Solar Products in IndiaSolar Products in India are set to grow at a tremendous rate in the future driven by the declining costs of solar power and the increasing price of fossil fuel energy products.Already we are seeing massive power cuts across the country due to shortage of coal.Beside this,the prices of electricity has increased tremendously as well and is approaching seriously high levels due the increasing price of coal and gas.This has made it inevitable that people will turn  towards solar products which are not only becoming cheaper but are also greener.Solar Products comes in a wide variety and range from almost all electrical home appliances.You can solar air conditioners,solar fans,solar toys etc.The main uses of solar products however are those in generating electric power .These are known as solar panels and poised to become ubiquitous in the days to come.The day is not far off when almost every house in India will have solar panels on their roofs to generate cheap electric power.Beside this solar lanterns are already replacing expensive and polluting kerosene lamps in poor households.Solar Lighting is also increasing particularly in those areas where the electricity power grid cannot reach.Solar Heaters have become extremely popular in southern India as solar water heaters are much cheaper than normal electricity powered water heaters.Though Solar Cookers have not caught on in a big way,there are also very cost effective and clean.Below is listed out the main solar products sold in India along-with their suppliers

Solar Panels

Solar Panels in India are available in both the crystalline and thin film varieties.Note Solar Panels in India are mostly imported though there are some domestic panel producers as well.India imports Thin Film Solar Panels and also imports the raw material for making silicon solar panels (polysilicon).The solar panels available in India are on par with what is available in the international markets and the pricing is similar as well.The JNNSM Phase 2 of the government mandates that solar panels and solar cells be made in India though thin film solar panels are exempted (good thing too since there are no thin film panel factories in India)

Domestic Solar Cell/Module Producers

  • Moser Baer – This is primarily a Solar Panel Production Company which has recently made a big bet to get into the Power Production Space as well.Moser Baer Projects Private in which the Blackstone Group made a $300 million bet  has plans of a 20:80 mix of Green and Dirty Power.
  • Tata Power / Tata BP Solar - The biggest private utility in India has big plans for Clean Energy as well.Its subsidiary Tata BP Solar is one of the biggest producers of solar panels and cells in the country.The company has huge plans in wind,solar and geothermal energy.It has also invested in a geothermal energy project in Indonesia..
  • Solar Semiconductor - A Producer of Solar Power Modules and Cells. It has some operations in Solar Installation as well.
  • The following  companies are similar to Solar Semiconductor in having a small capacity to produce silicon based solar cells or solar panels or both.
  • IndoSolar
  • Topsun Solar
  • Titan Energy
  • PLG Power
  • Maharishi Solar
  • Kotak Urja
  • Photon Energy Systems
  • Lanco Solar – A major private utility in India.Has bagged a JNNSM bid to build a big solar thermal plant.Also getting into production of poly,wafers,cell and modules based on c0Si Technology.

Domestic Government owned Solar Producers

  1. BHEL – BHEL which is India’s largest Capital Good makers is the other company with the big solar ambitions.BHEL has strong capabilities in the field of making electricity generating equipment.Extending these capabilities in the field of solar power generation is a natural extension.
  2. BEL – This is another state owned company established by the Indian Government to meet the specialised electronic needs of the Indian defence services.  The company produces consumer products like  , Solar Powered LED-Based Traffic Signal Lights.Tying up with BHEL to set up a big solar equipment producing facility.

