Opportunity in Rooftop Solar Segment in India: Investment Guide for Entire Value Chain

  • ID: 4434627
  • Report
  • Region: India
  • 250 Pages
  • SNP Infra Research Solutions Private Limited
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India is rising high on renewable energy investment with solar is becoming crucial component of India’s energy mix. Solar photovoltaic rooftop has emerged as a potential green technology to address growing peak power deficit of DISCOMs, T&D loss levels and burgeoning power demand. With a strong commitment to increase the renewable sources based energy capacity to 175 GW by 2022, India has a target to install 100 GW of solar energy capacity out of which 40 GW would be the share of grid connected solar PV rooftop. As the goal is so ambitious & the market environment is quite complex with regulatory uncertainties, DISCOM reliance on cross subsidy from industrial and commercial consumer and T&D infrastructure bottlenecks, govt. needs to plan out the road map for it more effectively.

MNRE has announced of securing low cost debt  funding to the tune of $ 2.5 Bn for rooftop solar projects. Recently world bank has approved dedicated $ 625 Mn to SBI for lending to viable Grid-Connected Rooftop Solar PV (GRPV) projects undertaken by photo-voltaic (PV) developers, aggregators and end-users, for installation of rooftop solar systems on the rooftops of commercial, institutional and industrial buildings. Stateowned Punjab National Bank has received USD 100 million (about Rs.645 crore) as the first tranche of ADB’s  multi-million dollar funding for installation of rooftop  solar systems in India. Government is planning to raise  €1 billion for solar rooftop projects from multilateral funding and lending agencies like  KFW, JICA and JBIC.

However all is not so rosy with installation of Rooftop projects vis-à-vis availability of Right of Way for installation by government entities, Transmission and Distribution bottlenecks, implication of GST on module and plant equipment costs and securing low cost funding for small scale rooftop projects. Developer, EPC contractor and lender are struggling with pre-construction and execution risks of small scale decentralized solar projects, which hinders the government thrust for rooftop solar projects from picking up the pace.

The research has conducted exhaustive primary and secondary market surveys to project the inherent opportunity for Rooftop solar industry participants in different sectors of India. In this report we aim to have forward looking view on Rooftop solar industry in India to shape future business strategies and government enablement in the sector. This report also discusses about issues and challenges in the sector and prospective mitigation for the same from Developer, EPC contractor and Lender’s perspective. past trend of investment in Rooftop segment and extrapolated future investment outlook in respective sectors. In addition to this under construction/upcoming grid connected solar rooftop projects tracker has been provided to enable value chain partner for strategic decisions.

Key takeaways

  • Market size and Business Opportunity in indian solar rooftop market
  • Capacity addition pace for solar rooftop capacity till 2022.
  • Funding challenges for domestic as well as foreign developers
  • Investment guide for rooftop developers vis-à-vis ideal rate of return (project irr/equity irr), performance ratio and liquidated damages for the project.
  • Gain for industrial consumers (in INR) if opt for solar rooftop
  • Gain for Commercial consumers (in INR) if opt for solar rooftop
  • Gain for Government entities (in INR) if opt for solar rooftop
  • Gain for domestic consumers (in INR) if opt for solar rooftop
  • Best investment destination state for solar rooftop projects
  • Business scope for international majors to invest in indian rooftop space
  • Regulatory and market risk of different value Chain partners

Must Buy For

  • EPC player
  • project developer
  • O&M player
  • Bank and financing agency
  • project Contractors
  • module suppliers
  • research and Consulting firms
  • regulatory Bodies
  • industry associations
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1. Executive Summary

2. Solar Rooftop Industry in India: An Overview

3. Rooftop Solar Business Model in India

  • Grid Connected Solar Rooftop Projects
    • Gross Metering
    • Net Metering
    • Sale to grid
  • Off Grid Solar Rooftop Project
    • Standalone Mini Grid
    • Bi-Lateral Sale
    • RESCO
  • Recommendation for Best Case Business Model in India

4. Business Case vis-à-vis Cost Attractiveness for Solar Rooftop Project

  • Industrial Consumer
  • Commercial Consumer
  • Domestic Consumer
  • Government Entities

5. Policy and Regulatory Track for Solar Rooftop Market in India

  • State Wise Tracking
  • Best Fit State for Future Solar rooftop Projects

6. State Wise Grid Interactive Rooftop Solar Opportunity Tracking

  • MW wise investment Trend
  • Parametric evaluation of States Going for Solar Rooftop
    • Comprehensive Review of Consumer Mix
    • Tariff Comparison
    • Inherent Rooftop Opportunity Tracking

7. State Wise Off Grid Solar Rooftop Opportunity

  • Parametric Evaluation of States Going for Off - Grid Solar Rooftop
  • KW wise investment trend
  • KW wise investment opportunity till 2022.

8. Financial Viability of Rooftop Solar Projects

  • Draft Financial Model for Grid Interactive Solar Projects
  • Sensitivity Analysis

9. Investment Guide for Rooftop Project Developer

  • Financing Strategy for the Developer
  • EPC Contract Review
    • Performance Ratio Test Procedure and Estimation
    • Ideal Performance Guarantee and Liquidated Damages
  • Ideal Risk: Return Matrix
    • Project IRR
    • Equity IRR

10. Financing Guide for Banks/FIs for Rooftop Solar Projects

  • Pre - Construction Risk
    • Sponsor Risk
    • Clearance Risk
  • Construction Risk
    • Contractual Risk
    • Cost Escalation Risk
    • Completion Risk
  • Post- Construction risk
    • Performance Shortfall Risk
  • Ideal Risk Mitigation Technique

11. Issues and Challenges for Solar Rooftop Market in India

  • Financing Risk
  • Execution Risk
  • Regulatory Risk
  • GST and its Impact on Rooftop Solar Segment

12. Conclusion and Way Forward

Annexure I.
Under Construction/Upcoming Solar Rooftop Project Tracker

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown