter-t Global, EPURON, eSolar, Fichtner Solar GmbH, Flabeg, Flagsol, FPL Energy, Giuseppe Farina, Global Warming Solutions,Green & Gold Energy, GreenVolts, HelioDynamics, HelioFocus, Hiro Energy Tech Limited, HuiYin-Group, Industrial Solar Technology Corp., Infinia Corporation, International Automated Systems, ISFOC, Isofoton, Kraftenlagen Munchen, Kernenergien, Lauren Engineers & Constructors, MAN Ferrostaal, MENA Cleantech, Menova Energy Inc., Microsharp Corporation Limited, Mubadala Development Company, M W Zander GmbH, Naanovo Energy, New power India, Nokraschy Engineering, NOVATEC BioSol AG, Nur Energie, Open Energy Corporation, PSE AG, Pyron Solar Inc., Renovalia Energy, Schlaich Bergermann und Partner, Schott Solar Thermal / Schott UK, Senior Berghöfer, Solar XXI, SkyFuel Inc, Silicon CPV, Solar Euromed, Solar & Environmental Technologies Corporation, SolarReserve, SolFocus,Soliant Energy, Solar Heat and Power Inc, Solargenix Energy, Solar Millennium AG, Solar Power Group , Solarsphere, Solar Systems, Solar Trust of America LLC, Solel Solar Systems, SolFocus, Solucar, Sopogy,SunBorne Energy, Sunpower, Sunstroom Energy Ltd, Sustainable Resources Inc., Stirling Energy Systems, Torresol Energy, Tsugino Co., Whitfield Solar, Wizard Power Pty Ltd, Worley Parsons

In my ranking, following are the companies to look upto Bright source Energy , Solar Millennium , Abengoa , Areva , Siemens, Acciona, SolarReserve, eSolar, Schott, etc.,

But then there is no clear basis for my selection.

Viability / grid parity is a question as far as CSP is concerned. It will take a little longer than PV.

Spain’s track record sends an encouraging message to newer entrants in the CSP market from India to South Africa and beyond. When Spain started building plants in 2007, the first plants such as PS10 and Andasol 1 were highly dependent on imports of foreign supplies, requiring at least 50% of the requisite parts to be sourced from abroad. The plants that went online in 2010 were built with around 80% of components from Spanish companies.

If in doubt, read more http://www.csptoday.com/csp-markets-report/

CSP is ideal for utility scale projects. 24/7 power. If the RPO is implemented then this will be good to get into.

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Solar Module Production - Solar PV module manufacturing involves assembling the cells into a module to form an electric circuit. This is the last manufacturing step before it is distributed to wholesalers.

Indian scenario - There are about 35 companies in India that produce crystalline solar modules.

Avoidable. Dont enter now.

The market is crowded.

China is doing predatory pricing. It will swallow even local manufacturers, if they are not quick.

You may want to talk to some of the present module manufacturers in India:

Access Solar Ltd.
http://www.accesssolar.co.in/home.html,

Ajit Solar Pvt Ltd.

http://www.aj itsolar.com/

Alpex Solar
http://alpexsolar.com/

Ammini Group
http://www.ammini.com/

Amro Technology Pvt Ltd.
http://www.amrotechnology.com/profile.html

Andromeda Energy Technologies Ltd.
http://www.andromedasolar.com/

Bharat Heavy Electricals Ltd. (BHEL)
http://www.bhel.com/home.php

Central Electronics Limited (CEL)
http://www.celindia.co.in/

Chemtrols Solar Pvt. Ltd.
http://www.chemtrolssolar.com/

Ecosol Power Pvt. Ltd
http://ecosolpower.com/home.html

ELECTROMAC Solar Systems PVT. LTD
http://www.enf.cn/pv/12787a.html

Emmvee Photovoltaic
http://www.emmveesolar.com/

Empire Photovoltaic Systems PVT Ltd

GreenBrilliance Energy Pvt. Ltd.
http://www.greenbrilliance.com/

HHV Solar Technologies Pvt. Ltd.
http://www.hhvsolar.com/

ICOMM Tele Limited
http://www.icommtele.com/

India Solar Solutions
http://www.solarindiasolutions.com/

KCP Solar Industry
http://www.kcpsolar.com/

Kotak Urja Pvt. Ltd.
http://www.kotakurja.com/

LANCO
http://www.lancogroup.com/

Maharishi Solar Technology Pvt. Ltd.
http://www.maharishisolar.com/

Microsun
http://www.microsuntech.com/

Modern Solar
http://www.modernsolar.com.au/index.aspx

Moser Baer Photo Voltaic Limited
http://www.moserbaersolar.com/

Neety Euro-Asia Solar Energy
http://www.nease.in/

Novergy Energy Solutions Pvt. Ltd.
http://www.novergy.co.in/

Photon Energy System Ltd.
http://www.photonsolar.com/

PHOTONIX Solar Private Limited
http://www.photonixsolar.com/

PLG Power Limited
http://www.plgpower.com/

Premier Solar Systems Pvt Ltd
http://www.premiersolarsystems.com/

PV Power Technologies Pvt. Ltd.
http://www.pvpowertech.com/

Rajasthan Electronics & Instruments Ltd. (REIL)
http://www.reiljp.com/

Rashmi Industries
http://www.rashmisolar.com/

Reliance Solar Group
http://www.relsolar.com/

SahajSolar Power Pvt Ltd.
http://www.enf.cn/pv/13208c.html

Shreyansh Electronics
http://shreyanshindia.com/

Solar Semiconductor Pvt. Ltd.
http://www.solarsemiconductor.com/asia/index.html

Solkar Solar Industry Limited

http://www.solkar.in/index.php

Sunrise Technology
http://www.sunrisetechnologies.com/

Sova Power

http://sovasolar.com/

Sun Energy Systems
http://www.sunenergysystems.in/home.htm

Sun Solar Techno Limited

http://sunsolartechno.com/

Sungrace Energy Solutions (P) Ltd
http://sungrace.net/

Vksolar
http://www.indiamart.com/vksolar/

Surana Ventures Ltd.
http://www.suranaventures.com/

Synergy Renewable Energy Pvt. Ltd
http://www.group-synergy.net/

Tata BP Solar India Ltd.
http://www.tatabpsolar.com/

Titan Energy Systems Ltd.
http://www.titansolar.com/titan/

Topsun Energy Ltd.
http://www.topsunenergy.com/

Udhaya Energy Photovoltaics (P) Ltd. (UPV Solar)
http://www.upvsolar.com/

Udhaya Semiconductors Limited (KL Solar Company Pvt. Ltd)
http://www.uslsolar.com/

Waaree Energies Pvt. Ltd.
http://www.waareeenergies.com/

Websol Energy Systems Ltd.
http://www.webelsolar.com/

XL Telecom & Energy Ltd

http://www.xlenergy.co/

If you are already a module manufacturer, it makes sense for you to enter power generation.

And to enter Rooftop solar.

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Other Opportunities in Solar energy in India and Orissa are

*Ground Zero opportunity

Roof top solar!

It is a very good opportunity and there are opportunities for very large companies as well as for medium sized companies and individuals to get into business.

As an individual you can start a business as an Installer.

You will have a few well trained / skill trained employees working under you.

At the small, residential scale, there are practically no barriers to entry.

There is a wealth of training material available, both in person and online which enables even a one-man contractor to become fit enough to install roof top solar.

At the larger, commercial scale, the main barrier to entry is capital, expertise in management, in sales, etc.,

You will install solar modules in a rooftop as per your Integrator's instructions.

An Installer is someone who is technically minded and can manage a few people or if you can manage many people at a time, then you become an area Installer.

The installer model is somewhat like a conventional contractor model. Gross margins are thin, from 15 to 30%. Residential Rooftop systems typically receiving larger margins than commercial.

Because commercial jobs will be invariably got thru an Integrator or an EPC contractor.

It is an opportunity for domestic module manufacturers to get into.

The opportunity exists for

Installers

Area Installers

District Installers

Integrators

Area Integrators

District Integrators

Regional companies - covering a few states having similar policies

National companies

The Installers can choose to work on their own or under the National companies, Regional companies, District integrators, District Installers, etc.,

The market will evolve as fragmented and unstructured to begin with and will get consolidated.

You can get more information about types of Installers in Rooftop solar business models.

An integrator is someone who deals with the customer, Electricity board, etc

Then there will be a company. Either a national company or a regional company which deals with the Gov, electicity board, corporates etc,

You can read all about them in Rooftop solar business models

And Rooftop solar technology types http://www.eai.in/club/users/Nitin/blogs/6670

Rooftop solar is a viable alternative and the prices / tariff in each state will soon help bring about grid parity and the sooner you get into it, the sooner you will reap the benefits.

Rooftop solar comes about in many forms. For example a captive power plant may need a rooftop solar solution as a part of it.

Diesel to Renewables may need rooftop solar solution.

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* Business possibilities with MNRE

RESCO,

System integrator,

Financial Institution,

Financial Integrator and

Program Administrator

Each of the above is an opportunity

Implementation of off-grid solar PV project under JNNSM

FAQ

1. What is the Procedure to register as Channel Partner?

There are 5 types of channel partners and they can participate in the programme through the following procedure:

A RESCO is a entity which would install, own & operate RE systems and provide energy services to consumers. These entities may tie up with FIs for accessing the financial support under the scheme. These are in fact the only entities which would approach the MNRE on their own. CRISIL is in the process of putting in place a system of accreditation. From September 2010 these entities could approach either CRISIL, CARE or FITCH to have themselves accredited and if they meet the minimum requirements laid down by MNRE they would be in a position to approach the Project Appraisal Committee (PAC) with their proposal for a in principle approval.

