Process for Setting Up Rooftop Solar Plant in Gujarat under Net-Metering !

India recently witnessed crossing of more than 8000 MW of Solar capacity across the country and is about to see this figure changing into multiplication of many times from current capacity on year to year basis.

Total Installed Power Capacity across India_2016

Total Installed Power Capacity across India_2016

Total Installed Renewable Capacity across India_2016

Total Installed Renewable Capacity across India_2016

 

 

 

 

 

 

One thing that is rapidly evolving at an ultimate pace is the upcoming rooftop solar projects sector across India and particularly across Gujarat. In our previous article on Rooftop Solar Projects in Gujarat we mentioned that the solar state of India – Gujarat announced the rooftop solar subsidy at the time when other states are closing their doors to any kind of state financial assistance for opting solar. Now many states are under process of finalization of similar kind of state financial assistance to rooftop solar projects taking reference of rooftop solar policy of Gujarat.

As of people looking forward to installing rooftop solar plants on their premises, below is the process to set up rooftop solar plant in Gujarat under Net-Metering :

Process To Set-up Solar Rooftop Plant in Gujarat :

Rooftop Solar Plant Process in Gujarat

Rooftop Solar Plant Process in Gujarat

                        DESCRIPTION AUTHORITY   DURATION

Registration of Rooftop Plant (form)

The Registration Form can be obtained from GEDA

charges-for-solar-rooftop-application

Customer/ Installer, GEDA (Submitted at xth day)

5 days from receipt of duly completed application form (x+5 days)

Approval from the Chief Electrical Inspector (CEI)

The  approved SLD, earthing diagrams and details of modules and inverters

CEI

10 days from receipt of duly completed application form (x+15 days)

Application form for connectivity  DGVCL / PGVCL / Torrent.

To be submitted to the respective DISCOM’s.

Following documents are to be submitted:

a. Capacity of Rooftop plant

b. Copy of registration at GEDA

c. Documents related to legal possession of rooftop / NOC of co-owner, in case of joint ownership

d. Approval of CEI

DISCOM (Submitted at yth day)
Technical Feasibility Report (TFR)

TFR on field will be confirmed by the DISCOM

connectivity-level-for-various-sizes-of-the-rooftop-solar-power-system-in-gujarat

DISCOM 15 days from receipt of duly completed application form (y+15 days)
In principle consent

The Discom will provide in principle consent for connectivity,  estimated connectivity charges which are to be paid within 15 days, issuing estimate for system strengthening (if required) to be paid within 30 days

DISCOM 5 days from receipt of TFR from the field office (y+20 days)
Signing of connectivity agreement (form)

Should be done within 15 days (30 days, if system strengthening is required)

Customer 15 days (y+35 days)
Issuance of letter to applicant for completion of project work DISCOM 5 days from execution of agreement (y+40 days)
System strengthening by DISCOM (if required) DISCOM 45 days parallel to project installation
Construction of plant

The duration to construct the rooftop solar power plant is 6 months which should be followed by commissioning of the plant within 2 months. Otherwise the registration would stand cancelled.

Customer / Installer 6 months for construction (y+160 days), 2 months for commissioning (y+220 days)
Intimation by customer (document) (page 6)

On completion of work, Intimation to field office, GEDA with the details mentioned in the document

Customer/ DISCOM As mentioned in the document for various activities (y+242 days)
Issuance of commissioning certificate

GEDA officials shall visit the site along with the Discom to inspect the plant after which the commissioning certificate would be issued

GEDA 5 days from the receipt of intimation letter from applicant (y+247 days)
Disbursement of subsidy by GEDA (order)

Subsidy of 10,000 INR/kW and max. of 20,000 INR/kW to grid connected private consumer after commissioning of plant

GEDA After commissioning of the plant
Disbursement of subsidy by MNRE (order(page 14)

30% of benchmark tariff determined by MNRE is given as Central Financial assistance

MNRE

As per the order

Overall the process seems lengthy but its very well defined,  lot more organized and with straightforward framework. And mostly all the approval & regulatory portions will be taken care by the Solar Installer’s so making the process even more simpler for customers.

