What is Hindering Solar Roof Top Sector In India?

The renewable energy target of 175 gigawatts (GW) by 2022 is making progressive headways. Solar power plays a central part in achieving this goal and installation of utility scale power has seen a dramatic increase in the past 12 months. Rooftop Solar, however, is still lagging and a lot more needs to be done to achieve its 40 GW capacity target by 2022 within, the bigger target.

India’s total installed rooftop solar capacity is estimated at only 1,247 megawatts (MW) (till 31 December 2016) which is about 3 per cent of the targeted 40 GW by 2022. 

The study released by Indian Council for Research on International Economic Relations (ICRIER) states that the total investment requirement to meet the outstanding 38.75 GW rooftop solar target, after considering the current subsidies is Rs 1.8 trillion ($ 28 billion). Despite of a tenfold growth in the rooftop solar capacity, a lot of ground still needs to be covered.

Given the considerable gap between currently installed and expected capacity by 2022, there is a greater need for investments in rooftop solar. So what are the major barriers that are hindering the rooftop solar segment to take off in its full potential?

One of the major hurdles noted in the study, is the high upfront costs for installation, which is a barrier for many. The size of a typical rooftop solar installation in the commercial and industrial segments is around 150-200 kilowatts (kW), costing between Rs 9.7-13 million, assuming the current price of Rs 65,000 per kW.

Commercial and industrial consumers are often reluctant to invest such a high amount upfront, especially for a non core business activity.

Second is the issue of finance. Due to perceived high risks and suspicion about performance, banks are unwilling to lend to solar rooftop projects and the borrowing costs can be as high as 14 per cent or more.

Furthermore, the market for the third party debt capital from bond issuance is still marginal in India. In fact most of the rooftop solar projects in India are being financed with equity capital with minimum or no debt. Due to the smaller size of the projects, the developers do not approach banks for loans because of the proportionately higher transaction cost per unit of the project cost. As the cost of the equity capital is usually more expensive than debt, the overall project cost also becomes more expensive.

Third comes the perception of risks and performance among the consumers themselves. Rooftop solar still remains a relatively new technology in India and thereafter there is a perception that it may not perform as expected over its lifetime. The report goes on to add that there is a trust issue as several entrepreneurs in the rooftop market are comparatively new with no or little track record.

Although 27 states have issued net metering policies or regulations, only a few states have begun the actual implementation of the policy. ‘Net metering’ is a mechanism of selling the surplus power generated, which is them net amounted in the consumer’s electricity bill.

Without net metering, the solar rooftop economics could go for a toss, especially as the third part model comes in where the owner of the solar plant at a consumer’s roof is not the consumer himself, but the developer. The slow or patchy progress in the net metering policy can be attributed primarily to issues like inadequate policy framework, passive opposition from DISCOMs and insufficient training at the local utility level.

“Implementation of rooftop solar is taking place at a much slower pace and it seems unlikely that the government would achieve its 40GW target by 2022. Specific policy initiatives to support rooftop solar especially effective net-metering implementation and offering incentives in order to attract financial investors’ needs to be introduced”, mentioned another report released by industry lobby group PHD Chamber of Commerce and Industry and credit rating agency CARE Ratings, last month.

There is another major challenge in the form of storage. Currently the cost of a rooftop solar system with battery storage could be between Rs 90,000 and Rs 1, 35,000 per kW, depending on the voltage.

The study jointly done by ICRIER, Stockholm Environment Institute (SEI) and Climate Policy Initiative (CPI) also pitches for local government’s participation as a much better proposition, given that fact that rooftop solar is a decentralised form of electricity generation. The study proposes a bond model in which municipalities can play an active role in raising debt capital for private developers under third part financing (OPEX) model, reducing the costs of debt capital.

“The main advantage of the proposed public debt based financing OPEX model for rooftop solar is that compared to the private developers; municipal governments are in a better position to raise capital by issuing bonds. They posses relatively large size balance sheets which can have the financial strengths and capital to raise finances. This also includes guarantee from the state government which places them in a better position to secure guarantees on bonds, as compared to the private developers.

Rising Chinese solar module prices may put solar power projects at risk

Rising prices of Chinese solar modules may arrest the sharp decline in Indian solar power tariffs and also put at risk projects that won licences betting on a continued decline in module prices.

Several developers and analysts Mint spoke to said that the record low tariff of Rs2.44 per per kilowatt hour (kWh) at the auction of 500 megawatts (MW) of capacity at the Bhadla solar park in Rajasthan in May was quoted assuming module prices will fall to around 23 cents per watt.