Foreign Solar Panel Producers

  1. Suntech – Suntech was  the world’s biggest producer of solar panels in 2010 and was one the first companies to set up operations in China.Its example was followed by a host of other Chinese companies.Suntech has been slow to expand compared to the fast growing small companies in China and has lost marketshare to them.It has started to vertically integrate in order to meet the low cost challenge from Trina and Yingli.Suntech makes one of the best quality Solar Panels in China.
  2. Trina Solar - Trina Solar is one of the lowest cost manufacturers of Solar Panels in the World right now and also sells it at a very low price.This is the reason that the company in a span of few short years has managed to acquire a substantial  global marketshare.The prices the solar panels being sold are around $340 per 200 watt module.Trina Solar.Like Yingli and Suntech,Trina Solar Panels are one the best quality in China
  3. First Solar – First Solar is the only Solar Thin Film Manufacturer in the world and a benchmark for other thin film companies thinking of making it big.The company was promoted by Wal-Mart promoters and has seen remarkable growth in the last few.This US based company uses Cadmium Tellurium (Cd-Te) Technology and  is the lowest cost panel producer in the world today if you don’t include any penalty for low efficiency.Even if you penalize the Cd-Te Technology for its lower efficiency vis-a-vis the higher efficiency crystalline technology,First Solar is clearly the leader with a core cost of 74c/watt.The company has a roadmap of  reducing the cost to 52c/watt by 2014 and given its track record it seems quite achievable.There is little doubt about First Solar’s ability to survive and flourish due to its massive first mover advantage

Solar Cookers

India has installed the world’s largest solar cooker at a cost of $280,000 system at Shridi subsidized by the Indian government, which generates 3,500 kg of steam every day to make food for 20,000 people.However despite attempts made by the government to make this solar product popular lack of follow on effort has made it efforts go waste

Solar Cooker Problems in India

Solar Cookers in India have faced trouble in adoption because of the following reasons such as

  1. Slow Cooking and inability to cook outside of sunshine hours – Not all people will deal with such inconvenience which requires change if habits.Problem can be solved with a fossil fuel cooker in addition but that adds to the costs
  2. Low Sunlight Places - Access to sunlight may be difficult in some Regions
  3. Lack of Knowledge – Millions of citizens depend on kerosene and wood for cooking which is not only expensive but also leads to pollution.Lack of knowledge and trying something new are major hurdles.
  4. High Initial Cost – Indian income levels are quite low which makes buying solar cookers with even a $30 cost is unaffordable to most of the poor.The rich do not prefere solar cookers anyway

Advantages of Solar Cooker

Solar Cookers are one of the most useful solar products but the lack of knowledge has not led to its widespread adoption.It is particularly useful in poor sunny countries like India where people are forced to burn high cost high polluting fuel for their cooking purposes.Solar Cookers have the following advantages.

  1. Easy to Make - Solar Cookers do not require state of the art hitech factores or expensive equipment to make.They are relatively easy to build
  2. No Fuel Costs – Solar Cookers only requires sunlight for operation.Save immensely on Gas Costs over its lifetime
  3. Easy Operation – Solar Cookers are not hard to operate.Working with wood is quite difficult.There are problem in gathering and burning which is avoided with Solar Cookers
  4. Long Life - Solar Cookers have a long life of around 15-20 years
  5. Multiple Cooking Possible – Solar Cookers can cook multiple items at one go and  produces food which is healthy and not infested with any coal or gas residues.

Solar Water Heaters

Solar Water Heaters are one of the most successful solar products which have managed to proliferate without government subsidies needed for other solar products like solar panels etc..The payback period for solar heaters is quite short and  it substitutes the need for electricity needed to run power guzzling water heaters in residential and commercial establishments.The other reasons for the success of solar water heaters is that they are relatively easy to build and install making them quite popular.

Solar Water Heater Types and Prices

There are two types of solar water heaters that are sold in India -

a) Flat Plate Collectors (FPC) based Solar Water Heaters The solar radiation is absorbed by Flat Plate Collectors which consist of an  insulated outer metallic box covered on the top with glass sheet. Inside there are blackened metallic absorber (selectively coated) sheets with built in channels or riser tubes to carry water. The absorber absorbs the solar radiation and transfers the heat to the flowing water. There are 60 BIS approved manufacturers of Solar Flat Plate Collectors.

b) Evacuated Tube Collectors (ETC) based Solar Water Heaters Evacuated Tube Collector is made of double layer borosilicate glass tubes evacuated for providing insulation. The outer wall of the inner tube is coated with
selective absorbing material. This helps absorption of solar radiation and transfers the heat to the water which flows through the inner tube. There are 44 MNRE approved ETC based solar water heating suppliers.