And in case you are thinking of going green and powering your home /factory via solar, as a solar consultant in India we can always help you 🙂

Meanwhile till we meet next time …  Enjoy this Dandya & Garba season to the fullest  – Wishing all the readers a very Happy Navratri  😀

Cheers !

Timeline_Cover_doNotRename71asd

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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Gujarat announces Subsidy for Residential Grid Connected Rooftop Solar Systems !

In a positive move to encourage rooftop solar installations in Gujarat for residential consumers, Gujarat has announced the subsidy for solar installations on rooftop across the state.

The real beauty & advantages of solar lies in distributed market i.e. individuals opting for rooftop solar installations as energy is consumed at the same point where it is generated and no additional requirements of land coupling with benefits of no transmission & distribution losses benefiting both generators and utilities.

Highlights of Subsidy for Rooftop Solar Plants in Gujarat :

Rooftop Solar makes Financial Sense !

Rooftop Solar makes Financial Sense !

  • Subsidy of Rs. 10,000/- per KW will be disbursed through GEDA after installation of rooftop solar systems by private residential consumers with a maximum limit of Rs. 20,000/- per customer i.e. upto 2 kW Solar rooftop systems.
  • Subsidy would be limited upto 2 kW solar rooftop systems subject to ceiling of 50% of contract load as per latest Gujarat solar power policy 2015 – Details Here
  • The first 1,00,000 consumers will get the benefit of the rooftop solar subsidy – So HURRY UP !
  • This state subsidy benefit would be additional along with the subsidy / CFA from central government which is upto 30% of the benchmark cost for general category states.
    • Let’s assume the cost of 1 kW of Rooftop solar system is Rs. 70,000/-
      • Less CFA as per central government benefit upto 30% i.e. Rs. 20,000/- 
      • Less Gujarat state solar subsidy i.e. Rs. 10,000/- per kW
      • This brings the total cost of rooftop solar in Gujarat at just Rs. 40,000/kW !!

This makes the overall rooftop solar scenario very lucrative & beneficial for residential consumers in Gujarat going solar.

Kudos to Gujarat for announcing the rooftop solar subsidy at the time when other states are closing their doors to any kind of state financial assistance for opting solar. This surely is gonna help at least 1,00,000 consumers in the state to go Solar !

For the official link of subsidy notification –  Click Here

For Gujarat Solar Power Policy 2015 – Click Here

More information on – Rooftop Solar Projects, Policies & Incentives Arena in India !

In case you are thinking of going green and powering your home via solar, as a solar consultant in India we can always help you🙂

Till we meet next time … enjoy the heat waves !

Cheers !

Timeline_Cover_doNotRename71asd

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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Solar PV Projects in Karnataka with Excellent Returns !

For developers / investors interested to set up solar power project in the range of 500 kWp to 1 MWp, there is an excellent opportunity for them to develop their solar power plant with the highest returns currently one can get across the Indian solar arena. The returns are even more lucrative in case the company is claiming Accelerated Depreciation (AD) benefits.

The estimated returns for the project considering realistic assumptions would be :

  • Project IRR with AD benefits : 18%
  • Project IRR without AD benefits : 15% 

Based on above estimates, One can surely estimate how Lucrative the Equity IRR ! of the project would be which off course would be the only major concern for the developer🙂

As a solar consultant in India we can help the interested developers in terms of the Project Development & Advisory for these solar projects. Only constraint is the limited timeline(5-7 days) to finalize the project and the limited project capacity.

So only serious investors who have done their homework can contact us at info@urvishdave.com

Till we meet next time..enjoy the budget debates on your TV screens  !

Cheers !

Timeline_Cover_doNotRename71asd

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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Year End Solar Sector Review & Progress w.r.t. Installed Capacity, New Solar Policy & Schemes & upcoming Solar Projects across India !

