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SAMPLE REPORT
Why Do You Need an Expert Guide for MW Solar Power Plants?
The solar power sector is still quite new in India, just about 6 years old. Unlike many other traditional
sectors, a number of aspects are unique to this sector – technology, policy & regulations, and the
competitive landscape that defines the business models.
India MW Solar Advisor from Solar Mango (a division of EAI), is India’s only professional expert guide
to investing in MW scale solar power plants. This advisor is written especially for those who are
new to the solar power sector.
Rather than overloading you with too much information, the Advisor explains in simple and clear
language the most critical aspects that a developer needs to know – the benefits, the risks, the
constraints and of course the future possibilities.
For a very small price, you get to understand the critical aspects of a huge investment. The
report is presented in an interactive way, in many cases posing questions critical to an investor and
answering those in a manner that facilitates action and decision making.
This sample report provides those interested in buying the reports with a complete list of contents
available in the Advisor, and brief samples of perspectives, inputs, data points and tables.
India MW Solar Advisor costs Rs. 11,500 only, and can be purchased through credit card, bank
transfer, or cheque.
A 1 MW solar power plant costs upwards of Rs 5.5 crores, a large investment
for anyone. It hence is imperative that anyone interested in MW scale solar
power plants gets a good understanding of the basics of this unique sector
before making any serious investment decisions.
To purchase the India MW Solar Advisor, you can
Do so from https://secure.clixoo.com/purchase/solarmango/mwsolar/report.html , or
Send an email to [email protected] , with the subject: Purchase MW Solar Advisor
with your contact details and we will get in touch with you immediately.
Or contact Muthukrishnan for further information – 09952910083, [email protected]
Visit the official website for more information - http://www.solarmango.com/in/reports/india-mw-
solar-advisor
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Contents Introduction ...................................................................................... Error! Bookmark not defined.
Contents ...................................................................................................................................... 1
1. Business Models for Utility Scale Solar PV ....................................... Error! Bookmark not defined.
Sale to Utility ........................................................................................ Error! Bookmark not defined.
Sale to Private Consumer ..................................................................... Error! Bookmark not defined.
Captive Consumption ........................................................................... Error! Bookmark not defined.
Pros and Cons of the Business Models ................................................ Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
2. Status of MW Solar Power Plants in India........................................ Error! Bookmark not defined.
Prominent Developers ......................................................................... Error! Bookmark not defined.
Non-Developer Stakeholders ............................................................... Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
3. Attractive Regions for MW Solar in India ......................................... Error! Bookmark not defined.
Prominent Regions for Solar Power Plants .......................................... Error! Bookmark not defined.
By Radiation ..................................................................................... Error! Bookmark not defined.
By State ............................................................................................ Error! Bookmark not defined.
Performance of Operating Plants ........................................................ Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
4. Vendor & Component Selection Checklist ....................................... Error! Bookmark not defined.
Who is an EPC?..................................................................................... Error! Bookmark not defined.
Criteria to Choose EPCs ........................................................................ Error! Bookmark not defined.
Expertise on All Solar EPC Value Chain Components ....................... Error! Bookmark not defined.
Three Types of EPCs You Should Avoid ................................................ Error! Bookmark not defined.
Key Parameters for EPC Selection ........................................................ Error! Bookmark not defined.
Top 5 criteria .................................................................................... Error! Bookmark not defined.
Other criteria .................................................................................... Error! Bookmark not defined.
Specific Expertise to Look for in Core EPC Team ................................. Error! Bookmark not defined.
Engineering ...................................................................................... Error! Bookmark not defined.
Procurement .................................................................................... Error! Bookmark not defined.
Commissioning ................................................................................. Error! Bookmark not defined.
Planning for O&M & Monitoring and Control Systems ................... Error! Bookmark not defined.
Large-Scale Solar EPCs in India ............................................................. Error! Bookmark not defined.
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National EPCs ................................................................................... Error! Bookmark not defined.
EPC with focus on: ............................................................................................................................ 16
Rooftop solar power plants .......................................................................................................... 16
Ground-mounted solar power plants ........................................................................................... 16
Solar EPC Categorization ................................................................................................................... 16
Component Selection – Standards and Warranties ............................. Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
5. State, Central Solar Policies ............................................................ Error! Bookmark not defined.
Introduction to Solar Policies and Regulations .................................... Error! Bookmark not defined.
Bidding under Central and State Policies ......................................... Error! Bookmark not defined.
Central Policy – National Solar Mission ............................................... Error! Bookmark not defined.
Overview .......................................................................................... Error! Bookmark not defined.
Status ............................................................................................... Error! Bookmark not defined.
State Policies ........................................................................................ Error! Bookmark not defined.
Andhra Pradesh ................................................................................ Error! Bookmark not defined.
Assam ............................................................................................... Error! Bookmark not defined.
Bihar ................................................................................................. Error! Bookmark not defined.
Chhattisgarh ..................................................................................... Error! Bookmark not defined.
Gujarat ............................................................................................. Error! Bookmark not defined.
Haryana ............................................................................................ Error! Bookmark not defined.
Jharkhand ......................................................................................... Error! Bookmark not defined.
Karnataka ......................................................................................... Error! Bookmark not defined.