The PAC would then provide the entity “in principle “approval and allow it to move forward with the implementation. The PAC would also specify that on completing the project, 50% of the funds would be made available automatically and the remaining on completing monitoring.

As far as the Financial Institutions as channel partner is concerned, a comprehensive re-finance scheme has already been notified by IREDA. The SPV Division has also floated an EoI, wherein they have received over 80 applications from entities interested in partnering in the bank led scheme.

The SPV Division would shortlist the manufacturers region-wise or across the country depending on the strength of their existing after-sales network. The division will also identify various products after verifying how each of the laid down by MNRE, and then along with product is meeting the standards laid NABARD, design a pre-approved scheme which will allow RRBs to proceed with the lending for the above identified products and empanelled manufacturers. It is highlighted that the process of empanelling both the manufacturers and products would be an ongoing process in order to make sure that if there are new players who meet the requisite standards can also be appropriately empanelled. This process it is hoped will result in enabling NABARD to announce their pre-approved scheme to all the financial institutions, which have a re-finance agreement with them. IREDA will, after signing the agreement in Mumbai on 25^th August, place token funds with NABARD to initiate the implementation of this scheme.

System integrators can approach the PAC; with their project in the formats finalise to seek an ‘in principle’ approval. Since these are entities that would first interact with their market and build a project based on the tentative orders that they have been provided by their clients, the PAC would appraise the project on three basic parameters:-

(i) The ability of the entity to implement the project in terms of the skill set of their personnel.

(ii) Details of how parameters of quality would be met as per the standards specified by MNRE.

(iii) O&M Plan.

System integrators would however need to approach bank/banks who would be willing to have a three way tie up with their clients, themselves and the bank. The bank/banks would also need to have a re-finance agreement in place with IREDA, NHB or NABARD. Based on the ‘in principle’ approval, the bank would be in a position to provide the lending support to the clients that have been identified by the system integrators. It is envisaged that both the capital and interest subsidy would flow to the beneficiaries of the scheme only through the banking channel. Requisite arrangements for providing this flow have already been clearly delianated in the re-finance scheme notified by IREDA.

Financial integrators are entities who need to enter into a tri-partite agreement before coming to MNRE. This tripartite agreement has to be between the manufacturers/service providers, financial integrators and any other financial institutions, which is willing to support this kind of a business model. It is envisaged that the financial integrators would approach the PAC with details of their financial model as well as the product or service that they wish to provide through this financial/business model.

The PAC would appraise the project on the following parameters:

(i) Details of how parameters of quality would be met as per the standards specified by MNRE.

(ii) The ability of the entity to implement the project in terms of the skill set of their personnel.

(iii) O&M Plan.

(iv) Financial/business models and its viability.

It is expected that the financial integrators would also tie up with a schedule commercial bank in India so that the subsidy both capital and interest can flow through the banking channel and would be covered under the re-finance scheme of IREDA.

In so far as the implementation of the scheme through programme administrators is concerned, there is complete clarity in how to move forward.

Formats for both SPV and Solar Thermal have also been prepared.

2. How to submit a project proposal?

Formats for submission of proposal are given on the Website of the Ministry.

Two sets are required to be submitted to PAC.3. How the project will be approved?

Once the proposal of the channel partner is received an in- principle approval from PAC will be given within a maximum of 45 days. In case additional information is required PAC will inform within 30 days. After full information is received proposal will be cleared in two weeks.

4. What is the subsidy disbursal mechanism?

The release of funds for the project shall be back ended as reimbursement on completion and verification thereof. However for progamme administrators, the release of funds could be front ended, with installments of 70% on sanction and 30% on completion. However, this could be extended to other entities on provision of appropriate sureties. In respect of credit linked capital subsidy and interest subsidy the scheme would be implemented through IREDA, which will be the designated Nodal agency for disbursement of funds.

5. Procedure for accreditation for channel partner/ financial integrator/ systems integrator/RESCO?

As above in (1)

6. Can NGOs directly approach MNRE for implementation of projects?

Only the NGOs who have already been working closely with MNRE can access the scheme directly. Otherwise, the NGOs should collaborate with SNAs.

7. Whether lighting systems to be provided should be certified by SEC or other test centers?

Compliance to standards is mandatory. Certificate from test centres will help in this regard and should be provided to ensure complainace.

8. What is the policy on local content of modules, batteries and other balance of systems in off grid programme?

The scheme requires the project proponents to strictly adhere to the national/international standards specified by the Ministry from time to time. The Use of imported complete PV systems is not permitted under the scheme.

However, use of imported components of a complete PV system is permitted, subject to adequate disclosure and compliance to specified quality norms and standards.

The minimal technical requirements and Quality Standards in respect of the off-grid SPV power plants/ systems are given in Annexure-3 of the scheme for solar off-grid applications. These will come into effect from 1st September 2010 to allow sufficient time to the SPV industry to gear up for the same.

9. What are financial limits assigned to channel partners?

The financial limits will get decided based on the ability of the channel partner to deliver the implementation of the project within a period of 1 year. But the PAC would not accept any proposal of value less than Rs One crore or 30 kWp. Less than this amount would need to be aggregated at State level.

10. Whether commercial entities can avail accelerated depreciation?

The commercial entities can claim all the benefits, which are presently available for renewable energy applications, including solar, under the Income tax act and other notifications, subject to fulfillment of the conditions.

11. Whether any channel partner interested only in capital subsidy whom should he approach?

Only accredited channel partner and Programme administrators can access ‘only capital ‘subsidy. The commercial entities can access either capital subsidy or interest subsidy. They should approach a channel partner to avail subsidy.

12. Whether RESCOs require any permission from Electricity boards to produce power?

Guidelines under the Electricity Act,2003 and the extant regulations of that particular State will need to be read in conjunction to determine the process for captive power generation.

13. Whether any new technologies invented any where can be introduced in the programme?

The Ministry could provide up to 100% CFA for undertaking pilot and demonstration projects through manufacturers and other organizations for demonstrating new and innovative applications of solar systems. The maximum CFA that would be permissible under this provision would be up to Rs 1 crore. The PAC would evaluate the proposal based on parameters like – new applications for solar (not merely using solar as a power source), possibility of reduction of cost of BoS or system design improvement, or a new concept etc.

You can get all this from http://www.mnre.gov.in/pdf/FAQ_offgrid_solar.pdf

You can discuss your suggestions/ questions etc in the comments column at the bottom of this blog.

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* Solar powered desalination, plans, projects and opportunities

If you can get potable water at a cost of say 0.5 $ per meter cube, ie say INR 22/ per 1000 litres of water that is ready to drink, ie Rs 0.22 per litre at the coast, wouldn’t you think it a great opportunity to bottle the water and market it.

Yes that is what it costs. 4.2 KWhr / m cube. At Rs 5 per unit of power, it works out to Rs 20 for 1000 litres of good water that is desalinated.

Let’s say 22p per litre!!

Actual cost is even lower!!

The capital cost is pretty high.

Forget that for the time being. We will come to that later.

Orissa has a 480kms long coast line.

The opportunity is to build solar desalination plants.

The opportunity is to start a large solar desalination plant yourself, if you are a profit making organization.

( Many people have questioned these figures. I am doing further research on this. It may be worthwhile to look at a blog of mine on solar desalination and also to wait till I come up with more accurate information)

There are other opportunities too.

Very soon, the coastal belt is going to be economically strong because of availability of good water and additional power.

Making potable water and selling them inland is a business opportunity coming out of solar energy, all along the Orissa coast.

This is a great solar business opportunity.

Get in touch with Salt works technologies. To market their products in India. To set up a solar desalination plant in India. To do joint research in India. To represent them in Asia.

This opportunity pointed out by Nithya is in the intersection of two very high potential areas ie Water and Energy.

Acquasol's solar desalination project will:

1.  Be the world's largest standalone solar-powered desalination plant
2.  Harvest brine on land, eliminating marine environmental concerns
3.  Deliver greater national water security by increasing water market supply

Their products can be used in inlands too.

Visit Nithyas blog on solar desalination and see my comment for the above business opportunity.

It is a good opportunity because, it covers not just Energy. But also what the next oil is about.

Water.

GE is in it full time. Siemens is in water.

So should you be.

Solar water desalination is meant for big companies.

Like solar power generation, it is an infrastructure game.

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* Floating solar plants.

There are three companies namely Sunengy in New southwhales, Australia, Solarsis Synergy in France/ ciel-et-terre.net/ and SGPsolar in California, USA.

They have different methods of achieving solar power from floating solar panels, solar plants, etc.

They all use captured water bodies.

India has 30000 sq km of captured water bodies.

If even 1 % of that area is utlised - it will equal 1500 large coal plants.

Tata's have tied up with Sunengy, which has a patented technology called LSA.

With the other two companies, entrepreneurs/ companies from India can seek to have a tie up.

There is a solar business opportunity in terms of research for the research minded.

