Delhi Solar Policy - DR. GOPAL ENERGY...

Department of Power Government of NCT of Delhi

Delhi Solar Policy

Solar Potential of Delhi

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• Rooftop Solar potential in Delhi

– 2.5 GW estimated potential for Rooftop Solar

• Government – 26%

• Commercial, industrial – 25%

• Residential – 49%

• Current installed solar capacity is 12 MWp and 15 MWp is under

implementation.

• Financing potential and options in Delhi are well above average

• Discom networks relatively better than elsewhere in India (low loss/theft)

• Very little grid downtime, ideal for solar installations without batteries

(“the grid is the storage”)

• With the right solar policy and implementation, Delhi can reach 1 GW Solar

Power capacity in 5 years

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25

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Solar Potential by Sector

Delhi can become a shining example for rooftop solar in India!

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• Remember Delhi’s CNG revolution a decade ago?

• Delhi has the opportunity to lead a rooftop solar

revolution!

• 400 MW on Delhi govt. rooftops can save ~200 crores/year

– In 20 years, Delhi government can save over 5,100 crores!

• Delhi can cut its electricity expense,

improve energy security, and shave off

over 10% of peak demand by 2025,

reducing the need for new PPAs!

* Savings for 1 MW with INR 3.5/unit gap = INR 51 lakhs/year; with 0.5% annual output reduction; 5% CAGR in conventional power.

Rooftop Solar Economics in Delhi

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• 1 kW Solar System Parameters

– Cost ~INR 65,000

Includes panels, inverter, installation

– Rooftop space needed

~10 sq. meters (3m x 3.3m)

– Generates ~1,300 kWh (units)/year

– Households generate electricity worth INR 11.5K/year

• Payback time 6 - 7 years*

– Commercial/Industrial/government generate electricity worth INR

15K/year

• Payback time ~5 years*

• After payback, rooftop earnings are pure profit for the next 18-20 years

•Tariff – and payback time – vary by consumption. Household calculation is for •the 400-800 units/month band.

• Promotion of LED in all buildings, street lightings and hoardings, advertisements

etc. 45 lac LED bulbs have been distributed and 1.62 lac street lights have been changed in Delhi from conventional to solar.

• Mandatory use of Solar Water Heaters in Delhi in different categories of buildings. Delhi Govt has also provided subsidy of Rs. 6000/- for domestic Solar Water Heating Systems & up to Rs 6000/- (@ Rs. 6000/- per 100 LPD) for Systems installed in Non-commercial Institutions/organizations.

• Mandatory use of ISI marked Motor pump sets, Power capacitor, and foot/Reflex valves in Agriculture Sector of Delhi State.

• It is proposed to make Delhi Secretariat the first Green, Energy Efficient secretariat operating completely on Solar Energy. For this a 3MWp surface mounted SPV plant is being installed on the vacant land of erstwhile Indraprastha Power Station. Power generated from this 3MWp SPV plant will be dedicated to Delhi Secretariat for meeting out the total electricity requirement of the building.

• Out of total capacity of 3MWp SPV plant, 1 MWp capacity has already been commissioned on 24.10.2015 and the power generated is being used in Delhi Secretariat. This is resulting in saving of approx Rs 6 Lacs per month which shall increase to 18 lac per month.

Initiatives taken by EE & REM Centre

Initiatives taken by EE & REM Centre • EE&REM Centre under Department of Power, participated in the Indian International

Trade Fair 2015 held at Pragati Maidan, Delhi. The theme was Renewable Energy. Quizzes were organized daily for the general public to create awareness about rooftop Solar PV Power Plant, Net Metering benefit and Frequently Asked Questions and the prizes to the successful participants were given.

• A series of workshops are being conducted to disseminate the knowledge about Renewable Energy, Energy Efficiency and Energy conservation among the citizens of Delhi through Resident Welfare Associations. Reputed experts from Bureau of Energy Efficiency (BEE), Energy Efficiency Service Limited (EESL), National Productivity Council (NPC), Indian Institute of Technology, Delhi and EE&REM informed about the importance of Renewable Energy, Energy efficiency & conservation and how to achieve it using simple tips in domestic sector like houses, shops, parks etc.