Madhya Pradesh .............................................................................. Error! Bookmark not defined.
Maharashtra ..................................................................................... Error! Bookmark not defined.
Odisha .............................................................................................. Error! Bookmark not defined.
Punjab .............................................................................................. Error! Bookmark not defined.
Rajasthan .......................................................................................... Error! Bookmark not defined.
Tamil Nadu ....................................................................................... Error! Bookmark not defined.
Telangana ......................................................................................... Error! Bookmark not defined.
Uttarakhand ..................................................................................... Error! Bookmark not defined.
Uttar Pradesh ................................................................................... Error! Bookmark not defined.
Other States ..................................................................................... Error! Bookmark not defined.
Summary .............................................................................................. Error! Bookmark not defined.
Recently concluded and upcoming allocations.................................... Error! Bookmark not defined.
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Recently concluded Allocations in UP .............................................. Error! Bookmark not defined.
Recently concluded Allocations in Rajasthan .................................. Error! Bookmark not defined.
Recently concluded PPAs for AP under NSM ................................... Error! Bookmark not defined.
Recently Concluded State Solar Allocation in Jharkhand ................ Error! Bookmark not defined.
Recently Concluded State Solar PPA Allocation in Karnataka ......... Error! Bookmark not defined.
Recently Concluded State Solar Allocation in Orissa ....................... Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
6. Financing Options in India .............................................................. Error! Bookmark not defined.
Overview .............................................................................................. Error! Bookmark not defined.
Debt Financing Terms .......................................................................... Error! Bookmark not defined.
Domestic Financing .......................................................................... Error! Bookmark not defined.
International Financing ........................................................................ Error! Bookmark not defined.
Approaching a Financer ....................................................................... Error! Bookmark not defined.
Eligibility Criteria .............................................................................. Error! Bookmark not defined.
Documents ....................................................................................... Error! Bookmark not defined.
Financial Institutions ............................................................................ Error! Bookmark not defined.
Equity ............................................................................................... Error! Bookmark not defined.
Debt .................................................................................................. Error! Bookmark not defined.
Details of Debt from Government Sources .......................................... Error! Bookmark not defined.
IREDA ................................................................................................ Error! Bookmark not defined.
Power Finance Corporation (PFC) .................................................... Error! Bookmark not defined.
Constraints and Challenges for Getting Financial Closure for MW Solar Power Plants ............. Error!
Bookmark not defined.
Earlier Challenges ............................................................................. Error! Bookmark not defined.
Current Challenges ........................................................................... Error! Bookmark not defined.
Suggestions and Perspectives from the Financial Sector for Overcoming the Challenges and
Making Solar Power Projects More Bankable .................................. Error! Bookmark not defined.
Dollar Denominated Solar Tariffs ..................................................... Error! Bookmark not defined.
Financing Options for Different Types of Developers ...................... Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
7. DPR Template for a Solar PV Power Plant........................................ Error! Bookmark not defined.
Components of a Detailed Project Report ........................................... Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
8. Cost Break-up of Utility Scale Solar PV Power Plants ....................... Error! Bookmark not defined.
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Trends in Plant Cost ............................................................................. Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
9. Template for Financial Returns ....................................................... Error! Bookmark not defined.
Revenues .............................................................................................. Error! Bookmark not defined.
Billable kWh ..................................................................................... Error! Bookmark not defined.
Tariff ................................................................................................. Error! Bookmark not defined.
Costs ..................................................................................................... Error! Bookmark not defined.
Initial Capital Investment ................................................................. Error! Bookmark not defined.
Inverter Replacement ...................................................................... Error! Bookmark not defined.
Operations & Maintenance (O&M) ................................................. Error! Bookmark not defined.
Insurance .......................................................................................... Error! Bookmark not defined.
Debt Service ..................................................................................... Error! Bookmark not defined.
Taxes ................................................................................................ Error! Bookmark not defined.
Analysis ................................................................................................ Error! Bookmark not defined.
Case Study – Cash Flow for 1 MW Plant .............................................. Error! Bookmark not defined.
Overview and Assumptions ............................................................. Error! Bookmark not defined.
Cash Flow ......................................................................................... Error! Bookmark not defined.
Notes to the Cash Flow .................................................................... Error! Bookmark not defined.
Analysis ............................................................................................ Error! Bookmark not defined.
Solar Mango’s Recommendation..................................................... Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
10. Competition to PV ........................................................................ Error! Bookmark not defined.
Potential for Technology Disruption .................................................... Error! Bookmark not defined.
Will Technology Advancement Mean Lower Returns for Plants Currently Being Installed? ...... Error!
Bookmark not defined.
PV vs. CSP ............................................................................................. Error! Bookmark not defined.
Photovoltaic (PV) ............................................................................. Error! Bookmark not defined.
Concentrated Solar Power (CSP) ...................................................... Error! Bookmark not defined.
PV vs. CPV............................................................................................. Error! Bookmark not defined.
Concentrated Photovoltaic (CPV) .................................................... Error! Bookmark not defined.
Trackers ................................................................................................ Error! Bookmark not defined.
Single-axis Trackers .......................................................................... Error! Bookmark not defined.
Dual-Axis Trackers ............................................................................ Error! Bookmark not defined.