All about this opportunity http://www.eai.in/club/users/aathmika/blogs/1170

Tatas have already started building a floating solar plant with Sunengy, somewhere near Pune.

There is another company in Punjab doing this.

There is a clear opportunity for big companies to tie up with Solaris Synergy and or SGP solar in California USA.

http://ciel-et-terre.net/floating-photovoltaic/

This is the French company.

I have been recommending these companies for a long time.

NOW, SGP solar has been ranked as one of the fastest growing private company in usa.

Or you can fund research in this area.

Floating solar plants

Great opportunity: For large companies, with deep pockets.

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Business Possibilities thru MNRE in Villages

Manufacture / market solar lanterns, solar home systems, Street lighting system, stand alone power plants, solar pumps. The details of the incentives are given below.

It may make sense for individuals to tie up with large cos that manufacture these. Or better still become an agent for a large company that manufacture these products and market them.

Pattern of Central Financial Assistance (CFA) for SPV Systems:

SPV System	CFA for General Category States	CFA for Special Category States	Administrative Charges
Solar lanterns (10W module, 7W CFL)	Nil	Rs. 2,400	Rs.100
Solar Home System – Model 1 (18W module, 1 light)	Rs. 2,500	Rs. 4,500	Rs. 200
Solar Home System – Model 2 (37W module, 2 lights)	Rs. 4,800	Rs. 8,660	Rs. 200
Solar Home System – Model 3 (37W module, 1 light, 1 Fan)	Rs. 4,800	Rs. 8,660	Rs. 200
Solar Home System – Model 4(74W module, 2lights, 1 Fan)	Rs. 4,800	Rs. 8,660	Rs. 200
Solar Home System – Model 5(74W module, 4lights)	Rs. 4,800	Rs. 8,660	Rs. 200
Street Lighting Systems – (74W module, 1-2 lamps)	Rs. 9,600	Rs. 17,300	-
Stand alone power plant of capacity more than 1Kwp	Rs. 1,25,000/KWp	Rs. 2.25,000/KWp	Rs. 10,000
Stand alone power plants of capacity more than 10Kwp with distribution line	Rs. 1,50,000/KW	Rs. 2,70,000/KW	Rs. 10,000
Solar Pumps	Rs. 30/Wp, subject to a maximum of Rs. 50,000/- per system	Rs. 30/Wp, subject to a maximum of Rs. 50,000/- per system

For business opportunities about Solar Home lights, Solar Street lights, specifications, visit here

http://www.eai.in/club/users/aathmika/blogs/540

Good Opportunity. Aleady players are active. Both manufacturing and trading opportunities exist.

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* A low cost solar energy solution for the Indian industries

Solar Heat for Industrial Purposes, SHIP for short, the Market in India, the Business, the Opportunity, Cost Advantage of Solar Process Heat

The market for industrial heat in boilers is estimated to be 26 billion US dollars per

annum in USA alone.

Solar steam produced is estimated to cost $ 4.60 per MBTU compared to average cost of natural gas powered steam of about $ 6 to $ 10 per MBTU.

This estimate is as per one the companies in Solar Heat for Industrial processes (SHIP).

Indian entrepreneurs should take up such projects that cut down co2 emission and is less expensive.

There are several companies that are into SHIP in USA. One of them claims that their process is CO2 emission free. Obviously because they use solar energy.

The company also claims a reduction in the cost by as much as 50 %.

That is a lot. Those interested must act fast.

Solar Heat for Industrial Purposes

(SHIP)

You can discuss your suggestions, ideas, questions

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* Captive power plants.

Many factories, companies, office complexes, textile factories, cement factories, sugar mills and many other small and medium industries need back up power.

What is being talked about as an opportunity is this back up power. Actually already many companies in India already have captive power generation. But there a lot more number of companies in India which can benefit from this captive power plant from solar energy.

There are some financial benefits and also the benefits of RECs otherwise known as Renewable Energy Certificates which are tradeable. There is good report on this at

http://www.eai.in/ref/reports/captive_power.html

Reading up the report will open up the opportunity for the above mentioned factories for their own backup power ie captive power.

Those who are marketing minded and those who are solar energy consultants or renewable energy consultants, this is a very good business opportunity in India.

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* Education and training:

MNRE expects that there is going to be a need for 100,000 trained professionals in the next 8 years.

I think that is a gross underestimate.

This opportunity is not just for individuals who want to learn and get jobs. Or learn and start a business or set up a training center as a businessman. OR u can even set up an online course for the whole world. The limitations are your imagination.

I foresee many training centers both for unskilled and for post graduation education courses happening soon. The course contents given in the sample solar education centers, will be Indianised by the shrewed Indian businessmen.

Some of them may go for tie up with universities abroad. For example they may have a tie up with a US university in Pune or a tie up with a European university in Jalgaon.

Good opportunity to get into Solar education, Training.

Opportunity exists as a nationwide company, as a college, as a university, providing Graduations/ Degrees or practical training for the blue collars, providing certificates /diplomas.

When the surge comes there will be a need for trained professionals.

Can be a franchisee also.

http://www.eai.in/club/users/aathmika/blogs/1284

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* Solar inverters

In a Global Clean Technology Conference on February 23-24 in New York, with more than 100 public and private companies and 700 attendees, including strategic and financial investors, high-level policymakers and industry thought-leaders in attendance the following question was asked as a part of a Survey.

Question:

Within solar, which sectors of the supply chain are the most attractive investment themes?

(Please rank with #1 being the strongest):

Inverters 1

Cells/Modules 2

Projects/Installation 3

Polysilicon 4

Manufacturing Equipment 5

Wafers 6

The result of the survey is given in green color.

Inverters!!

That is why I am calling it a great solar business opportunity in the Indian market too.

700/800 of the world’s leading practioners have identified Inverters as the most attractive investment theme.

Solar inverters in India, manufacturers, cost and business opportunities - You can get to know the business opportunities here.

You may want to look at http://www.solren.com/residential.html and http://www.solren.com/utility.html

Manufacturing opportunity is meant for large cos.

What is the capital subsidy, interest on loan, rebates if any etc can be got from here

Especially for inverters in Residential rooftops, area wise distribution is an opportunity for the sales minded.

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* Micro grid:

The electrical needs of rural households are relatively small (0.5-2.5 kWhr per day) and a micro-grid system of 20-35 kW would suffice a small village. This may not be a 100 % solar solution. The solution to the villages can be hybrid.

Will research and write more about this opportunity soon.

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*. Solar Irrigation Pumps:

This is a big opportunity area. Already being catered to in many villages.

Coming soon.

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*. Solar thermal

India on an average has 300 clear days of sun and the radiation in most parts is 4.5 to 6 kWh/m2/day, which is pretty high.

Solar thermal projects concentrate sunlight on a fixed point and uses a medium to move the stored heat energy to a place where it can be converted into electricity by superheating water into steam and using the steam to turn a turbine that generates electricity—ultimately the same process that natural gas and coal-fired power plants use to generate electricity.

Solar dryers can be used in agriculture.

At present the waste is just exposed to the sun and dried. Solar water heating. It is being made mandatory in many states to heat water for bathing purposes with solar water heater in all new buildings. Solar thermal can be used for cooking, community cooking in hotels, villages, schools in villages, etc

Several industries that need low to medium heat can use solar thermal technology to reduce air pollution and carbon foot print.

This opportunity is for the technically minded. This opportunity exists for small medium and even big companies.

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* Manufacture of Solar Refrigerator, DIY Solar Refrigerator, marketing, Maintenance and Repair of Solar Refrigerators

http://www.eai.in/club/users/harita/blogs/1484

The blog gives as of now basic insight of a Solar Refrigerator.

It also provides information on manufacturers in India and abroad.

There are many villages without electricity and they need refrigeration for the individul households, for preserving the produce of that village. Very soon, we will have information on market potential of solar refrigerators in India's villages, market size of solar refrigerators in other markets. Cost of solar refrigerators and actual cost of refrigeration etc also would be made available soon.

For now u can visit http://www.eai.in/club/users/harita/blogs/1484 (You can discuss your ideas, doubts, questions, etc in this blog)

Good opportunity

To manufacture.

To market.

To maintain.

Even solar coolers are a good opportunity.

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* Opportunities in Solar cities:

There are going to be about 60 solar cities coming up across India.

What business opportunity exists in this solar city concept of mnre is a question in the young minds of Indians. Will try and answer them in the coming weeks. Stay tuned.

Besides suggesting business opportunities in solar energy in India for large and medium companies, I thought it will be useful for small and individual players, if I can explain as to how they can get into solar business in India, it will be useful.

There are bound to be opportunities for individuals, SMEs to take advantage of Solar City concepts. Let them start coming up and we will identify ' solar city' opportunities there.

This opportunity has not been updated, because, there are no proper guidelines from the respective State Governments. Once the policies come out, opportunities will be identified and posted here.

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Solar Air Heaters

With global warming, there is global cooling also that happens.

During winter, the North of India becomes too chill to manage.

Every urban household would do with an Air Heater, a solar air heater. Even the rural households and the households in the unelectrified villages will need an air Heater. The old and the young suffer in cold and air Heater is not a luxury any more.

It is a good opportunity to manufacture AIR Heaters and market in such cold markets.

All discussions, questions pertaining to this opportunity to be restricted to this blog.