With the module prices currently around 32 cents and the August delivery quoted at around 34 cents, developers are wary about the future tariff trajectory.

Modules account for nearly 60% of a solar power project’s total cost and their prices fell by about 26% in 2016 alone.

Module prices have, however, firmed up with China extending the feed-in tariff regime, which ensures a fixed price for power producers, for the third quarter and US developers placing advance orders to shore up cell and module supplies amid demands for a cap in prices of cheap imports to the US.

“There is a cause for concern given the aggressive solar power bids in the country,” said a project developer who had participated in the Bhadla solar park auction conducted by state-run Solar Energy Corp. of India.

Most solar power developers in India have been sourcing solar modules and equipment from countries such as China, where they are cheaper.

According to consulting firm Bridge to India, the local solar module market is dominated by Trina Solar (25.7% market share), Hanwha (10.5%) and Risen (7.6%), with domestic manufacturers’ accounting for only 10.6% market share.

“In an integrated international demand-supply scenario, bidders have to take cognisance of the situation which can be largely beyond their control. If they assume an optimistic scenario while bidding and if one of the variables goes significantly wrong, then it can lead to complete unviability of the project,” said Sanjeev Aggarwal, managing director and chief executive of Amplus Energy Solutions Pvt. Ltd, a solar rooftop project developer.

India plans to generate 175 gigawatts (GW) of renewable energy by 2022. Of this, 100GW is to come from solar projects.

“We feel there is a bit of irrationality in the competition,” said Pankaj Sehgal, chief executive officer, SUN Renewables, which is not present in the grid connected ground mounted large solar project space. SUN Renewables sets up distributed generation solar power projects.

“The prices have gone up a bit in the third quarter because in China originally they were to do away with feed-in tariffs and move towards competitive bidding which is the norm in India. They have extended feed-in tariff for the third quarter. Hence, tariffs have tipped up rather than come down which has been the case,” said Sehgal.

Of China’s solar module manufacturing capacity, estimated to be around 70GW per year, the major markets are the US, India and China itself. However some believe this is a temporary phenomenon.“It is a temporary phenomenon for the next three months,” said Sunil Jain, chief executive officer at Hero Future Energies Pvt. Ltd.

“The prices developers have quoted are for projects that will be commissioned 12-18 month down the line. This present increase in prices of solar modules is not a long-term trend. It’s a trend that will be reversed in a quarter or two, after which prices will again come down. For developers, it is always a concern that modules prices may not fall as much as they estimated at the time of bidding. Timing has a lot of role to play,” said Jasmeet Khurana, associate director at consulting firm Bridge to India.

Major Chinese solar module manufacturers include Jinko Solar, JA Solar Holdings, ET Solar, Hanwha Group, Chint Solar, GCL-Poly Energy Holdings Ltd and Trina Solar Ltd.

“The prices in the past have come on that trajectory, but obviously they can’t continue in that trajectory; otherwise, they will virtually become zero. So, there is not a significant technological breakthrough that has happened that will support that kind of assumption going forward. It has been largely based on the supply-demand imbalance. There is always incremental improvements but not to justify that steep decline in the cost curve,” said SUN Renewables’ Sehgal.

Practical ways to reduce your electricity bill

As we approach winter most homeowners are watching their electricity bills with increasing alarm.

Heating geyser water is typically the largest cost of energy in a home today.

An average South African family will spend R6000 or more to heat water every year!

By using solar energy to heat your geyser you can harness the free power of the sun to turn this around.

Solar energy is not only sustainable, it is renewable and this means that we will never run out of it.

The beauty of solar is that it requires little maintenance. Once the solar panels have been installed and are working at maximum efficiency there is only a small amount of maintenance required each year to ensure they are in working order.

There are continual advancements in solar panel technology which are increasing the efficiency and lowering the cost of production, thus making it even more cost effective.

Practical solar gyser heating products for your home

Geyser Heatpumps

The Hi Temp Geyser Heatpump is the most energy efficient way to heat water today.

This heat pump is designed to heat your geyser water to 55’C using hardly any energy at all.

The Geyser Heatpump is connected to any existing electric, gas, oil, or propane water geyser in your home or business.

It makes use of a renewable energy source – the ambient air temperature in a garage, roof, basement or utility room is drawn in through the condensor to heat the water.

This makes it up to 370% efficient as compared to 60-95% for traditional water heating systems.

This means that for every 1 unit of energy required to operate The Hi Temp Geyser Heatpump, 3.7 units of energy are generated from the ambient air to heat the water.

In layman’s terms this means for every R1,00 you spend on electricity you get R4,40 worth.

