India Solar PV Advisor
Interested in Solar PV? Don′t go ahead without this

The launch of the National Solar Mission has given a big impetus to solar energy in India. The highlights of the mission are given below

As a result of this Mission, it is expected that solar PV based power plants will become an exciting business opportunity. While power production through solar energy is possible using both solar thermal (using the heat in the sunlight) and solar photovoltaic (using the light energy), electricity generation worldwide is more prominent through solar PV than through solar thermal. This trend is expected to continue in India as well.

The India Solar PV Advisor was prepared by EAI Team for those keen on investing in the Indian solar PV based power generation sector. It was developed in response to a specific need for a high-quality, definitive intelligence that facilitates decision-making and provides an actionable guide.

Indispensible Report for…	A Great Resource for…	Prepared by the EAI Solar PV team which has…
In-depth understanding of costs and returns Selection of site Getting required approval from civic bodies Sourcing of investments Identifying the diverse opportunities in solar PV Vendor selection	Entrepreneurs planning to develop a solar PV power plant in India Investors exploring the investment opportunities in solar PV projects in India Businesses exploring a plethora of opportunities along the entire solar PV value chain	Studied the Indian solar PV market for many years Provided consulting services for many Indian companies venturing into solar PV Worked with companies setting up the earliest solar PV power plants Interacted with hundreds of entities along the entire solar PV value chain

What will you know after reading this guide?

Technical

1. Is this the best time to invest in solar PV in India?
2. How do you choose an ideal location within a particular state for setting up of a solar power project?
3. What is the space / area / land required for the power plant?
4. What technology options are available in solar PV?
5. Which is better – thin film or crystalline solar panels?
6. What can be done to counter technology obsolescence in the solar PV industry?
7. Which are the ideal states for setting up solar power projects?
8. Is it a good idea to produce the solar panels ourselves, or should we only focus on the power plant?
9. What is the time required for “concept to commissioning” - from the date of commencing the project, before the plant can go 'live' and revenues starts flowing?
10. What is the lifetime of the solar PV power plant?
11. What is the current and future potential for deriving energy from solar in India?

Investment and Cost

1. What is the total investment required for a grid connected solar power plant, per MW? What are the cost breakups?
2. What are the operations & maintenance costs?
3. What is the payback period?
4. What is the return of the investment?
5. What is the cost of debt for investments in solar PV? Is it possible to get loans at soft interest rates?
6. What is the loan tenure?
7. What are the equity & project IRRs?
8. What is the cost of insurance for the equipments?
9. Do you have a complete financial model for a 1MW or 5MW plant?
10. What types of venture capital and private equity investments are happening in this industry?
11. Is there a critical mass / scale required for the cost per MW (installed cost) and cost per unit of production (operating cost) to be minimum?
12. How does solar PV perform when compared to other renewable energy options such as wind, small hydro and biomass?

Government Incentives

1. How can we increase the chances of allocation under the NVVN scheme?
2. What incentives are available from the central government?
3. Is there a capital subsidy?
4. What are the tax benefits?
5. Are carbon credits available? If yes, what are the monetary returns from carbon credits?
6. What are the incentives available in specific states?
7. What are the eligibility criteria to apply for a 5MW project under NVVN Scheme?
8. What are the guidelines for allotment of a 5MW project under NVVN Scheme?

Power Production

1. How much power will be produced in one year, per MW?
2. Can we sell power to third parties?
3. Can we set up power plants for captive consumption?

Next Steps

1. What are the next steps I should take if I’m interested in exploring further?

Solar PV Value Chain

The solar PV value chain consists of a number of specific and distinct steps from the production of silicon to the end use in solar power plants or in solar panels used for distributed power generation (e.g. solar panels on residence rooftops). Range of business opportunities available along the entire value chain is explained in the report.