Alternatives to Solar in the Indian Renewable Energy Mix ................. Error! Bookmark not defined.
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Key Takeaways ..................................................................................... Error! Bookmark not defined.
11. Resources..................................................................................... Error! Bookmark not defined.
Policies and Regulations ...................................................................... Error! Bookmark not defined.
Design and Estimation Tools for Developers ....................................... Error! Bookmark not defined.
BLUESOL ........................................................................................... Error! Bookmark not defined.
Helioscope ........................................................................................ Error! Bookmark not defined.
INSEL Toolbox Solar Electricity ......................................................... Error! Bookmark not defined.
Meteonorm ...................................................................................... Error! Bookmark not defined.
PVSol ................................................................................................ Error! Bookmark not defined.
PVSyst ............................................................................................... Error! Bookmark not defined.
PVWatts ........................................................................................... Error! Bookmark not defined.
RETScreen ........................................................................................ Error! Bookmark not defined.
SAM (System Advisor Model) .......................................................... Error! Bookmark not defined.
SolarGIS ............................................................................................ Error! Bookmark not defined.
Radiation Assessment .......................................................................... Error! Bookmark not defined.
MNRE ............................................................................................... Error! Bookmark not defined.
NIWE ................................................................................................ Error! Bookmark not defined.
IEC Certifications .................................................................................. Error! Bookmark not defined.
Panel Cost ............................................................................................ Error! Bookmark not defined.
PV Facts ................................................................................................ Error! Bookmark not defined.
Upcoming Solar Parks .......................................................................... Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
12. Key Aspects Every MW Solar Developer Should Know ................... Error! Bookmark not defined.
Key steps to arrive at an attractive business model ............................ Error! Bookmark not defined.
How do you decide which is better for you? APPC+REC, sale to private parties, or sale to utility?
......................................................................................................... Error! Bookmark not defined.
Critical aspects to be considered to win bids from state or central policies ...... Error! Bookmark not
defined.
Make sure you are absolutely clear what your financial targets are.............. Error! Bookmark not
defined.
Employ a chartered accountant or a financial expert before you arrive at the final bid. ...... Error!
Bookmark not defined.
Ensure that the region (district) you are bidding for a power plant has high potential for solar
output .............................................................................................. Error! Bookmark not defined.
Be very realistic with costs ............................................................... Error! Bookmark not defined.
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Factor in the off-taker risk in your costs .......................................... Error! Bookmark not defined.
Mistakes to avoid while bidding or during implementation of the MW solar power plant ....... Error!
Bookmark not defined.
Don’t quote too low ......................................................................... Error! Bookmark not defined.
Don’t quote too high ........................................................................ Error! Bookmark not defined.
Make sure you read and reread all terms and conditions ............... Error! Bookmark not defined.
Understand the penalty clauses clearly ........................................... Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
13. Frequently Asked Questions by Developers, and Answers ............. Error! Bookmark not defined.
1. Is it a good idea to invest in a solar power plant? ....................... Error! Bookmark not defined.
2. What are the paybacks for MW scale solar power plants? ......... Error! Bookmark not defined.
3. I have large amounts of land. Is this a good enough reason for me to get into solar power
plants? .................................................................................................. Error! Bookmark not defined.
4. How can I get financing for my solar power plant? ..................... Error! Bookmark not defined.
5. What are the O&M costs for solar power plants? ....................... Error! Bookmark not defined.
6. Which state is the best for solar power plants? .......................... Error! Bookmark not defined.
7. How can I get a private PPA signed for my power plant? ............ Error! Bookmark not defined.
8. I already have wind farms. Can I co-locate solar farms in the same land? . Error! Bookmark not
defined.
9. What will be the output from my solar power plant? ................. Error! Bookmark not defined.
10. How much does a 1 MW of solar power plant cost, and how much area does it require?
Error! Bookmark not defined.
Key Takeaways ..................................................................................... Error! Bookmark not defined.
14. Terms You Should Know as a Developer of MW Solar Power Plants Error! Bookmark not defined.
Technical and Operational Terms ........................................................ Error! Bookmark not defined.
BOO Model (Build Own Operate Model) ......................................... Error! Bookmark not defined.
Capacity Utilization Factor ............................................................... Error! Bookmark not defined.
Central Inverters .............................................................................. Error! Bookmark not defined.
Concentrating Photovoltaics ............................................................ Error! Bookmark not defined.
Cross Subsidy Surcharge .................................................................. Error! Bookmark not defined.
Crystalline Silicon/c-Si ...................................................................... Error! Bookmark not defined.
DNI (Direct Normal Irradiance) ........................................................ Error! Bookmark not defined.
Feed-in-Tariff .................................................................................... Error! Bookmark not defined.
Gigawatt ........................................................................................... Error! Bookmark not defined.
Grid-tied Solar Power System .......................................................... Error! Bookmark not defined.
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Grid Parity ........................................................................................ Error! Bookmark not defined.
kWh .................................................................................................. Error! Bookmark not defined.
Kilo Watt .......................................................................................... Error! Bookmark not defined.
LCOE (Levelized Cost of Energy) ....................................................... Error! Bookmark not defined.
Module ............................................................................................. Error! Bookmark not defined.
