We are Investing in Solar rooftops at Rs. 7 and below per KWh

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Posted in Commercial, Grid Connected, PV, Rooftop, Solar | Tagged , , ,

Implementation of Scheme for setting up of 1000 MW of Grid-Connected Solar PV Power Projects by Central Public Sector Undertakings (CPSUs) and Government of India Organizations under various Central / State Schemes / self-use / 3rd party sale / merchant sale with Viability Gap Funding under Batch-V of Phase-II of JNNSM

Implementation of the Scheme

2.1     Applicability: The CPSUs  and Government of India organi zations  would  set-up Grid­ connected solar  PV po wer projects  under  various  Central/  State  Schemes/ self-use/ 3rd  party sale/  merchant  sale with Viability  Gap Funding  under Batch-V of Phase-II of JNNSM

2.2        Power    Purchase/Sale   Arrangements:   The CPSUs  and Government of India organizations   like  NTPC,  NHPC,  CIL,  IREDA ,  Indian Rail ways,  etc.  may participate in various  Central / Slate Government  Tenders, from  time to time,  during the period from  2014-15 to 2016-1 7, for sale  of solar  power  to State  Utilities / Discoms or any  other  organization. The  CPSUs  may  also  sign  Power  Purchase Agreements (PPAs)/  Power  Sale  Agreements (PSAs) with State Utilities/ Discoms at tariff determined by Central  Electricity Regulatory Commission (CERC)  or State Electricity Regulatory Commissions (SERCs)  or may develop projects for their own use or for sale of power to a third party at mutually negotiated rates.

2.3.       Domestic Content Requirement and  impact  on tariff:  The Solar  Projects to be set up by  CPSUs /  Government  of  India   Organizations  must  mandatorily procure cells and modules from domestic manufacturers. V GF will be released as per para 4.

Benefit  under this project will not be available where DCR  clause  is already there as tariff would  then have taken care of the DCR clause.

  1. Role of Solar  Energy Corporation of India  (SECI):

The Solar Energy  Corporation  of India (SECI)  will handle the scheme  on behalf of MNRE, for which they will be given a fee of 1% of the VGF disbursed for handling the funds and  managing  the  Scheme.  The  handling  charge to SECI shall  come  within  the overall provision of Rs. 1000 Cr.  As soon as the projects of CPSUs are approved & PPAs are signed and the  CPSUs  decide  to  use domestically  manufactured  cells  and  modules  as mentioned above,  CPSUs  will have an option to approach  SECI for grant of VGF.  SECI will process their application  and give in-principle approval.

4. Release  of VGF 

VGF would  be provided  through  SECI at a fixed rate of Rs. 1 Cr/MW for  projects where domestically  produced  Cells  and  Modules  are  used, and  Rs.50  lakh/MW would  be provided  in cases where domestically  produced modules  are used as per the details given in the Scheme.

Alternatively,  VGF can also be released directly to Domestic  Manufacturers  through SECI  instead  of releasing  the VGF  to CPSUs/  Govermnent  of  India  Organizations, if so required. This will be released to the manufacturer who will be supplyin g cells and modules to the CPSUs/  Government  of India Organizations  for that particular  power plant  based on order placed  by the CPSUs/  Government  of India Organizations/  their EPC contractor.  The release will be made after the project is commissioned and the CPSUs/  Government of India Organizations  make a request for release of VGF to SECI.

In case of any operational  difficulties and in order to ensure timely implementation of the scheme, MNRE will be authorized to make amendments in the Terms & Conditions of the Scheme with the approval of the Minister, NRE without increasing the financial requirements and VGF limits.

The  funds  for  implementation of the above scheme  would  be met  from  Demand No.69-Ministry of New & Renewable Energy;  Major Head: 2810-New & Renewable Energy; 101-Grid  Interactive & Distributed Renewable Power, 01 -Grid Interactive Renewable Power, 04-Solar Power, 31-Grants-in-aid General during 2014-15 (Plan).

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Posted in Crystalline, Government, Grid Connected, India, MNRE, Phase II, PV, Renewables, SECI, Thin Film, VGF | Tagged , , , , , , , , , , , , , ,

India’s solar dream fuelled by global trends

solar canal top
The country plans to install 100 GW capacity of solar-generated electricity by 2022, a five-time increase from a previous target.