Solar Water Heater Manufacturers in India

Tata BP Solar – One of the biggest producers of Solar Panels in India,this Tata Group  Company sells Solar Water Heaters under the Vajra,Zing and Hotmax Nova Brands

Venus- The company sells solar water heaters in 100 and 200 liters  capacity.The price for the lowest SWH starts from Rs 18,800 ( $400) which is not expensive

Note there are more than 100 manufacturers of Solar Water Heater Manufacturers that have been accredited by MNRE .Note there are no dominant solar water heater companies in India as the market is heavily fragmented.Provides a great opportunity for a company to come and win over the market through good quality and cost.Read more here

Solar Lighting

While most of the subsidies for solar energy in India are going to large solar farms,Solar Lighting is also growing steadily without any support.This is due to the fact that Solar Lighting saves on electricity costs and is also environment friendly.Solar Lighting in India is gaining traction not only in the upper income segments but also at the bottom of the pyramid.Solar Lighting is also gaining acceptance in use  in gardens where they can capture sunlight in the morning and light the gardens in the night using the stored energy.

Types of Solar Lighting in India

1) Solar Lamps/Lanterns

Solar Lamps or Solar Lanterns have seen astounding growth in India driven mainly by the lack of access to electricity and the high costs of Kerosene or gas lamps.Note Solar Lamps have been so successful in India mainly due to their economic utility rather than their Green Characteristics.Note 100,000 Indian villages do not yet have electricity which means that the productivity comes to a complete stop in the dark.Note Kerosene a dirty oil refined product is the main source of energy for millions of Indian citizens.Kerosene is a health hazard resulting in accidental fires and causing a lot of smoke which can lead to various respiratory diseases.The Kerosene is given in limited quantities and is not sufficient to Light the Darkness for a month or more.The advent of Solar LED Lamps has been a godsend solution to this problem.

2) Solar home lighting systems – Solar home lighting system consists of the Solar Panels, Mounting structure, battery, battery box, Solar charge-controller, luminaries, cables and switches .The Solar Lighting Fixtures have inbuilt DC to AC inverter converters.Solar Lighting Home Systems can also run TVs and Fans though running of Solar Air Conditionersis not possible because of high wattage requirements.

3) Solar Street Lighting - Solar Street Lighting System is a lighting system for the illumination of streets & squares and cross roads located in areas that are not connected to the power grid.The standalone solar street lighting system comprises of a Solar Panel ,Lead acid battery for Energy Storage, Compact Fluorescent Lamp (CFL) as light source, suitable electronics and hard-ware like pole, battery box  for fixing of these sub system.The system is controlled by a controller with automatic ON/OFF time switch, which control the light from dusk till morning or other setting time.Note high end Solar Street Ligthing can consist of LED Lamps instead of CFLs.

4) Solar LED Lighting -  The falling prices of LEDs has made it possible to couple these two green technologies together .Solar LED Lighting can be used anywhere as a replacement for normal Solar Lighting which used CFLs.

Solar Lighting Suppliers

Selco India SELCO Solar Pvt. Ltd, a social enterprise established in 1995.SELCO employsabout 170 employees in Karnataka and Gujarat spread across 25 energy service centers. Selco sells most Solar Products alongwith Financing Packages as well.

D.light Design – D.Light Design was started with the socially responsible goal of bringing light affordably to millions of poor.Its flagship product is S250 which is a dual purpose solar light and mobile charger. Its b It provides 10 times more light than a kerosene lantern.

It also charges the most popular mobile phones on the market. It keeps personal mobile phones fully charged even when AC power is unavailable or inconvenient.

Tata BP Solar - This Tata Company has one of the biggest and oldest solar panel manufacturing operations in the country.Tata BP Solar also manufactures a wide variety of Solar Product which includes different types of Solar Sodium,Solar CFL and Solar LED Lamps .Tata BP Solar is perhaps the best solar lighting provider in India given the brandname and inhouse manufacturing of solar components.It has a range of Solar Lighting Solutions based on LED and non LED lights.

Hiramut Energies  manufactures and exports Solar Energy Products,  under the brand name of “Sun-Ray”. and is  based in Gujarat.They sell Solar Cooker, Solar Home System, Solar Led Lantern, Solar Led Street Light, and Solar Water Heating System.