Module Degradation ........................................................................ Error! Bookmark not defined.
Net metering .................................................................................... Error! Bookmark not defined.
Off-grid Solar .................................................................................... Error! Bookmark not defined.
Open Access ..................................................................................... Error! Bookmark not defined.
Photovoltaics .................................................................................... Error! Bookmark not defined.
Power Purchase Agreement ............................................................ Error! Bookmark not defined.
Pyranometer .................................................................................... Error! Bookmark not defined.
PV array ............................................................................................ Error! Bookmark not defined.
Reflection Losses in Solar Cells ........................................................ Error! Bookmark not defined.
Silicon Wafer .................................................................................... Error! Bookmark not defined.
Shading of solar panels .................................................................... Error! Bookmark not defined.
Smart Grid ........................................................................................ Error! Bookmark not defined.
String Inverters ................................................................................. Error! Bookmark not defined.
Standard Test Conditions (STC) ........................................................ Error! Bookmark not defined.
Temperature Coefficient of Solar Panels ......................................... Error! Bookmark not defined.
Thin Film Solar Cell ........................................................................... Error! Bookmark not defined.
Tracker ............................................................................................. Error! Bookmark not defined.
Transformer ..................................................................................... Error! Bookmark not defined.
Utility ................................................................................................ Error! Bookmark not defined.
Watt Peak (Wp) ................................................................................ Error! Bookmark not defined.
Wheeling Charges ............................................................................ Error! Bookmark not defined.
Explanation of Key Financial Terms ..................................................... Error! Bookmark not defined.
Payback Period ................................................................................. Error! Bookmark not defined.
Return on Investment (ROI) ............................................................. Error! Bookmark not defined.
Net Present Value (NPV) .................................................................. Error! Bookmark not defined.
IRR (Internal Rate of Return) ............................................................ Error! Bookmark not defined.
Levelised tariff .................................................................................. Error! Bookmark not defined.
PPA ................................................................................................... Error! Bookmark not defined.
Financial Closure .............................................................................. Error! Bookmark not defined.
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Accelerated Depreciation ................................................................ Error! Bookmark not defined.
Discounting Factor ........................................................................... Error! Bookmark not defined.
Hedging ............................................................................................ Error! Bookmark not defined.
Moratorium ...................................................................................... Error! Bookmark not defined.
With recourse/Without recourse .................................................... Error! Bookmark not defined.
Solar Apex Bodies & Organisations in India and their Roles ................ Error! Bookmark not defined.
MNRE ............................................................................................... Error! Bookmark not defined.
CWET/NIWE ..................................................................................... Error! Bookmark not defined.
SECI ................................................................................................... Error! Bookmark not defined.
SESI ................................................................................................... Error! Bookmark not defined.
NSEFI ................................................................................................ Error! Bookmark not defined.
SERIIUS ............................................................................................. Error! Bookmark not defined.
CSRI .................................................................................................. Error! Bookmark not defined.
Components of a Solar Power Plant .................................................... Error! Bookmark not defined.
Solar Panels ...................................................................................... Error! Bookmark not defined.
Mounting Structures ........................................................................ Error! Bookmark not defined.
Inverters ........................................................................................... Error! Bookmark not defined.
BOS ................................................................................................... Error! Bookmark not defined.
Site Selection ........................................................................................ Error! Bookmark not defined.
15. MW Solar Action Plan ................................................................... Error! Bookmark not defined.
Annexure – CUF Data ......................................................................... Error! Bookmark not defined.
Solar Mango Services for the Solar Power Sector ................................ Error! Bookmark not defined.
MW Scale Solar Power Plants .............................................................. Error! Bookmark not defined.
Rooftop Solar Power Plants ................................................................. Error! Bookmark not defined.
Diversifying into Solar .......................................................................... Error! Bookmark not defined.
EAI’s Cleantech Consulting ................................................................... Error! Bookmark not defined.
List of Tables
Table 1: Pros and Cons of various Business Models ................................ Error! Bookmark not defined.
Table 2: State-wise Commissioned Capacity - 31.07.2016 ................................................................... 11
Table 3: Prominent locations with good radiation where solar plants/parks have been constructed 13
Table 4: Estimated CUF and Generation – Sample Data from Some States ........... Error! Bookmark not
defined.
Table 5: Rooftop Solar EPCs in India (Source: Solar Mango Estimates) ... Error! Bookmark not defined.
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Table 6: EPCs in the Ground-mounted Sector (Source: Solar Mango Estimates) ... Error! Bookmark not
defined.
Table 7: Solar EPCs in India ...................................................................... Error! Bookmark not defined.
Table 8: Standards and Warranties for Critical Components .................. Error! Bookmark not defined.
Table 9: Allocations and Bidding Results ................................................. Error! Bookmark not defined.
Table 10: Summary of Tariffs in Different States ..................................... Error! Bookmark not defined.
Table 11: Recently Concluded PPAs in UP ............................................... Error! Bookmark not defined.
Table 12: Recently Concluded PPAs in Rajasthan .................................... Error! Bookmark not defined.
Table 13: Bidding Results of Jharkhand Auction ...................................... Error! Bookmark not defined.
Table 14: Solar Tariffs under Jharkhand Auction ..................................... Error! Bookmark not defined.