India’s plan to install 100 GW capacity of solar-generated electricity by 2022, a five-time increase from a previous target, only follows a global trend that has seen a sudden and massive jump in the deployment of solar power in the last four years.

The global installed capacity of solar electricity has increased by six times between 2010 and 2013. At the end of 2009, the total installed capacity was 23 GW. In the next four years, an average of about 28 GW was added every year, taking it to 135 GW by the end of 2013.

According to figures published by the International Energy Agency (IEA) a few months ago, more than 36 GW of new solar capacity was added in 2013, or about 100 MW per day (see box).


This explosion has led to projections for the future being revised upwards by significant amounts. In 2010, the IEA had said that by 2020, about 210 GW of solar electricity would be installed. Now, that target is likely to be achieved this year itself. In its latest projection, in 2014, the IEA said the total installed capacity in 2020 would easily exceed 400 GW.

The main reason for this surge in deployment of solar-generated electricity has been a sharp decline in prices of photo-voltaic systems, which has made electricity produced by solar energy comparable in costs to traditional sources like coal or oil. According to IEA figures, the prices have dropped to a third of their 2008 levels. In some countries, prices have reduced by as much as 80 per cent in the last five years.

It is this global context that makes India’s 100 GW target for 2022 look within striking distance, despite the fact that more than three years after it had launched the National Solar Mission, only 3 GW of solar capacity had been installed in the country till November 2014.

solarenergy_targets“100 GW by 2022 is a very ambitious target but not unachievable. A lot needs to be done at the government level, including a push for domestic manufacturing of photo-voltaic units which will drive down prices further. A massive capacity building exercise also needs to be undertaken,” Amit Kumar, Adjunct Professor at TERI University, said.

In fact, looking at the global trend, the IEA had, in another report last year, said India could easily install 50 GW of solar capacity by 2022 instead of the 20 GW it was targeting at that time.

“However, reaching 100 GW by 2022 would represent a considerable acceleration of newly built solar capacity to 20 GW per year in the next couple of years. India is currently installing about 15 GW per year from all technologies. The government’s aim to reach 100 GW of solar capacity is ambitious,” Cedric Philibert of Renewable Energy Division of the IEA told The Indian Express.

“Based on our information, the government expects that among the 100 GW total capacity, about 40 GW would come from residential rooftop units. We believe that adding 5 GW per year from distributed PV (rooftops) is not impossible for such a large country… But this would also imply a concerted government effort,” Philibert said.

“Achieving 100 GW would require a number of accompanying policy initiatives… to address reforms to facilitate trade of power among private parties and consumers,” he said.

Some policy changes are already being put in place. Last month, the government approved amendments to the Electricity Act, 2003 with several provisions to boost the generation and use of renewable energy. The cabinet also cleared a scheme to set up 25 solar parks, with a capacity of 500 MW or above each.

The government is also pushing for Renewable Generation Obligations (RGOs) that will force power producers to generate a part of their electricity through renewable energy.

Simultaneously, efforts are being made to boost domestic production of PV cells and units. One reason for the decline in global prices of PV units has been the shifting of manufacturing from the western countries to China. “Chinese manufactured PV units are now serving about two-thirds of the global market,” said one government official.

Huge demand for solar units has also driven down prices.

India is also in a position to manufacture PV units cheaply, at prices comparable to Chinese products. Last month, the government announced that defence establishments and para-military forces would be eligible for viable gap funding (VGF) to set up solar power plants of 300 MW capacities if they ensure that PV cells and modules are manufactured domestically.

“Solar manufacturing can become a crucial part of the Make in India strategy. The 100-GW target is an aspirational one. Even if we achieve around 80 or 90 GW at 2022, it would be very significant and useful, not just from climate change point of view but also for India’s energy security and overall economy,” said Kumar.