Make in India - Solar

India is running the largest renewable capacity expansion programme in the world. The government is aiming to increase share of clean energy through massive thrust in renewables. The year started with Prime Minister’s statement “India is graduating from Megawatts to Gigawatts in Renewable Energy production.  The quote itself set up the higher expectation of clean energy generation in the country. The target of 20,000 Mw of solar power proposed to be installed in the country has been reset by the NDA government to achieve five time more at one lakh mw of solar power by 2022.  The target, which looked overambitious, now seems to be within the realms of reality with several States already witnessing silent revolution on rooftop solar power generation with the launch of net metering in the country. As on 31.10.2015, cumulative capacity of about 38 GW of grid-interactive renewable energy capacity has been installed in the country. Confident by the growth rate in clean energy sector, the Government of India in its submission to the United Nations Frame Work Convention on Climate Change on Intended Nationally Determined Contribution (INDC) has stated that India will achieve 40% cumulative Electric power capacity from non-fossil fuel based energy resources by 2030 with the help of transfer of technology and low cost International Finance including from Green Climate Fund.

The Centre has taken several initiatives to increase the uptake of renewable energy through policy initiatives including enactment of a National off shore Wind Energy Policy and throwing support behind generation-based incentives and accelerated depreciation.

Below are the details of year round achievements of the Ministry of New & Renewable Energy :

UPSCALING OF RE TARGETS:

The Government has up-scaled the target of renewable energy capacity to 175 GW by the year 2022 which includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power and 5 GW from small hydro-power. Stepping up capacity target under the Jawaharlal Nehru National Solar Mission (JNNSM) by five times now India is aiming to generate reaching 1,00,000 MW solar power by by 2022. The target will principally comprise of 40 GW Rooftop and 60 GW through Large and Medium Scale Grid Connected Solar Power Projects. With this ambitious target, India will become one of the largest Green Energy producers in the world, surpassing several developed countries. The total investment in setting up 100 GW will be around Rs. 6,00,000 crore.

GREEN POWER CAPACITY INCREASED:

 A total of 2,311.88 MW of grid-connected power generation capacity from renewable energy sources like solar and wind has been added so far this fiscal in the country. The government has set a target of 4,460 MW of power generation capacity addition this fiscal from renewable energy sources, including solar, wind and small-hydro. During the first seven months of the fiscal, 827.22 MW of solar power generation capacity was added, taking the cumulative electricity generation capacity from the source to 4,579.24 MW. The Centre is aiming to add 1,400 MW solar power generation capacity during this fiscal. Similarly, 1,234.11 MW wind power generation capacity was added during the period, taking cumulative electricity generation capacity from this renewable source to 24,677.72 MW. The government has set a target of adding 2,400 MW of wind power generation capacity in 2015-16. Under the small-hydro category, 106.55 MW generation capacity was added till October, taking the total generation capacity in this segment to 4161.90 MW. The Centre has set a target of adding 250 MW of small-hydro power generation capacity this fiscal. In the bio-power (biomass & gasification and biogases cogeneration) segment, 132 MW of generation capacity was added till October end this fiscal, taking the total capacity to 4550.55 MW in this segment. The government has set a target of adding 400 MW capacity from these sources. In waste-to-power segment, 12 MW capacity has been created till October compared to a target of 10 MW for the entire 2015-16. Now, India has 127.08 MW of power generation capacity under this category. The country’s total grid-connected power generation capacity from all the above mentioned renewable sources was 3,8096.49 MW at the end of October.

The Scheme wise Physical Progress in 2015-16 of achieving these targets is as follows:

Renewable Ene

INTERNATIONAL SOLAR ALLIANCE:

Prime Minister Shri Narendra Modi launched an International Solar Alliance (ISA) at the CoP21 Climate Conference in Paris on 30th November as a special platform for mutual cooperation among 121 solar resource rich countries lying fully or partially between Tropic of Cancer and Tropic of Capricorn. The alliance is dedicated to address special energy needs of ISA member countries. The new body of Secretariat will be hosted by Government of India. The Centre will provide land and $30 million to form a secretariat for the Alliance, and also support it for five years. The participants, mostly in Latin America and Africa but also including the US, China, and France, would work together to increase solar capacity across emerging markets.