Table 15: Solar RECs – Sales until Aug 2015 ............................................ Error! Bookmark not defined.
Table 16: CERC BENCHMARK COST BREAKUP FOR A 1 MW GROUND MOUNTED SOLAR PV POWER
PLANT 2016-17 ......................................................................................... Error! Bookmark not defined.
Table 17: Comparison of CERC Benchmark Capital Cost 2010-16 (Rs. Lakhs) ........ Error! Bookmark not
defined.
Table 18: Comparison of CERC Benchmark Capital Cost 2010-15 (% of total cost) Error! Bookmark not
defined.
Table 19: IRRs ........................................................................................... Error! Bookmark not defined.
Table 20: Capacities of Renewable Energy Sources in India .................... Error! Bookmark not defined.
Table 21: Average CUF Data for Various Plants Based on Net Exported Power ..... Error! Bookmark not
defined.
List of Figures
Figure 1: Business Models for MW Scale Solar ........................................ Error! Bookmark not defined.
Figure 2: Radiation Map of India .............................................................. Error! Bookmark not defined.
Figure 3: Choosing the Region for a MW Scale Plant............................... Error! Bookmark not defined.
Figure 4: Sources of Funds for MW Scale Solar Plants............................. Error! Bookmark not defined.
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1. Business Models for Utility Scale Solar PV
For any business keen on investing in MW scale solar power plants, the first question they should ask
themselves is: Who will buy the power?
The answer to this question to a significant extent will decide the business and revenue model for
the power plant, and also pretty much define the risk and return profiles. To a certain extent, the
type of buyer could also determine the financial returns on the project.
A utility scale Solar PV plant can be monetised through several avenues:
Each of the above routes is discussed in detail.
After the analysis, a table provides the Pros and Cons of the Business Models
Biz Model Pros Cons
Sale to Utility
Sale to Private Consumer
Captive Consumption
This chapter provides clear insights on all the business models and revenue models for MW
Scale solar power plants.
It also provides a comparison of the pros and cons of each of the revenue models.
This chapter is the most critical for the developer to understand – because understanding who
the buyer of your power is the most important aspect for a 25 year investment!
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2. Status of MW Solar Power Plants in India
India’s total installed solar capacity stands at 8.062 GW as of July 2016.
The commissioned capacity of solar plants for different states/union territories and under the
various policies, are given below, as of End-July 2016.
State-wise Commissioned Capacity - 31.07.2016
S .No State/UT
Total Cumulative Commissioned Capacity till 31-03-2015
Total Cumulative Commissioned Capacity during 2015-16 (MW)
Total Cumulative Commissioned Capacity till 31-03-2016 (MW)
Total Cumulative Commissioned Capacity till 31-07-2016 (MW)
1 Andhra Pradesh 137.852 435.114 572.966 935.8
2 Arunachal Pradesh 0.025 0.240 0.265 0.265
3 Bihar
4 Chhattisgarh
5 Gujarat
6 Haryana
7 Jharkhand
8 Karnataka
9 Kerala
10 Madhya Pradesh
11 Maharashtra
12 Odisha
13 Punjab
14 Rajasthan
15 Tamil Nadu
As of end July 2016, India has 8062 MW in installed capacity for grid-connected solar power
plants.
Government of India has now set an ambitious target of 1,00,000 MW of solar power
installations to be achieved within 2022, of which the target for MW-scale power plants is
60,000 MW, a target Solar Mango considers to be quite challenging but not impossible.
That is, the government wishes to achieve almost 8-fold growth in MW scale solar
installations in the next six years. One can imagine the business opportunities that come
with such an explosive growth target.
This chapter reviews the status of MW Solar power plants in India, and analyses it along
multiple dimensions to provide key, actionable insights to a prospective developer.
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16 Telangana
17 Tripura
18 Uttar Pradesh
19 Uttarakhand
20 West Bengal
21
Andaman & Nicobar
22 Delhi
23 Lakshadweep
24 Puducherry
25 Chandigarh
26 Daman & Diu
27 J&K
28 Himachal Pradesh
29 Mizoram
30
Others (PSU/channel partner) under
Rooftop
TOTAL 3743.97 3018.883 6762.853 8062.039
Prominent Developers Some of the prominent developers of MW scale solar projects in India (based on projects
completed/bids won) are given.
Non-Developer Stakeholders Other than the developers, several other stakeholders are key to the success of MW scale solar
projects
Government
EPCs
Component providers
Financers
Profiles for each of the above stakeholders are provided.
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3. Attractive Regions for MW Solar in India
A solar plant should be located in a region where there is plenty of sunshine. A solar map of India
that you can use to estimate solar radiation at the location of your site is provided.
Prominent Regions for Solar Power Plants Details of the prominent regions for MW Solar power plants provided
By Radiation
Prominent locations with good radiation where solar plants/parks have been constructed
Sl.No. State District Place GHI
1 Gujarat
2 Rajasthan
3 Gujarat
4 Rajasthan
5 Madhya Pradesh
6 Gujarat
7 Gujarat
8 Rajasthan
9 Rajasthan
10 Gujarat
11 Telangana
12 Maharashtra
13 Gujarat
14 Madhya Pradesh
15 Odisha
16 Odisha
17 Gujarat
While large parts of India have plenty of sunshine, there is still a significant difference in solar
output between regions with good sunshine and those with “optimal” sunshine – this
difference could be as high as 15%.
