Abhilakh Singh General Manager 12th April, 2016

Transcription

1 Presentation on solar rooftop Abhilakh Singh General Manager 12th April, 2016

2 Power Scenario India, energy demand which was nearly 700 mtoe in 2010 is expected to cross 1500 mtoe by Dependence on imports for energy requirements is expected to increase from 30 per cent to over 50 per cent. At the estimated 51% primary energy imports, India will be one of the most import-dependent countries in the world. India s per capita electricity consumption reached 1010 kilowatt-hour in , as per CEA figures, yet is among the lowest in the world. China has a per capita consumption of 4000kWh, with developed nations averaging around 15,000kWh per capita. The current installed capacity, as of March, 2016 is 288,665 MW. Immediate goal is to generate two trillion units (kilowatt hours) of energy by 2019 so as to be able to provide 24x7 electricity for residential, industrial, commercial and agriculture use.

3 Renewable Energy It is in this context that the country has rightfully embraced renewable energy which is now seen as complimenting and supplementing the conventional sector. Renewable energy with its huge untapped potential, shall be playing a significant role in the plans of the Government to provide 24 x 7 power to every home, factory and farm, Wind and Solar Energy being the predominant sectors.

4 Target 2022 Private Sector PSUs Commitment of 252 GW from 319 Companies Commitment of 19 GW from 24 PSUs Finance Manufacturing Commitment for financing 69 GW from 27 Banks Commitment of 62 GW from 17 Manufacturing Companies

5 Sector wise scaling up Plans for Solar Energy 100 GW by 2022 Rooftop Projects (< 1 MW per project) Large scale Grid connected (1 MW 500 MW project) Ultra Mega Power Projects (>500 MW) 40,000 MW 30,000 MW 30,000 MW Projects under both Net Metering and Gross Metering SECI has already identified several cities and developers have been selected Solar park in Charanka (Gujarat, 600 MW) Other solar parks planned in several other states. 21 solar parks in 20 states with capacity of MW Focus on utilising wastelands

6 Rooftop Projects Target 40,000 MW by 2022 Current support Financial assistance of 30% of the benchmark Current Status Projects sanctioned and approved in principle MWp Projects installed MWp (As on ) Institutional ( Govt. Bldgs., hospitals, warehouses, schools etc.): 7500 MW Categories of Rooftops Industrial & commercial sector: 20,000 MW Housing Sector: 12,500 MW Net Metering Policies in 21 States projects.

7 Solar Rooftop Game changer Solar Roof-top segment has a great potential in India and can indeed be a game changer in attaining these challenging targets. Rooftop Solar in India has mostly revolved around various demonstration projects, although, things have changed radically in the last 2-3 years with sharp drop in prices of various components, increased support from the Government and positive regulatory regime. As per the Report India Solar Rooftop Map, 1.5 GW of solar roof-top installation is predicted by 2018 There is now a realization that the Rooftop Solar can help earn money besides generating power at the place of use and in fact, a profit-making proposition for the building owners by renting their rooftops for solar installations.

8 States Partners in RE Growth States crucial partners to achieve the targets set With the required policy push, States now fine tuning their RE policies in line with the national goals and becoming more investor friendly. Post RE-INVEST 2015, State Governments, Nodal Agencies and even Private Sector now actively participating and supporting the RE goals.

9 State Policies

10 State Policies

11 Business Models for Solar Rooftop 2 Business models based on the ownership of the rooftop solar PV system Self-owned solar PV system Roof owner owns, operates, and maintains the Rooftop SPV system. Generated electricity is either consumed by the end-use loads or supplied to the utility grid or combination of both. Third party owned solar PV system Solar Developer/System Integrator or any other company owns the Rooftop Solar PV system and sell electricity either to the roof owner or consumer or both. Third party owned model does not allow roof owner to avail certain financial benefits, such as tax benefits, capital subsidy.

12 Financing based on System Ownership

13 Project Financials for PV System for Commercial Sector

14 IREDA s loa sche e for Rooftop Solar PV Power Projects RE now a priority sector as per RBI notification. Supplementing the above and to support Government s initiative for achieving targets, a new loan scheme launched for setting up of Solar PV Rooftop Power Projects by Industrial, Institutional and Commercial Sectors. Salient Features Applications through Rooftop Solar Aggregators Single or different locations Minimum total size of the project 1000 kwp, each system capacity 20 kwp Aggregators to provide credit rating from IREDA empaneled credit rating agencies Aggregators responsible for execution & operational performance commitments.

15 IREDA s loa sche e for Rooftop Solar PV Power Projects Eligibility conditions: Applications to be submitted under following categories:1. Aggregator Category: a) Can submit application as borrower for either single project or multiple sub-projects as per eligibility guidelines. b) Minimum total project capacity 1000 kwp. 2. c) Minimum sub-project capacity under this mode 20 kwp. Direct Category a) Applicants can submit applications for a project 1000 kwp on a single roof/ contiguous roofs b) Applications to be rated by IREDA empaneled Credit Rating Agencies.

