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

Posted by aathmika on 16th Jun, 2012

TABLE OF CONTENTS

1.LATEST SOLAR NEWS AND VIEWS IN PUNJAB

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

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 PUNJAB

ADVANTAGES

DISADVANTAGES

13.STEPS FOR SOLAR CAPTIVE FOR FACTORY

14.SOLAR NEWS

15.PUNJAB 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 PUNJAB

20.GROUND ZERO AND ENTIRE BUSINESS OPPORTUNITIES

21.FAQ'S

22. ALL RELATED LINKS

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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.

40% subsidy for solar pumps in Punjab, about 5 Crores!!!!!

CHANDIGARH: The Punjab government today announced 40 per cent subsidy on purchase of solar pumps to incentivise farmers for using these pumps for irrigation. Chief Minister Parkash Singh Badal has sanctioned Rs 5 crore for providing this subsidy to farmers, a spokesperson said.

A solar pump costs nearly Rs 2.50 lakh of which 40 per cent (Rs 1 lakh) and 30 per cent (Rs 75,000) as subsidy is borne by the state government and Centre, respectively, while balance 30 per cent is to be paid by farmer

It is quite less compared to Gujarat 90%, Rajasthan 86%. But higher than the MNRE subsidy of Rs57/Wp.

Punjab has recieved 270MW worth solar bids due the deadline extension of 7th May

A total of 30 participants bid of about 270MW out of the 300MW target. The number of participants have improved because of the extension of deadline.The earlier date of 25th April had a poor response. Which had even lead the goverment to plead for investments for about 200MW solar projects.

CHANDIGARH: A large number of companies have bid for the proposed 300 MW solar photovoltaic power projects by the Punjab Energy Development Agency (PEDA).Punjab non-conventional energy minister Bikram Singh Majithia said more than 30 companies participated in the bidding process and total bids for 270 MW were received against targeted allocation for in-house capacity of 300MW of solar power projects. more.

SUBSIDY ON A SOLAR IRRIGATION PUMP SET TO GO UP FROM 30% TO 70%

Chandigarh, May 1 -- Union Minister for New and Renewable energy Farooq Abdullah today assured Punjab Chief Minister Parkash Singh Badal that his Ministry would sympathetically consider the proposal of the state government to enhance existing subsidy on solar irrigation pumpsets from 30 per cent to 70 per cent for optimum utilisation of Solar energy in agricultural operations.

The Chief Minister, who called on Dr Abdullah at his office in New Delhi, apprised him of the state government's commitment to promoting Renewable and clean energy in a big way for benefitting farmers for which full support and co-operation of the Central government was required.SOURCE

CONGRESS HAS ALREADY RECOMENDED IN KARNATAKA 75% SUBSIDY FOR SOLAR ENERGY RUN PUMP SETS

TATA INVESTING IN SOLAR POWER

Tata group Chairman Cyrus Mistry, on Wednesday, met Punjab and Haryana chief ministers, and expressed his group’s interest in setting up joint ventures in the fields of infrastructure, agriculture and information technology.

In his meeting with Haryana Chief Minister Bhoopinder Singh Hooda, he offered to help the government in constructing two lakh houses for the poor. He has also shown interest in fertilizer and agriculture projects, according to an official release. Mr. Mistry was accompanied by Madhu Khana, group head (business development).

Punjab Chief Minister Parkash Singh Badal sought the group’s expertise in providing modern technology to ensure 100 per cent water supply and sewerage facilities in the State as also for optimum utilisation of solar power in the farming sector SOURCE

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

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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

TATES 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 punjab.The current third party PPA for solar power doing the rounds in punjab 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 punjab 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 punjab 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>

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.

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 >

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Lands for solar power generation projects in Punjab - ideal lands ?

1 mw of solar power plant will need about 5 acres of land . Agriculutural lands are not allowed to put up a solar generation plant

Non agricultural lands, non cultivable lands, barren lands, puramboke lands etc are ok

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 punjab 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.

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 Punjab.

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 Punjab.

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.

A. CONSTITUTION:

A unit can be started in any one of the following constitutions i.e. (1) Sole Proprietary Concern, (2) Partnership Firm, (3) Private Limited/Limited Companies, (4) Societies.

GENERAL REQUIREMENT CONSTITUTION-WISE

1. In case of Sole 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/Bank Manager.

2. In case of Partnership Firm

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 by way of copies of PAN card/passport/voters identity card/bio data with pass port photograph and signature duly attested by Bank Manager/Gazetted Officer.

3. In case of Companies

a. Memorandum & Articles of Association.

b. Bio-data of Promoter Directors affixing colour photo and duly attested by Bank Manager/Gazetted Officer/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 agencies 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.
Other details such as raw materials and slaes invoices, list of major customers, particulars of orders on hand etc.
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).

State	Current purchase price by state discoms/ ebs
	Rs/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

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.

*What is the space / area / land required for the plant?

Generally, it is assumed at 3.5 to 4acres for crystalline silicon (c-Si) technology and 6 to 7 acres per MW for thin film solar (a-Si or CdTe) technology. In reality, it pends on other parameters like cost of land, Ground Coverage Ratio (GCR)(to avoid inter array shading, GCR can be 0.45 to 0.65 and generation will vary based on GCR) and choice of sun tracking systems (with sun trackers the land required will be about 6acres per MW for crystalline solar modules).

Which are the ideal states for setting up of solar power projects?

Hot destinations are Rajasthan, Gujarat and MH, MP, Andhra, Karnataka, Tamil Nadu as far as solar radiation is concerned. Presently, only
Andhra, Rajasthan, Tamilnadu and Gujarat have a clear policy and guidelines on the procedures for setting up solar power projects. Other states may also initiate the policy and procedures soon now that Jawaharlal Nehru National Solar Mission has been launched by Government of India.

Are Banks interested in financing solar power projects?

The Debt Service Coverage Ratio (DSCR) works out to an average of 1.49
which is considered quite acceptable to commercial banks for sanction of loan.
The maximum debt that is permitted as per CERC norms is 70% and most
banks should be find this acceptable based on the financial strength and
net worth of the company / promoters. The present policy driven by the
National Solar Mission and PPA for 25 years with a central PSU like NTPC's
subsidiary should provide adequate confidence to Banker to finance solar
power projects.

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8..ACCELERATED DEPRECIATION

What is Accelerated Depreciation in solar power generation and how I can benefit from it?

There is nothing called Accelerated Depreciation in solar power generation or for that matter in any other field.

Atleast the IT ACT af nd the Ready Reckoner does not talk about it.There is no such term in the glossary, in the appendix nor in the contents.

Depreciation is 20 % on plant and machinery for any business.In the case of solar energy generation, in order to incentivize the

Entrepreneurs to enter into the solar energy generation market, the Government of India has allowed claiming of 80 % of the depreciation

In year one of the commissioning of the solar power generation plant.If a solar power generation plant costs Rs 7 crores,

the company setting up that plant can claim 80 % depreciation in the first year itself.

Depreciation of 80 % is allowed on plant and machinery of the solar power plant is allowed.

Deducting Rs 20 lakhs from the project cost – approximately for land costs – which are eligible for only 10 % depreciation, we get Rs 6.80 cr

80 % of this is Rs 5.44 crores. Which can be depreciated in a new solar power generating plant in year one itself. This is what they call Accelerated Depreciation.

33% of Rs 5.44 cr is about Rs 1.81 cr.

So, in a solar power generation plant of Rs 7 crores, Rs 1.81 cr is the tax saving that one gets using Accelerated Depreciation. AD benefit in year one is Rs 1.81 cr.

So, the actual project cost for an AD client is Rs 5.19 cr

*Can a group company of a tax paying co set up a solar plant and claim depreciation ?

It is a case of set off of laws under the same head of income ( section 70 of the income tax act) . there are 6 heads of income under the income tax act.

Section 1961)

There are 5 acts of income under which income of assessee is being assessed under the income tax.

Income from salaries
Income from house properties
3. Profit and gains of business of profession
Income from capital gains
Incme from other sources

It is a case of income under Profits and gains of business and profession

And as per section 70 of income tax act, set off of laws under the same head of income can be done.

It means a group company which is tax paying on account of business or profession can set off its loss under

the head business or profession arised from solar activities can be set off.