Just imagine what a 15% more units of electricity would mean for a 25-year long project –a
real big difference to your IRRs and payback periods.
Choosing an optimal location is one of the most important decisions for a MW Solar Power
Plant developer. By analysing data from solar radiation from various regions, and from data
available from existing solar power plants, this chapter provides actionable inputs on how
developers can choose the right location for solar power plants.
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Sl.No. State District Place GHI
18 Madhya Pradesh
19 Andhra Pradesh
20 Tamil Nadu
By State
Details of solar power plant CUF and generations from prominent states, based on real life data
analysis are provided.
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4. Vendor & Component Selection Checklist
Criteria to Choose EPCs In order to get clarity on how to choose EPCs, it will be instructive to first understand the Solar EPC
Operational Value Chain.
Expertise on All Solar EPC Value Chain Components The complete EPC Value Chain is explained in detail for the prospective developer to gain a clear
understanding of the role and value additions from the EPC.
Three Types of EPCs You Should Avoid Whatever other parameters you use while choosing your EPC, do not forget to follow these three
rules:
Do not go for lowest cost EPC
Do not go for EPCs who are unwilling to involve you in decision making for key aspects of
the project
Do not go for EPCs who are not willing to introduce you to their key core and extended
team members
Key Parameters for EPC Selection The EPC contractor essentially guarantees completion of the plant on time and cost, and also plant
performance, thus enabling the project developer to avail finance from their banking partners. Thus
a thorough evaluation of the EPC is required before a choice is made.
Top 5 criteria
Other criteria
Specific Expertise to Look for in Core EPC Team Engineering
Procurement
Commissioning
Types of expertise required on each of the above three provided
Once a developer has decided on the right business model and has also signed a power
purchase agreement, it is time to appoint the right EPC and ensure that the best components
are chosen. Both these actions will have a significant impact on the returns from a solar
power plant.
This chapter provides concise guidance on how to optimally choose the EPC and components
for a MW Solar Power Plant.
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Planning for O&M & Monitoring and Control Systems EPC should be able to clearly explain how monitoring and control systems will be implemented, and
how much O&M will be required.
Monitoring and Control Systems
Operations & Maintenance
Large Scale Solar EPCs in India National EPCs
Regional Solar EPC Players
Brief profiles of each are provided.
EPC with focus on:
Rooftop solar power plants
Ground-mounted solar power plants
Solar EPC Categorization
EPC Categorization Highlights Examples
Large-scale EPCs
EPCs with Local/Regional Focus
EPCs taking up mainly sub-contract work from larger EPCs
Specific functions alone
Pure- play design firms
EPCs with an O&M focus
Component Selection – Standards and Warranties Choosing the right components is critical in ensuring a reliable and high performing solar plant.
Components that don’t comply with standards may have a high failure rate and compromise both
energy generation and revenue from the plant.A detailed table outlines the standards that must be
complied with and typical warranties offered for most components of a solar plant.
Equipment Standards(Applicable IEC/Equipment BIS standard)
Warranty
PV Modules
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Power Conditioner Units (PSUs)/(Inverter)
Mounting Structures
Cables
Switches/Circuit Breakers/Connectors
Junction Boxes/Enclosures
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5. State, Central Solar Policies
Solar policies have been prepared and implemented both at the Central and State Government
levels. We take a look at the various features of each.
Central Policy – National Solar Mission Overview& Status The National Solar Mission was launched in 2010 with an original target of 20,000 MW of grid
connected solar power (both PV and thermal) by 2022. This was to be achieved in various phases
Phase I – 1,000 MW (2012-13)
Phase II – 9,000 MW (2013-17)
Phase III – 10,000 MW (2017-22)
About833 MW has been commissioned as of 15.12.2014 with Rajasthan alone accounting for about
594 MW.
Details provided for current branches and tranches.
Phase/Batch/Tranche Total Capacity (MW)
Implemented By Status
Batch II
AP Solar park – Tranche 1
AP Gani-Shakuntala Solar Park - Tranche 1
AP Gani-Shakuntala Solar Park - Tranche 1
Rajasthan Solar Park - Tranche 1
UP
Rajasthan - Tranche 1
Karnataka – Pavagada Solar Park
Telangana
Batch III
Maharashtra-
Uttar Pradesh – Tranche
A large % of the MW-scale solar capacity in India (around 90% as of July 2016) has been through
allotments through the central and state solar policies.
In this chapter, we take a look at the various features of these central and state allotments.
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III
Andhra Pradesh Solar Park – Tranche IV
Batch VI
Charanka Solar Park
State Policies Detailed inputs provided for the solar policies and allocations for the following states. Details include
perspectives on the solar policy per se, allocations so far and details of the PPAs and winners
announced so far. Data and inputs are also provided for the various solar power plant incentives in
terms of waivers etc. (wheeling charges, cross subsidy charges), for each state.
