Limited Time Opportunity to Get Huge Subsidy For Rooftop Solar in India for Residential Users

Arpit | 29th November 2016

Limited Time Opportunity to Get Huge Subsidy For Rooftop Solar in India for Residential Users

seci-rooftop-residential With the massive target of the National Solar Mission of 2022 looming large, the Government of India is going the extra mile to make energy consumers switch to solar PV power by providing financial rebates to the early movers, even though solar power is already financially viable for a lot of energy consumers in India. One such notable step in the direction has been the 500 MW rooftop Grid-connected Solar PV Rooftop Tender by Solar Energy Corporation of India (SECI).

According to the SECI rooftop tender, a select category of energy customers across India can avail about 30% subsidy on the solar system cost. Some special states such as North Eastern States, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep and Andaman & Nicobar islands, etc. are eligible for up to 70% subsidy. In addition to that, the consumers also get 5 years of operations and maintenance free of cost. The eligible consumers for this subsidy are independent house owners, housing societies, schools, colleges, temples, hospitals, etc.. Therefore, if you are planning to take your home solar or happen to be running an educational institution or a hospital, you can benefit massively from this program, which is open to all 29 states and Union Territories.

While we have explained the rooftop solar subsidy for social and institutional consumers on our blog, here is how the residential users, individual houses, housing societies and RWAs can hugely benefit from this subsidy and substantially reduce their electricity bills while at the same time contribute to the environment and give a green environment to their families and the community at large.

If you like to do your Math, you would have by now run the MYSUN Solar Calculator and would have got your personalized Solar Scorecard. Countless electricity consumers who have run the MYSUN Solar Calculator across India have already reported huge potential energy savings and Return on Investment (ROI) in the range of 16~24% on their investment in rooftop solar PV panels.

With the prospect of this additional 30% subsidy on solar power rooftop panels/ systems, going solar now is like a once-in-a-lifetime opportunity for you. Just to quote an example, a solar system available for INR 60,000 per kW in Delhi can be obtained for Rs 40,000 under this subsidy. You can check your personalized and fairly accurate savings potential and system cost in a rather detailed fashion by running the MYSUN Solar Calculator that gives you a snapshot of your solarisation potential here. For a more detailed look at the state-wise allocation and solar power system subsidy in your state, you can view the list here. Moreover, there are additional benefits and you can check all the details with regards to the solar policy in your state by clicking here.

Let’s try and elucidate our point by taking say an example of two more cities - Hyderabad and Jaipur. Below you will see the solarization benefits for a typical residential energy consumer living in Hyderabad and Jaipur respectively.

jaipur-wo hyd-wo

Now taking into consideration the 30% SECI subsidy, just look at the exponential rise in the returns. The ROI for the customer in Jaipur goes from 20.27% to 31.28%, while the same for the resident from Hyderabad goes from 31.01% to 51.29%

jaipur-with hyd-with

SECI has enabled both, CAPEX(show) and RESCO(show) ownership models for systems, making the choice of ownership simpler. Moreover, you can also avail of the Net-metering facility in your state and your solar installer will help you get all the approvals for the same. Given that this is a limited time scheme, we urge you to make your decision fast and Register your Rooftop with MYSUN immediately. Remember, the early bird gets the worm.

As your solar enabler and an unbiased marketplace, MYSUN ensures that you get the most competitive quotes from a number of reliable solar installers near you. We promise to simplify solar for you, answer all your queries and doubts about solar power and to be there throughout your solar journey. Once you are on the MYSUN platform, we ensure that you get the best quotes from our list of pre-screened installers and developers who deliver you high quality solar systems adhering to MYSUN standards on quality, pricing, solar system design and engineering, maintenance, etc.. If you want to check the solar financing or loan options, you don’t need to look beyond MYSUN who has tied-up with several banks and financial institutes that help you with the right financial product. For the next 25 years, you can bank upon our team for complete support and assistance. We are literally an E-Mail or a phone call away, and you can find all those details right on our contact us page.