• Organising “Suryamitra” training programs in Delhi state in collaboration with National Institute of Solar Energy (NISE) and The Energy Resources Institute (TERI).

• Provided active support and cooperation to the National Campaign of Bureau of Energy Efficiency on Energy Conservation i.e. “Painting Competition on Energy Conservation” since 2007, to spread the message of energy conservation among the younger generation.

Delhi Solar Policy

Highlights of the policy

• Achieve aggressive yet realistic rooftop solar growth in Delhi

– 1.0 GW by 2020 (14% of peak load, 4% of total energy)

– 2.0 GW by 2025 (21% of peak load, 7% of total energy)

• Zero subsidies from Delhi government

• Use market-based approaches and regulations to drive growth

– Support all business models: Self-owned or third-party-owned

– Promote soft loans, such as from central agencies (IREDA, REC, PFC) and/or solar sector soft loans

from SBI, World Bank, KfW, etc.

• Ensure fairness for all stakeholders in the solar ecosystem

– Rooftop owners in all consumer segments, Discoms, investors, technology and services providers,

non-rooftop solar and non-solar power consumers & manufacturers.

Net Metering

GRID

Distribution Transformer

Consumer’s Premises

Net Meter

PV Modules

Solar Meter

Hybrid Net-Metering With Battery Backup

"Considerations in Rooftop Solar Installations," SESI iCon, 29 Jan. 2016, New

Delhi. 10

GRID

Distribution Transformer

Consumer’s Premises

Net Meter

PV Modules

Consumption Meter

PCU

- Separate AC Solar Energy Meter might not be possible.

- Alternatively: Solar Energy Generated

=Consump. M. – Net M.

Delhi Solar Policy Highlights

Drive Net Metering Adoption

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• Promote net metering for every solar

installation at or above 1 kW

• Self-consume first. Allow up to

sanctioned load to be fed into grid

• Parity pricing for exported energy

• Monthly credits on exported energy.

At year end, discom will pay for surplus solar energy at average power

purchase cost

• Discom responsible for reading/reporting gen, self-consumption, and export

– All net metered solar energy generated will count towards discom’s solar

RPO

• Discoms to streamline net metering, put all requests online with status



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• Treat two connections as one for

energy accounting purposes

• Encourages fuller realization of

rooftop potential – solves problem

of large rooftop/low consumption

• But only if same consumer name,

in single discom area

• Initially case-by-case approval by DERC.

• A joint committee comprising of members from DERC, the state

power department, SNA shall be formed to achieve this policy objective.

Group Net Metering

Virtual Net Metering

• To give access to the solar net metering facility for consumers who do not have a suitable space in its premises/rooftop for installing a solar system (e.g. residential consumers who live in apartments, consumers with shaded rooftops)

• In Virtual Net Metering consumers can be beneficial owners of a part of a collectively owned solar system.

• All energy produced by a collectively owned solar system will be fed into the grid through an energy meter and the exported energy as recorded by that meter will be pro rata credited in the electricity bill of each participating consumer on the basis of beneficial ownership.

• A joint committee comprising of members from DERC, the state power department, SNA shall be formed to achieve this policy objective.




Generation Based Incentive (GBI)

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• Solar hasn’t yet achieved grid parity for low-mid range of domestic users • Variable domestic tariff structure (above fixed charge of INR 100 p.m.):

• A limited-time incentive will reduce payback time and increase adoption • Generation Based Incentive for 3 years • The minimum eligibility criteria for GBI has also been prescribed at 1000

units (kWh) per annum per kW and shall be capped at 1500 kWh per kWp.