A detailed value chain of entire solar PV industry is given below

Solar PV Value Chain Detailed Schematic

Key take-aways from the India Solar PV Advisor

• While a majority of PV cells produced today use crystalline silicon, thin-film based solar PV is expected to grow from its 14% share in 2008 to 31% share in 2013.
• The top three states in India for solar PV potential are respectively Gujarat, Rajasthan and Madhya Pradesh
• PV constitutes a miniscule part in India’s installed power generation capacity with grid connected solar PV generation at a mere 6 MW as of March 2010. Off-grid installed capacity of solar PV power plants including street lights are 100 MWp
• PV installations in India predominantly comprise of small capacity applications. These are most visibly seen in lighting applications (street lighting, and home lightning systems) in cities and towns, and in small electrification systems and solar lanterns in rural areas.
• By 2050, about 69% of the electricity produced in India will come from renewable energy sources, according to Greenpeace.
• Under the Jawaharlal Nehru National Solar Mission (JNNSM), India is expected to reach a total solar installed capacity (both PV and CSP) of 20,000 MW and a total electricity generation of 25-30 TWh per year by 2022.
• The JNNSM has proposed a feed in tariff rate of Rs 17.91 for solar PV power plants with a power purchase agreement for 20 years.
• Currently, the capital cost for a solar PV power plant is about Rs 16 crores per MW, with about 50% of it going towards solar panels, 25% towards inverters and balance of systems, and final 25% towards installation and other infrastructure.
• Capital cost for solar PV power plants is likely to be about Rs 8 crores per MW by 2020.
• Under the National Solar Mission, investors can expect an equity IRR of about 19% and project IRRs of about 15%. The payback period is about 6 years.
• In India, the electricity sector falls under the “Concurrent List”. This means that both the central and state governments are involved in the legislation for the sector.
• A 1MW solar PV power plant can generate about 1.5-1.6 million units (kWh) of electricity per year.
• The levelized cost of electricity production from solar PV is about Rs 14 per kWh (including amortization costs).
• Prominent domestic banks that fund renewable projects are IDBI, ICICI, IFCI, SBI, and PNB among others.
• According to MNRE, the cost of power generation from solar PV is likely to be competitive with grid tariff by 2023 (“grid parity”) and with pure coal based power generation by 2026.
• On the technology part, in India, crystalline silicon technology to accounts for most of the market, and currently, the market share of thin film technology, though fast increasing, is estimated at only about 10%.
• Currently, thin film technology has not reached the efficiency level of crystalline solar cells and is unlikely to be used for large-scale power production until 2012.
• Currently, India does not have any infrastructure for raw material production (polysilicon) and is entirely dependent on imports for the same
• India has always been a net exporter of solar PV technology, with about 66% of cumulative domestic PV production till 2009 catering to overseas markets
• Germany is the most preferred source for solar PV imports, followed by Taiwan. During 2008-09, about 80% of the total solar PV imports were from Germany and Taiwan
• Business opportunities in the solar PV industry go far beyond power plants; these opportunities are present in all three sectors: manufacturing, trading and services. Among these, the largest number of opportunities are present in the manufacturing segment, followed by services.

List of Contents

Section I: Should I Invest in Solar PV?

1. Solar PV Business Analysis 1.1 Is this the Best Time to Invest in Solar PV? 1.2 What Are the Key Aspects You Should Consider While Investing in Solar PV? 1.2.1 Capital and Operational Costs 1.2.2 Evaluation of Locations 1.2.3 How Do You Use Solar PV Technology as a Differentiator? 1.2.4 Central & State Policies, Incentives 1.2.5 Evaluation of Opportunities along Entire Value Chain & Key Industry Segments 1.3 SWOT Analysis for the Solar PV Industry in India

Tables Levelized cost of different energy sources Sunshine hours for the major cities of the world

Section II: What are the costs and return on investment?

2. Solar PV in India – Costs, Investments and Returns 2.1 Costs and Returns 2.1.1 Costs Capital Costs and Break-ups Capital Costs for Photovoltaic Systems by Scale Capital Costs for Photovoltaic Modules by Timeframe Operational Costs 2.1.2 Returns Internal Rate of Return for Solar PV Payback Period 2.2 Financial Modeling and Scenario Analysis for Solar PV Projects 2.3 Investment Trends in Solar PV for India 2.3.1 Renewable Energy Financing in India Financing Options Available for Solar PV Nodal Agencies that Support Renewable Energy Financing in India Financial Institutions that Fund Renewable Energy Projects in India List of Venture Capital and Private Equity Companies in India Active in the Renewable Energy Sector 2.3.2 Examples of Investments in India for Solar PV

Tables Break-up of capital expenses per MW Capital cost of solar PV systems by scale Capital costs for solar PV modules by timeframe Projection of capital costs over time IRR & payback calculations Figures Cost Projection for Grid Parity of Solar PV in India

Section III: What incentives are available from the government?