SALEPADA POWER PLANT: A Success Story

Salepada is a small hamlet of the Gatibeda revenue village in Sunabeda GP of Komna block. Situated in the midst of the scenic Sunabeda plateau it is a picturesque hamlet surrounded by forest and natural habitat. A total number of 40 households are located in the village, which houses a total population of 206 inhabitants. The people belong to the Chuktia-bhunjia tribe. The Chuktia-bhunjias are a primitive tribe who were given recognition under the 8 th five-year plan. The term ‘bhunjia' denotes land. They believe that their ancestors were people who were born directly out of the land. A micro-project for the tribe under the aegis of Chuktia-Bhunjia Development Agency (CBDA) has been constituted for their holistic development. This agency is implementing welfare work for the people of that area pertaining mainly to their socio-economic development.

The Chuktia-Bhunjias have lived in deprivation for ages. Holistic, integrated development entails that their basic needs as human beings be met in a humane manner. Centuries of darkness had prevailed over the place, so the need for light to penetrate the dark was felt immensely. The geographically hostile location of the hamlet in the plateau region and its incompatible distance from the grid makes the extension of conventional power a far-fetched proposal since grid cannot be extended to certain locations due to logistic and environmental conditions. So the need was to look for alternative sources of power generation. Under such circumstances the only alternative was to exercise the option of non-conventionals for power generation.

A recent study by the MNES on comparison of relative costs of electrification of remote villages through conventional grid and the SPV power basing on the net present value of life cost over a period of 20 years reveals that solar electrification is more economical for villages located beyond 3 kms in hilly areas and 7 kms in plains from the grid. The lack of organized stall fed cattle inhibited establishing of a CBP in the area. Moreover potential PV Systems when used on a large scale cuts down the need for extending the distribution grids in rural areas and the resultant losses in transmission. MNES along with the executing agencies has made sustained efforts for the deployment of photovoltaic systems in rural areas. A considerable amount of experience has been gathered on technical, economic, social and management issues. An analysis of the experience shows that SPV technologies can be a viable alternative to extension of grid lines to electrify villages, especially in remote and difficult areas. The solar home systems offer quick and convenient method for electrification of households in remote and difficult villages and hamlets in the country. Besides providing lighting facility such systems also provide electricity for operating TV, radio, fans and other small needs. A typical home system works 3-5 hrs a day. The experience of such interventions in different parts of the country and the success generated thus beckoned the Ministry to propose that 18,000 villages be electrified using PV technology. In fact the recent Government policy aims at extending recognition to PV technology. A greater reliance is being placed on this technology. Policy is directed towards a greater thrust on all aspects of PV technology and applications. Recent policies measures provide excellent opportunities for increased investment, technological up gradation, induction of new technology, market development and export promotion.

Thus the installation of SPV power plant under the aegis of UNDP-DESI Development Programme for demonstration of power generation through renewables.

The present study divides the lessons of Salepada into two main parts. The first part sets the parameters of, the baseline, the feasibility standards and anticipates the probable risks. While the second part subsequently, examines the realities of Salepada within the pre-set paradigm.

Before commencing with the analysis of the project, it is imperative that the targeted area should fulfill the pre-set criterions. The baseline indicators, which qualify an area for electrification under the sub-program activities, are as follows: -

Area not electrified
No accessibility to conventional power
Far from conventional grid
Uses kerosene only
Paying capacity negligible

Salepada situated in the inaccessible and hostile plateau region of Sunabeda fits the bill perfectly. The area fulfills all the baseline considerations and fits the project considerations.

The feasibility standards of implementing the project in the given area have to be determined. The following feasibility criterions have to be addressed:

Availability of sufficient shadow free space
Assessment of energy needs
Determining the felt need of energy
Assessing the paying capacity of the people
Presence of a social life
Existence of community feeling

Within the set parameters of the feasibility standards the Salepada situation needs to be analyzed. Salepada does possess enough shadow free space as required for setting up a SPV plant. However the hostile terrain renders the area inaccessible thus impeding the path of conventional grid connection to the area. Moreover the restricted paying capacity of the people further inhibits grid extension. Under such circumstances renewables is the right response to the situation. The tribal community of Salepada comprising the Chuktia-bhunjias is a well-knitted community with a very adhesive social bonding amongst them.

After elucidating the feasibility standards it is imperative to weigh out the pros and cons of installing SPV power plant for power generation. Likewise for any project it is a prudent step to anticipate the probable risks and take adequate measures to guard against these obstacles. The disadvantages that accompany the plant are quite superficial. The modular nature of the plant allows for adjustments to be made in future, if required, provided there are funds to support the venture. However assuming that no such arrangements are possible in the future the disadvantages and the risks can be enumerated as follows: -

Inability to cater to future increase in demand for power
Continuous cloudy days may render plant inactive
Motorized loads cannot be operated
Limited supply of electricity
The Salepada SPV plant has a restricted capacity of 2 Kw. Incase there is an increase in consumption of power at a future date the plant will not be able to cater to the increase in demand. This restricted capacity inhibits the use of motorized loads thus limiting power use to basic and minimum energy needs. Likewise the electricity generated provides supply for only 5 hours to households and 12 hours for streetlights. A constraining factor is that beyond three consecutive cloudy days the plant will not function effectively. However juxtaposing the advantages, which can be extracted out of a SPV power plant, with the drawbacks it is realized that the benefits the plant yields are manifold. The very fact that the plant is independent of daily contribution of the community is its greatest asset. For often community concern becomes no one's concern – a problem generally observed with the functioning of the CBPs.

An intensive study of SPV power plants reveals certain facts, which could serve as guidelines to analyze the status of a given plant: -

Centralized power supply
Community based model
Modular in nature
CFL and other accessories easily available in the market as the systems operate on A.C.
Systems could be covered under insurance schemes
Manufacturer/supplier of system provide 10 years maintenance warranty that includes replacement of battery, modules etc
The village community could take up battery replacement and related maintenance beyond 10 years. If a minimum tariff of Rs.30/- is collected and kept in the bank account of the VEMC
Needs capacity building within the community to operate, repair and maintain the system
Outlets for sale of accessories providing service could be opened under existing MNES schemes like RESSO, REWSHG, for a cluster of villages.

Salepada possesses sufficient shadow free open space and receives adequate solar insulation for about 300 days a year. Average sunshine hours per day are around 6-7 hours. Thus the SPV power plant was better suited to the locale. A 2 kw size SPV plant was established. Number of Home lights installed was 85 along with 8 lights for street illumination of the area. Each home received 9 watt CFL for illumination purpose. Besides for community use 5 extra points including a TV point and 8 streetlights of 11 watt each were provided. A 2 Kw PV power plant can easily cater to the total load of 0.944 Kwp. Illumination for 5 hours per day, 5p.m.-11p.m., had been fixed. The supplier took up the responsibility for post-operation and maintenance of the plant in the coming decade. A VEMC had been formed to look in to matters concerning tariff collection, misuse of power, proper maintenance of the power plant by the supplier's authorized representative and to act as a mediating organization between the villagers, the suppliers and the DESI development project office. The villagers pay a monthly tariff of Rs.30/-. Funds thus collected shall be kept in separate bank account and shall be operated as per provision of the MOA for constitution of the VEMC. The interest of the revolving fund provided under the project shall be augmented to funds of VEMC. Since the day-to-day expenditure on maintenance of power plant will be negligible for a period of 10 years the fund developed through collection of tariff and augmentation of interest on revolving fund could be utilized for capacity addition and even replication.

Salepada's story is a journey from darkness to light. This journey witnessed a transition in the lives of the people. People, who had hitherto existed in isolation, in darkness, were over whelmed by the presence of light in their lives. This marks the beginning of a new phase in their existence.

A visit to Salepada brings forth the pent-up emotions of the inhabitants. Light has finally penetrated their centuries of dark existence. The illumination outside seemed to light up their faces. Interaction with the people mainly the women folk portrays their immense satisfaction at the present state of affairs and at the fulfillment of their basic needs; the dreams of the future could be seen in their eyes. The light penetrates their centuries of misery. Sudden electricity availability in the place beckons a new era of light that promises to illuminate the area and light up lives of the inhabitants. The people themselves very willingly and lucidly enumerated the benefits of the project.

The extension of light has made a remarkable difference in the education of children. Their study hours have increased beyond sundown. They are now able to study for longer hours; this extension in duration has made a considerable difference in the quality of their education. Moreover the adult literacy centers have started functioning after dark at a convenient time when the adult population is available. This has ensured the participation of the people and serves the purpose of the literacy center.

The presence of streetlights has also influenced recreation of the children. They play outside in the dark for longer hours without being scared of snakebite. The increase both in study hours and in play hours will inevitably usher in an overall holistic development of the children. Streetlights have not only made life more enriching for children even the adults have benefited tremendously. Earlier people would retire to their homes very soon after darkness set in and go to sleep earlier to save on expensive kerosene. But the advent of electricity has changed the scenario. A change in daily habits, emphasizing more on utilization of time is seen. The people now visit each other in the late evenings, thereby strengthening social bonds and building enduring relationships. Thus enabling the community to form a cohesive bond, which in turn mobilizes the community to work in tandem, preparing the ground for further cooperative action.

The people unanimously agreed that one of their main concerns was the attack of wild animals. Often after dark the wild beasts would prey on the domestic animals but now the situation has undergone a change. The fear of lurking wild animals does not exist. The light manages to stave them off. The mortal fear of beasts has reduced considerably and people do not hesitate to venture out in the dark. Moreover the hapless domestic beasts are also spared.