*How do we claim the AD for a solar power generation plant ? By regular tax returns or is there any special form for claiming the Accelerated Depreciation for a solar power generation plant ?

The rate of depreciation allowed under the income tax for solar power generationunits is 80 % and it is a normal rate of depreciation. So we have to file the regular tax returns only.

There is no special form prescribed for claiming the depreciation benefit.

What solar energy devices , equipment and processes that are eligible for 80 % accelerated depreciation ?

Flat plate collectors
Concentrating and pipe type solar collectors
Solar cookers
Solar water heaters and systems
Solar crop driers and systems
Solar refrigeration,
Solar cold storages
Solar airconditioning systems
Solar desalinatin systems and solar steels
Solar power generating systems
Solar pumps based on solar thermal
Solar pumps based on solar pv
Solar pv modules and panels for water pumping

*What is this stipulation of 31^st march and sep 1 in the claiming of Accelerated Depreciation benefit for a solar power generation plant?

As per income tax provision, if an asset is put to use for less than 6 months , only the 50 % of the prescribed rate of depreciation is allowed to be deducted from the profits of business. It means if the asset is put to use for more than 6 months , even for a single day more than 6 months ,the 100 % of the prescribed rate of depreciation will be allowed to be deducted from the profits of the business.

Many times a group of companies come to gether to bid for solar power generation projects of state governments or for JNNSM . How will a consortium plan the depreciation ? Is it enough if one of the companies have tax liability ? What happens if a foreign company has tax liability in its country ? Or will only the Indian tax liabilities will be taken into account ?

In case of consortium agreements,the consortium is normally formed for the purpose of capital infusion, or if there is any statutory requirement as in the case of Foreign cos.Normally after a successful bid, the consortium is asked to form a new company to take up the project. In that case all the assets are purchased by the new company the benefit of depreciation will go to the new company.

*Can individuals set off depreciation benefit in a partnership firm?

No. Any individual having any profit or loss cannot be assessed in the hands of a partnership firm in which he or she is the partner. So the benefit of depreciation in the case of an individual cannot be passed to the partnership firm. But as per section 70 of income tax act a loss because of business or depreciation can be set off under the same head of income. It means if an individual is having income under the head business or profession he/she can set off her business loss arises out of solar business .In other words an individual having huge business profits can enter into the business of solar power generation for the benefit of claiming higher depreciation so that his or her tax liability can be minimized.

COMPANIES INTERSTED IN SETTING UP A SOLAR POWER PLANT ,

email mano@eai.in or

call MANOHAR 91 90435 39679

*Is there a standard price for depreciation ?

Cost of the plant and machinery will be basis of calculating depreciation.

*For how many years does a small solar company stands a chance to get bought?

Only infrastructure companies can buy to avail the section 80 IA. Even after absorption of full depreciation, the small co can be an attraction of purchase because of its tax free income up to 15 th year from the commencement of production.Assume an income of Rs 1.5 cr per annum and its cost of set up of plant was 7 cr so the purchase price solar power generation unit will be based on tax free income ie 1.5cr against the cost of plant rs 7 cr.So that deal will be concluded on the basis of irr.

*For its depreciation potential besides its normal business returns ??

*A partnership solar company, can it sell a part and let the buyer benefit from sellers share of depreciation ?

No.

*Is there any lock in period for solar cos before they can sell?

NO.

*What are the bulldings in a solar plant ?

Building is only an office. Not the rooms of inverter . it is plant and machinery.

*Can the Government suddenly change the depreciation policy with relevance to solar power generation ??

Gov can change THE RATE OF DEPRECIATION ANYTIME. rate of depreciation is announced one year before by the income tax dept.

*Wouldn’t that be a threat to small firms which haven’t claimed their depreciation?

Gov can change THE RATE OF DEPRECIATION ANYTIME. rate of depreciation is announced one year before by the income tax dept.The plant established in that particular year cannot be denied the rate of depreciation as per the existing rate of depreciation.As the loss gets carried forward, the small firms nor the big cos stand to lose.

*What all constitute plant and machinery in a solar plant ?

*Isnt everything other than land is depreciated ?

YES

*When are the profits from a solar plant taxable?

After 15 years

*Doesn’t it make sense to hike the project cost for a solar plant so as to avail the extra benefit from accelerated depreciation benefit ?

Yes. but the banks are clever to find out. Setting up such a solar power generation plant with an eye on gaininig extra from Accelerated Depreciation , will result in the Bankers viewing the project with a suspicious eye. Because there are so many other solar projects that are coming up , the bankers will have an idea already.

*A solar company makes about Rs 2 crores in a year. By this depreciation rule it gains 33 % for an existing tax paying company . Does it make sense to borrow money at 14% ( for equity) to build a plant?

What are the opportunities for a small solar co with its depreciation ?

After claiming 80 % depreciation, the plant fails? What happens ?

The plant is commissioned, it produces power for a few days / months and after that it fails. Can depreciation be claimed ? 80 %

*For how long can depreciation benefits be carried forward ?

unlimited

*Company A sets up a solar plant for 8 cr avails 80 % depreciation and sells it to B, say at Rs 4 cr. While its WDV is 1.6 Cr. How much depreciation can be claimed? At what rate ?

1.6 CR ONLY CAN BE CLAIMED.

*At what stage of commissioning can one claim depreciation?

Only AFTER PRODUCTION

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?

500 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
======

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

PUNJAB SOLAR POLICY

25 firms show interest in 300 MW solar projects in Punjab

CHANDIGARH: As many as 25 companies, including Tata Solar, L&T, Aditya Birla, have evinced interest in setting up 300 MW solar power projects involving an investment of Rs 3,000 crore in Punjab.

"About 25 companies have shown interest in setting up 300 MW solar power projects at various locations in the state,"Punjab Energy Development Agency (PEDA) Chief Executive T P S Sidhu said here today.

Among prominent companies which showed interest are Welspun, GE, Punj Lloyd, he said, adding that the projects for 300 MW photovoltaic (MWp) power would be set up under build-own-operate (BOO) basis.

"Companies have been told to set up solar power projects wherever they want to set up in any part of the state," he added.

Power generated from these resources would be procured under an agreement for 25 years, he said.

Central Electricity Regulatory Commission (CERC) has fixed rate of Rs 8.75 per unit rate for solar power projects, he said.

The state has a major potential in generating power from solar energy as 330 days of clear sunshine with solar insolation from 4-7 kwh/ sq meter is available.

WEEKLY UPDATE: PUNJAB ANNOUNCES A BIDDING PROCESS FOR 300 MW OF SOLAR PROJECTS

The Indian state of Punjab has released a request for proposal (RfP) document for allocation of 300 MW of solar PV in the first phase of its state solar policy (refer to the RfP document). Punjab had earlier set a target of 1 GW of new solar capacity by 2022 in its ‘New and Renewable Sources of Energy Policy – 2012′ (refer to the policy document), which was released in December 2012.

Punjab is the first state to allow the use of agricultural land for setting up projects
50 MW is to be allotted for companies with no experience in setting up solar projects, while 250 MW is to be allotted for experienced companies
The policy is expected to attract higher tariffs than other states due to a higher cost of land and lower irradiation than other states

Project developers are given various incentives such as exemption from Value Added Tax (VAT) on equipment, exemption from entry tax for equipment supplies, exemption from payment of fee and stamp duty for registration / lease deed charges for the project’s land requirement and exemption from change of land use (CLU) charges. There is no domestic content requirement under the policy. Punjab is the first state to allow the use of agricultural land for setting up the projects. This is especially relevant as almost the entire state is made of up cultivable land as opposed to Rajasthan and Gujarat where large tracts of desert wasteland can be used for setting up solar projects.

The project allocation has been divided into two categories:

A total of 50 MW is to be allotted for newly incorporated or existing companies that have no experience in setting up and operating solar projects. The minimum capacity of the project has been set at 1 MW and the maximum capacity at 4 MW. The allotment of project capacities in this category will be in the multiples of 1 MW.
A total of 250 MW is to be allotted to experienced companies that have installed and commissioned at least one project with a capacity of 5MW or higher anywhere in the world which is in operation for at least one year before the last date of submission of e-bid anywhere in the world. The minimum capacity of the project can be 5 MW and the maximum capacity allowed for a single developer is 30 MW. The allotment of project capacities in this category will be in the multiples of 5 MW.