The electricity, oil, gas, or propane usage is significantly reduced, which means lower running costs, fewer emissions, a smaller carbon footprint, and a safer and healthier environment for all.

In certain cases up to three geysers can be heated with one heat pump.

While Kwikot geysers are recommended, most geyser types can be used.

Evacuated Glass Tube Solar Collectors

This is the latest solar collector technology available in South Africa.

This solar panel made up of vacuum tubes is mainly used for flat roof installations.

What sets these tubes apart is their superior ability to absorb the sun’s infra-red rays which are able to pass through clouds.

The inner tube is coated specially to absorb maximum solar heat and reflect the minimum.

As for wind and low temperatures?

Vacuum tubes are significantly less affected by these because of their insulating properties.

Flat Plate Solar Collectors

Flat Plate Solar Panel Collectors are the oldest and most commonly used technology for solar heating because of their simplicity.

Anyone with basic technical knowledge and gas welder can put something together in less than a day.

This is not to say that it will be an efficient panel.

Flat-plate collectors heat the circulating water to a temperature considerably less than that of the boiling point of water and are best suited to applications where the demand temperature is 30-70°C.

The technology has evolved over the past 10 years to the point that when correctly manufactured they can be in a similar class to that of an Evacuated Glass Tube Collector.

Solo Integrated Solar Geyser

A solar panel with a built-in water tank!

Set to revolutionise the solar water heating market, this hybrid solar unit (SOLO) is the most affordable system of its kind.

This is the only geyser on the world market that has a water tank integrated with the solar panel.

The price is expected to be similar to that of a regular electric geyser.

Indian Railways launches first solar-powered diesel electrical multiple unit train

Indian Railways today launched first solar-powered DEMU (diesel electrical multiple unit) train from the Safdarjung railway station in Delhi. The train will run from Sarai Rohilla in Delhi to Farukh Nagar in Haryana. A total of 16 solar panels, each producing 300 Wp, are fitted in six coaches.

The cost of these solar panels, manufactured under 'Make in India' initiative, is Rs 54 lakh. This is the first time in the world that solar panels are being used as grid in railways.

The train has a power back-up and can run on battery for at least 72 hours.

In last year's railway budget, Railway Minister Suresh Prabhu had announced that railways would generate 1,000 MW of solar energy in the next five years. Solar-powered DEMU trains are part of this plan. "Indian Railways is committed to promote clean and renewable energy," Prabhu said during the launch of the train.

Ravindra Gupta, Member (Rolling Stock), Railway Board, said solar power would be introduced first in urban trains and later in long-distance trains as well.

The railways are planning to introduce nearly 50 more such coaches in the coming days.

Nearly Rs 700 crore will be saved by Indian Railways annually once the full project is implemented, according to Ravinder Gupta, the CEO of Indian Railways Organisation for Alternative fuel.

He said that railways could save 5.25 lakh litres of diesel per such a train in 25 years. The railways will be able to save Rs 3 crore per train in the same period. The solar power will help in reducing 1,350 tonnes of carbon dioxide emission per train in 25 years.

Leaked draft of Rick Perry grid study debunks his attack on renewable energy

Back in April, Energy Secretary Rick Perry ordered a study to back up his claims that solar and wind power were undermining the U.S. electric grid’s reliability.

That’s why it was a surprise when Bloomberg reported Friday that a July draft leaked to them concluded essentially the opposite: “The power system is more reliable today due to better planning, market discipline, and better operating rules and standards.”

The leaked draft was completed by Department of Energy (DOE) career staff, however, and thus subject to change by Perry and his team of Trump appointees. So the big question is whether the Trump administration will erase those findings in the final draft, the way they appear to be erasing so many other inconvenient truths.

Indeed, a DOE spokeswoman told Bloomberg that “those statements as written are not in the current draft.” The report clarifies that the spokeswoman “wouldn’t say they are incorrect, just the draft is ‘constantly evolving.’”

“Devolving” might be a better word for it. After all, Perry has been spouting so many indefensible attacks on renewable energy since becoming secretary, the study’s result seemed foreordained from the outset, leading to headlines like, “Electric grid study ordered by U.S. Energy chief to boost coal.”

Perry suggested in late April that renewables might actually be a threat to “national security” because they supposedly undermine baseload (24-7) power sources like coal and nuclear — though there are no facts to support this.

And just a few weeks ago, Perry told a major energy conference that his grid study was “a critical review of regulatory burdens placed by the previous administration on baseload generators.” He claimed that “over the last several years, grid experts have expressed concern about the erosion of critical baseload resources.”