The people claim to have benefited not only from the social point of view but also from the point of view of livelihood generating activities. Vocational training for self-employment has been initiated. After sun down the presence of light ensures that other activities like sewing, handicrafts are undertaken. Sewing machines are already in use for training the youth and women for income generating activities. In fact more such activities are on the itinerary.

Salepada is a burning example of community action coupled with the participation and involvement of the community at every step. It envisages a programme, which involves the participation of the community at every step. The community was organized to be involved right from the conception, formation of the VEMC to the present activity involving income generation. The cohesive bond portrayed by the community was further strengthened by the presence of acclimatizing factors, the people were willing to shelve aside their personal differences and work in unison for community benefit at large.

Thus the project success could be ensured. The visit to the place left the impression of a success that was mainly possible through the untiring efforts of the field workers and the cooperative zeal of the people. Salepada is a story of a collective dream that took concrete shape through collective effort. The success of the project in this place thus serves as role model for future emulation.

Solar water heaters is definitely an opportunity

FREQUENTLY ASKED QUESTIONS

(SOLAR WATER HEATER)

Q.No.1 What is Solar Water Heater?

Ans. A Solar Water Heater is a device which provides hot water for bathing,

washing, cleaning, etc. using solar energy. It is generally installed at the

terrace or where sunlight is available and heats water during day time

which is stored in an insulated storage tank for use when required

including mornings.

Q. No. 2 How does it work?

Ans. A Solar Water Heater comprises of a or an array of solar collectors to

collect solar energy and an insulated tank to store hot water. Both are

connected to each other. During the day time, water in solar collectors

gets heated which is either pumped or flown automatically on

thermosyphon principle to the storage tank. Hot water then stored in the

tank can be used for various applications.

Q. No. 3 What are different types of Solar Water Heaters?

Ans. Two types of Solar Water Heaters are available; one based on flat plate

collectors and the other based on evacuated tube collectors. Flat plate

collector (FPC) based systems are of metallic type and have longer life as

compared to Evacuated tube collector (ETC) based system because

ETCs are made of glass which are of fragile in nature.

Both these systems are available with and without heat exchanger. They

can also work with and without pump. Systems without pump are known

as thermosyphon systems and those with pump are known as forced

circulation systems.

Q. No. 4. Which type of solar water heater is suitable for different places/

category of users?

Ans. ETC based systems are cheaper than FPC based system. They perform

better in colder regions and avoid freezing problem during sub-zero

temperature. FPC based systems also perform good with anti-freeze

solution at sub zero temperature but their cost increases. In other regions,

both perform equally good.

Systems working on thermosyphon principle are simple and relatively

inexpensive. They are suitable for domestic and small institutional

applications, provided water quality is good and it doesn’t have large

chlorine contents. Forced circulation systems are generally preferred in

industries or large establishments.At places where water is hard and have larger chlorine content, if FPC

based system is being installed, it must be with heat exchanger as it will

avoid scale deposition in copper tubes of solar collectors which can block

the flow of water as well reduce its thermal performance. ETC based

systems will not block the flow of water but its performance may go down

due to deposition of salt contents on inner surface of glass tubes, which

could be cleaned easily once in a year or so.

Q. No. 5 What is the approximate cost of solar water heater?

Ans. Cost of solar water heater depends on size and type of system installed.

Smallest size of a system is 100 liter per day, which means that it can

deliver 100 lietrs of hot water in a day at 60 C. A 100 lpd capacity system

is sufficient for a family of 3-4 members and it may cost Rs. 15,000 to

Rs.22,000 in planes depending on the type of system. In hilly & N-E

region, the cost may be 15 to 20% more.

The system cost does not include the cost of cold water tank, & its stand

which is required if overhead tank is not installed in a house/ building.

Cost of hot water insulated pipe line also, may be extra if number of

bathrooms is more than one. Additional cost towards all these

components may increase by 5 to 10%.

The cost, however, does not increase linearly with increase in capacity,

rather it comes down proportionately as we go for higher capacity system.

Q. No. 6 Is there any subsidy available from Government?

Ans. Yes, the Government provides subsidy to the extent of 30 to 60% to

different category of users and States subject to certain benchmarks as

per below:

 General category states for all types of beneficiaries: 30% capital

subsidy orloan at 5% interest on 80% of the benchmark cost

 Special category states for domestic & non commercial categories

(not availing accelerated depreciation): 60% capital subsidy

orloan at 5% interest on 80% of the benchmark cost

 Special category states for commercial users category (availing

accelerated depreciation): 30% capital subsidy or loan at 5%

interest on 80% of the benchmark cost

 Benchmark Cost : ETC based systems : Rs. 10,000/ sq. m.

FPC based systems : Rs. 11,000/ sq. m.Q. No. 7 How can I avail this subsidy & get the system installed at my place?

Ans. The system can be installed at net of subsidy by following ways:

Domestic Systems

 Through State Nodal Agency- Contact respective state nodal

agency in your state ( list with phone no. given on MNRE website)

who will visit the site, provide information on cost, size & other

details of system required and get it installed at net of government

subsidy through some manufacturers.

 Through Accredited Channel Partners of MNRE (List available

at MNRE website)- Contact any of them and get the system

directly installed from him at net of subsidy.

Institutional Systems

 Through State Nodal Agency- In same fashion as above by

inviting tenders and placing order to selected manufacturer

 Through DGS&D rates- Details available on DGS&D website

 Through Accredited Channel Partners- In same fashion as

above

Q.No. 8 Why should I go for a Solar Water Heater? What do I save from it?

Ans. A 100 litre per day capacity system suitable for 3-4 people can save upto

1500 units of electricity in a year, depending on hot water used. It can

also save around 140 litres of diesel in an establishment using oil fired

boiler besides reducing green house gas emissions in the atmosphere.

Higher capacity systems will save higher amount of electricity/fuel oil

besides reducing higher amount of GHG emissions.

Electricity is expensive and is not available due to power cuts in many

areas when required for heating water. Solar Water Heater, since it stores

hot water in an insulated tank, provides water all the time when required.

Fuel oil is also expensive and creates pollution. Storing the fuel oil for long

term use in commercial establishments is another problem.

The table below gives approximate likely electricity and money savings for

a typical 100 liters per day system located in different parts of the country.

Northern

Region

Eastern

Region

Southern

Region*

Western

Region*

Expected no. of days of use

of hot water per year

200 days 200 days 300 days 250 daysExpected yearly electricity

saving on full use of solar hot

water (units of electricity)

1000 1000 1500 1250

Monetary savings at different prices of electricity, Rs/year

Rs. 4/kwh 4000 4000 6000 5000

Rs. 5/kwh 5000 5000 7500 6250

Rs. 6/kwh 6000 6000 9000 7500

* The use pattern and savings for southern region pertains to the typical

climate of Bangalore, while those for western region relate typically to

Pune climate.

Q.No.9 What happens on cloudy/rainy day? Do I still get hot water?

Ans. On cloudy days also, if it is for a day or two, you still get warm water as

water gets heated due to diffused radiation available in the atmosphere.

The system, however, is either connected to an electric geyser in the

house or an electrical back-up is provided in the storage tank of the

system which is switched on when water is not sufficiently hot. So, you

get hot water all the time even on rainy days.

Q.No.10 How do I decide about the size/capacity of the system to be

installed?

Ans. For a house with one bathroom and 3 to 4 members, 100 liter per day

capacity system should be sufficient. For more numbers of bathrooms, the

capacity will increase accordingly due to pipe losses & more number of

family members. Generally the capacity is decided based on hot water

required in mornings for bathing. If the usage is in evening & at other

times also, the capacity is decided accordingly. Some useful thumb rules

for estimating the hot water requirement are given below:

Application Typical Requirement of Hot

Water at 60

Household bathing using buckets 10-20 liters per person per bath.

Household bathing using shower

with a mixing tap

20-30 liters for 10-15 minute

bath

Shaving, while a tap runs 7-10 liters

Household bathing in bathtub (one

filling)

50-75 liters

Wash basin with a mixing tap (hand

wash, brushing of teeth, etc.)

3-5 liters per person per day.

Kitchen washing 2-3 liters per person per day.

Dishwasher 40-50 liters per wash cycle

Clothes washing machine 40-50 liters per cycleQ.No.11 How do I assure that a good quality system is installed at my house?

Ans. Ministry has laid down some minimum technical requirements for

installation of solar water heating systems in the field. These have been

made mandatory for manufacturers and suppliers and are available on

MNRE website: www.mnre.gov.in. These requirements are have been

prepared in such a way that even a lay man can also check them and

ensure that those are being adhered to by the manufacturers/suppliers. In

case any manufacturer/supplier is found not sticking to these

requirements, he may be blacklisted if informed to the Ministry.

Q.No.12 Are there any maintenance requirements?

Domestic solar water heating system do not need significant maintenance

requirements. Occasional leakages in the plumbing could be easily

repaired by common plumbers. In case quality of water is hard, scale

deposition in the collectors may result over the years. This may require

de-scaling with acids for which it is best to contact the suppliers. Broken

glass may also have to be replaced by the suppliers. If outside exposed

surfaces are painted, the paint may have to be redone every 2-3 years to

prevent corrosion of the surfaces.