The benchmark tariffs for the bidding process have been fixed at INR 8.75/kWh for companies not availing accelerated depreciation and INR 7.87/kWh for companies availing accelerated depreciation. The RfP allows a period of six months for achieving a financial closure and 13 months for commissioning from the date of signing the PPA. The developers have to submit bank guarantees worth INR 4m/MW. Developers face a fine of 30% of this guarantee in case the project is delayed up to one month and the entire guaranty will be en-cashed for a delay of two months.

Punjab policy is expected to attract higher tariffs than other states like Rajasthan, Tamil Nadu and Odisha. This is primarily due to the high cost of land, which can be up to at least 5-10 times more than in Rajasthan, and a lower irradiation, which can be up to 20% lower than in Rajasthan.

The pre-bid meeting is scheduled for 3^rd April 2013 and the last date for bid submission is 25^thApril 2013.

Overall, the policy has no salient features that make it either particularly attractive or risky, except for the fact that Punjab has a loss making power distribution company and payment security will be an issue. Given the short timelines as well as the fact that the policy requires developers for Category – II to have more than one year of experience in running a plant, established developers are clearly favoured over new entrants (who can still go for Category – I plants).

Solar business opportunity in Punjab

In Buildings

Rooftop solar power plants, Solar Water Heaters,

Energy Efficient Lights, Energy efficient designs,

GRIHA Ratings. Solar air conditioning etc.

Solar business opportunity in Punjab

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 in Punjab

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 Punjab

In Hostels

Solar Water Heaters, Biomass gasifier based cooking,

Solar Cooking, Kitchen Waste based plants, Solar

Lightings,

Solar business scope in Punjab

In Vegetable Markets

Solar Lanterns for Road Shops, Market Waste based

Plants, Solar lightings, Solar cold storages etc.

Solar business in Punjab

In Sewage Treatment Plants

Biogas Generation Plants, Power Generation from

Biogas, Biogas Cooking, Solar lightings etc.

Solar business potential in Punjab

In Roads

Solar Street Lighting Systems, Road Studs, Solar

Traffic Signals, Solar Street Light Controls etc.

Solar business opportunity Punjab

In Transportation

Battery Operated Vehicles, Biodiesel based Buses/

Vehicles etc.

Solar business opportunity Punjab

In Residential Houses

Solar Water Heaters, Solar Power Generators, Solar

Invertors, Solar Home Lighting System etc.

Solar business opportunity

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 Punjab

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 PUnjab

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 PUnjab

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 gujarat is discussed in the later part of the blog. You will get lots of latest news first.

This blog consists of three parts

Part I deals with latest solar energy news from Punjab

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

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 – Punjab Solar Energy

Part II

Solar irradiation in Punjab

Demographics of Punjab

PEDA

Solar projects of Punjab

Part III

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

Latest Latest NEWS about solar energy in PUNJAB

Punjab govt needs to decentralise the process of solar energy

Emphasising on the need to create awareness amongst the people on solar energy for domestic consumption, Punjab Governor Shivraj V Patil today asked the state government to make a concerted effort and decentralise the process of harnessing solar energy.

Presiding over a high-level meeting to review the untapped potential of solar energy, the Punjab Governor said every household across the state should be encouraged to have Solar Photo Voltaic (SPV) Panels on their rooftops to augment such energy generation, an official release said.

He opined that solar energy should be made a mass movement to meet the power supply in domestic, agriculture and industrial sectors besides being used by religious institutions and shrines.Patil underscored the need to encourage manufacturers of SPVs to set up their units in the state in order to ensure sufficient supply of these panels.

Solar energy could also be tapped with the installation of SPVs along the banks of the vast canal network in Punjab.

The state government should make it mandatory for all public as well as private buildings, especially upcoming housing clusters, to have SPVs, he said.

Appreciating the New and Renewable Sources of Energy (NRSE) Policy, 2012, framed by the state government, the Governor said it was deftly crafted to dispose of the biomass in an efficient manner by generating power from agricultural waste.

He also asked Punjab Chief Minister Parkash Singh Badal to send a high level delegation comprising officers of Punjab Energy Development Agency (PEDA) and experts in the field of non-conventional energy to study the use of solar energy in Germany and China.

Patil assured the Chief Minister that he would soon take up the matter with Union Government for giving special subsidy over and above the currently available to popularise the concept of solar energy amongst the people in the state.

Badal apprised the Governor of the steps being taken by the government to make solar energy mandatory in public and private buildings.

Source

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

The New and Renewable Energy Policy, 2012 would attract an estimated investment of Rs 18,000 crore besides providing direct and indirect employment to more than 25,000 youth in Punjab.

Disclosing this here today, Non-Conventional Energy minister Bikram Singh Majithia, said that the revolutionary policy approved by the Punjab Cabinet would not only change the energy scenario in the state but also generate more employment avenues for the people.

Besides attracting large investments, it would also generate 10 per cent of the total power installed capacity thus bridging the gap between demand and supply, he said.

Elaborating the features of policy, Majithia said that the policy is also the alternate for the conventional power generation in view of the depleting minerals and other natural resources.

The new targets of power generation have been fixed by different modes - Solar, Biomass, Co-generation power projects.

He said that 1000 MW would be generated through Solar Power, 600 MW would be generated with Biomass Power, 500 MW with Co-generation Power Project, 250 MW Small/Mini/Micro Hydel and 50 MW from Urban, Municipal and Industrial Liquid/Solid Waste.

The minister said that in view of interests of state peasantry, under this new policy the agricultural land would also be allowed to use for setting up of Renewable Energy Power Projects in the state and no CLU, EDC or any other charges/fees for the same are to be paid.

Source

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

The Punjab government has decided to explore the possibility of developing solar power clusters to energize agri-pumps in rural areas besides setting up of solar panels on canals and roof tops of big buildings.

Presiding over a meeting late last night to review the progress of biomass as well as solar power plants in the state, Deputy Chief Minister Sukhbir Singh Badal pointed out that the state government was spending a huge amount on providing free power for agri-pumps in the state. He said there was a large scope for development of solar power clusters in the rural areas to provide power for agri-pumps directly thereby cutting the subsidy and further investing the saved money for production of clean energy.

He said that by producing 1000 MW clean power Punjab can earn lot of carbon credits besides saving on subsidy. He asked Non-Renewable Energy Minister Bikram Singh Majithia to get a thorough study including technical as well as financial viability of the proposed solar power clusters done. Majithia informed the Deputy Chief Minister that Punjab Energy Development Agency (PEDA) was considering creating land pools in Kandi as well as Kalanaur area of Gurdaspur district to attract investment for setting up of big solar power plants.

Setting targets of minimum 500 MW power, each in biomass as well as solar power sectors in next 2 years, the Deputy Chief Minister categorically said that PEDA should analyze the reasons for slow implementation of such power plants and directed to remove the bottle necks, if any. He pointed out that the possibility of using solid waste should also be explored as in coming times the demand for agri-residue was set to be risen.

Assuring full cooperation from the state government, Badal said it was high time for the state to replicate the success solar power stories of Gujarat and Rajasthan in the state. He also directed for the cancellation of permissions to those companies who were dilly dallying their projects on one and another pretext. He underlined the need to encourage both new entrepreneurs and big players by giving permission to them up to 2 MW and up to 25 MW respectively. He said that for the new ventures in solar power the carbon credits aspect should also be taken into consideration.

Punjab Non-Renewable Energy Minister Bikram Singh Majithia informed that PEDA would soon invite bids for 400 MW solar power plants with provision both for new entrants as well as the big investors. He said that the process for identifying the canals and roof tops for setting up of solar panels has already begun. He said that the state has potential of more than 50 MW solar power productions from roof tops while the canals have the potential of setting up of solar panels for more than 500 MW solar power. He said that he would soon convene the meetings of biomass as well as solar power operators to give final touches to the new proposals and expressed confidence that soon the state would emerge on both the solar power and biomass power fronts in the country.