Breakup of State-Wise Subsidy Available Under the 500MW Rooftop Tender by SECI

Arpit | 24th November 2016

Breakup of State-Wise Subsidy Available Under the 500MW Rooftop Tender by SECI
Solar Energy Corporation of India Limited (SECI) announced a 500MW Rooftop Tender. Significantly, this tender includes a Central Financial Assistance (Subsidy) of up to Rs 22,500/kWp* to those customers who are eligible. Under the program, only residential, institutional or social sector customers can participate. The subsidy is available on a first come first serve basis to the customers, so if you plan to go solar, we advise that you make the most of this opportunity and go solar. A very concise snapshot of the tender and its briefings have been captured in a separate blog post by the MYSUN team here. While the tender has listed Solar Financial Assistance for all the 29 states and Union Territories, most of them have a subsidy of up to 30%. There are special states such as North Eastern States, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep and Andaman & Nicobar islands that have a higher share of rebate, of up to 70%. Therefore it is critical to chart down which state has how much project allocation out of 500MW and therefore how much subsidy. We have collated that data and listed it for you below. It is worth noting that the tender has been divided into three parts, Part A, B and C depending upon the solar system size and ownership model, which has an affect on the subsidy that you can avail. Part A, B and C are detailed below:
Upto 25 kWp   – PART C (One project may comprise of several rooftop units)
25 kWp ~ 500 kWp – PART A and PART B
Now that you are familiar with that nomenclature, below you will find the state-wise capacity allocation as well as the allocation for subsidy under the SECI program.
S.No Name of the State PART A (Rs./kW) Part A Subsidy (Rs./ kW) PART B (Rs/kWhr) PART C (Rs./kW) Part C Subsidy (Rs./ kW)
1 Andaman & Nicobar Islands N.A. N.A. N.A. 74950 52465
2 Andhra Pradesh 59950 17985 5.25 62100 18630
3 Bihar 71900 21570 N.A. 71270 21381
4 Chandigarh 55500 16650 3 64130 19239
5 Chhattisgarh 67800 20340 5.91 68500 20550
6 Dadra & Nagar Haveli N.A. N.A. N.A. 68400 20520
7 Daman & Diu N.A. N.A. N.A.  N.A. N.A.
8 Delhi/NCR 55100 16530 4.75 57000 17100
9 Goa 60000 18000 N.A.  N.A. N.A.
10 Gujarat 53000 15900 6.12 64000 19200
11 Haryana 56900 17070 5.23 58000 17400
12 Himachal Pradesh 56500 39550 3 64950 45465
13 Jammu & Kashmir 70000 49000 N.A. 73000 51100
14 Jharkhand 72000 21600 5.47 71000 21300
15 Karnataka 53000 15900 4.55 59000 17700
16 Kerala 68320 20496 N.A. 65000 19500
17 Lakshadweep N.A. N.A. N.A. 74950 52465
18 Madhya Pradesh 55498 16649 5.38 59498 17849.4
19 Maharashtra 53000 15900 4.45 59000 17700
20 North Eastern States/Sikkim 45100 31570 4.81 65000 45500
21 Odisha 69400 20820 4.90 70121 21036.3
22 Puducherry 70500 21150 3 69950 20985
23 Punjab 64123 19237 6.20 67500 20250
24 Rajasthan 57550 17265 4.50 59850 17955
25 Tamil Nadu 53000 15900 5.55 62100 18630
26 Telangana 59700 17910 5.35 61000 18300
27 Uttar Pradesh 59498 17849 5.47 60000 18000
28 Uttarakhand 56500 39550 3 64000 44800
29 West Bengal 67800 20340 5.55 64000 19200
Colour Notation
1 Special category states/UT (70% subsidy)
2 The states/UT listed in special category at one place and general category at another place in the SECI Tender Document. (In the above table they are assumed as General states.)
With all that information handy, we sure we do not even need to invite you or share with you why we think this is indeed the perfect opportunity and time for you to go solar. So go ahead, register your rooftop with MYSUN and begin your journey to go solar and make the most of this limited time opportunity that SECI has presented. Image Source: The Hans India

Highlights of the 500MW Grid-connected Solar PV Rooftop Tender by SECI

Arpit | 23rd November 2016

Highlights of the 500MW Grid-connected Solar PV Rooftop Tender by SECI

Central Financial Assistance (Subsidy) upto Rs 22,500/kWp available to eligible customers

seci-rooftop-highlights There is never really a bad time to start with something that will have lasting positive impact, as solar would, on our coming generations. Having said that, would it not be wonderful if there is even more incentive for you to take the jump and go solar? Thanks to the 500MW rooftop tender by Solar Energy Corporation of India (SECI), a Government of India body, you can earn at least 30% subsidy on the solar PV system. The subsidy though, is available only to those who are eligible. The question of who can avail the SECI subsidy alongside several other points and things that you need to know about the subsidy are answered below:

Who is Eligible to get CFA (Subsidy)

S No Category of Consumer Coverage of Buildings
1 Residential All types of residential buildings
2 Institutional Schools, health institutions including medical colleges & hospitals, universities, educational institutions, etc. (applicable to not-for-profit registered organizations only)
3 Social sector Community centers, welfare homes, old age homes, orphanages, common service centers, common workshops for artisans or craftsman, facilities for use of community, Trusts/ NGOs/Voluntary organizations/ Training institutions, any other establishments for common public use, etc. (applicable to not-for-profit registered organizations only)
While 30% subsidy is for most of the general states and Union Territories, there is a higher, 70% subsidy that is available for states and UTs that fall in the special category. This includes the North Eastern States, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep and Andaman & Nicobar islands. The below table summarizes the subsidy that is applicable:

Applicable Subsidy

Category Gen category States/UTs Special Category i.e. NE, Sikkim, Uttarakhand, HP, J&K, Lakshadweep, A&N Islands
PART-A(25 – 500kWp) CAPEX 30% of L1 quoted project cost of State or Rs 22.5/Wp, whichever is lower 70% of L1 quoted project cost of State or Rs 52.5/Wp, whichever is lower
PART-B (25 – 500kWp) RESCO 30% of benchmark cost i.e. Rs 22.5/Wp 70% of benchmark cost i.e. Rs 52.5/Wp
PART-C (Upto 25 kWp) CAPEX 30% of L1 quoted project cost of State or Rs 22.5/Wp, whichever is lower 70% of L1 quoted project cost of State or Rs 52.5/Wp, whichever is lower
Check the SECI subsidy available in your state here. You must have noticed from the table above that there are three categories to the tender, in the form of Part A, B and C. The parts here, determine the size of the project and ownership type (whether CAPEX or RESCO) and therefore the subsidy that you can avail. We explain the size of the projects below:

Size Of the project

Upto 25 kWp   – PART C (One project may comprise of several rooftop units)
25 kWp ~ 500 kWp – PART A and PART B
SECI has also issued some guidelines when it comes to the connectivity of the plants based on their capacity. The connectivity guidelines are:

Connectivity

The maximum capacity for interconnection with the grid at a specific voltage level shall be as specified in the Distribution Code/Supply Code of the State and amended from time to time. Following criteria have been suggested for selection of voltage level in the distribution system.
Plant Capacity Connecting Voltage
Up to 10 kW 240V-single phase or 415V-three phase at the option of the consumer Above
10kW and up to 100 kW 415V,Three Phase
Above 100kW At HT/EHT level (11kV/33kV/66kV) as per DISCOM Rule
The maximum permissible capacity for rooftop shall be 1 MW for a single net metering point. The installers and developers who are participating in the tender will be expected to complete the following responsibilities:

Scope Of Work for the Solar Installer/ Developer

The Scope of work includes:
  • Identification of buildings/leasing rooftop of buildings for 25 years.
  • Obtaining an NOC (No Objection Certificate) from the DISCOM (Distribution Company) for grid connectivity.
  • Complete design, engineering, manufacture, supply, storage, civil work, erection, testing and commissioning of the grid connected rooftop solar PV project.
  • O&M (Operations and Maintenance) of the project for a period of 5 years for PART-A & Part C and O&M of the project for a period of 25 years for PART B after commissioning of the projects as per SECI’s acceptance.
  If you decide to go Solar under the SECI subsidy via MYSUN, we will ensure the following Warranties and Guarantees are taken care of by the Solar Installer/ Developer:

Warranties And Guarantees

  • The goods supplied under this contract are new, unused, of the most recent or latest technology and incorporate all recent improvements in design and materials.
  • Warranty covering the rectification of any and all defects in the design of equipment, materials and workmanship including spare parts for a period of 5 years from the date of commissioning for PART-A/PART-C projects and for 25 years for PART-B projects.
  • The solar company shall transfer all the Guarantees/ Warranties of the different components to the Owner of the project.
  • The responsibility of operation of Warrantee and Guarantee clauses and Claims/ Settlement of issues arising out of said clauses shall be joint responsibility of the solar installer/ developer and the owner of the project.
  SECI has laid down certain solar generation parameters that the systems set up by the solar companies  have to comply with. To ensure compliance, SECI has taken Performance Bank Guarantees (PBG) from these solar companies and has linked subsidy disbursement with actual generation from the project  These parameters would ensure that the customer gets the most returns and benefits when he goes solar. The following parameters must be complied with:

Plant Performance Evaluation

  • The solar company shall be required to meet minimum guaranteed generation with Performance Ratio (PR) at the time of commissioning and related Capacity Utilization Factor (CUF) as per the GHI levels of the location during the O&M period.
  • PR should be shown minimum of 75% at the time of inspection for initial commissioning acceptance to qualify for release of 30% subsidy.
  • Minimum CUF of 15% to be maintained for a period of 5 years is one of the conditions for release of PBG. The solar company should send the periodic plant output details to SECI for ensuring the CUF. The PR will be measured at Inverter output level during peak radiation conditions.
  The subsidy that you are eligible for will not be disbursed at one go. The ratio of the disbursement is below:

Subsidy Disbursement by SECI

  • For General category states, the 20% subsidy shall be disbursed after successful Commissioning and acceptance of project and balance 10% subsidy after completion of first year of successful O&M.
  • For special category states the 46% subsidy shall be disbursed after successful Commissioning and acceptance of project and balance 24% subsidy after completion of first year of successful O&M
  SECI has also included definitions of certain terms. Aforementioned, wherever the following words are used, their definition is listed.

Definitions as per SECI

  • CAPEX Model shall mean, the bidder/system integrator enters into an Agreement with the rooftop owner at the quoted project cost as per RFS for the Scope of work not limited to that indicated in the RFS as per mutually agreed terms and conditions. This model also allows energy sale at a tariff as per SECI Tender Document
  • RESCO model shall mean where the bidders/Developers intend to take a rooftop owned by some other entity on mutually agreed terms and conditions including lease agreement from the roof top owner(s) and enters into the PPA with rooftop owner / DISCOM / others for supply of Solar power for 25 years at a tariff as per SECI Tender Document from the date of Commissioning of project.
  • Rooftop Solar PV under the SECI tender shall mean solar PV array/system installed on the flat /inclined roof of the building / elevated platform on metallic or concrete structure minimum 10 feet above ground level / Ground mounted system (in the places where sufficient shadow free rooftop area is not available.) In such instance up to 40% Solar PV array/system capacity can be accommodated on nearby unutilized land subject to the SECI’s approval.
  Now that you have virtually all the information you need about the SECI tender and the subsidy that you are eligible for, you must act now and make most of the opportunity. Go ahead and Register your Rooftop with MYSUN to get going and start your journey towards solar now. If you are among those who are not eligible for the SECI subsidy, we request you to run the MYSUN Solar Calculator in order to determine your solar potential. If the unbiased view of the calculator is that you should go solar, you must Register your Rooftop with us and reach out to us via our Contact Us page in case you require easy solar financial assistance. Image Source: SECI

Few Commonly Heard Solar Related Myths Busted – Part 1

[email protected] | 13th September 2016

Few Commonly Heard Solar Related Myths Busted – Part 1

A common issue with something aspirational and very hot off the press is that everybody seems to think they know it inside out, yet very few get to reach the depths of reality. Solar too, is a victim to this. The general thought process is that, we have seen the sun right from our birth and how much more could there be about it or for that matter, about generating electricity from it? Most of you would be aware of the process but let's have a look at some of the solar energy information and facts.

It is fairly straightforward that solar energy falling onto solar panels is converted into electricity and is then transmitted through transmission lines, a bit like how conventional power generated is transmitted. It sounds really simple and easy. And perhaps, that is why, a lot of people think they know solar energy facts well, but there is more than what meets the eye. Not complicated stuff like a rocket lifting off, but a little more than what the next door neighbour would tell you. No wonder, there are several things that you hear about solar systems, that cannot be further away from the truth.