Q.No.13 Any trouble shooting guide for solar water heating systems?

Ans. Some of the troubleshooting are mentioned below:

Problem faced Probable cause and remedies

No water in tap - No cold water supply

- Wall at the outlet of system closed

- Air lock in the pipes

Water not

heated at all,

although cold

water flow is

normal

- Consumption of hot water may be too high; Check

use points and use pattern

- Collector may be shaded

- No flow of water through the Collector

as it might be choked due to scaling;

Get it checked from the manufacturer

Water not hot

enough or

sufficient

quantity of hot

wter is not

available

- Cloudy weather

- Consumption too high

- Frequent on-off of hot water tap

- Collector dirty

- Vapour lock in the collector which can be removed

by allowing it to cool & draining the system

- Partial choking of the collector

Little quantity of

boiling hot water

is received

- Vapour locking in the collector

- Pinched inlet/outlet pipes

==================================================

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6 Comments

aathmika - 07th May, 2011

Solar inverter : A business opportunity in India : Enecsys

Being one of the first companies to market with micro inverters, Enecsys believes its technology carries several competitive advantages including a life-span that matches that of the photovoltaic (PV) module and the ability to increase energy yield between five and 20 per cent.
Enecsys components are manufactured in the Far East and it has aTaiwanese operation as a result of its growth plan.
Solar inverters are used to convert DC power from the PV cells into AC power for the electricity grid. Conventional devices use 'string' inverters to support a large number of panels, but are generally less efficient and their malfunction can effect the whole panel, unlike micro inverters which support one or two modules.
Micro Inverters can, however, be harder to maintain, which is why Enecsys has, for what it claims is the first time, eliminated components that limit inverter life.
The company will continue to work on re-engineering the inverters to drive the cost down further and will use the Series B money to hire staff that can do that.
The Enecsys IP is based on patented technology developed at the University of Cambridge. The company has previously raised �8.5m, but has no plans for any more according to CEO, Henrik Raunkjaer.
This last round was led by Climate Change Capital Private Equity who invested �11m and claims it is the largest fundraising round closed this year by any European cleantech company.

The opportunity is to opt for
a: Getting a manufacturing and marketing license from them
b. Just become a marketing agent for India / Asia
c. Invest in them so that they can start catering to the Indian markets too
d. Start R & D activities to develop superior products.
WWW.enecsys.com
aathmika - 26th May, 2011

Marketing opportunity !
You can market Silicon ink from Innovalight to solar cell manufactures in India.
Contact innovalight.com sales@innovalight.com
NishitAgarwal - 27th Apr, 2012

Hello Aathmika Mam,

With Regard to you comment on Solar inverter : A business opportunity in India : Enecsys on the article : Orissa Solar Policy, Solar Energy Projects And Solar Business Opportunities In Orissa on 26th May 2011.

I would like to inform that, i went Through the company profile and learnt that its a huge business oppurtunity in india. hence i would like to gain more information on how to approach the company for getting the marketing license and becoming a marketing and sales agent for the company catering india and asia.

thank you,

Nishit.
srinivasm1991 - 27th Apr, 2012

MAM I HAVE THE BETTER PLANE TO INVERT THE D.C TO A.C POWER.
IT ELIMINATES THE PROBLEM
cctnc02 - 28th Apr, 2012

we sell at low rate because cost low, and we can sell, not with the purpose of plundering india market, hope all you can understand, and if local company can consider much about local people, sell them at lower price, will they buy abroad?
in china, it is the same, if price in china is higher, people will also buy abroad, hope we do business peacefully.

aathmika - 22nd Sep, 2012

ORISSA ELECTRICITY REGULATORY COMMISSION

BIDYUT NIYAMAK BHAVAN, UNIT – VIII BHUBANESWAR – 751012

*** *** ***

PUBLIC NOTICE

Case No.01/2012

Central Electricity Regulatory Commission (Terms and Conditions for Tariff Determination from Renewable Energy Sources) Regulations, among others, stipulates that the benchmark capital cost/ generic tariff, for solar PV and solar Thermal Projects may be reviewed annually by the State Electricity Regulatory Commission. OERC in its suo-motu petition No.37/2008 dtd.14.09.2010 has determined generic tariff for solar PV and solar Thermal Projects and would like to take a review of its existing order for re-determination of the generic tariff for such solar projects likely to be set up and commissioned in the FY 2012-13 onwards. The suo-motu petition is available in our website: www.orierc.org. The petition can also be obtained from the undersigned during working hours of the Commission.

The Commission hereby invites views /suggestions / opinions from all the stakeholders, Solar Power Developers, Govt. of Odisha, Science & Technology Dept., Dept. of Energy, GRIDCO, OREDA and Public in general in the matter of solar tariff re-determination. The written submission may be sent to the undersigned on or before 25.01.2012. The Commission proposes to take up hearing on the matter on 01.02.2012 at 11.00 AM in its premises.

Secretary

ORISSA ELECTRICITY REGULATORY COMMISSION

BIDYUT NIYAMAK BHAVAN, UNIT – VIII BHUBANESWAR – 751012

*** *** ***

Case No.01/2012

In the matter of : Suo-motu proceeding for re-determination of generic tariff

in respect of Solar PV and Solar Thermal power.

A n d

In the matter of : OERC, represented by Director (Tariff) - Petitioner

- Vrs. -

1) Commissioner-cum-Secretary to Govt.,

Dept. of Energy, Odisha, Bhubaneswar

2) Commissioner-cum-Secretary to Govt.,

Dept. of Science & Technology, Odisha, Bhubaneswar

3) O&M Solutions, S-32, Phase-2,

Maitri Vihar, Bhubaneswar-751023

4) Project Development Consultant,

F-6, BJB Nagar, Bhubaneswar-751014

5) Shri R.P. Mohapatra, 775, Lane-3,

Jayadev Vihar, Bhubaneswar-751013

6) Shri Rajinder Kumar Kaura,

Secretary General, Solar Energy Society of India

A-14, Mohan Co-operative Industrial Estate, Mathura Road

New Delhi - 110044

7) Orissa Power Generation Corporation Ltd.,

Zone-A, 7^th Floor, Fortune Towers,

Bhubaneswar-751023

8) Grid Corporation of Orissa Ltd.,

Janpath, Bhubaneswar-751022

9) Orissa Renewable Energy Development Agency,

S/59, Mancheswar Industrial Estate,

Bhubaneswar-751010

10) Orissa Power Transmission Corporation Ltd. (OPTCL)

Janpath, Bhubaneswar-751022

11) Orissa Hydro Power Corporation Ltd.,

Janpath, Bhubaneswar-751022.

12) The Confederation of Indian Industry (CII),

8, Forest Park, Bhubneswar-751 009

13) The Chief Project Manager,

Rural Electrification Corporation (REC),

Deen Dayal Bhawan, 5^th Floor, Ashok Nagar,

Janpath, Bhubaneswar-751014

14) M/s Power Tech Consultant,

A/6, Swati Villa, Surya Vihar,

Link Road, Cuttack-753012

15) Chairman-cum-CEO,

CESU, IDCO Tower, Bhubaneswar

16) Managing Director,

NESCO, Januganj, Balasore

17) Managing Director,

SOUTHCO, Courtpeta, Berhampur

18) Managing Director,

WESCO, Burla, Sambalpur

19) Chief Load Despatcher,

SLDC, Bhubaneswar

20) M/s Canyon Consultancy Pvt. Ltd.,

Plot No.2101, Subhashree Complex, Govinda Prasad,

Bomikhal, Bhubaneswar.

21) M/s. Solitaire Energies Pvt. Ltd.

213-B, Okhla Industrial Estate Phase-III, New Delhi-110 020

22) /s Canyon Consultancy Pvt. Ltd.,

22) M/s. Sahara India Corporation Ltd., Sahara India Centre, 5^th Floor, 2 Kapoor Thala Complex, Aliganj, Lukhknow – 226024 (UP)

23) Mr. R.S. Raju, CEO, M/s. Apollo Renewable Energy (P) Ltd.

H 1-5-3/2c, St 8/20, Habshiguda, Hyderabad, AP – 500007

24) Mr. Romesh Moliya, Sr. Manager, Business Development PLG Power Ltd.,139, A-1, Shah & Nahar Industrial Estate, Lower Parel (W), Mumbai – 400013

25) M/s. Photon Solar Systems (India) P. Ltd.,Unit-19, Mount View Enclave Road No.12, Banjara Hills, Hyderabad – 500032

26) Mr. Manoj Kumar Panda, Sr. GM, Energy & Utilities, Power

M/s. Enzen Global Solutions Pvt. Ltd., 5^th Floor, Zone-A/5, Fortune Tower, Chandrasekharpur, Bhubaneswar-23

27) M/s. LANCO Solar Pvt. Ltd., 397, Udyog Vihar, Phase-III

Gurgaon, Haryana – 122106

28) M/s. New Era Power Corporation Ltd., 18A/19, Doddanekundi Industrial Area, Mahadevapura Post, Bangalore – 560 048, Fax : 080-28524191

29) Mr. N.C. Jana, Head – Projects, Bhaskar Silicon Pvt. Ltd., 60 A, Diamond Harbour Road, PO : Thakurpukur, Kolkata – 700 063

30) Mr. S. Arun Kumar, Project Incharge, Malaxmi Infra Ventures (India) Pvt. Ltd., ‘Malaxmi House’, 8-2-583/3, Road #9, Banjara Hills, Hyderabad, AP – 500034

31) Mr Pranay Ku. Sureka, Director, Alex Solar Pvt. Ltd., 30, S N Roy Road, Suite 1A/1B, Kolkata -38

- Respondents

1. CERC for the first time determined the tariff for Renewable sources of energy through a Regulation namely Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2009. The said Regulation details the General Principles and Financial Principles and Technology specific parameters for various Renewable Energy sources as notified by the Ministry of Renewable Sources of Energy (MNRE) Govt of India.