LOWEST SOLAR TARIFFS:

In an e-reverse auction conducted by NTPC on 03.11.2015 for 500 MW (10 projects of 50 MW each) to be set up at Ghani Solar Park in Andhra Pradesh under National Solar Mission, Phase-II, Batch-II, Tranche-I of Ministry of New & Renewable Energy, Govt. of India, NTPC received the lowest tariff of Rs. 4.63 per unit of electricity. Total 30 bids were received totaling to 5500 MW capacity.

SOLAR CITIES:

The Ministry has approved 56 solar cities projects against the target of 60 solar cities under the Development of Solar Cities Programme. The Government  has also approved a Scheme for setting up of 25 Solar Parks, each with the capacity of 500 MW and above and Ultra Mega Solar Power Projects to be developed in next 5 years in various States and will require Central Government financial support of Rs 4050 crore. These parks will be able to accommodate over 20,000 MW of solar power projects.As on date, 27 parks with capacity of about 18000 MW in 21 states have been sanctioned.

SOLAR PROJECTS UNDER NATIONAL SOLAR MISSION:

The Union Cabinet gave its approval for the implementation of the scheme for setting up of 15,000 MW of Grid-connected Solar PV Power projects under the National Solar Mission through NTPC/ NTPC Vidyut Vyapar Nigam Limited (NVVN) in three tranches namely, 3000 MW under Tranche-l under mechanism of Bundling with Unallocated Coal based Thermal Power and fixed levellised tariffs, 5,000 MW under Tranche-ll with some support from Government to be decided after getting some experience while implementing Tranche-l and balance 7,000 MW under Tranche-Ill without any financial support from the Government. Successful completion of additional 15,000 MW capacity of Grid-connected solar PV power generation projects, mainly in the private sector, with largely private investment, under the National Solar Mission would accelerate the process of achieving grid tariff parity for solar power and also help reduce consumption of kerosene and diesel, which is presently in use to meet the unmet demand.

The Government approved Solar Energy Corporation of India (SECI) to apply to the Registrar of Companies for converting it into a Section 3 company and renaming it as the Renewable Energy Corporation of India (RECI). After this, SECI will become a self-sustaining and self-generating organization. It will engage itself in owning solar power plants generating and selling power and in other segments of solar sector activities, including manufacturing of solar products and materials. RECI will take up development of all segments of renewable energy namely, geo-thermal, off-shore wind, tidal etc. apart from solar energy.

RE PROJECTS IN PRIORITY SECTOR LENDING:

In a communication to all central government ministries and departments, PSUs and organizations, state governments, educational institutions, the Ministry said the price of solar power has fallen drastically in the last two to three years and it is economical to generate the power through grid connected solar roof top systems for consumers in states where tariff is more than Rs 7 per unit. Pay back time is about 5-6 years and the life of plant is 25 years. The letter said that the incentive include 15% government subsidy for selected categories, accelerated depreciation benefits for industrial and commercial buildings besides a slew of incentives.

SOLAR PUMPS:

The government has implemented a scheme to install one lakh solar pumps for irrigation and drinking water through State Nodal Agencies and NABARD. These pumps helped lakhs of farmers to increase output, income and also provide drinking water. According to estimates, drinking water problems will be solved for more than 7.6 lakh families through solar pumps for drinking water.MNRE provides 30% capital subsidy to farmers for installation of solar pumps for irrigation purpose through state nodal agencies. The state governments can give additional subsidy through own funds. The government presented 40% subsidy with mandatory loan to farmers for irrigation purpose through NABARD. The ministry has issued supplementary guidelines for 1,00,000 solar pumps during 2014-15 and Rs 353.50 crore was released to various agencies.