Neutech Solar Systems is mainly focused on solar water heaters but is also sells solar street lighting systems

Anu Solar started 1979 and has a manufacturing unit for Solar Water Heating Systems and Solar Photovoltaic Systems .They sell solar lighting systems for streets and residential purposes.

Deepa Solar Lighting Systems has been around for 10 years.The company also sells a wide variety of solar products like solar fans,solar street lights,solar lamps,solar garden lights etc.

Tilak International is a manufacturer of LED signals, solar charge controllers, solar lighting system, solar home lighting system, solar street lighting system .

Aditya Energy Systems established in the year 2000, is a  manufacturers of Solar Photovoltaic lighting systems.Aditya Energy Systems manufactures solar lighting systems of various capacities ranging from few watts to kilowatts catering to domestic and international customer requirements

Luminous Power Technologies Limited/Schneider Electric has LED (light emitting diode) based Solar Lighting Solution The energy efficient LED based design of this new product with a single light output is at par with 11 watts CFL. ging between 11 to 12 hrs.

Solar Lanterns

Solar Lamps or Solar Lanterns have seen astounding growth in India driven mainly by the lack of access to electricity and the high costs of Kerosene or gas lamps.Note Solar Lamps have been so successful in India mainly due to their economic utility rather than their Green Characteristics.Note 100,000 Indian villages do not yet have electricity which means that the productivity comes to a complete stop in the dark.Poor schoolchildren cannot study in the dark and people cannot work in the night either.Note Kerosene a dirty oil refined product is the main source of energy for millions of Indian citizens.Kerosene is a health hazard resulting in accidental fires and causing a lot of smoke which can lead to various respiratory diseases

Solar Lamps Government Subsidies

Solar Lamps were also promoted by the Indian government specifically MNRE which brought out various schemes such as distributing free solar lamps to girls,subsidies on solar lamps in the form of captial subsidies etc.However Government has not managed to consistently give incentives and did not put enough efforts.The government stood to gain a lot as it would have saved money from kerosene subsidies.

Solar Lamps Financing

 Note Solar Lamps for poor customers in India needs financing as these customer earn around $2 a day which mean the cost of a Solar Lamp which can cost around $20 is too high for them.Some companies have tied up with banks to provide micro loans to customers in order to get their products financed.

Solar Lamp Manufacturers in India

Selco India SELCO Solar Pvt. Ltd, a social enterprise established in 1995.SELCO employsabout 170 employees in Karnataka and Gujarat spread across 25 energy service centers. Selco sells most Solar Products alongwith Financing Packages as well.

D.light Design – D.Light Design was started with the socially responsible goal of bringing light affordably to millions of poor.Its flagship product is S250 which is a dual purpose solar light and mobile charger. Its b It provides 10 times more light than a kerosene lantern.

It also charges the most popular mobile phones on the market. It keeps personal mobile phones fully charged even when AC power is unavailable or inconvenient.

Tata BP Solar - This Tata Company has one of the biggest and oldest solar panel manufacturing operations in the country.Tata BP Solar also manufactures a wide variety of Solar Product which includes different types of Solar Sodium,Solar CFL and Solar LED Lamps .

Note the above are the major solar lamp manufacturers which have had a big impact though Tata BP Solar is more of a commercial solar panel seller.There are a number of small solar lamp manufacturers as well as resellers in India who buy from cheap Chinese vendors and sell it in India.

Orb Energy a non-profit supplier of off grid solar systems in Southern India has got a million dollars in additional funding from Acumen Fund.Orb Energy supplies solar systems to both residential and commercial customers in 4 states in India Kerala,Maharashtra,Tamil Nadu and Karnataka.It is headquartered in Bangalore and received initial funding from Zouk Ventures.Acumen Fund invests in socially relevant enterprises and has also invested in D.Light which is one of the major producers of LED Solar Lanterns in India.Note Orb Energy in its websites says that it sells around 1000 systems a month and plans to double the size of its operations by increasing the number of branches,employees.Orb plans to double its branches and employees in the next two years, reaching 250,000 people.Solar System is a massive opportunity as Solar Power in India is set to grow exponentially in the coming years.Note Orb Energy is a system installer and does not manufacture solar panels in India.