Source: Indian Express

Posted in Batch I, Batch II, Climate Change, Coal, Commercial, Crystalline, Fossil Fuel, Global Warming, Grid Connected, Grid Interactive Distributed Solar Energy Systems, JNNSM, Phase I, Phase II, Power Generation, PV, Renewables, Residential, Rooftop, Rural Lighting, Solar, Solar Parks, Solar Pumps, Solar Thermal, Thin Film, Tranche I | Tagged , , , , , , , , , ,

Programme/ Scheme wise Physical Progress of Renewable Energy in 2014-15 (During the month of December)

Physical Progress (Achievements)
Ministry of New & Renewable Energy
Programme/ Scheme wise Physical Progress in 2014-15 (During the month of December)
Sector FY- 2014-15 Cumulative
Target  Achievement (as on 31.12.2014)
Wind Power 2000.00 1333.20 22465.03
Small Hydro Power 250.00 187.15 3990.83
Biomass Power & Gasification 100.00 0.00 1365.20
Bagasse Cogeneration 300.00 152.00 2800.35
Waste to Power 20.00 1.00 107.58
Solar Power 1100.00 430.67 3062.68
Total 3770.00 2104.02 33791.67
Waste to Energy 10.00 8.54 141.27
Biomass(non-bagasse) Cogeneration 80.00 34.32 561.64
Biomass Gasifiers
0.80 0.00 17.48
8.00 2.20 149.40
Aero-Genrators/Hybrid systems 0.50 0.13 2.38
SPV Systems 60.00 52.77 227.12
Water mills/micro hydel 4.00 0.00 13.21
Bio-gas based energy system 0.00 0.30 4.07
Total 163.30 98.26 1116.57
Family Biogas Plants (numbers in lakh) 1.10 0.12 47.53
Solar Water Heating – Coll. Areas(million m2) 0.50 0.48 8.63
 Solar Energy Helpline No. 1800 2 33 44 77
Posted in Renewables, Solar, Biomass, Hydro, JNNSM, Biofuels, Geothermal, Solar Thermal, PV, Rural Lighting, Rooftop, Phase II, MNRE, Solar Policy, Residential, Commercial, Cogeneration, India, Batch II, Solar Pumps, Solar Parks | Tagged , , , , , , , , , , , , , , , , , ,

Implementation of Scheme for setting up over 300 MW of Grid-Connected & Off-grid Solar PV Power Projects by Defence Establishments under Ministry of Defence and Para Military Forces (under MHA) with Viability Gap Funding (VGF) under Phase-II/III of JNNSM during 2014-15 and onwards

Applicability: The capacity  of 300 MW of Grid-Connected  and off-Grid  Solar PV power projects,   will  be  set  up  in  various  Establishments  of  Ministry  of  Defence  i.e Establishments of Army,  Navy, Air Force, Ordnance Factory  Board,  Defence Laboratories and Defence PSUs etc.  Para Military Forces coming under the Ministry of Home Affairs are also covered under this scheme. The project capacity shall be at least 1 MW and the maximum capacity of the Project shall be up to 20 MW.

Implementation method: The aforesaid Establishments  of Ministry of Defence and the Para Military Forces would identify locations for developing  solar projects, anywhere in the country  including  border  areas  from  time to time,  during  the period  from  2014-15  to 2018-19.

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300 MW Solar Power Off Grid administrative-approval-on-Defence

Posted in Armed Forces, Crystalline, Defence Ministry, Government, Grid Interactive Distributed Solar Energy Systems, Grid Storage, India, MNRE, PV, Renewables, Rooftop, Solar, Solar Parks, Subsidy, Thin Film, VGF | Tagged , , , , , , , , , , , , , , , , ,

Draft Guidelines for Selection of 3000 MW Grid – Connected Solar PV Power Projects under Batch-II Tranche-I “State Specific Bundling Scheme”

Phase-II, Batch-II, Tranche-I : State Specific Bundling Scheme

These guidelines are for 3000 MW. MNRE will indicate the total quantity for various States based on response received from the States. NVVN may then procure that quantity through one or more State specific tenders.

Scope of the Guidelines

The scope of these guidelines is limited to providing the necessary policy and operational framework for development of projects under the above mentioned “ State Specific Bundling Scheme”. These guidelines are independent and will have no bearing on the projects already selected under earlier schemes of NSM Phase-I & Phase-II, Batch – I.