OTHER SCHEMES LAUNCHED FOR ACHIEVING SOLAR ENERGY TARGETS:

  • Off-grid Rooftop:  It is proposed to set up 40 GW solar rooftop programmes where grid connectivity is already exist.  15% Government subsidy for non-commercial and non-industrial categories for using domestic solar panels would be provided.
  • Solar Parks: The Government  has approved on 10th December, 2014 a Scheme for setting up of 25 Solar Parks, each with the capacity of 500 MW and above and Ultra Mega Solar Power Projects to be developed in next 5 years in various States and will require Central Government financial support of Rs 4050 crore. These parks will be able to accommodate over 20,000 MW of solar power projects. As on date, 27 parks with capacity of about 18000 MW in 21 states have been sanctioned.
  • Setting up of over 300 MW of Grid-Connected Solar PV Power Projects by Defence establishments and Para Military Forces with viability gap funding. More than 150 MW projects have been sanctioned under the scheme.
  • Implementation of Scheme for setting up 1000 MW of Grid Connected Solar PV Power projects by CPSUs and GOI organization’s with Viability Gap Funding in three years period from 2015-16 to 2017-18. About 100 MW have been allocated to various CPSUs under the scheme.
  • Scheme for Development of Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops: MNRE launched a Scheme   for Development of Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops in the country during the 12th Plan period at an estimated cost of Rs. 975 crore and with Central Financial Assistance (CFA) of Rs. 228 crore. The Solar PV Power Plants on Canal Banks and Canal Tops with 50 MW capacities under each category have been approved to 8 States (Gujarat, Andhra Pradesh, Karnataka, Kerala, Uttar Pradesh, Punjab, Uttarakhand and West Bengal).
  • Scheme for Decentralized Generation of Solar Energy Projects by Unemployed Youths & Farmers. It is expected that about 10 GW solar projects would be setup. Innovative Financing of such projects could be possible as equity is being put up by the state, local bodies and entrepreneurs.
  • New loan scheme to promote rooftop solar power projects announced by IREDA. The scheme will provide loans at interest rates between 9.9 and 10.75 percent to system aggregators and developers.
  • Surya Mitra Scheme launched for creating 50,000 trained personnel within a period of 5 years (2015-16 to 2019-20). The course content has been approved by the National Council of Vocational Training as per the National Skill, Qualification Framework. As on 30.9.2015, a total of 27 programmes involving Rs 17 crore have been sanctioned to SNAs by NISE.  In 2015-16, 70 programmes will be conducted against which 27 programmes have started.  As on 30.9.2015, about 360 Surya Mitras were trained under the scheme.

POLICY AMENDMENTS UNDERWAY:

  • Renewable Generation Obligation (Proposed): There is a policy proposal under consideration that all conventional power plants should have a minimum renewable generation obligation.
  • Amendment in Electricity Act, 2003 (proposed)
    • Proposed inclusion of “specific mention of penal provisions for non-compliance of RPO including financial penalty and punishment”.
    • Suggested amendment in the tariff policy to include a RPO trajectory reaching at minimum 15 % of the total electricity mix by March 2019 with solar RPO of Minimum 8% and support by states. It implies that there is a special category for solar RPO and other renewable energy sources have been clubbed in non-solar category.
    • To allow generating / purchasing and bundling of renewable and allow pass through to such power plants where generation and transmission assets are fully depreciated.
  • Draft RE Act 2015: In addition to the existing provisions in the above act. there is a need for a Renewable energy act in India to facilitate increase in the use of renewable energy for all relevant applications including off-grid, heat and transport in an effective and coordinated manner,  which  is  well  integrated  with  the  energy  and  electricity  system,  and  to do  so  by developing a supportive ecosystem, laying down an institutional structure, and by creating framework for transparent and effective incentive structure.  In  the  given  context,  increasing  the  share  of  RE  in  the  energy  mix  will  require  enabling policies  to stimulate  changes  not  only  in  policies  related  to  RE  deployment  but  also  in  policies  related  to  the planning of the complete energy system.  The mandatory provisions after the enactment of Renewable energy Law will provide the requisite backbone framework to facilitate increase in the use of renewable energy.