Andhra Pradesh
Assam
Bihar
Chhattisgarh
Gujarat
Haryana
Karnataka
Madhya Pradesh
Maharashtra
Odisha
Punjab
Rajasthan
Tamil Nadu
Telangana
Uttarakhand
Uttar Pradesh
Goa
Jharkand
West Bengal
Brief inputs are provided for the following states
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6. Financing Options in India
Overview MW scale solar plants in India are financed through a mixture of debt and equity, from various
sources.
Detailed inputs are provided for each of the above:
Interest rates
Tenures
Collaterals and other eligibility criteria
A comprehensive list of financial institutions for each of the above is provided:
MW solar plants in India are often financed by the promoter or through the promoters’
balance sheet. This chapter examines the opportunities for external funding of solar projects
(equity, as well as with recourse and non-recourse debt) including foreign funding. Typical
terms are analysed, and challenges are discussed; solutions for overcoming some of these
challenges are also provided.
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List of banks
List of equity financing providers
List of NBFCs
List of international funding sources - multilateral agencies, trade development agencies
Constraints and Challenges for Getting Financial Closure for MW Solar Power Plants Key Issues/challenges in Solar PV Financing as by Various Stakeholders
Financial Health of utilities may cause non-payment or delayed payment
With reverse bidding, compromise in quality for cost cutting
Delay in land acquisition
Delay in Power Evacuation facility (ROW, Projects Cluster &Feasibility)
Non- availability of stable grid below 66KV
Lack of established best practices of O&M Manuals
Trend of not opting for third-party EPC Contracts
Wide variations in costs of PV Modules
More time taken for obtaining important clearances, such as for NA, PCB, evacuation, etc.
Inadequate irradiance data of project site
Lack of RPO enforcement
Uncertainty of REC mechanism beyond 2017
Challenges in Financing
Challenges for Third Party PPA
Challenges for Private Equity Investment in Solar
Challenges for Debt from Banks
Challenges for Debt from Multilateral Agencies
Challenges for Debt through Trade Finance
Suggestions and Perspectives from the Financial Sector for Overcoming the Challenges and Making Solar Power Projects More Bankable
Solar resource assessment based on ground data for at least one-year period
Generation projections to be realistic considering project site specific parameters
Pooling stations & evacuation facilities for clustered projects
All clearances/approvals including land acquisition, contracts, suppliers, vendors etc. to be
ready for faster financial closure
Adopt Modular Design to maximize yield & ease of construction and also based on
PPA/Policy
Evaluation of Past performance record /downtime of off-take substation
All contracts including supply/EPC/ O&M should be structured for proper
guarantees/warranties
Strict compliance of RPO will ensure more projects under REC.
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Exchange of actual project performance among the stakeholders/banks
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7. DPR Template for a Solar PV Power Plant
All financial institutions will require a detailed project report (DPR) from the solar power plant
developer.
While in some cases, especially in cases where you have an excellent relationship with a bank and
you have been doing good business with them for a long time, the DPR might not be the most critical
component in the financing process.
But with financial institutions concerned about some of the uncertainties in this nascent sector, we
strongly recommend that you get the DPR done from an expert organisation and ensure that the
DPR contains the following components. Just to let you know, we have seen DPRs that are nothing
but copy-paste of some Internet pages. It is critical you avoid such DPRs.
Components of a Detailed Project Report – a complete list of contents
DPR’s are a critical component in getting funds from financial institutions, but many
developers are unaware of how a DPR should be prepared. This chapter takes a detailed look
at how a DPR should be prepared and what it should contain to justify the projections in the
DPR and persuade the financer to fund you.
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8. Cost Break-up of Utility Scale Solar PV Power Plants
The cost of a MW scale solar PV plant is about Rs. 6.06 Crores/MW. The Central Electricity
Regulatory Commission (CERC) has finalised the benchmark cost for a solar PV plant for FY 2015-16,
which is provided below with break-up.
We recommend increasing the below cost by 5%when budgeting for solar PV plants below 10 MW in
capacity.
CERC benchmark cost breakup for a 1 MW ground mounted solar PV power plant - Table
Component Capital cost considered
(Rs.Lakh/MW) % of total
Module cost
Land cost
Civil and general works
Mounting structures
Inverters
Cables & transformers
Interest cost during construction
Approvals, preliminary and operative expenses, transport and logistics expenses
Total capital cost
Trends in Plant Cost CERC’s Benchmark Cost for MW scale solar plants for the last 6 years is provided.
Component 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Modules
Land
Civil and General Work
Mounting Structures
Inverters
Cables & Transformers
Preliminary & Preoperative Expenses
Total
The cost of the solar plant is critical in achieving the required IRR and payback period, but
going too low creates quality issues that compromise the generation from the plant. This
chapter provides critical information to investors on benchmark costs for various solar plant
components as well as their pricing trend, allowing investors to build economical and reliable
MW scale solar plants.
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CERC’s Benchmark Cost as a % of total cost for the last 6 years is also provided.
Component 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Modules
Land
Civil and General Work
Mounting Structures
Inverters
Cables & Transformers
Preliminary & Preoperative Expenses
Total
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9. Template for Financial Returns
This chapter provides a detailed template for calculating financial returns, and calculations are based
on assumptions and approximations.