While we have tried to cover most of these in the form of FAQs on our site, we still thought, we will pick up the most common thoughts and facts about the solar system, that get peddled around as truth but in reality, aren’t.

We plan to do this in a series format, what you see here are five popular myths around solar busted, we will follow this up with another set, and so on.

Myth: Solar Power is very expensive.

Reality: Isn’t it like a paradox? Solar is supposed to be cheap, given how widely the energy from the sun is available, yet the perceived notion is that it is more expensive. However, the reality is distinctly different. Unlike the traditional power generation sources, the solar industry in general has seen rapid developments. Thanks to some brilliant engineering masterminds coming together, economies of scale and other market forces, over the last decade, the upfront cost of solar has seen a steep decline. The initial cost of installation has dropped by almost 75%, which is extremely significant. The technological advancement in general has not only made the components cheaper but also more efficient and reliable. This has resulted into solar power becoming cheaper for a lot of consumers, be it residential, commercial or industrial consumers. So to think, that solar is expensive, is well, a myth and nothing more. Take for example, a typical residential consumer in New Delhi who pays a monthly bill of Rs. 5000. The savings he racks up over 25 years goes to show that solar is anything but expensive.

Myth: Solar systems are high maintenance.

Reality: Solar systems are made in such a way, that there are no moving parts involved. And by the laws of physics, something that is not moving will experience less wear and tear and therefore likely to last longer. Generally speaking, grid-connected solar systems need almost negligible maintenance. 8 out of 10 users that we surveyed about their upkeep habits, across various segments, stated that they casually just wait around for the rain to perform the cleaning for them! This usually leads to about 5-7% reduction in the efficiency of the panels. We obviously would not advocate a completely reckless attitude to your investment. It would be a good practice to hose the panels off, once a month, as it helps in removing any unwanted materials that may have accumulated on them over a period of time. A cursory check on the panels for any visible spots or cracks could also help in ensuring that the generation is right and within the expected range.

Myth: A Solar PV system doesn’t work at all in overcast conditions.

Reality: The crux of this myth comes from the fact that power generated is directly related to sunlight, right? We would be more than glad to squash this misnomer. Solar panels work just fine under ambient light aka, cloudy or not so sunny conditions. Unlike shade, overcast conditions allow at least some sunlight to reach your system. The reduction in the amount of power generated under mildly overcast to heavily cloudy situations varies between 5-10% to 60-70% of the total output, respectively. Moreover, cloudy conditions lead to a dip in temperatures of the location in which the system is located, which is actually beneficial to the system as observed in some parts of the world. Germany, anyone?

Myth: Solar PV only works in areas with very high temperatures.

Reality: Contrary to popular belief, solar panels work at their efficient best when the temperatures are not too hot. The science behind this is fascinating and worth reading about. Sunlight comprises of photons, that carry the requisite energy required to start the photovoltaic or PV effect. These photons transfer this energy to the electrons in the solar panels, which constitute of the solar PV cells. The energised electrons move from a state of low energy to high energy. A solar cell is designed to extract these excited electrons and run them through a circuit to produce electricity. However, under extremely hot conditions, these electrons get more excited and vibrate faster than they would normally. As a result, these electrons bump into other atomic constituents of a solar cell, converting this extra energy into excessive heat. Hence, their ability to generate electricity is reduced and this has adverse effects on the output of the solar system.

Myth: Manufacturing of a solar panel creates more greenhouse emissions than it saves in the future, which kind of offsets the benefits.

Reality: This is an interesting one. Sure, it is true that carbon dioxide is emitted in the production of a solar panel to the tune of about 70 grams of carbon dioxide per kWh generated. However, these panels are “carbon negative”. In fact, it takes 2-3 years to generate as much power to compensate for the amount that was required to manufacture them, and they still have another 25 years to run! Add to the fact, during their lifetime solar panels still produce less than 30 times the carbon dioxide than what their fossil fuel counterparts do and you know you are looking at an environmental friendly solution. So therefore, pretty apt to state that while solar panels may consume resources when they are young, they grow up to be magnificent adults, that help keep our environment healthy and fresh.

Which of the solar myths above that we busted did you once believe in? Or is there a myth that we perhaps have not covered and missed out on? Go ahead and share it with us in the section below or catch us up on Social Media, links to which are located in the footer. We would love to hear from you.