Source : PIB GoI MNRE

Meanwhile till we meet next time with more updates…Enjoy this winter !

Cheers !

Timeline_Cover_doNotRename71asd

 

 

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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Key Policy and Regulatory facilitators for the Wind Energy Sector in India & Indian Wind Industry Forecast : FY 2015-16 !

wind power in India

The below post is originally written by Mr. Nitin Raikar – Head Marketing Communication Business Development ( India Business) at Suzlon Energy Limited.

Dear Readers,

  • PFA a very useful ‘one of its kind compilation’ which has been prepared after some exhaustive painstaking research.
  • This compilation summarizes all the key policy and regulatory facilitators for the Wind Energy Sector in India.
  • I have identified such 24 key policy and regulatory facilitators which support and will continue to facilitate the growth of the Indian Wind Industry (some of them may be relevant for other RE technologies also).
  • The summary of these policy and regulatory instruments have been broadly summarized on the following heads :
    • Incentive Nomenclature/Key Policy Enablers
    • Central/State classification
    • Ministry classification
    • Nodal/Implementing Agency
    • Brief Description
  • This researched compilation will be of immense value in your business engagement with external stake holders and also from the knowledge point of view.

Click Here – Summary _Central & State Incentives_Wind Sector for External Stakeholders

wind blog1

Indian Wind Industry Forecast : FY 2015-16

  • It is forecasted that around 3.4 GW project execution is expected this fiscal ( 2.4 GW in H2)
  • Assuming a project slippage of around 10-15% the industry in all probability would witness capacity addition in the range of 2.8 to nearly 3 GW
  • The project commissioning for this fiscal is expected to be aggressive on account of tariff / policy uncertainties in some of the key states for the next FY
  • OEM/Developers are targeting key project execution in ~40 sites; mainly in the states of MP, AP , Rajasthan, Karnataka
  • MP & AP would be the leading states in capacity addition for H2 FY 2015-16 with additions pegged at 935 & 430 respectively
  • Madhya Pradesh may witness a historic milestone of surpassing 1 GW
  • Amongst IPPs, CLP is expected to close in on the 1 GW cumulative installation mark in this fiscal
  • IPPs who would add capacity in this fiscal are CLP, Mytrah, Renew, Tata Power, Green Infra, Ostro Energy, Continuum, Orange Power, Energon, Greenko, Hero Future, Atria, Welspun , Hetero, Ecoren, Powerica etc
  • The bulk of the capacity additions (80%) would come from established IPP players
  • On the technology front, the average turbine rated capacity, average hub heights, and Rotor Dia will be upscaled
Blog Courtesy : The above blog post was originally posted & 
written by Mr. Nitin Raikar - Head Marketing Communication 
Business Development ( India Business) at Suzlon Energy Limited
For original posts Click Here & Click Here. 
We have reproduced the same.


Some Related Blog Posts You may like :

Wind Energy Sector in India : Overview, State wise Wind Feed-In-Tariffs (FIT) in India along with Benefits & Incentives for Windmill Power Projects in India – Click Here

Meanwhile till we meet next time with more updates…Enjoy this winter !

Cheers !

Timeline_Cover_doNotRename71asd

 

 

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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An untold story & sorry state of India’s solar sector !

optimistic_hero

Yes. You can call me pessimist and am searching for optimistic hero.   Though solar project development is simple as it seems but It’s not cakewalk. Today I want to tell you a true story of solar entrepreneur from Gujarat.

When two young IIT, MBA grade in their 20’s jumped in solar stint in 2010 after very successful business in medical equipment manufacturing with current turnover of 60 CR at that time, they thought they were looking at shining sun, a new era technology & make money by getting into an Energy sector, a future of INDIA’s 1 billion electricity starved people.