3. Government Incentives and Support 3.1 Central Government Incentives 3.1.1 Semiconductor Policy and Special Incentives Package Schemes 3.1.2 Generation-based Incentives 3.1.2.1 Portfolio of Solar PV and Solar Thermal Technology Projects 3.1.3 NVVN SCHEME 3.1.3.1 Minimum and Maximum Capacity of Each Project 3.1.3.2 Expression of Interest for Short-listing and Selection of Projects 3.1.3.3 Qualification Criteria for Short-Listing of New Projects Financial Criteria Technical Criteria Land Arrangement for the Project Connectivity with the Grid Water Arrangement 3.1.3.4 Domestic Content 3.1.3.5 Short-listing of Projects 3.1.3.6 Role of State Level Agencies 3.1.3.7 Selection of Projects 3.1.3.8 MoU between Project Developer and NVVN 3.1.3.9 Power Purchase Agreement and Power Sale Agreement 3.1.3.10 Performance Guarantee 3.1.3.11 Minimum Equity to be Held by the Promoter 3.1.3.12 Financial Closure of the Project 3.1.3.13 Commissioning 3.1.3.14 Power to Remove Difficulties 3.1.3.15 Time Schedule for the Process 3.2 State-specific Incentives 3.3 Feed-in-tariff Success Stories

Figures Schematic Representation of National Solar Mission Serious about Solar PV? Register for a free knowledge kit that has FAQs, white papers and a preview of the most authoritative guide on Indian solar PV industry! NameAdd your name CompanyAdd your company RoleYour designation EmailAdd a valid address MobileYour mobile no ProfileYour Background Addressto which kit has to be sent (only within India)

Section IV: What should be my next steps for putting up a solar PV power plant?

4. Next Steps to be taken by a Solar PV Power Plant Developer 4.1 Preparing Prefeasibility and Feasibility Reports 4.2 Meeting Government Departments 4.2.1 Lists and Contact Details of Government Departments in Various States 4.2.2 Central Government Relevant Department Details and Contacts 4.2.3 Other associations for Solar Energy in India 4.3 List of Solar PV Cell and Module Manufacturers in India

Tables IRR & payback calculation for various capex levels – State-specific scheme IRR & payback calculation for various opex levels - State-specific scheme IRR & payback calculation for different tariff rates - State-specific scheme IRR & payback calculation for various capex levels - NVVN scheme IRR & payback calculation for various opex levels - NVVN scheme Cash flow for a 5 MW solar PV power plant under the NVVN scheme Organizational set up of the Indian power sector Lists and contact details of government departments in various states Central government relevant department details and contacts Associations for solar energy in India List of solar PV cell and module manufacturers in India Solar PV tariff in Gujarat solar PV tariff in Rajasthan Comparison of salient features of NVVN and GBI scheme Real-life data of electricity produced per MW from solar PV plants Figures Flow Chart Depicting Next Steps to be Taken by a Solar PV Power Plant Developer Organizational Set up of the Indian Power Sector

5. Developing a Prefeasibility Report 5.1 Solar Power Technical Feasibility Report Template 5.2 An illustration of technical feasibility of a solar power project 5.2.1 Solar Radiation Assessment 5.2.2 Assessment of Area Required 5.2.3 Major Equipments in Solar PV Power Plants 5.2.4 Electricity Production

Figures Template for Preparing Prefeasibility Report Map Showing Solar Radiation Data in Various Parts of India Solar Irradiation Data for Jhulwania, A Simple Schematic of a Grid-connected Solar PV Power Plant Detailed Schematic of a Solar PV Grid-connected Power Plant Diagrammatic Representation of PV Module Efficiency

6. Project Development for Solar PV Power Plants 6.1 Project Development Stages 6.2 Selection Criteria for location of Solar PV Power Plant

Figures Flow Chart Depicting Project Development Stages

Section V: What are the opportunities available in solar PV, other than power production?

7. Solar Energy Value Chain and Business Opportunities 7.1 Solar PV Value Chain 7.1.1 Processes in Solar PV Value Chain Manufacturing Wafers Manufacturing Cells and Modules Crystalline Solar Cells Thin-Film Solar Cells Concentrating PV Cells 7.2 Diverse Business Opportunities in Solar PV 7.2.1 Manufacturing Opportunities in Solar PV Polysilicon Manufacturing Solar Glasses Ingot and Wafer Manufacturing Solar Cell Manufacturing Crystalline Cell Manufacturing Thin-film solar cell manufacturing Crystalline Solar Module Production Concentrating PV Non-core Solar PV Business Opportunities Electrical Components: Inverters, Wires and Transformers Machinery & Equipment for Manufacturing Solar PV Cells – Crystalline and Thin-film Manufacturing Chemicals for Solar Industry 7.2.2 Service Opportunities Solar Panel Installation Services Project Development Support Financing Support Design and Engineering Support Construction and Commissioning Support Operation and Maintenance Decommissioning Others 7.2.3 Trading Opportunities 7.3 List of Prominent Companies in the Various Stages of Solar PV Value Chain

Tables Business opportunities in polysilicon manufacturing Business opportunities in solar glasses Business opportunities in ingot and wafer manufacturing Business opportunities in solar cell manufacturing Business opportunities in crystalline solar module production Business opportunities in thin film solar cell manufacturing Business opportunities in concentrating PV manufacturing Prominent companies along the solar PV value chain Figures Solar PV Power Value Chain Value Chain for Crystalline Silicon Solar Cells

Section VI: What are the current trends in the solar PV industry in India?