Inputs are provided for calculating the following
Revenues Billable kWh
Tariff
Costs Initial capital investment
Inverter Replacement
Operations & Maintenance (O&M)
Insurance
Debt Service
Taxes
Analysis
Calculating critical parameters, such as IRR and Payback Period, requires accurate modelling of
revenue and costs through the lifetime of the plant. This chapter provides detailed inputs on
how to build a financial model projecting revenues and costs (initial and recurring) over 25
years.
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10. Resources
The URLs below can be accessed for the latest information on policies, tariffs and charges, RfS/RfQs,
tenders, and regulations from Central and State energy development agencies, Electricity Regulatory
Agencies (ERCs), and Distribution Companies (DISCOMs).
Category Resource List
National Solar Mission
Andhra Pradesh
Assam
Bihar
Chhattisgarh
Goa
Gujarat
Haryana
Jharkhand
Karnataka
Madhya Pradesh
Maharashtra
Orissa
Punjab
Rajasthan
Tamil Nadu
Telangana
Uttarakhand
Uttar Pradesh
West Bengal
This chapter focuses on providing vital links to remaining updated on the latest orders, policies,
and allocations that are of importance to solar developers.
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11. Key Aspects Every MW Solar Developer Should Know
Solar Mango’s strategy team has put together its perspectives on three such aspects
Key steps to arrive at an attractive business model
o How do you decide which is better for you? APPC+REC, sale to private parties, or
sale to utility?
Critical aspects to be considered to win bids from state or central policies
Mistakes to avoid while bidding or during implementation of the MW solar power plant
A solar project requires many factors to come together harmoniously to be successful. We have
identified 3 key aspects that a solar developer should pay particular attention to that can make
or break the success of the project.
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12. Frequently Asked Questions by Developers, and Answers
We have compiled a list of the top 10 frequently asked questions by developers, and provide concise
answers to these.
1. Is it a good idea to invest in a solar power plant?
2. What are the paybacks for MW scale solar power plants?
3. I have large amounts of land. Is this a good enough reason for me to get into solar power
plants?
4. How can I get financing for my solar power plant?
5. What are the O&M costs for solar power plants?
6. Which state is the best for solar power plants?
7. How can I get a private PPA signed for my power plant?
8. I already have wind farms. Can I co-locate solar farms in the same land?
9. What will be the output from my solar power plant?
10. How much does a 1 MW of solar power plant cost, and how much area does it require?
Based on our experience working with various solar developers, EPCs, governments, and other
stakeholders, we have compiled a list of the questions we are most frequently asked and
provided practical, actionable answers to them.
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13. Terms You Should Know as a Developer of MW Solar Power Plants
Solar Mango has compiled a list of critical terms that a solar developer should be familiar with, and
provided brief explanations for each.
Technical and Operational Terms BOO Model (Build Own Operate Model)
Capacity Utilization Factor
Central Inverters
Concentrating Photovoltaics
Cross Subsidy Surcharge
Crystalline Silicon/c-Si
DNI (Direct Normal Irradiance)
Feed In Tariff
Gigawatt
Grid-tied Solar Power System
Grid Parity
kWh
Kilo Watt
LCOE (Levelised Cost of Energy)
Module
Module Degradation
Net metering
Off-grid Solar
Open Access
Photovoltaics
Power Purchase Agreement
Pyranometer
PV Array
Reflection Losses in Solar Cells
Silicon Wafer
Shading of solar panels
Smart Grid
String Inverters
Standard Test Conditions (STC)
Whether speaking with financers or EPCs, a solar developer should be familiar with many
terms that are widely used in the solar industry. We have compiled a list of such terms,
subdivided into Technical and Financial sections, to help you comfortably navigate any solar
discussion. Additional information on key solar organisations, components, and site selection.
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Temperature Coefficient of Solar Panels
Thin Film Solar Cell
Tracker
Transformer
Utility
Watt Peak (Wp)
Wheeling Charges
Key Financial Terms Accelerated Depreciation
Discounting Factor
Financial Closure
Hedging
IRR (Internal Rate of Return)
Levelised Tariff
Moratorium
Net Present Value (NPV)
Payback Period
PPA
Return on Investment (ROI)
With recourse/Without recourse
Solar Apex Bodies & Organisations in India and their Roles CSRI
CWET/NIWE
MNRE
NSEFI
SECI
SESI
SERIIUS
Components of a Solar Power Plant Solar Panels
Mounting Structures
Inverters
Site Selection
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14. Action Plan
A schematic is provided that outlines the varies steps to be taken by a developer to arrive at
attractive financial returns from a MW Solar Plant based on
Actionables
Criteria
Drivers
Interested in Buying this Report?
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can be purchased through credit card, bank transfer
or cheque.
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Do so from https://secure.clixoo.com/purchase/solarmango/mwsolar/report.html , or
Send an email to [email protected] , with the subject: Purchase MW Solar Advisor
with your contact details and we will get in touch with you immediately.
Or contact Muthukrishnan for further information – 09952910083, [email protected]
Visit the official website for more information - http://www.solarmango.com/in/reports/india-mw-
solar-advisor
This guide provides a wealth of information for solar developers and investors. For those looking
for a quick plan of action we provide an easy-to-follow chart that distils the critical content in
this report into an implementation diagram.