Come straight to 2015, today both are nearly bankrupt with entire of his personal and relative asset mortgaged with bank from where they took 70% of loan for the solar project they built.  To just take care of his new baby solar project to keep up and running they sacrificed 60 CR turnover business. 5 star hotel stay on site visit turned into OYO rented rooms. Airport counter purchased Flight tickets turned into 3 tier AC railway coach birth.  They lost too much and on the streak of fast losing money day in Day out. There is no escape window for them.

So what went wrong? One can say plenty of mistakes or me say opportunity selected badly with procrastination on decision making on some fronts.

Though Developer had best tariff FIT of Rs. 15/Kwh, following things went wrong with decision.

After successful PPA, they selected land from broker without verifying complete process, paper originality and possession rather looked at price offered.  As many developers make this mistake, Compare to market price, Low-cost land is mostly deceiving. This Developer got stuck into land registry clearance due to issue in government process for nearly 8 months on top of broker-farmer land payment issue even after they had land deed registered on their name. Developer never thought Land title as first and foremost financial document requirement.

 Before starting project Developer had mere 15% of their own fund without confirmation on financial closure he thought, will get it in 3-4 months. It was wrong number (PK!), bank even today don’t sanction loan just like that. It took nearly year for them to get sanction and funding took another as prior releasing the fund, bank requires clear title of the land on the name of developer.

Delayed financing payment from bank made first selected EPC ran away with quarter of project built forcing developer duo to select new EPC in hurry, who completed project finally but got into very complicate legal cases with first EPC.

To save money, developer kept changing consultants for every need like they had one PPA consultant, then hired another land consultant, EPC consultant a third one and commissioning done by forth. So, none of the consultant known to have complete understanding of entire project papers, that made commissioning delayed after COD date.

In nutshell delayed financing, land clearance issue due to government process delay, two EPC and three separate court cases had made entire investment unviable. Today this investor cum developer is getting interim low tariff payment from discomm and unable to maintain O &M at the plant making them driving into debt trap with everyday increasing interest burden on the solar project.

By the way this is not a story of single solar developer company,  nearly 60 to 70% Gujarat project exists today in solar they are fighting one or two cases in court with one or other issue like Land, EPC, tariff, permissions etc.

One can have different view but from my glass some advice I think, could have saved them.

  • Financing can wreck havoc.  If you don’t own atleast 40% fund of total cost of project or 400% turnover balance sheet don’t enter into solar. As no bank will finance you with your condition/terms and you end up digging yourself into financial quicksand when financing delayed due to whatsoever reason.
  • Understand when you come to solar industry, your COD date must be your goal not getting best technology or land or EPC. Passing COD date will change your tariff in all PPA of INDIA and thus financing of the project goes into jeopardy (I prefer plan that have COD target be at 2 months prior actual date).
  • Decision!  Decision! Decision.  Don’t get yourself caught in circle of decisions. What is right? First to get finance or to start work with own money or select panel or select inverter or select land first or select EPC first.  Your goal is to start building project which requires title clear land to be identified pronto and select sub-EPC right away.  Though it matters but Waiting for best price, best location, best radiation, best evacuation connectivity, best road access can get you nowhere. Gujarat has two 5 MW project PPA I know (Foreign Investor, unfortunately one was my client from USA) got cancelled because they could not find right land parcel for 2 year.( Height, right? But this is reality)
  • Financing can go altogether.  Very importantly if you can’t get your first installment in hand within 2 months, start searching alternate route to get temporary fund that keep project implementation in progress. Be cautious when taking temp fund from market, interest can ruin you if you don’t have exact re-payment plan in place before taking.
  • Finally don’t take commissioning of the project lightly. You need plenty of documentation, starting from day 1, including all permissions, legal affidavits, guarantee, warrantee documentation of the plant & machinery.  Hence hire some expert who has very clear understanding of commissioning process and exact plan of each activity with timeline needed to be carried out for the commissioning of the project.

