The World Bank – SBI Grid Connected Rooftop Solar PV

TA Program

Session III : Overview of Grid connected Rooftop Solar PV Sector

Presented by
The World Bank SBI GRPV TA Program

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Content
• National and global scenario of solar power projects and share of solar PV rooftop
• Key policy instruments and governing regulatory framework to promote solar PV rooftop
in India
• Role of Key stakeholders

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India is in the solar belt of the world

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4
Renewable energy share in Indian power sector

Solar ~ 2165MW (MNRE)

Solar rooftop ~ 2748MW (BTI)

Source: MNRE, Ministry of Power, Government of India, Bridge to India Solar Rooftop Map
Installed solar power capacity in India till FY 2017-18

Source: Ministry of New and Renewable Energy, Government of India

India’s National Solar Mission - Overall Target (2022)

• Part of National Action Plan for Climate Change (NAPCC:2008)

• Energy Security

100,000MW
Solar Power
Target by 2022

60,000MW 40,000MW Other applications like mini-

Utility Scale Solar Rooftop Solar grids etc

Source: Ministry of New and Renewable Energy, Government of India

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Installed solar power capacity in India – Status and Target

Source: Ministry of New and Renewable Energy, Government of India 8

Projected Growth of rooftop solar power installation in India till 2022

Year Wise Targets (in MW)

9000
Total: 40,000MW 8000
7000
6000
4800 5000

200
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Source: Ministry of New and Renewable Energy, Government of India 9

State-wise targets under National Solar Mission

Source: Ministry of New and Renewable Energy, Government of India

Advantage of Rooftop Solar PV Power Plants over Large Utility Projects

Optimal
Solar Deployment areas/
Land Requirement T&D losses Investments utilization of
benefits
infrastructure
High losses
Need new
similar to
Large ground mounted solar Need dedicated land for Need large transmission lines
conventional
projects 25 years investments & enhanced grid
power projects
capacity
(15-30%)
Medium
Large solar rooftop projects investments
(industrial/ commercial/ Can be mobilized
Minimal losses
institutional) from small to Infrastructure
Un-utilized roofs can due to
medium investors expansion needs
be put to use consumption at
Small investments can be minimized
generation point
Small rooftops projects Can be mobilized
(residential) from retail
investors
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Electricity Tariff - Commercial and Industrial Consumers

Cost of solar rooftop

power
Global scenario of solar power installed capacity

Source: https://en.wikipedia.org/wiki/Solar_power_by_country, MNRE 13

Global growth scenario of solar power

https://en.wikipedia.org/wiki/Growth_of_photovoltaics
Global scenario of solar power - Projection
Global scenario of solar power – Price trend of silicon PV solar cells
Drivers for Grid Connected Solar Rooftop Systems
• For captive consumption systems, surplus energy cannot be utilized
– Surplus energy may be generated on holidays, off peak business hours/seasons, daytime for
households etc
– Surplus energy can be utilized to full or partial extent with energy storage which is expensive
– Leading to sub-optimal utilization of available roof
• Increased solar rooftop penetration benefits Utilities through reduced T&D losses, reduced peak
demand etc
• For mutually benefitting from increased solar rooftop, utilities should support the end-users by
allowing them to bank surplus energy and use when required
• Worldwide, utilities are adopting gross metering or net metering as way to promote solar rooftop
– Japan, USA have adopted Net Metering while Germany has adopted Gross Metering

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Regulatory Ecosystem
Policy
• Responsibility - State Energy
Department or State Nodal
Agency
• Scope
• State Targets and Capacity
Addition Projections
• Incentives incl capital
subsidy, GBI, sales tax
exemptions, other benefits
• Roles and responsibilities
Regulations
• Responsibility - State
Electricity Regulatory
Commission
• Scope
• Metering Arrangements –
Gross and Net
• Eligible entities
• System sizing
• Other operational
specifications
• 28 states have net metering
• 8 states have gross metering
Interconnection Framework
• Responsibility - DISCOM
• Scope
• Processes and procedures
for connecting solar rooftop
systems
• Necessary to smoothen
implementation of solar
rooftop projects
• Few states like Haryana,
Punjab, Rajasthan, Madhya
Pradesh, Maharashtra,
Karnataka, Telangana etc has
defined framework
• Other states are in process of
developing framework
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Key Aspects of Regulations