16 IREDA s loa sche e for Rooftop Solar PV Power Projects Eligibility Business Models Project Ownership Model Rooftops owned by single party Rooftops owned by multiple parties Revenue Model Captive power generation by roof owner Sale to grid under Net Metering/PPA Sale to Grid under Gross Metering PPA Distribution licensee/ Govt. / Semi Government bodies/institutions Any other viable model

17 IREDA s loa sche e for Rooftop Solar PV Power Projects Terms & Conditions 10.05% to 10.90% p.a. based on the Credit Rating. Interest Rate Up to 9 years 6 to 12 months from the date of COD Loan Repayment Period Moratorium 70% of the total project cost with min. promoter s contribution of 30% of the project cost. Quantum of Loan

18 Broad Terms of Loan & Financial Indicators (w.e.f ) Borrower/Sector Schedule A,'AAA' Rated PSUs State Sector Borrowers LoC for Refinance and other Roof top Solar Wind Energy, and Grid Connected Solar PV Co-generation, Hydro and CSP GRADE I 9.90 % % % Borrowing Cost % to 2.00% (Spread) 10.05% 10.30% 10.60% % % % 10.50% 11.20% 11.45% Energy Efficiency, Energy Conservation & Solar Thermal/ Solar PV Off-Grid, Biomass Power and other sector % Manufacturing (All sectors) Existing units % GRADE II GRADE III GRADE 9.90 % % % Green Field Reduction in interest rates over and above the applicable interest rates by 25 bps, 20 bps and 15 bps for Grade I, Grade- II and GradeIII of external grading s respectively. (Irrespective of IREDA s internal grading) Except for serial no.1 & 2 of above. Prompt payment rebate of 15 bps on the applicable interest rate, if the installments of interest and Principal are paid in full, on due dates Except for serial no.1 & 2 of above. Reduction in Interest rate over and above the applicable interest rates by 25 bps for Repowering of wind energy projects Additional 0.50% over and above the applicable rate of interest shall be charged till the date of commissioning of the project other than Wind and Solar sector. No additional interest during construction for (i) Schedule-A, AAA rated PSUs (ii) State Sector Borrowers who are engaged in power sector and have successfully implemented not less than 200 MW of hydroelectric projects and implementing Hydro sector projects and (iii) State Sector Borrowers which are engaged in power sector and implementing Wind Energy projects/ Solar Energy Projects. In case of loans sanctioned for manufacturing facilities, no additional interest during the construction period shall be charged.

19 About IREDA Dedicated FI for Renewable Financing 29 years of experience in financing Renewable Energy Projects. Track record of financing more than 2200 projects. Profit earning & Dividend paying. Awarded Mini Ratna ( Category I ) status by MNRE (Govt of India) ISO :2013 Certified

20 Operational Areas Sectors financed Wind Energy Hydro Power Solar Energy Biomass including Bagasse & Industrial Cogeneration Biomass Power Generation Waste to Energy Energy Efficiency & Energy Conservation Bio-fuel / Alternate Fuel Hybrid Projects with RE Technologies New & Emerging Renewable Energy Technologies

21 Operational Schemes Types of Schemes Project Financing / Equipment Financing Loans for Manufacturing Financial Intermediaries Financing of commissioned projects including takeover of Loans Additional / Bridge Loan against SDF Loan Loan against Securitization New fund and non-fund based financing schemes Line of Credit to Non-Banking Financial Companies (NBFCs) Short term loan assistance to RE Developers/Suppliers/Contractors. Bridge loan against Capital Subsidies/VGF/GBI Underwriting of Debt/Loan Syndication. Guarantee Assistance Scheme to RE Suppliers/Promoters.

22 IREDA Financing Highlights Cumulative Loan Sanctions : Rs crores (As on 31st March,2016) Cumulative Loan Disbursements : Rs crores (As on 31st March, 2016) Supported green capacity addition of more than 6000 MW IREDA Financing Norms Parameters Norms Maximum Loan Quantum Upto 70% of the project cost Upto 75% of project cost in Wind and Solar projects* Interest Rate 9.90 % % Repayment Period Upto 15 years Moratorium Upto 1 year *Subject to meeting minimum conditions

23 Conclusion Solar Rooftop PV Systems have great potential, however, there is a need for awareness creation both about Rooftop Solar PV Systems/ technology packages as well as about the financing avenues available. Policy support is essential in terms of regulations for net metering, grid interconnection and energy accounting Need for promoting large scale, local manufacturing of dual function inverters (functionality of both grid-tied and hybrid inverters) to reduce cost. Need for technical innovations in storage technologies - mainly to reduce costs and improve efficiency.

24 Thank You Indian Renewable Energy Development Agency Limited