2. CERC Regulations provide that it shall determine the generic tariff on Suo Motu basis at least six months in advance at the beginning of each year of the control period for renewable energy technologies for which norms have been specified under the Regulations. Accordingly CERC has been determining the tariff for the renewable sources of energy on Suo Motu basis every year. Further the CERC regulation also stipulates that the benchmark capital cost for Solar PV and Solar Thermal projects may be reviewed annually by the State Commission.

3. OERC also determined the tariff from the Renewable Sources of Energy through a Suo Motu proceeding initiated for finalization of policy on harnessing of power from RE sources of energy including co-generation. Commission in its Petition No.37/2008 (Suo Motu) dtd.14.09.2010 determined the generic tariff for various renewable sources of energy for the control period 2010-11 to 2012-13. In the said order the Commission mentioned that in case of Solar PV and Solar Thermal Projects the bench mark cost may be reviewed by the Commission annually. The Commission has determined the generic tariff for Solar PV and Solar Thermal Projects to be set up in Odisha with technical and financial parameters as mentioned in Annexure-A.

4. The continuous lowering of price in the International Market has compelled CERC to take a view on tariff for Solar PV and Solar Thermal sources annually. The capital cost constitutes 80% of the total project cost. The revision in capital cost approved by CERC and corresponding change in the generic tariff for Solar PV and Solar Thermal sources from 2010-11 to 2012-13 is shown in the table below:

Financial Year	Capital cost		CERC Tariff (without accel. Deprn.) Rs./Kw/hour		OERC Tariff (without accel. Deprn.) Rs./Kw/hour
Financial Year	Solar PV	Solar Thermal	Solar PV	Solar Thermal	Solar PV	Solar Thermal
2009-10	17.00	15.30
2010-11	16.90	15.30	17.91	15.31	17.80	14.73
2011-12	14.42	15.00	15.39	15.04	17.80	14.73
2012-13	10.00	13.00

5. CERC has also approved the price of Renewable Energy Certificates (RECs) to meet Solar Power Obligation (SPO) for the Control period of 5 years from 1^st April, 2012 to 31^st March, 2017 reducing almost 22% from the current price as indicated in table below:

(Price in Rs./Kwh.)

Nature of Pricing	Solar Power Price
Nature of Pricing	Current	Approved	% change
Floor Price	12	9.30	(-) 22.5
Forbearance Price	17	13.40	(-)21.2

6. In the 27^th Meeting of Forum of Regulators (FOR) held on December 16, 2011 at Raipur, Mr. Tarun Kapoor, Jt. Secretary, MNRE presented the Solar Power Scenario in India today and declared that looking at the present response from Solar Manufacturing Industry, MNRE is now sure that Solar Power will attend grid parity by 2017. Mr. Kapoor said that the highlights of the latest round competitive bidding for 350 MW Solar Power under Phase-I JNNSM Programme are as under:-

· The lowest bid was offered by M/s Solar Direct India for 5 MW Solar Power Plant in Rajasthan @ Rs.7.49/Kwh.

· The highest bid was offered by M/s Green Infra Solar Project Ltd. For 20 MW Solar Power Plant in Rajasthan @ Rs.9.44/Kwh.

· The average price of winning bids was Rs.8.78/Kwh which is 49% of Rs.17.91/Kwh and 57% of Rs.15.39 per Kwh approved by CERC for FY 2010-11 & for FY 2012-13

· Rajasthan bagged offer for 295 MW Solar Power Plant out of 350 MW offered

7. In India, there are 51 Module Manufacturers (9 of whom also make cells) having a combined capacity of 1500 MW but these industries are now working at a Capacity Utilisation Factor (CUF) of 20% even though 1000 MW worth of Solar Power Plants are under construction in the country today under $20 billion worth under JNNSM. 80% of Demand has been met by imports leading to the so-called “Death of Manufacturing” in India. Due to drop in the demand in the biggest market World over, European, Chinese and American Manufacturers are left with huge inventory of solar modules and cells and these are being liquidated / dumped in India at a throw away prices. The US Company Solyndra has sold some Solar modules at a dirt cheap price of 55 Cents/Watt to some Solar Power Developers of India. Indian Solar Module Manufacturers have therefore represented MNRE to recommend to Ministry of Finance to impose a 15% Customs Duty on imported modules and cells.

8. For harnessing Renewable Energy in Odisha, OREDA – the State Nodal Agency for Renewable Energy has assessed Renewable Energy potential of about 16230 MW, Science and Technology Dept., Govt. of Odisha has assessed the feasible potential as 11820 MW whereas WISE- engaged as Consultant by OERC has assessed RE potential of the State of about 7874 MW as shown in Table:

Assessment of Renewable Energy Potential

(in MW)

Source	Science & Technology Dept. Govt. of Odisha	OREDA	WISE
Wind	800	1700	2430
Solar	10000	14000	5000
Biomass	900	350	240
Small Hydro	120	160	184
Municipal waste	NIL	20	20
Total	11820	16230	7874

9. Odisha is having good potential for setting up of solar projects as can be seen from the table at para-8 above but is lagging behind the other States in attracting any major solar projects. The relevant extract of the Study of WISE engaged by the Commission is as under:

9.1 Assessment of solar power potential in Odisha

a. India, due to its geo-physical location, receives solar energy equivalent to nearly 5,000 trillion kWh/year which is equivalent to 600 GW. This is far more than the total energy consumption of the country today. But India produces a very negligible amount of solar power - mere 0.2 percent compared to other energy resources. Further, entire electricity generation is using Solar Photovoltaic (SPV) technology as power generation using solar thermal technology is still in the experimental stages. Currently, India has less than 7 MW of grid connected solar PV capacity. Following map depicts solar energy potential in the country. While India receives solar radiation of 5 to 7 kWh/m2 for 300 to 330 days in a year, power generation potential using solar PV technology is estimated to be around 20MW/sq. km and using solar thermal generation is estimated to be around 35MW/sq. km.

Source: MNRE

9.2 Availability of Waste land in Odisha

b. Ministry of Rural Development, Government of India in collaboration with National Remote Sensing Agency (NRSA), Department of space, Govt of India has mapped the waste lands in the country using satellite data of different periods (1986-2000). As per mapping conducted by NRSA, Odisha constitutes total 12.17 % of waste land area in India totalling 18952 .74 sq Km. In order to estimate the approximate solar power potential in the state, the most feasible area receiving greater insolation and relatively flat terrain has been separated out from the total waste land in the state. The table given below shows the potential waste land identified for Solar Power Project installation in the state of Odisha.

Availability of potential waste land for Solar Power Projects in Odisha

Category of waste land	Area ( sq KM)
Land with scrub	7537.96
Land without scrub	618.05
Sandy land	77
Degraded land under plantation crop	135.68
Total	8368.69

If 10 % of above land is made available for solar power installation in the state then in terms of capacity approximately 16740 MW SPV Power Projects or 30000 MW Solar Thermal Power Projects could be set up in the state.

9.3 Calculation of the probable annual energy generation from the solar power generation projects in Odisha.

c. Estimation and validation of correct annual energy generation from a solar configuration / technology proposed by the developer would be a critical exercise for the Commission especially in absence of the operational data of commissioned project. The consultant has estimated the annual energy generation by using the advanced software namely, METEONORM for solar radiation data (which maintains the ground as well as satellite solar radiation database and generate solar insolation data for the given location ) . The solar insolation file generated by METEONORM will be provided as input data to software Solar Advisory Model (SAM) developed by National Renewable Energy Laboratory’s (USA) (NREL). By using the two software’s probable annual energy generation from three different configurations (Fixed solar PV, solar PV –two axis tracking and solar thermal parabolic trough ) can be worked out at any specified location which requires that the latitude , longitude and mean elevation from sea level needs to be provided as input to the software.

d. By using the above software, the consultant has computed the annual energy generation at five potential locations in Odisha namely Angul, Dhenkanal, Jharsuguda, Talcher, Titlagarh. The results of the calculation are shown in the following table.

Estimation of annual energy generation from 1 MW

solar power project at potential location

Sl. No.	SITE DATA					SOLAR PV-FIXED	SOLAR PV–2 AXIS	SOLAR THERMAL–PARABOLIC TROUGH
Sl. No.	Site	Lat. (Deg.)	Long. (Deg.)	Alt. (m)	Annual G (W/m2)	CUF (%)	CUF (%)	CUF (%)
1.	Angul	20.85	85.10	194	214	15.92	20.44	23.37
2.	Dhenkanal	20.67	85.60	79	210	15.46	19.78	22.08
3.	Jharsuguda	21.85	84.03	217	217	16.10	20.88	25.99
4.	Talcher	20.95	85.22	77	214	15.87	20.34	23.39
5.	Titlagarh	20.30	83.15	214	219	15.93	20.71	26.17
Average						15.86	20.43	24.20

The methodology for calculation of annual energy generation and related solar insolation data file generated by METEONORM.