Aspects Description
System Size Allowed system sizes (Minimum and/or Maximum capacity). Generally capped at
• Connected load
• Connected voltage
• Certain % of distribution transformer
• Pre-defined capacity
• Overall capping at 1 MW in most states
Eligible consumers The consumer category (Residential, Industrial and Commercial) eligible for
installing Solar Rooftop
• All consumer categories are generally allowed by most of the states
• Few states do not allow few consumer categories (e.g., West Bengal do not
allow residential consumers under current regulations)

Compensation • Tariff for systems under Gross Metering

• Constant tariff applicable for 25 years
• Tariff (if any) for surplus generated from systems under Net Metering
• Some States do not provide any compensation 19
Key Aspects of Regulations

Aspects Description
Connectivity Allowed voltage levels for different system sizes. E.g.,
Voltage • System size < 5kW – 230 V Single Phase
• System size > 5kW, < 50 kW – 415 V Three Phase
• System size > 50 kW – at or above 11 kV

Compensation • Tariff for systems under Gross Metering

• Constant tariff applicable for 25 years
• Tariff (if any) for surplus generated from systems under Net Metering
• Some States do not provide any compensation
• Few states provide Average Pooled Purchase Cost (APPC)
• Karnataka or Rajasthan provides higher tariff (INR 7.20/unit)
Standards and • Most of the states follow Standards and certifications allowed by MNRE
Certifications • Few states recommend their own Standards and certifications

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Incentives for Solar Rooftop
Parameter Description Beneficiary Giver
Generation • Few states (e.g., Haryana, Delhi) provide rebates • End-user • State
Based Incentives on tariff for solar energy consumed Government
(GBI)
Subsidies • 30% of capital cost ( capital cost accepted capped • Project • MNRE, GoI
at benchmark cost) for residential consumers, Owner
institutions etc for general category states and
UTs
• 70% of capital cost for special category states and
UTs
• Linked to performance
• Few states provide additional capital subsidy • Project • State
Owner Government

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Incentives for Solar Rooftop
Parameter Description Beneficiary Giver
Accelerated • 40% depreciation allowed for solar PV systems • Project • GoI
Depreciation vis-à-vis 15% allowed for other plant & Owner
(AD) machinery
• AD reduces payable tax
Excise and • Exempted for major components used for solar • Project • GoI
Custom Duty plants Developer/
Exemption • Not applicable under GST Owner/
EPC
VAT / Sale tax • Many states have exempted sales tax on solar • Project • State
system components Developer/ Governments
• Not applicable under GST Owner/
EPC

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Incentives for Solar Rooftop

Parameter Description Beneficiary Giver

Building norms • Few states relax building norms with solar rooftop • Building • State
project Owner Government
• E.g., allow higher floor area ratio (FAR), relax
building height
• Can be considered as energy conservation under
Energy Conservation Building Codes

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Interconnection Options for Solar Rooftop System
Solar Rooftop Plant

Captive Plant Gross

Metering

Net Metering

Electricity Distribution Utility

Internal Grid Meter Grid
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Captive Plant – Off-grid and Hybrid
- Entire generation should be consumed simultaneously (or)
Solar Rooftop Plant
- Surplus can be stored in Batteries (but expensive)
- Capability to consume energy immediately or store energy
limits the capacity of solar rooftop systems
- Consumers without steady daytime load throughout the
year cannot go for captive plants. E.g., schools,
Captive Plant households, offices

Electricity Distribution Utility

Internal Grid Meter Grid
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Grid Connected Solar Rooftop Systems
- Grid connected systems allow surplus to be generated without storing
Solar Rooftop Plant
- Size of systems is not limited by capacity to consume energy immediately or
store energy

Gross
Metering

Net Metering Electricity

Meter

Distribution Utility
Grid

Internal Grid Distribution Utility is a regulated entity. It is important to

04/05/2024 understand Regulatory Framework for Grid Connected Systems 26
Net Metering
Meter 2: Solar Electricity
Generation
Solar Rooftop Plant

Meter 1: Bi-directional Net Meter

Measuring Electricity
Consumption & Export

Uni-directional
04/05/2024 Electricity Meter 27
Working of Net Metering - Case 1

2
kW

3 kW 1 kW

Consumer pays for 1 kW Net Consumption to the consumer

Working of Net Metering - Case 2
Under Net Metering, system size limited by total consumption of
the solar power annually