Source

* Punjab ERC allows state discom to carry forward renewable purchase obligations 17/5/12

PUNJAB SOLAR POLICY REVIEW

Punjab is the first state to allow the use of agricultural land for setting up projects
50 MW is to be allotted for companies with no experience in setting up solar projects, while 250 MW is to be allotted for experienced companies
The policy is expected to attract higher tariffs than other states due to a higher cost of land and lower irradiation than other states

The project allocation has been divided into two categories:

A total of 50 MW is to be allotted for newly incorporated or existing companies that have no experience in setting up and operating solar projects. The minimum capacity of the project has been set at 1 MW and the maximum capacity at 4 MW. The allotment of project capacities in this category will be in the multiples of 1 MW.
A total of 250 MW is to be allotted to experienced companies that have installed and commissioned at least one project with a capacity of 5MW or higher anywhere in the world which is in operation for at least one year before the last date of submission of e-bid anywhere in the world. The minimum capacity of the project can be 5 MW and the maximum capacity allowed for a single developer is 30 MW. The allotment of project capacities in this category will be in the multiples of 5 MW.

The pre-bid meeting is scheduled for 3^rd April 2013 and the last date for bid submission is 25^thApril 2013.

Jasmeet Khurana works on project performance benchmarking, success factors for module sales, financing and bankability of projects in India.

Punjab had set a target of 1000 MW solar power generation capacity in the‘New and Renewable Sources of Energy (NRSE) Policy –2012’ released in December 2012. (The policy can be downloaded here). Punjab followsKarnataka, Odisha and Bihar in releasing RfPs in the last few weeks.

As part of that of the Phase 1 of the policy, Punjab Energy Development Agency(PEDA), has released the Request for Proposal(RfP) for 300 MW Solar PV capacity allocation. The bid submission timelines are given below

Some of the salient features of the policy are as under.

a. The power procurer will be Punjab State Power Corporation Limited(PSPCL)

b. The project size and related information are given below.

The projects sizes will be AC capacity. A tolerance of 5% on the DC side. No negative tolerance will be accepted. The maximum plant capacity in one location cannot exceed 20 MW.

c.Number of responses by a company – A bidder can submit a maximum of 3 bids for an aggregate capacity of 5 MW and 30 MW in Category 1 and 2 respectively at different locations. The different projects mean that each one of them shall have a separate PPA, interconnection and separate metering arrangement.

d. Selection process – competitive bidding. The benchmark tariff will the CERC tariff for SPV plants.

The bidder has to mention if the tariff opted is based on Normal rate of depreciation or Accelerated Rate of depreciation. The discount will then be calculated against the relevant benchmark tariff from the table above. The bidders offering the lowest tariff will be selected followed by the next lowest tariff and so on.

e. Grid connectivity – The interconnection with PSPCL will be at voltage level of 11 kV upto 2.5 MW capacity and 66 kV above 2.5 MW capacity.

It is the responsibility of bidder or project developer for obtaining the grid connectivity with PSCPCL substation at its own cost.

f.An implementation agreement(IA) will be signed after the selected project developer submits a Detailed Project Report(DPR)

g. Power Purchase Agreement(PPA) – The PPA shall be signed within 30 days from the date of signing an implementation agreement(IA).

h. The project commissioning timelines are given below

i. Fiscal Assistance/Benefits for developers – The following taxes/duties/etc are exempted for any inputs for the construction of the project(fuel/Equipment/Machinery/etc)

- 100% electricity duty for power

- Octroi

- Value Added Tax(VAT)

- Entry Tax

- 100 % exemption from stamp duty and related fees for the registration/lease deed charges for the land required for the project

- Agricultural land can be used for the project and no fees need to be paid towards Change of Land Use(CLU), External Development Charges(EDC), etc.

- No need for getting NOC/consent from Pollution Control Board.

The developer can take land on lease from Panchayat/Government for 30 years. The list of the Panchayat/ Government land available is given in the RfP.

Solar irradiation in Punjab:

Punjab receives a solar radiation equivalent to 4-7Kwh/m2. Punjab has more than 330 days in a year with good insolation levels.

Solar irradiation of Punjab cities monthwise:

City	Jan	Feb	Mar	Apr	May	Jun	July	Aug	Sep	Oct	Nov	Dec	Avg
Amritsar	3.25	4.28	5.35	6.39	7.31	7.22	6.11	5.66	5.5	5	3.92	3.19	5.27
Bhatinda	3.43	4.39	5.55	6.46	6.45	6.33	5.92	5.7	5.59	4.88	4.08	3.32	5.18
Chandigarh	3.5	4.58	5.65	6.66	7.39	7.08	5.86	5.43	5.54	5.25	4.22	3.4	5.38
Ganganagar	3.44	4.21	4.97	5.66	6.14	6.25	5.57	5.35	5.04	4.53	3.71	3.16	4.84
Jalandhar	3.3	4.33	5.38	6.6	7.39	7.28	5.99	5.56	5.59	5.23	4.09	3.25	5.33
Ludhiana	3.43	4.39	5.55	6.46	6.45	6.33	5.92	5.7	5.59	4.88	4.08	3.33	5.18
Patiala	3.5	4.58	5.65	6.66	7.39	7.08	5.86	5.43	5.54	5.25	4.21	3.39	5.38

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

Using the above, you can find the solar irradiation information in any part of Punjab.

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Want counselling on setting up MW scale / half a MW / 100 Kw/ 5 MW/ 10 MW/ solar power plant !

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

Demographics:

Punjab which is the 19th largest state in India has area of 50,362 km2 (19,444.9 sq mi) with 27,704,236 people living in density of 550.1/km2 (1,424.8/sq mi). Punjab extends from the latitudes 29.30° north to 32.32° North and longitudes 73.55° east to 76.50° east.

The Punjab Climate is determined by the extreme hot and extreme cold conditions. The region lying near the foot hills of Himalayas receive heavy rainfall whereas the region lying at a distant from the hills, the rainfall is scanty and the temperature is high.

Punjab’s climate comprises three seasons. They are the summer months that spans from mid April to the end of June were the temperature rises as high as 110 °F. During the rainy season of Punjab which is from early July to end of September the state receives average rainfall annual ranges between 960 mm sub-mountain region and 460 mm in the plains. The winter season in Punjab is experienced during the months of early December to the end of February.

Punjab Energy Development Agency (PEDA):

PEDA is a sate nodal agency for promotion & development of renewable energy programs/projects in Punjab. It promotes development of solar photovoltaic and solar thermal project, development of small/micro hydel projects, development of waste to energy projects etc.

Solar Power Projects in Punjab:

Solar Power Projects :
Energy Conservation is one of the most crucial subjects today and Punjab is endowed with vast potential of solar energy with over 300 days of sunshine in a year and this key Renewable Energy Source is being efficiently exploited by PEDA. As the state is endowed with vast potential of solar energy estimated at 4-7 KWH/Sq.mtr of solar insolation levels and the Government is also keen to tap this resource for strengthening power infrastructure in the State by setting up Solar Energy based power projects so as to save the depleting resources for our future generation and to combat global warming, fast depleting conventional sources of energy and resultant increased environmental pollution.

PEDA with its untiring efforts has successfully commissioned the following projects:-

Under Ministry of New and Renewable Energy, Govt. of India, programme for Demonstration of Grid Interactive Solar Photovoltaic System, 2 Nos. (50 Kwp Capacity each) Grid Interactive Power Plant has been installed at Mini Sectt. Building, Chandigarh and Village Bajak. Both these projects were commissioned during October 1999 and are operating satisfactorily.

Another 200 KWp SPV Grid Interactive Power Project at Village Khatkar Kalan, Distt. Nawanshaher has been commissioned with 67% financial support from MNRE, GOI in the state. This project is feeding Solar Power in the PSEB Grid in the localized manner and providing power to 100 numbers of streetlights. Dr. A.P.J. Abdul Kalam, Hon’ble President of India, had dedicated this project to the Nation on the martyrdom day of Shaheed-e-Azam S. Bhagat Singh on March 23rd 2003.

One SPV Power Plant of capacity 25 Kwp has been set up in the solar passive complex of PEDA in the year 2004. This project is providing 25 KW power for lightning, fans, computers etc. in the office.

A two MW Solar PV project has been commissioned in Village Awan, Distt. Amritsar.