10 National Action Plan on Climate Change (NAPCC) aims at increasing the share of Renewable Sources of Energy from 5% of the total energy mix in 2010 to 15% by 2020. The Commission vide Notification dt.30.09.2010 issued OERC (Renewable & Cogeneration Purchase Obligation and its Compliance) Regulation, 2010 and vide Regulation-3 fixed the year-wise as well as source-wise RPO for compliance by GRIDCO and the obligated entities during the obligated period from FY 2011-12 to 2015-15 as shown in the Table.

Renewable Purchase Obligations from FY 2011-12 to FY 2015-16

Year-wise target	Minimum quantum of Renewable Energy purchase in % of total Energy consumption in the State
	Renewable		Co-generation	Total
	Solar	Non-solar	Co-generation	Total
2011-12	0.10	1.20	3.70	5.00
2012-13	0.15	1.40	3.95	5.50
2013-14	0.20	1.60	4.20	6.00
2014-15	0.25	1.80	4.45	6.50
2015-16	0.30	2.00	4.70	7.00

11 OREDA submitted before the Commission during hearing dtd. 08.09.2011 that based on OERC RPO Regulations, 2010 OREDA has assessed the cumulative capacity addition required during the 1^st Obligated Period to meet the RPO of the State as shown in table:

FY	Consumption (in MU)	Capacity Addition from different Sources (in MW)
FY	Consumption (in MU)	Solar	Wind	SHEPs	Bio-mass	Co-gen	Total
2011-12	30358	8	0	0	58	267	333
2012-13	36862	27	0	0	24	79	130
2013-14	39912	15	25	0	10	52	102
2014-15	40578	15	25	0	10	41	91
2015-16	43062	16	50	0	0	41	107
Total		81	100	0	102	480	763

12 The Commission in its order dtd.23.09.2011 in Case No.64 of 2011 has agreed to the projection in State power demand stipulated in 17^th EPS of CEA for 12^th plan period (2012-17) and has assessed the consumption of industries having CGPs for FY 2011-12 as 20,000 MU and considering the increment of 10% / annum in industrial consumption from CGPs, the requirement of solar power by the obligated entities including GRIDCO to meet SPO during 1^st Obligated Period from FY 2011-12 to FY 2015-16 is indicated in table below:

Solar Power Required in Odisha to meet SPO during 1^st Obligated Period (2011-16)

FY	Grid consumption as per 17^th EPS (in MU)	Consumption of Industries having CGPs (in MU)	Total consumption of Odisha (in MU)	SPO approved (in % )	Cumulative solar energy required (in MU)	Cumulative solar power capacity required (in MW)
2011-12	27149	20000	47149	0.10	47.149	26.91
2012-13	29204	22000	51204	0.15	76.806	43.84
2013-14	31415	24200	55615	0.20	111.23	63.49
2014-15	33793	26620	60413	0.25	151.03	86.20
2015-16	36351	29282	65633	0.30	196.90	112.38

Hence, OREDA has to gear up to encourage the solar power developers for capacity addition required in each FY during the 1^st Obligated Period so as to meet SPO failing which RECs at exorbitant rates will have to be procured.

13 Science and Technology Dept., Govt. of Odisha vide letter No. 4940 dtd.07.09.2011 submitted before the Commission as under:

· Odisha has great potential to accelerate the use of its renewable sources to meet its energy requirement and enhance economic growth. It is to state that OREDA will be able to fulfill the necessary requirement for harnessing the renewable energy potential in Odisha. OREDA has already taken steps for setting up Renewable Energy Power Plants in the State.

· The renewable energy sources will pick up in a big way in Odisha from FY 2012-13 onwards due to Wind Resource Assessment (with 80 mt. high mast), setting up of Renewable Energy Industrial Parks and Solar Industrial Parks, reduction in capital cost of solar energy and lower cost of generation of electricity resulting into good prospects in the technology for both solar and wind.

· Keeping in view the available potential, continuous improvement in the technology and reduction in cost of electricity generation, S&T Dept. and OREDA are taking timely action not only for meeting RPO but also harnessing renewable energy potential in a big way in Odisha.

· In order to enhance the activities of OREDA, necessary steps will be taken for raising the manpower with requisite expertise in future so that renewable energy is fully tapped for meeting energy requirement for the State.

14 As of now only 4 nos. of 1 MW solar power plants have been set up out of the 8 allotted projects by Govt. of India under Rooftop PV and Small Solar Power Generation (RPSSPG) which is a separate programme with generation based incentive (GBI) under Jawaharlal Nehru Solar Mission Programme. It is observed that the CUF for Solar PV projects has been about 20% in Odisha more than the CUF of 15.86% (average) conservatively estimated by WISE, Pune. However, these programmes are hardly adequate to meet the Solar Power Obligation (SPO) of Odisha as stated in para 12 above. Therefore, the obligated entities would have to be forced to buy Renewable Energy Certificates (REC) being traded in the Power Exchanges to fulfill their SPO at exorbitant prices of Rs.9.30/Kwh to Rs.13.40/Kwh at CERC approved rates for the said Obligated Period.

15 We are of the view that the tariff is not a major impediment for setting up of Solar Power Projects in Odisha. But lack of required aggressive promotional activities in the form of infrastructural facilities such as earmarking the barren/wasteland to develop as Solar Parks with 132/33 KV Grid Sub-stations by the State Govt like that of Gujarat and Rajasthan duly installing a mechanism of Single Window Clearance facility for development of Solar Power Plants which are the real bottlenecks in development of Solar Power in Odisha.

16 In view of the above and the declining capital cost and other financial parameters to re-determine the generic tariff for development of Solar Power Projects in Odisha, Suo Motu cognizance of the matter is taken. The Commission would like to approve an appropriate tariff considering all the factors and suggestions during the Public Hearing which will be the ceiling tariff for the Solar Projects. The obligated entities, OREDA and the State Govt. may also develop the Solar Projects through the competitive bidding route to determine the tariff for each Solar Power Project.

Therefore, views/suggestions/opinions are called for from all the stakeholders, Solar Power Developers, Govt. of Odisha, Science & Technology Deptt., Deptt. of Energy, GRIDCO, OREDA and Public in general in this matter of Solar Tariff Re-determination. The written submission may be sent to Secretary, OERC on or before 25.01.2012.

Director (Tariff), OERC

Annexure-A

SOLAR PV

Input technical and financial parameters

No	*Technical Parameters*	*Value*	*Unit*
1	Capacity of the Power Project	1	MW
2	Capacity Utilization Factor	19.00	%
3	Annual Net Generation	16.64	Lakh kWhs
4	Life of Plant and Machinery / Project Life	25	years
No	*Financial Parameters*	*Value*	*Unit*
1	Project Cost	1690	Rs Lacs
2	Non - Depreciable Amount	10.00	% of Capital Cost
3	Debt	1183.00	lacs
4	Equity	507.00	lacs
5	Interest Rate on Term Loan	12.50	%
6	Repayment Period	10	years
7	Depreciation (Straight Line Method,Company Law) - for first 10 years	7.00	%
8	Discount Rate	15.35	%
9	O&M	9.514	Rs. Lakhs
10	O&M Cost Escalation	5.72	%
11A	Return on Equity - pretax (1-10 years)	19.00	%
11B	Return on Equity - pretax (11-25 years)	24.00	%
12	Interest on working capital	12.00	%

Outputs - Solar PV
Levelized tariff (25 yrs)	17.80	Rs/kWh
Benefit under Accelerated Depreciation (if availed)	3.03	Rs/kWh
Levellised tariff after Accelerated Depreciation (if availed)	14.77	Rs/kWh

Annexure-A series

SOLAR THERMAL

Input technical and financial parameters

No	*Technical Parameters*	*Value*	*Unit*
1	Capacity of the Power Project	1	MW
2	Capacity Utilization Factor	24.00	%
3	Annual Gross Generation	21.02	Lakh kWhs
4	Auxiliary consumption	10.00	%
5	Annual net energy generation	18.92	kWh/kWp
6	Life of Plant and Machinery / Project Life	25	years
No	*Financial Parameters*	*Value*	*Unit*
1	Project Cost	1530	Rs Lacs/MW
2	Non depreciable cost	10.00	% of Capital Cost
3	Debt	1071.00	lacs
4	Equity	459.00	lacs
5	Interest Rate on Term Loan	12.50	%
6	Repayment Period	10	years
7	Depreciation (Straight Line Method, Company Law) (for first 10 years)	7.00	%
8	Discount Rate	15.35	%
9	O&M	13.74	Rs lakhs/MW
10	O&M Cost Escalation	5.72	%
11A	Return on Equity (Pre Tax) - in case of MAT (1-10 year)	19.00	%
11B	Return on Equity (Pre Tax) - in case of corporate tax (11-25 year)	24.00
12	Interest on working capital	12.00	%

Outputs - Solar Thermal
Levelized tariff (25 yrs)	14.73	Rs/kWh
Benefit under Accelerated Depreciation (if availed)	2.41	Rs/kWh
Levellised tariff after Accelerated Depreciation (if availed)	12.32	Rs/kWh

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