2.1         NSM Phase-II Batch-II Tranche-I State Specific Bundling Scheme for 3000 MW Solar PV Projects The 1000 MW Bundling Scheme introduced under NSM Phase-I has been successful in incentivizing setting up of a large number of Solar Power Projects and minimizing the impact of tariff on the distribution companies. The proposed 3000 MW Solar PV Projects to be selected under Batch-II Tranche- I of NSM Phase-II, will be implemented by NVVN on Solar Parks to be developed through association of Central and State Agencies / Land provided by State Governments or Land identified and arranged by Solar Power Developers in the respective States.

MNRE is facilitating development of 25 Solar Parks to accelerate the Solar Capacity Addition in various States. The bidder will approach the Solar Park Implementation Agency (SPIA) for allotment of land and connectivity. The SPIA shall provide the details of land and the timelines for availability, allotment, possession and connectivity for the projects before submission of bids. The SPIA will provide the Cost of Land, Annual Charges, and Connectivity Charges etc. which the developer would take into consideration in their bid.

There could be three (3) situations:

(A) Entire tendered quantity can be located in the Solar Parks in the State;

(B)  Part of tendered quantity can be located in Solar Park and part outside Solar Park; and

(C)  Entire tendered quantity can be located outside the Solar Park.

2.2         Objectives:

The main objectives of the scheme are as follows:

i.   To facilitate the scale up of solar capacity addition under NSM Phase-II and achieve economies of scale

ii.   To supplement grid power

iii. To facilitate fulfilment of RPO requirement of the obligated entities.

iv.  To facilitate speedier implementation of the new projects to be selected to meet the Phase-II target of NSM

v. Provide long term visibility and road map for solar power development enabling creation of India as manufacturing hub in the Solar PV


2.3         Mechanism of Operation:


The     3,000     MW     Solar     PV     Capacity     under     Tranche-I     will     be     set     up     based on   the   model   of   bundling   of   solar   power   with   unallocated   thermal   power   and   fixed levellised   tariffs.   The   mechanism   of   operation   of   this   model   shall   be   as   enumerated below:


1)            Minimum project size will be 10 MW. NVVN will divide the entire quantity into projects of uniform size as far as possible. NVVN may also divide the bid lot into different sized projects also to match plot sizes in the solar park or to provide fair participation. For situation B & C as given in Para 2.1 above, range of project size starting from 10 MW may be given by NVVN.

2)           The bidding will be State specific and conducted through e-bidding. It will be based on fixed   levellised   tariffs.  The   developers  will   submit   bids   quoting   a   fixed   levellised tariff  for  the  entire  project  duration  of  25  years.  They  will  then  be  committing  to sell   power   from   their   plants   to   NVVN   at   the   quoted   tariff   over   the   25   year period.

3)            The selection of bids will be done based on the tariff quoted by the bidders. Selection will be based on lowest quoted levellised tariffs. The quoted tariff cannot be higher than the Central Electricity Regulatory Commission (CERC) Approved Applicable Tariff as on the last date of receipt of financial bids by NVVN.


4)            The   bidders   will   be   free   to   avail   fiscal   incentives   like   Accelerated   Depreciation, Concessional  Customs  and  Excise  Duties,  Tax  Holidays,  etc.  as  available  for  such projects. The same will not have any bearing on comparison of bids for selection.  As equal opportunity is being provided to all bidders at the time of tendering itself, it is up to the bidders to avail various tax and other benefits.


5)            NVVN will purchase the Solar Power generated from the selected Solar PV plants at the quoted tariffs and Thermal Power at the Tariff as determined by CERC as per Regulations from time to time for power from the respective Thermal Power Plant from which power is allocated. NVVN will bundle the Solar Power with unallocated Thermal Power from Coal based stations of NTPC on 2:1 basis (2 MW of Solar with 1 MW of Thermal), and sell the Bundled Power to willing State Utilities under 25 years Power Sale Agreements (PSAs), at Weighted Average Tariff of the Solar and Thermal components plus Trading Margin of Paisa Seven (7) per kWh.

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Posted in Batch II, Climate Change, Government, Grid Connected, India, JNNSM, MNRE, Phase II, Power Generation, Renewable Purchase Obligation, Renewables, Solar, Solar Policy, Subsidy, Tranche I | Tagged , , , , , , , , , , , , , , , , , ,


A SPV water pumping system consists of PV array, a DC/AC surface mounted / submersible / floating motor pump set, electronics, if any, interconnect cables and an ‘on-off’ switch. PV array is mounted on a suitable structure with provision of tracking. Electronics could include Maximum Power Point Tracker (MPPT), Inverter and Control/Protections.