• INR 2/solar unit generated – Will reduce payback time by 1-2 years – But no subsidy benefit of lower slab

• Maximum cost to state will be small vs. its impact – 50 crores over 3 years on first come first serve basis

Units 0-200 201-400 401-800 801-1200 1200+

Tariff (INR) 4 5.95 7.30 8.10 8.75

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2015-16 2016-17 2017-18 2018-19 2019-20

New GBI

Total GBI


A Green Fund

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• Payment of Generation Based Incentive (GBI)

– This amounts to about 38 crores over 3 years

• Drive Public Awareness of solar energy and its benefits

• Education – technical training / certification programs for solar skill development; this will help create new jobs in Delhi

Leverage existing Air Ambience Fund in Delhi that’s funded by a cess on diesel

Para No.13.10 – Building bylaws amendment for rooftop solar installations

• The height of the module structure carrying solar panels shall not be counted towards the total height of the building as permitted by building bylaws, except near airports where building regulations issued by the Airports Authority of India take precedence.

• No approval will be required from concerned Municipal Corporation or other Urban Development Bodies like the DDA for putting up solar plants including any additional system for monitoring the performance of solar plant in existing or new buildings.

• The support structure on which rooftop solar panels are installed shall be a temporary structure built in accordance with local building codes.

No inspection upto 200 KWp

• Delhi Government has recently issued a notification’

• Solar system upto 200 KWp are exempted from certification by Electrical inspector

• Self certification will suffice

Mandatory Deployment

• Para No.11.1 – Mandatory deployment of solar on Govt./Public institution

• In order to achieve the annual targets of solar

deployment as mentioned in the policy, we have to sensitize the departments especially Delhi Jal Board, PWD, health, Education (Higher & TTE), DTC, DSIIDC, DUSIB and all the Municipal Corporations for initiating appropriate action to deploy solar power plants on various government buildings.


Rooftop Solar Energy Targets for Delhi

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Other Incentives for RE Projects

Fiscal Incentives Financial Incentives

• Accelerated Depreciation

• Tax holidays

• Tax exemption

• Concessional Customs & Excise Duty for some of the machinery components

• General Sales Tax exemption in certain States.

• Generational Based Incentives (GBI)

• Viability Gap Funding (VGF)

• R & D Funding

• Priority Sector Lending

• 100% FDI for RE

Recent Measures to boost RE

Development

Renewables accorded Priority Sector Lending status by Reserve Bank of India, RBI: Loans upto Rs. 15 Cr.

RBI stipulates loan for Roof-top SPV to be considered as part of Home Loans

Enforcement of RPO / REC – Recent orders by Appellate Tribunals & Hon’ble Supreme Court of India

21 States announced policy for Solar Roof-top.

Increase in Coal Cess from Rs. 100 /MT to Rs. 200 /MT.

National tariff policy with objective to promote energy from renewable sources

Amendements to the Tariff Policy • One of the objective to promote energy from renewable

sources

• Renewable Generation obligation

• Bundling of RE with conventional plants whose life has expired.

• No interstate Transmission charges and losses to be levied.

• Compulsory power procurement from waste to energy projects mandated.

• Recognition of Microgrids as means to provide electricity in remote villages

• Compulsory power procurement from microgrids projects mandated.

Recent Measures to boost RE

Development


Available tax breaks, benefits and subsidies

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• Accelerated depreciation for commercial/industrial consumers

• Custom duty concession and excise duty exemptions

• 10 year tax holiday

• Provision of bank loan as part of home loan.

• Loans for system aggregators at concessional rates from IREDA.

• Direct subsidies from the Centre (MNRE)

• 30% capital subsidy on projects

• Priority to domestic consumers and public institutions

– Waiver of State Taxes (Proposed) – Waive VAT on solar equipment for 5 years.

– Waive electricity tax (5%) on solar units generated for 10 years *

* Cost to state per 100 MW will be INR 4.5 crores/year


Delhi Discoms and Solar Power

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– Reduces expensive peak demand and average purchase price of power

– It’s seen as a new business opportunity

– Solar power is unstoppable! Sooner or later discoms will need to embrace it

– Solar power, beyond 5-10% of their network’s capacity, eats into their profit, esp. due to cross-subsidies

– Discoms have signed long-term PPAs for preset amounts of conventional energy

Delhi Solar Policy - DR. GOPAL ENERGY...

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