8. Solar PV in India – Industry Status and Trends 8.1 Introduction 8.1.1 Introduction to Alternative Energy Sources 8.2 Solar PV Technology >8.2.1 Solar PV - Crystalline Silicon PV Cells 8.2.2 Solar PV - Thin Film Solar Cells 8.2.3 Solar PV - Concentrating Photovoltaic 8.2.4 Solar PV Market Status and Trends 8.3 Status and Trends of Solar Industry in India 8.3.1 Solar Energy Potential in India 8.3.2 Regional Potential for Solar Power 8.3.3 Current Solar PV Scenario in India 8.3.4 Future Solar PV Scenario 8.3.5 Solar PV Future Contribution in Indian Electricity Supply 8.4 Prominent Solar PV Power Projects & Companies in India 8.4.1 Solar PV Power Projects Installed 8.4.2 Proposed Solar PV Projects 8.4.3 Solar PV Projects in India – News and Updates 8.5 Key Challenges to growth of Solar PV in India

Tables Share of various solar PV technologies Top 5 districts with the best solar irradiation in Gujarat Top 5 districts with the best solar irradiation in Rajasthan Top 5 districts with the best solar irradiation in Madhya Pradesh Renewable energy installed capacity in India Projection of solar pv installed capacity Projection of solar electricity generation capacity Solar PV projects installed Proposed solar PV projects Figures Solar PV Value Chain Detailed Schematic Classification of Energy Sources Solar Energy Technology Photovoltaic Market in 2009 Thin film vs. Crystalline Solar Panel Production Annual Mean Daily Solar Radiation in India Solar Irradiation Data for Patan Solar Irradiation Data for Jaisalmer Solar Irradiation Data for Neemuch Trends in Production of Solar PV Cells and Modules (MWp) in India Application of Solar PV Cells (MW) in India – Sectorwise Trends in Foreign Trade of Solar PV in India Imports of Solar PV in India – 2008-09 Exports of Solar PV in India – 2008-09

Reference

Solar Energy Related Web resources & Other Alternative Energy Web Resources

• Solar Energy Web Resources
  • Solar Energy News
  • Solar Energy Blogs
  • Solar Energy Forum
  • Solar Energy Portal
• Other Alternative & Renewable Energy Related Web Resources
  • Renewable Energy News Sites
  • Renewable & Renewable Energy Blogs
  • Renewable Energy Forums
  • Renewable Energy Portals & Guides

Diverse Industries Benefitted from the India Solar PV Advisor

Solar PV Developers EPCs Mining and Metals Technical Consulting Foreign Trade Commissions NRIs Investing in India

System Integrators Heavy Engineering Management Consulting Foreign Financial Investors Real Estate & Construction Small and Medium Businesses

Our support services include: Free Expert Assistance : Buyers get additional research support from the EAI Team at no cost Free Updates: Customers who buy the report get three updated versions released subsequent to their purchase, at no additional cost

Have any Inquiries in Report / Payment Problems ? Let me help you, Write to us here., Name : Email : Message :

The EAI team would like to talk to you to understand how we can help you in your Solar PV efforts. If you are interested in purchasing the report or getting our help, talk to us now. Narsi Santhanam Email: narsi@clixoo.com Mobile: +91-98413-48117 (India)

About EAI

Energy Alternatives India (EAI), part of Clixoo, provides support services and solutions to the renewable energy industry in India. EAI has today emerged as a leading consulting and market strategy company for all the primary renewable energy sources solar, wind, bio-fuels, hydro and waste to energy.

EAI was formed by a team of renewable energy professionals from prestigious institutes such as the IITs and IIMs having over 15 years experience in sales & marketing, and is based in Chennai, India. They are supported by a strong research team this combination enables us to view a situation holistically, and come out with practical solutions.

Our acquaintance with the Indian renewable energy industry, along with our deep understanding of the technology, industry dynamics and emerging trends in renewable energy sources worldwide, make EAI the most effective partner for those keen on getting an exceptional understanding of the Indian renewable energy industry, along its entire business value chain.

Contact Us

For more information, contact:

Narsi Santhanam
Mobile: +91-98413-48117
Email: info@clixoo.com