I don’t say above advise are complete list of what one should do but Coming to the end of my story,

So what in case you can’t complete project on time?  Sorry I don’t have an answer. And I am looking for Optimistic hero to solve this puzzle. Do you have exit plan?

Till then understand It’s dengue time in entire INDIA now and beware mosquitoes not only bring Malaria but Dengue too.

Blog Courtesy : The above blog post was originally posted & 
written by Mr. Nilesh Patel at Click Here. 
We have reproduced the same.

Some Related Blog Posts You may like :

Meanwhile till we meet next time with more updates…Enjoy this winter with the same dialogue from friends & family that “This is the coldest winter in the history of India (Iss baar thand har saal se zyada hai bhai)  😀

Cheers,

Timeline_Cover_doNotRename71asd

 

 

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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Its ‘NaMo ! NaMo’ for people but its “Solar ! & Solar India !” for NaMo !

With the people chanting ‘NaMo ! NaMo’ as our Prime Minister promises ‘ache din aane wale hai’ ! our respected PM himself is all putting major thrust on India going solar by promoting India’s solar initiative on each and every international platform and in his every international visits. He seems surely committed to bring “ache din in solar industry across India” !

Prime Minister Modi Solar India Initiative

Recently India announced INDC’s (Intended Nationally Determined Contributions)- 33-35% emissions intensity reduction by 2030 and 40% electricity through non-fossil fuel climate targets.

According to the 2011 census, one in three houses in India has no electricity and many villages and towns don’t get an uninterrupted electricity supply. Our PM during his recent UK visit said he is looking to solar, wind and renewable energy to supply a lot of this power & said “We will make India a solar-powered nation”.

The Prime Minister also put forth the idea of a “solar alliance” (Working Paper on International Solar Alliance (ISA)) he is trying to cobble together — a collection of more than 102 countries that receive ample sunlight and can harness it to build greener economies & he proposed the solar alliance as “suryaputra,” or “sons of the sun.

Still India is looking for a industry friendly solar policy from the government. Despite all the troubles surrounding across solar policies, regulatory affairs, bureaucracy (Yes very much), project implementing, PPA conversion issues, India is going to witness a record breaking solar installation both in utility solar projects and rooftop solar projects.

To just talk of the solar rooftop market across India, despite very unfriendly policies & implementation hurdles, in the last one year itself, Nov 2014 – Oct 2015, India added 240 MW of rooftop solar capacity against 145 MW in the previous period – A 66% growth !

As far as upcoming & open utility scale solar projects are concerned, there are  :

-> Currently Open Solar Tenders across India    – Approx. 3200 MW
-> Solar Projects Currently Under Construction – Approx. 2800 MW

Mercom Capital Group, forecasts 2,150 MW in solar capacity for 2015 and expects installations in 2016 to reach 3,645 MW ! (read here) & indicates that 21 states have so far agreed to set up a total of 27 solar parks with a combined capacity of 18,418 MW.

The Year-to-date solar installations in India stand at  approx. 1,652 MW, with cumulative solar installations in the country totaling approx. 4,816 MW !

However, at the same time – viable Feed-in-Tariffs, Cost of Financing & financial closure, off-taker issues, compliance of RPO, delayed financing, land clearances issues due to government process delay, provision for setting up of solar projects in the range of 1-10 MW etc…are some of the prominent issues which needs to be addressed with clarity.

In short, although this is going to be a good year for solar across India but after all the super ambitious announcements by India, now its time to implement the same on ground. The entire world is looking & very optimistic at India’s solar potential & targets, now is the right time for India to take the lead in solar & renewable arena as a whole !

For all solar project developers and interested investors willing to set up their solar projects in India, don’t forget that as a solar project consultant in India we may help you with the development of your proposed solar project from the concept till the commissioning !

Meanwhile till we meet next time with more updates…lets hope that for Solar “Ache Din Aane Wale Hai !”🙂

Cheers,

Timeline_Cover_doNotRename71asd

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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