Allows surplus generation to be consumed at a End users gain from savings on electricity bill
later time/ date within settlement period. E.g.,
• Households can generate during the day and
consume during the night
• Offices can generate on weekends and 5
consume during weekdays
• Schools can generate during vacations and kW
consume during working days

3 kW 2 kW

DISCOM provides credit for 2 kW exported which can be used at some

other time (say at night)
Gross Metering
Meter 2: Solar Electricity
Solar Rooftop Plant Generation

Uni-directional
Electricity Meter 30
Working of Gross Metering
Distribution Utility pays for the solar generation at fixed
tariff for 25 years

• Rooftop capacity is not limited by the

consumption of solar generation
• Allows end users with low energy demand
but large roof spaces e.g., large schools,
warehouses, assembly units etc. to optimally
5
use roof for solar kW

3 kW 5 kW

Utility pays for entire generation i.e., 5 kW

Summary of Net & Gross Metering
Net Metering Gross Metering

Solar • Consumed by the end user. • Entire generation is injected to DISCOM grid
Energy • Surplus generated (when demand is low) is banked with
Utilization the grid Revenue for the project
• Banked energy utilized during high demand periods
• Unutilized banked energy may be compensated at the
end of settlement period

Effect on • End user saves on their electricity bill for the solar
end user energy generated and consumed
• Increasing end user tariff increases the savings
• Most suitable for high tariff paying consumers like
Industrial and commercial consumers
• Entire energy injected compensated at a constant
feed-in-tariff for 25 years
• No consumption required by rooftop owner
• Most suitable for low tariff paying consumers like
residential consumers

Effect on • Can be used for meeting solar RPO
DISCOM • Loses revenue due to reduced sales of electricity
• Increase in tariffs leads to increased adoption of solar
rooftop leading to higher reduction of revenue
• Can be used for meeting solar RPO
• Cost of energy procurement increases over the short
term
• With increase in cost of conventional power,
DISCOMs can gain over long term

04/05/2024 FOOTER GOES HERE 32

Key Stakeholders – Directly Connected to End Users

Stakeholder Role
DISCOM • Provide Net Metering or Gross Metering
• Route GBI
• May empanel channel partners, component suppliers etc

State Nodal Agency • Support stakeholders develop solar rooftop systems

• Route State subsidies
• Facilitate capital subsidy from MNRE
• Develop programs for solar rooftop

State Energy • Develop policies to promote Solar rooftop systems

Department • May empanel channel partners, component suppliers etc

Ministry of New and • Support stakeholders develop solar rooftop systems

Renewable Energy • Provide capital subsidy
• Provide standards and certifications
• Develop programs for solar rooftop
• Provide benchmark costs
• Empanel channel partners (important for subsidy projects)
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Key Stakeholders – Directly Connected to End Users

Stakeholder Role
State Electricity • Provide regulations for Net Metering and Gross Metering (incl interconnection
Regulatory Commission framework)
• Provide Grid Code which Solar Rooftop Systems need to comply to (e.g., meters)

Solar Energy • Develop large scale programs for solar rooftop

Corporation of India • Carried out programs for over 1000 MW capacity

Chief Electrical • Inspects solar rooftop plants of over certain capacity (100/200 kW)
Inspectorate

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Key Stakeholders – Not directly connected to End Users

Stakeholder Role
Central Electricity • Provides technical standards for metering, inspection etc
Authority

Central Electricity • Provides model regulations and guidelines for SERCs

Regulatory Commission

Ministry of Power, • Provides Electricity Act, National Tariff Policy, National Electricity Policy which
Government of India encourages solar rooftop systems

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Dr Amit Jain
Renewable Energy Specialist
Email: amitjain@worldbank.org
Acknowledgment and Disclaimer:
This training material is made possible by the support of the American
People through the United States Agency for International Development
(USAID). The contents of this material are the sole responsibility of Nexant
Inc. and do not necessarily reflect the views of USAID or the United States
Government. This material was prepared under Contract Number AID-386-
C-12-00001. The images shown here are taken from the Internet for
education purpose only. Further the training material has been modified
and updated as necessary by The World Bank SUPRABHA TA Program 36