Solar pumping system upto 10 HP are eligible for subsidy under the scheme.

Screenshot 2015-01-06 13.27.02

Only manufacturers/entrepreneurs empanelled by MNRE, GoI (displayed in website of MNRE, GoI at http://www.mnre.gov.in) can participate in the scheme. The empanelled manufacturer/entrepreneur will raise the invoices for the supplied products. The invoices generated by their dealers will not be eligible for subsidy.

Banks have to ensure that beneficiary contributes a minimum margin of 20% of the Total Financial Outlay (TFO). If the margin is less than 20% of the TFO, the project will not be eligible for assistance under the scheme.

The Total Financial Outlay (TFO) is inclusive of installation, commissioning, transportation, insurance, 5 year operation and maintenance charges and taxes wherever applicable.

Banks should ensure that the units are insured. The insurance premium may also be included in the TFO.

Under the scheme, projects financed by all Commercial Banks, RRBs, State and District Central Cooperative Banks, SCARDBs as also NABARD (under direct lending) will be eligible to receive subsidy

Individuals, group of individuals, SHGs, JLGs, NGOs, Farmers’ Clubs and Farmers Producers Organisation will be eligible for subsidy. However, Private / Public Limited Companies / Corporates are not eligible.

The eligible borrowers shall apply to the banks for sanction of loan for the project. The bank shall appraise the project as per the norms and if found eligible, sanction the loan excluding the margin, subject to technical feasibility and financial viability.

Based on the field visit and after satisfactory installation of the unit, the bank shall arrange to make payment directly to the supplier.

There would be a minimum lock in period of 3 years and hence, if the loan is repaid before three years, the borrower will not be eligible for subsidy.

In case the unit is found to be incomplete or the subsidy is misutilized, Bank shall arrange to recall the subsidy and refund the same to NABARD. In the event of loans becoming NPA, beneficiary will not be eligible for subsidy and the same will have to be refunded to NABARD.

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Posted in Climate Change, India, MNRE, Off-grid, Power Generation, Renewables, Solar, Solar Policy, Solar Pumps, Subsidy | Tagged , , , , , , , , , , , , , , ,

Department of Financial Services, Ministry of Finance issues notice to all public sector banks to include Solar Rooftops as part of their home loan programme

Government of India
Ministry of New and Renewable Energy

Loan for Installation of Grid Interactive Rooftop Solar PV Plants

The Government of India has set a challenging target of 40,000 MWp of Grid-Interactive Rooftop Solar PV Plants during the next five years. These rooftop solar PV plants will be set up in residential, commercial, industrial, institutional sectors in the country ranging from 1 kWp to 500 kWp capacity. Such rooftop plants have become economically viable as they produce clean electricity from the solar energy at about Rs. 7.0 per kWh without any subsidy. The Government is providing a subsidy of 15% on these plants to the beneficiaries which makes it further attractive and viable.

2. This massive target can be achieved with support from banks to provide loans for installation of Grid-Interactive Rooftop Solar PV Plants to the loan seekers as a part of home loan/ home improvement loan.

The Department of Financial Services, Ministry of Finance has issued following advisory to all Public Sector Banks:

“All banks are advised to encourage the home loan/ home improvement loan seekers to install rooftop solar PVs and include the cost of such equipment in their home loan proposals just like non solar lighting, wiring and other such fittings”

3. In compliance, so far, eight Public Sector Banks namely Bank of India, Syndicate Bank, State Bank of India, Dena Bank, Central Bank of India, Punjab National Bank, Allahabad Bank and Indian Overseas Bank have taken actions and issued the necessary instructions for their branches.

4. The person interested in installation of Grid-Interactive Rooftop Solar PV Plants and seeking loan may approach these nearest Public Sector Banks. They may also contact the State Nodal Agencies implementing renewable energy programmes in their States and the empaneled Channel Partners for further guidance.

Posted in Climate Change, Department of Financial Services, Grid Interactive Distributed Solar Energy Systems, India, Ministry of Finance, Power Generation, Renewables, Rooftop, Solar, Solar Policy | Tagged , , , , , , , , , , , , , ,