Seven Solar Photovoltaic Projects have been allocated to private developers on BOO (Build Own and Operate) basis in the state under LT/11KV programme of Jawaharlal Nehru National Solar Mission, Govt. of India. With these projects located closer to the load, transmission and distribution losses will be reduced considerably and PV systems located at rural remote locations ensure prevention of voltage drop at peak day time load. It is worth mentioning here that this form of energy would mitigate carbon dioxide emissions and would consequently combat climate change. With the utilization of this abundant resource, it is proposed to add 200 MW by the year 2020.

A major rooftop programme for Solar Photovoltaic Power Project has been launched in the state under which the rooftop SPV Power Projects are being setup at various important Govt., Institutional, and Religious buildings namely Punjab Raj Bhawan, Punjab Civil Secretariat , Golden Temple, Wagah Border, Punjab Agricultural University, Ludhiana and Pushpa Gujral Science City , Kapurthala. Rooftop projects shall be continued to be promoted in all sectors in order to enhance the share of solar power in the state

The state govt. has formulated a New and Renewable Sources of Energy Policy (NRSE Policy)-2006. The govt. has offered the following financial and fiscal incentives for solar power projects :

To promote manufacturing and sale of NRSE devices/ systems, and equipments / machinery required for NRSE Power Projects, Value Added Tax (VAT) shall be levied @ 4%.
Octroi : on energy generation and NRSE devices/ equipment/ machinery for NRSE Power Projects shall be exempted.
Wheeling : The PSEB/LICENSEES will undertake to transmit through its grid the power generated from NRSE projects set up inside
or outside the State and make it available to the producer for captive use in the same company units located in the state or third party sale within the State at a uniform wheeling charge of 2% of the energy fed to the grid, irrespective of the distance from the generating station.
Sale of power :. Power generation from Solar Energy Projects- Rs. 7.00 per unit (Base Year 2006-07) with five annual escalations @ 5% upto 2011-2012.
Banking: The banking facility for the power generated shall be allowed for a period of one year by the PSEB/ Licensees.
Exemption from Electricity duty: The Power Generation from NRSE projects shall be exempted from levy of Electricity Duty.

PSEB/ Licensees will accept the injection of energy in full during sustained high frequency hours to ensure full utilization of non-conventional energy resources.

PSEB/ Licensees will provide facility of irrevocable and revolving, Letter of Credit issued by any nationalized bank. The amount of the Letter of Credit shall be equal to the bill amount of one month on the basis of average of last three months. All expenditures on Letter of Credit shall be borne by the power producers.

SOLAR POWER PROJECTS COMMISSIONED (1.325 MW)

Sr No.	Site/Dist.	Cap. (Kw)	Date of Commissioning
1.	SPV Power Plant at Mini Secretariate, Chandigarh	50 KW	28.10.1999
2.	SPV Power Plant at Vill. Bajak, Distt. Bathinda	50KW	30.10.1999
3.	SPV Power Plant at Vill. Khatkar Kalan, Distt. Sahid Bhagat Singh Nagar.	200 KW	23.3.2003
4	SPV Power Plant at PEDA Solar Passive Complex, Chandigarh	25 KW	July, 2004
5.	SPV Power Plant at Vill. Awan, Distt. Amritsar by M/s. Azure Power, New Delhi	1MW	1st Dec.’2009
6	SPV Power Plant at Vill. Awan, Distt. Amritsar by M/s. Azure Power, New Delhi	1 MW	9th Nov.’2011
	Total	1.325 MW

LIST OF SPV POWER PROJECTS SHORTLISTED BY IREDA UNDER RPSSGP PROGRAMME UNDER JNNSM

S. No	Name of the company	Project Location	Pre-registered capacity (MW)	IREDA Acknowledgement no.
1	M/s. Soma Enterprises Ltd. NH-I, Besides AGM Road Vill. Basantpura, Rajpura, Patiala Ph.: 01762-239770 Fax : 01762-239771	Vill. Khera Kalmout, Distt. Ropar	1	RPSSGP/00030
2	M/s. Sovox Renewables Pvt. Ltd. 31, Sirifort Road, New Delhi	Vill. Mehandipur, Distt. Shaheed Bhagat Singh Nagar	1	RPSSGP/00072
3	M/s. Econergy Inc., 2712, Hinton Circle, Elk Grove California, USA	Vill. Boparai Kalan, Distt. Ludhiana	1	RPSSGP/00326
4	M/s. G.S. Atwal & Co. (Engineers) Pvt. Ltd. 4-B, Little russel Street, Kolkata Ph.: 2429401, 2426468 Fax : 021-4728	Vill. Bhuttiwala, Distt. Sri Mukatsar Sahib	1.5	RPSSGP/00028
5	M/s. Carlill Energy Pvt. Ltd. #504, Sector 11, Chandigarh Ph.: 0172-4009121 Fax : 0172-4009122	Vill. Bhagsar, Distt. Sri Mukatsar Sahib	1.5	RPSSGP/00003
6	M/s. Bharat Petroleum Corporation Ltd., Chandigarh, Tel Bhawan, Plot No. 6-A, Sector 19, Chandigarh Ph.: 0172-2782135, 2548276 Fax : 0172-2544457	Vill. Alamgir, Distt. SAS Nagar	1	RPSSGP/00225
7	M/s. Enterprises Business Solution Inc. 49, Green Park, Jalandhar Ph.: 9814000004	Vill. Shahdra, Distt. Shaheed Bhagat Singh Nagar	1.5	RPSSGP/00251
8	M/s. Enterprises Business Solution Inc. 49, Green Park, Jalandhar Ph.: 9814000004	Vill. Sahiba, Distt. Shaheed Bhagat Singh Nagar	5

Azure Power's 2 MW Punjab facility is the first and the only private, utility-scale solar power plant in India. The facility is operational, exceeds world-class power generation standards, and provides electricity to 32 villages and 20,000 people in the Amritsar District of Punjab.

MST, Israel has desired to set up 1000MWp Solar Power Station in Punjab on Built, Own and Operate (BOO) basis. The company will proceed with installation of the first 1000 MWp plant after demonstration of a working power plant of 0.5MWp connected to the grid to prove the viability of the technology. For setting up of 1000MWp power plant, 1.44 Sq. Km. Land is required and MST proposal indicates 3877 operating hours per year with annual energy generation of 215 MUs. The company has inimated that their technology is concentrating on photovoltaics and a plant efficiency of 25% is achievable.

M/s. Reliance Industries Ltd. has approached PEDA for setting up of 5MW SPV Power Plant on BOO basis. They plan to set up the project in Punjab and require land of around 25 – 30 acres. The benefits accrued by setting up of these projects shall attract the investment to the tune of Rs. 2000 crore. By locating PV generating system closer to the road, the transmission and distribution line losses can be reduced. The system will provide voltage support in rural remote locations, thus prevent voltage drop at peak day time loads.

Punjab Energy Development Agency (PEDA) has allotted five solar power projects to construction major Punj Lloyd to be set up at locations, including the Golden Temple and the Punjab Assembly.

State-owned PEDA had invited bids for setting up solar power projects at various locations such as the Golden Temple (18 KW) and Durgiana Mandir (11KW) in Amritsar, Punjab Raj Bhawan (45 KW), Punjab Secretariat (12 KW) and Punjab Assembly (20 KW).
Setting up solar power projects will involve an investment of Rs 28.31 lakh for Golden Temple, Rs 27.58 lakh for Durgiana Mandir, Rs 76.95 lakh for Punjab Raj Bhawan, Rs 21.56 lakh for Punjab Secretariat and Rs 32.92 lakh for the Punjab Assembly.

Solar Power Projects in Punjab on BOO basis allocated in April 2008 under NRSE policy -2006:
Azure Power (2MW) – Majitha/Amritsar Bharat Petroleum Corp. Ltd (1MW) – Lalru / Mohali Enterprise Business Solutions (5MW) - Vill. Sahiba Tehsil Balachour/ S. Bhagat Singh Nagar

In a first of its kind venture in India, the Punjab Government approved the setting up of a project which will generate solar power by utilising the space over irrigation canals. This is expected to reduce the evaporation of water from the irrigation canals.