Ironically, the very next speaker, Colette Honorable, a commissioner at the Federal Energy Regulatory Commission (FERC), disputed Perry. “I have seen no problems with reliability,” she said. “Bring on more renewables.”

The draft report commissioned by Perry similarly concludes that “grid operators are using technologies, standards and practices to assure that they can continue operating the grid reliably,” according to Bloomberg. The draft notes that factors like environmental regulations and renewable energy subsidies “played minor roles compared to the long-standing drop in electricity demand relative to previous expectation and years of low electric prices driven by high natural gas availability.”

Political appointees at DOE and the White House can and do make changes in reports from the career staff. But in five years as a DOE political appointee in the 1990s, I’m not sure I ever saw the secretary’s office actually reverse the findings of a study they had ordered. I imagine this draft was leaked to make any such reversal politically harder.

We will find out soon enough if team Trump erases yet more findings contradictory to their ideology, since the final version of the already overdue study is expected to be released as early as next week.

As Army pushes toward 1 gigawatt renewable energy goal, emphasis is on resiliancy

Over the past five years, the Army has been busily building renewable power facilities on its bases in pursuit of an overall goal of one gigawatt of renewable energy by 2025. It’s nearly a third of the way there, with 300 megawatts worth of renewable energy already online and more in the contracting pipeline.

But the Army is increasingly placing an emphasis on using that energy to make its bases entirely self-sufficient from the public electric grid so that it can deal with worst-case scenarios in which the public electric grid suddenly becomes unreliable or unavailable.

The steps include updating contracts so the Army has first dibs on the energy produced on its installations if it needs it, and incorporating new advances in battery technology so that those bases can use that energy — primarily wind and solar — even when the sun’s not shining and the wind isn’t blowing.

“The issue we’re concerned about is as current as today’s news: there’s an increased awareness of the fragility of the grid and the cyber vulnerability of that grid, sometimes to determined attackers. At the same time, there’s been an increased frequency and severity of extreme weather events that impact the grid,” Michael McGhee, the executive director of the Army Office of Energy Initiatives said in an interview for Federal News Radio’s On DoD. “We’re trying to make sure we have reliable and resilient power delivery systems to our bases, and we’re teaming with industry partners and private investors who want to do additional generation on Army land that can also be used to power the grid.”

The Army’s overall approach to its relationships with industry has not changed. It still has no interest in owning or operating the solar panels and windmill farms that sit on government land — all of which have been paid for through third-party financing arrangements such as enhanced use leases and energy savings performance contracts.

Up to this point, those deals have been attractive to developers because the Army has an abundance of unused land that happens to be in sunny and windy places. The energy generated from them has been transmitted directly into the electric grid that serves both the base and the utility that serves the general population.

But going forward, its contracts with industry will increasingly demand the capability to make its bases “islandable” — an option for the Army to take over all of the generation capacity of a given facility on a given base if worse comes to worst. And since the industry’s interest in renewable power has been overwhelmingly in the areas of wind and solar, the service’s future renewable energy projects will need the capability to interconnect with batteries that can store that energy when it’s not being generated.

“Financially, battery storage is coming into its own,” McGhee said. “It’s right here, right now, so we’re trying to build that in up-front, and at the same time, we’re going back to our previous projects to add in that capability.”

The Army issued a request for information to industry earlier this year, asking questions about the current state of the art in battery storage technology, including how large a commitment the Army would need to make to energy storage in order to make a venture on an individual base worthwhile for a private party.

But in other cases, the Army is finding ways to rely on renewable energy without having to worry about intermittent generation sources like solar or wind.

One of the largest projects under construction is on the Hawaiian island of Oahu, where available land is scarce but the military’s energy needs are high. So at Schofield Barracks, the Army partnered with Hawaiian Electric Industries to build a biomass plant.

For the local utility, it has the advantage of being one of only a few power plants on the island that’s beyond the reach of tsunamis, and in normal times, it will serve to meet the electric needs of the metropolitan area around Honolulu during hours of peak demand. But if the rest of Hawaii’s power grid fails, the power can be dedicated for military use .

“The base can be islanded off the grid, and in fact, there will be enough power from that plant to provide power to Schofield Barracks, Wheeler Army Airfield and Kunia Field Station all at the same time,” McGhee said. “That’s not an intermittent form of power, so you don’t need to store energy but you do need to store fuel. So the contract provides for on-site fuel storage to power the plant for up to five days and 30 days more storage in an off-site location. So it’s an extremely attractive proposition for the Army, and it’s an extremely attractive proposition for Hawaiian Electric too.”

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