SOLAR FACTS FILE
India having the best geographical location in the world not only makes it rich in natural resources but also grants it to experiences 300 days of sunlight in an year. Government of India has set an ambitious target of installing 100GW of solar by 2022 under the mission of Jawaharlal Nehru National Solar Mission. It is a major initiative by the Government of India and State Government to promote ecological sustainable growth, while addressing energy security.
We offer most advanced, durable and easy to install system solutions in the industry, ensuring all solar needs to be fulfilled. As a leading service integrater of solar energy products.
Solar is the solution for everything :
1. Saving on your electricity bills: The electricity rates have been escalating at a rate of 2.5% to 7% every year over the past two decades. This steady increase in the electricity tariff is volatile and unpredictable. Installing a Solar Rooftop system at your residence or office takes you out of this cycle.
2. Don't underestimate the Power of the Sun: Solar is capable of producing consistent and safe returns of 15% or more over a long period of time. Installing solar takes you out of share market, Real estate, Insurance policy gamble and gives you a consistent and guaranteed positive return.
3. Electricity contributes to a significant operating cost for businesses. It is increasing every year, and is generally increasing at a higher rate than inflation. Installing Solar protects your business from the hike in electricity tariffs and makes it possible to forecast the expenses accurately. As a result, it greatly improves the ability to manage monthly budget/expenses.
4. A bright and clean future: For every kilowatt of Solar Panels you install, your business avoids about 1 ton of carbon emission every year. Thats same as PLANTING 20 TREES EVERY YEAR
5. Selling your property: The property rates of homes with solar power installed are 3-4% higher than those without. In a City like Mumbai, a small 3KW system can add an average value of $18,000 to the property. "Solar doesn't increase your property taxes"
6. Save on tax: Accelerated depreciation is the depreciation of fixed assets at a fast rate in the assets initial years. This type of depreciation reduces the amount of taxable income early in the life of an asset, so that tax liabilities are deferred. In India, the commercial and industrial sectors enjoy 80% accelerated depreciation in the first year.
SNAPSHOTS: SOLAR ROOFTOP
Government of India has set an ambitious goal of providing uninterrupted power for all homes, industrial and commercial establishments and adequate power for farmers by 2022. Government wants a growing share of the country’s electricity to come from renewable energy. It aims to achieve a “solar revolution” by installing 100GW of solar power by 2022, out of which 40GW is devoted for rooftop(1).
According to Deloitte and Confederation of India Industry (CII), India has not even harvested one percent of it solar potential which is 749GW according to National Institute of Solar Energy. Total solar power generation capacity touched 6.763GW as on 31st March 2016 (14).
Cumulative Annual Growth Rate (CAGR) of 86% is required to achieve the target of 40GW, from the rooftop capacity of 740MW as on 31st March 2016 according to “Bridge to India”. Government sees tremendous potential for generating decentralised and distribute dsolar power by utilising the rooftops of industrial, commercial, residential and public buildings (1).
Indian government is offering several tax and financial incentives (2) to support the rooftop solar market:
Capital subsidy of 30% for residential and institutional consumers in general states
70% subsidy for special states which includes North Eastern states including Sikkim, Himachal Pradesh, Jammu and Kashmir, Uttarakhand, Lakshadweep, and Andaman and Nicobar Island.
Tax holiday for 10 years (Minimum alternate tax payable)
Custom duty concessions and excise duty exemption
Provision of bank loans as a part of home loan/ home improvement loan
Rooftop budget 5000 crore for implementation of grid connected rooftop over a period of five years upto 2019-20 (12)
Different business models (4)
Understanding different business models in the solar industry, Operational expenditure (OPEX) model is when system costs are born by a project developer, who further contracts the project to an EPC ( Engineering, Procurement & construction) service provider. Here the developer signs an agreement with the customer to purchase electricity, usually at a tariff lower than the central grid.
Capital expenditure (CAPEX) model is when the consumer purchases the entire system at an upfront cost, and then contractor contracts an authorised system supplier/ installer to install the system on their rooftop. The advantage of this model is that one owns the system, and therefore can generate its own electricity right from the day of commissioning.
Leasing of solar system is also available, where one doesn't purchase or own the system. It is instead leased from another company (actual owner of the system) for a month/ annual fee that is agreed upon in a signed agreement. The advantage of lease model over the CAPEX model is that it doesn't require you to make a significant upfront payment. Instead one pays a monthly fee for leasing the rooftop system.
Predominant challenges associated (5) with the rooftop sector in India is poor net metering policy framework and lack of more attractive debt financing solutions. Lack of availability and accessibility of complete solar packages in the market accounts as a challenge for the consumers.
Rooftop in India (NEWS)
World Bank approved a loan of $625 million to facilitate rooftop solar power projects in India in early May and an additional funding worth $120 million available for industrial/ commercial sectors, to which the state does not offer any capital subsidies (6).
The cabinet has promised to spend as much as INR 5000 crore in five years to build rooftop solar power projects and connect them to the utility power grid (7).
The Delhi cabinet has approved solar policy which recommends the installation of a 1GW solar power capacity in the capital by 2020. The policy outline a combination of regulations, mandates, incentives, and tax breaks for the growth of rooftop solar power in the capital (8).
Indian Catalytic Solar Finance Program (ICSFP) will pump in about US$ 40 million targeting India’s rooftop solar program under the National Solar Mission (9).
The north Indian state of Punjab has inaugurated the world’s largest rooftop solar project of 11.5MW (10).
India to launch ‘Solar Zones’ Policy coming out soon (11)
India become fourth largest solar market in 2016 (13)