List of SPV Power Projects shortlisted by IREDA under RPSSGP Programme under JNNSM:

M/s. Soma Enterprises Ltd. (1MW) - Vill. Khera Kalmout, Distt. Ropar M/s. Sovox Renewables Pvt. Ltd. (1MW) - Vill. Mehandipur, Distt. Shaheed Bhagat Singh Nagar M/s. Econergy Inc., (1MW) - Vill. Boparai Kalan, Distt. Ludhiana M/s. G.S. Atwal & Co. (Engineers) Pvt. Ltd. (1.5MW) - Vill. Bhuttiwala, Distt. Sri Mukatsar Sahib M/s. Carlill Energy Pvt. Ltd. (1.5MW) - Vill. Bhagsar, Distt. Sri Mukatsar Sahib M/s. Bharat Petroleum Corporation Ltd., (1MW) - Vill. Alamgir, Distt. SAS Nagar M/s. Enterprises Business Solution Inc. (1.5MW) - Vill. Shahdra, Distt. Shaheed Bhagat Singh Nagar

Government initiatives for solar energy in Punjab: The State is endowed with vast potential of solar energy estimated at 4-7 KWH / Sq mtr of solar insolation levels and the Government is keen to tap this resource for strengthening power infrastructure in the State by setting up Solar energy based power projects. The govt. has offered the following financial and fiscal incentives for solar power projects:

To promote manufacturing and sale of NRSE devices/ systems, and equipments / machinery required for NRSE Power Projects, Value Added Tax (VAT) shall be levied @ 4%.
Octroi: on energy generation and NRSE devices/ equipment/ machinery for NRSE Power Projects shall be exempted.

Wheeling: The PSEB/LICENSEES will undertake to transmit through its grid the power generated from NRSE projects setup inside or outside the state and make it available to the producer for captive use in the same company units located in the state or third party sale within the state at a uniform wheeling charge of 2% of the energy fed to the grid, irrespective of the distance from the generating station.

Sale of power: Power generation from Solar Energy Projects- Rs. 7.00 per unit (Base Year 2006-07) with five annual escalations @ 5% upto 2011-2012.

Banking: The banking facility for the power generated shall be allowed for a period of one year by the PSEB/ Licensees.
Exemption from Electricity duty: The Power Generation from NRSE projects shall be exempted from levy of Electricity Duty.

Solar Thermal Expansion Program:

Though the initial investment for a solar water heater is high compared to available conventional alternatives, the return on investment has become increasingly attractive with the increase in prices of conventional energy. The payback period depends on the site of installation, utilization pattern and fuel replaced. To offset the high initial investment for solar water heaters, the Ministry is currently implementing a soft loan scheme through seven designated banks and Indian Renewable Energy Development Agency (IREDA), which has now been extended to all kind of Financial Institutions.

http://peda.gov.in/eng/index.html

Solar Passive Complex

Chandigarh the modern and planned city designed by Le-Corbusier, lies in the plains at the foot of the Lower Himalayas, is the capital of Punjab and Haryana.

Punjab Energy Development Agency (PEDA), Chandigarh is a state nodal agency responsible for development of new & renewable energy and non-conventional energy in the state of Punjab.

PEDA – Solar Passive Complex, Chandigarh is a unique and successful model of Energy Efficient Solar Builidng, designed on solar passive architecture with the partial financial support of Ministry of New & Renewable Energy, GOI and Deptt. of Science, Technology, Environment and Non-conventional Energy, Govt. of Punjab. It is setup at Plot No. 1 & 2, Sector 33-D, Chandigarh on a plot size 1.49 acre (268ft. x 243 ft.) allotted by Chandigarh Administraiton, U.T., Chandigarh with a total covered area 68,224 Sq.Ft. including 23,200 Sq.Ft. basement. It is the centre of Excellence for Solar Buildings, minimizing conventional lighting load in the office building, efficient movement of natural air, light vaults, wind tower coupled with solar chimney, BIPV, Water bodies, designed landscape horticulture and energy conservation activities.

PEDA – Solar Passive Complex heralds the beginning of the energy efficiency movement in the non-domestic buildings such as offices, educational institutions and factories. The building has the following salient design features:

Orientation: Solar Passive Complex has been developed In response to solar geometry i.e. minimizing solar heat gain in cold period. The building envelope attenuates the outside ambient conditions and the large volume of air is naturally conditioned by controlling solar access in response to the climatic swings,

Solar Power Plant: 25Kwp building integrated solar photovoltaic power plant has been set up to meet the basic requirement of electricity in the complex.

Unique Shell Roofing on Central Atrium : The Central atrium of the complex having main entrance, reception, water bodies, cafeteria and sitting place for visitors constructed with hyperbolic shell roof to admit daylight without glare and heat coupled with defused lighting through glass to glass solar panels. The roof is supported with very light weight space frame structure.

Water Bodies: The water bodies with waterfalls and fountains have been placed in the central atrium of the complex for cooling of whole the complex in the hot and dry period.

Light Vaults: The vertical cutouts in the floating slabs are integrated with light vaults and solar activated naturally ventilating, domical structures in the south to admit day light without glare and heat.

Landscape Horticulture: The space around the building inside and outside of boundary wall and a big lawn in the south has been designed with trees, shrubs and grass. The big trees along the boundary wall acts as a curtain to minimize air pollution, sound pollution and filter/cool the entry of air.

Wind Tower coupled with Solar Chimneys: The wind tower centrally placed coupled with solar chimeys on the domical structures for scientific direct & indirect cooling and scientific drafting of used air.

Cavity Walls: The complex is a single envelope made up of its outerwalls as double skin walls having 2” cavity in between. The cavity walls facing south and west are filled with further insulation material for efficient thermal effect.

Unique Floating Slab System: The system of floating and overlapping slab with interpenetrating vertical cutouts allow free and quick movement of natural air reducing any suffocating effect.

Aims & Objectives:

To demonstrate the Solar Passive Architecture concepts.

To educate Architects, Engineers & Builders for replication of concepts.

To make awareness among general public, Teachers, Students of school and colleges.

A tourist place for educational tour of professional institutions in the field of Architecture / Engineering.

To demonstrate the use of Solar devices/equipments.

enefits:

90% reduction in lighting consumption

50% saving in overall energy consumption

Considerable reduction in recurring expenditure

Clean and pollution free environment

Considerable thermal comfort

High Productivity

Do you want to construct a Solar Building ?

MNES, Govt. of India is implementing the solar building demonstration programme in a big way through State Nodal Agencies and providing following financial assistance:

Preparation of DPR : CFA @ 50% of the cost of the DPR, subject to a maximum of Rs. 2 lakhs will be provided for preparation of DPRs, including detailed building plan and architectural drawings for public/private institutional buildings.

Demonstration Solar Building : Support for construction of demonstration solar buildings will be provided by the Ministry upto 10% of the cost construction, subject to a maximum of Rs. 50 lakhs for each project.

Promotional Scheme - Solar Thermal - Punjab

We all know that Energy is the prime mover of Development and to make it available at affordable prices for the common man is a big challenge before us. With the increase of population and industrialization the energy demand is growing day by day and we have to explore possibilities to keep the pace with the growing demand. The conventional sources have their limitations and they alone cannot meet the increasing demand for longer periods, therefore our responsibility to develop Renewable Energy increases manifold. It is surprising to know that sun power received by earth in a single day is equivalent to the total energy demand of the world for hundred years. Therefore the need of the hour is to tap and use this energy efficiently. In one way sun power can be used for generation of electric power through solar photovoltaic technology which can be further used to meet all energy requirements and on the other hand it can be used for generation of thermal power through solar thermal technology for heating, drying, cooking and steam generation purposes. The major application of Solar Thermal Technology is Solar Water Heating Systems, which can be used in all sectors like domestic, Institutional, commercial and industrial sectors for Bathing, washing steam cooking and processing of industrial products.

SOLAR WATER HEATING SYSTEMS:

The solar radiation incident on the surface of the earth can be conveniently utilized for the benefit of human society. One of the popular devices that harness the solar energy is solar water heating system (SWHS).

A solar water heating system consists of a collector to collect solar energy and an insulated storage tank to store hot water. The solar energy incident on the absorber panel coated with selected coating transfers the heat to the riser pipes underneath the absorber panel. The water passing through the risers gets heated up and is delivered into the storage tank. The re-circulation of the same water through absorber panel in the collector raises the temperature to 80 C (Maximum) in a good sunny day. The total system with solar collector, storage tank and pipelines is called solar water heating system.

Broadly, the solar water heating systems are of two categories. They are: closed loop system and open loop system. In the first one, heat exchangers are installed to protect the system from hard water obtained from borewells or from freezing temperatures in the cold regions. In the other type, either thermosyphon or forced circulation system, the water in the system is open to the atmosphere at one point or other. The thermosyphon systems are simple and relatively inexpensive. They are suitable for domestic and small institutional systems, provided the water is treated and potable in quality. The forced circulation systems employ electrical pumps to circulate the water through collectors and storage tanks.

The SWH systems are economical, pollution free and easy for operation in warm countries like ours. Based on the collector system, solar water heating systems are of three types.

Flat Plate Collector (FPC) system.

Evacuated Tube Collector (ETC) system.

Parabolic Concentrated (Dish Type) system.

Flat Plate Collector (FPC) system.

The solar radiation is absorbed by Flat Plate Collectors which consist of an insulated outer metallic box covered on the top with glass sheet. Inside there are blackened metallic absorber (selectively coated) sheets with built in channels or riser tubes to carry water. The absorber absorbs the solar radiation and transfers the heat to the flowing water.

Solar

Evacuated Tube Collector (ETC) system.

Evacuated Tube Collector is made of double layer borosilicate glass tubes evacuated for providing insulation. The outer wall of the inner tube is coated with selective absorbing material. This helps absorption of solar radiation and transfers heat to the water which flows through the inner tube.

Parabolic Concentrated (Dish Type) system.

Parabolic Concentrated type system consist of a frame fitted with reflecting mirrors, rotating support, stand and a receiver. Concentrators are installed in such a way that they focus the sun radiations on to the receivers while in operation which will be attached to a steam header / hot water tank. The concentrators are tracked automatically with the help of suitable tracking arrangement. Parabolic systems can heat water at higher temperatures and these are mainly used for production of steam for processing of industrial products in industries and cooking of food in domestic and institutional sectors.

Salient Features of Solar Water Heating System

Solar Water heating systems turns cold water into hot water with the help of sun rays.

Around 60 deg. – 80 deg. C temperature can be attained by using FPC and ETC based systems depending on solar radiation, weather conditions and solar collector system efficiency.
For attaining higher temperatures and production of steam Parabolic concentrated type systems are used.
Hot water for homes, hostels, hotels, hospitals, restaurants, dairies, industries etc.
Can be installed on roof-tops, building terrace and open ground where there is no shading, south orientation of collectors and over-head tank above SWH system
Only soft and potable water can be used
Stainless Steel is used for small tanks whereas Mild Steel tanks with anticorrosion coating inside are used for large tanks
Solar water heaters (SWHs) of 100-300 litres capacity are suited for domestic application.
Larger systems can be used in restaurants, guest houses, hotels, hospitals, industries etc.

Fuel Savings:Solar water heating systems reduce the use of fuels such as oil, electricity and coal. A Solar water heating system of capacity 100 litre can replace an electric geyser for residential use and saves 1500 units of electricity, 180 litres of furnace oil annually. At today's price itself this amount of energy is around Rs. 7500 in case of electricity, or Rs.6500 in case of oil.

Avoided utility cost on generation: The use of 1000 SWHs of 100 litres capacity each can contribute to a peak load saving of 1 MW.

Environmental benefits : A SWH of 100 litre capacity can prevent emission of 1.5 tonnes of carbondioxide per year.

Life: 15-20 years

Approximate cost:The cost of 100 LPD FPC type system is approximately Rs.22000-26000 and the cost of ETC type system is around Rs.15000 - 18,000. The cost of Parabolic system depend upon the required temperature of hot water and steam, which is approximately Rs.280-320 per litre.

Government subsidy:

Ministry of New and Renewable Energy, Govt. of India is providing 30% subsidy on this scheme i.e. Rs. 6600/- on FPC system and Rs.4500/- on ETC system of capacity 100 LPD. The subsidy on Parabolic system is Rs. 5400/- per Sq.m of dish area.

Payback period:
2-3years when electricity is replaced.
3-4 years when furnace oil is replaced.
4-5 years when coal is replaced

Though the initial investment on a solar water heating system is high compared to available conventional alternatives, the return on investment has become increasingly attractive with the increase in prices of conventional energy. The pay back period depends on the site of installation, utilization pattern and fuel replaced.

PUNJAB ENERGY DEVELOPMENT AGENCY is continuously promoting the use of solar water heating systems by issuing advertisements in the leading newspapers, electronic media like television and radio. Camps and exhibitions are organised in schools, Colleges and important festivals of the State. A Solar water heating system has been fitted on the exhibition Van of PEDA to make the people aware of the technology. Keeping in view the broader benefits of the systems, the Government of Punjab has made the use of solar water heating systems mandatory Vide order No. 2/123/05-STE(3)370, dated. 20th January/6th February 2006 and Punjab Government Gazette notification dated 17th March, 2006 in the following type of buildings:-

Industries where hot water is required for processing.
Hospitals and Nursing homes including Government Hospitals.
Hotels, Motels and Banquet halls.
Jail Barracks, Canteens.
Housing Complexes set up by Group Housing Societies/Punjab Urban Development Authority.
All residential buildings built on a plot of size 500 square yards and above falling within the limits of municipal committees/corporations and Punjab Urban Development Authority sectors.
All Government buildings, Residential Schools, Educational Colleges, Hostels, Technical / Vocational Education Institutes, District Institutes of Education and Training, Tourism Complexes and Universities etc.

Since inspection 16 Lac litres capacity solar water heating systems have been installed in the state. During the current year 3 Lac litres capacity systems have been set up in the state by PEDA. Major installations are:-

Salient Features of Solar Water Heating System: A solar water heater consists of a collector to collect solar energy and an insulated storage tank to store hot water. Based on the collector system, solar water heaters can be of two types:

Solar water heaters based on Flat plate Collectors (FPC based SWH): The solar radiation is absorbed by flat plate collectors which consist of an insulated outer metallic box covered on the top with glass sheet. Inside there are blackened metallic absorber (selectively coated) sheets with built in channels or riser tubes to carry water. The absorber absorbs the solar radiation and transfers the heat to the flowing water.

Solar water heaters based on Evacuated Tube Collectors (ETC based SWH): Here the collector is made of double layer borosilicate glass tubes evacuated for providing insulation. The outer wall of the inner tube is coated with selective absorbing material. This helps absorption of solar radiation and transfers the heat to the water which flows through the inner tube. Solar water heaters based on Evacuated Tube Collectors (ETC based SWH) Here the collector is made of double layer borosilicate glass tubes evacuated for providing insulation. The outer wall of the inner tube is coated with selective absorbing material. This helps absorption of solar radiation and transfers the heat to the water which flows through the inner tube.

Solar water heating is now a mature technology. Wide spread utilization of solar water heaters can reduce a significant portion of the conventional energy being used for heating water in homes, factories and other commercial & institutional establishments. Internationally the market for solar water heaters has expanded significantly during the last decade. It is estimated that over 107 million sq.m. of collector area has so far been installed world wide for heating water. In the country, the collector area so far installed for water heating is over 1.00 million sq.m.

Solar Water Heaters

Hot water at 60-80C for hostels , hospitals, restaurants, dairies, homes, industry etc.
Solar water heaters (SWHs) of 100-300 liters capacity are suited for domestic application.
Larger systems can be used in restaurants , canteens , guest houses, (SWHs)

Fuel Savings: A 100 liters capacity SWHs can replace an electric geyser for residential use and saves 1500 units of electricity annually. .

Avoided utility cost on generation: The use of 1000 SWHs of 100 liters capacity each can contribute to a peak load shaving of 1 MW.

Environmental benefits : A SWH of 100 liters capacity can prevent emission of 1.5 tones of carbon – dioxide per year.

Life: 15-20 years

Approximate cost:

Around Rs. 22000 for a 100 liters capacity SWHs Rs. 110-150
Installed liter for higher capacity systems.
Payback period: 3-4 years when electricity is replaced
4-5 years when furnace oil is replaced
6-7 years when coal is replaced

Though the initial investment for a solar water heater is high compared to available conventional alternatives, the return on investment has become increasingly attractive with the increase in prices of conventional energy. The pay back period depends on the site of installation, utilization pattern and fuel replaced. To offset the high initial investment for solar water heaters, the Ministry is currently implementing a soft loan scheme through seven designated banks and Indian Renewable Energy Development Agency (IREDA), which has now been extended to all kind of Financial Institutions.

Application form

Solar water pumping - Punjab energy dev authority

This is the water pumping system which operates through Solar Energy which is totally pollution-free and available from the sun during day time require very little maintenance as compared to the diesel operated pump sets. It comprising of Solar Photovoltaic modules of capacity 1800 wp (75wp modules), 2 HP Solar Pump, Control Switch, Interconnecting cables and MS structure to hold the modules. The solar water pumping system functions during the sunshine hours. These pumping systems are ideal for small/middle farmers to meet their irrigation requirements who do not have access to electric connection and using diesel pumpsets.

Solar Energy in the form of light rays falls on the solar photovoltaic panels and got converted into electrical energy through silicon wafers embeded in the solar photovoltaic panels. This electrical energy then goes to the DC based motor pumping system through the cables and operates this motor. By rotation of the shaft coupled to mono-block pump, the pump starts lifting the ground water and throw it out for use.

Solar PV Panels : 1800 Wp comprising of (75wp panels)

Motor pumpsets type : 2 HP Centrifugal DC monoblock

Operating Voltage : 60V DC (nominal)

Max. Suction Head : 7.0 meters

Max. Dynamic head : 10.0 metres

Bore well size : 150 mm dia

Required shadow free area : 100 Sq. Metres

Module mounting structure : MS hot dipped galvanised

Facilities provided in the panel : Seasonal tilt angle adjustment

Three times manual tracking facilities

(East-South-West) in morning, noon

and afternoon

SPV Pump set will have the capacity to give discharge of 1,20,000 to 1,40,000 Ltrs. on clear sunny day (approx.) subject to variation due to solar insolation and water table condition. This discharge will be suitable for irrigating 4-5 acre of land.

No fuel cost-uses abundantly available free sun light

No electricity required.

Long operating life

Highly reliable and trouble-free performance

Easy to operate and maintain

Eco-friendly

Saving of conventional diesel fuel.

Solar Passive Architecture

Mass Awareness and Publicity

Battery Operated Vehicle

Part III

Solar Business Opportunities in Punjab:

The Solar business opportunities mentioned below are not specific to Punjab. 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.

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.

High R&D or commodity manufacturing? - Commodity manufacturing

Bottlenecks/threats - High capital requirements, high energy input requirements and long-term supply contracts could be deterrents to new entrants.

Competition - 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

Market size - The world market of polysilicon has been growing 30-40% annually since 2004, primarily from the growth in solar PV industry. The market size of the solar cell polycrystalline silicon market in 2009 was $5.13 billion.

Supply and demand - Following undersupply since past few years, polysilicon production capacity entered a fast-growth phase in 2009, which resulted in an oversupply situation, in response to increase in production capacity and growth in demand from the end markets. It is forecasted that the demand for polysilicon will continue to increase at more than ten percent for the period 2010 to 2012. Polysilicon oversupply will also trigger a long term decline in its prices, which peaked to the highest levels in 2008 in response to its supply shortage.

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.

It is meant now, for those who are already in the business.

But the older companies will be able to keep their selling, transporting, costs to the least.

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

Very capital intensive. Markets falling. Technologies changing. 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. Many companies are filing bankruptcy.

There is a big churning happening. Avoid.

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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/

When the RPOs get implemented, that is Renewable Energy Obligation gets implemented the STate governments will be compelled to go for Utility Scale solar projects and CSP could be useful at that time. The time is not far off.

Keep in touch and get in at the right time.

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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 Punjab 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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* 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.

Punjab tariff Existing & Revised Tariff for FY 2011-12

Sr. No.	Category of Consumers	Existing Tariff	Revised Tariff approved by the Commission	Increase in Tariff
		Energy Rate (paise/kWh)	Energy Rate (paise/kWh)	Paisa/Unit	%age
A) PERMANENT SUPPLY
1	Domestic
a)	Upto 100 units	311	348	37	11.90%
b)	101 to 300 units	452	488	36	7.96%
c)	Above 300 units	478	515	37	7.74%
2	Non-Residential Supply	519	556	37	7.13%
3	Public Lighting	510	547	37	7.25%
4	Agricultural Pumpsets	320 Ps/kWh or Rs. 273 /BHP/Month	357 Ps/kWh or Rs. 299 /BHP/Month	37	11.56%
5	Industrial Consumers
a)	Small Power	414	447	33	7.97%
b)	Medium Supply	458	495	37	8.08%
c)	Large Supply
i)	General Industry	458	495	37	8.08%
ii)	PIU	458	495	37	8.08%
iii)	Arc Furnace	458	495	37	8.08%
6	Bulk Supply (including MES)
a)	HT	461	498	37	8.03%
b)	LT	489	526	37	7.57%
7	Railway Traction	541	578	37	6.84%
B) SEASONAL INDUSTRY: COTTON GINNING, PRESSING AND BAILING PLANT, RICE SHELLERS/HULLER MILLS, KINNOW GRADING AND WAXING CENTRES, RICE BRAN STABILISATION UNITS (WITHOUT T.G.SETS) (SP, MS, LS)
a)	During Season (From 1st September to 31st May next year)
	SP	414	447	33	7.97%
	MS	458	495	37	8.08%
	LS	458	495	37	8.08%
b)	Off Season
	SP	491	530	39	7.94%
	MS	525	567	42	8.00%
	LS	525	567	42	8.00%

C) ICE FACTORY & ICE CANDIES AND COLD STORAGE
a)	April to July
	SP	414	447	33	7.97%
	MS	458	495	37	8.08%
	LS	458	495	37	8.08%
b)	August to March Next Year
	SP	414	447	33	7.97%
	MS	458	495	37	8.08%
	LS	458	495	37	8.08%
D) GOLDEN TEMPLE, AMRITSAR AND DURGIANA TEMPLE, AMRITSAR
a)	First 2000 units	Free	Free
b)	Beyound 2000 units	369	406	37	10%

Average overall increase = 9.19%

Notes:

(i) SC and non SC BPL, Domestic consumers with connected load upto 1000 watts will be given 100 units of free power per month in view of Govt subsidy;

(ii)AP consumers and consumers mentioned in (i) above will not be charged service charges and meter rentals in view of Govt subsidy;

(iii) All other charges including rentals and deposits as per Schedule of General Charges, Supply Code and General Conditions of Tariff & Schedules of Tariff approved by the Commission will continue to be charged at the existing rates till these are reviewed by the Commission;

(iv) Fuel Surcharge @ 8 Paise/Unit for metered category and Rs.5/BHP/Month for unmetered category (AP) will also be leviable with effect from 1.4.2011.

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

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4 Comments

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
Dass - 27th May, 2011

Hi Aathmika,

You are doing a wonderful job. Please keep posting new policies and solar projects update.

Thanks,
Dass
harita - 28th Jun, 2011

The Punjab Energy Development Agency today launched a nodal programme to light education institutions by generating solar power through rooftop Solar Photo Voltaic (SPVs) systems.

According to an official spokesman, in the first phase rooftop SPVs systems were being installed at Central University, Bathinda, Guru Gobind Singh Educational Trust, Kamalpura Ludhiana, gyan Sagar Medical College Banur, Shivalik Public School SAS Nagar Mohali and Shivalik Public School, Chandigarh with the combined capacity of 230 kilowatt.

The solar lighting of this institutions will be completed in next four months.

These projects were being set up under the Jawahar Lal Nehru National Solar Mission (JNNSM) for Rooftop Solar Photovoltaic Power Projects in order to promote the utilization of Solar Energy for captive consumption in Educational buildings.

http://www.powergenworldwide.com/index/display/wire-news-display/1438843797.html
harita - 05th Jul, 2011

Punjab had one of the first commissioned solar plants of 2 MW by Azure Power Private Limited which powered 32 villages and was on the forefront of the GBI scheme of MNRE. The Punjab Energy Development Agency is the nodal authority for the generation of non-conventional energy of the power surplus state. It deserves a mention because it was one of the pioneer distribution boards that encouraged solar power.

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