Orb Energy is targeting both residential customers and commercial establishments like healthcare,retail and security.It is not only selling solar panel systems but also solar heaters and solar lights.The company is more of a solar solution provider rather than a solar product seller which is a good strategy.The company is providing free 1 year after sales service with 3 free visits again a good move given the poor track record of service providers in India.

Orb Energy, Acumen Fund Announce Partnership to Address Energy Needs for Millions in India without Electricity

Orb Energy Pte Ltd. (Orb), one of India’s leading providers of solar energy systems, and Acumen Fund, a nonprofit global venture firm addressing poverty in South Asia and East Africa, today announced a partnership to address energy needs for millions of Indians without reliable electricity. Acumen Fund is making a significant equity investment to help Orb extend its household lighting systems to more rural customers, to scale its manufacturing, and to develop innovative products to meet the needs of its low income customers.

Solar Power in India has immense potential and the government has set up an ambitious target of 20 GW by 2022 under JNNSM.However the execution on the ground is sadly lacking despite the good intentions as most of the solar projects sanctioned in Phase 1 faced delays due to aggressive bidding,debt financing,lack of expertise etc.Both big private utilities,module manufacturers and state government have started to take cognisance of this problem.Haryana which has got around 8 MW of projects under JNNSM has decided to help out the solar project developers.

CERC Guideline of 15% by 2020 might mean huge outgo for RECs

CERC  had already made it mandatory for 6% of the Electricity to be generated from Renewable Energy Sources.Haryana has a long way to go to achieve 6% which will increase to 15% by 2020 and might have to buy a huge amount of expensive Renewable Energy Certificates (RECs) unless it gets its act together

Haryana desperately needs Solar Energy

HAREDA which is the state renewable energy development agency akin to MNRE at the centre will put these solar farms under a fast track approval process.Note Red Tape in India is quite notorious especially for small project developers who lack the connections and resources to get things done.Note Haryana gives seperate incentives on its own for solar energy,solar water heaters and solar lighting as well.Haryana is desperately deficient in renewable energy despite being one of the most industrialized and fastest growing states in the country.Haryana cities like Gurgaon and Faridabad have benefited hugely from being part of India’s National Capital Region (NCR).However Haryana only generates 0.5% of its 4000 MW of Electricity from Renewable Energy Sources.The state has negligible Wind or Biomass Energy.Despite a Department of Renewable Energy being setup to specifically promote the use of Alternative Energy Sources,the state has not had much success.Haryana is richly endowed with Solar Energy Resources with 320 days sunny days.The State has managed to win some allocation from the centre’s JNNSM scheme.It is also promoting the use of solar energy through disseminating solar kits amongst 2000 schools and providing solar lighting in around 500 villages.

From the Financial Express

The government has put nine solar power projects in Haryana on fast track to meet the mid-September deadline. The projects of 8.8 mw to be set up under Jawaharlal Nehru National Solar Mission (JNNSM) were reviewed recently by the ministry of new and renewable energy and the state nodal agency—Haryana Renewable Energy Development Agency (Hareda)—submitted the progress report.

A senior official of Hareda told FE, “The main problem that these project developers are facing is getting the statutory approvals on time. Keeping this in mind we have written to all the concerned departments to take up their cases on priority and give approvals as soon as possible. Land is already in possession for all projects and the financial closure is under process for the projects with one developer already having achieved the same.”

India launched its Solar Mission by the name of Jawaharlal Nehru National Solar Mission (JNNSM) with a lofty target of 20 GW by 2022.The Solar Mission has been divided into 3 phases and promotes solar energy installation,solar industry,solar heaters and off grid solar.Note the Solar Mission provides subsidies and incentives to promote the use of Solar Energy from the Central Government.Different States such as Gujarat have enacted laws to support solar energy on their own which is separate from the Federal Target for Solar Power.I think the 20 GW target for 2022 is very low and will be easily exceeded but that is a separate discussion.The Solar Mission is not a rigid document but is a work in motion as the second and third phases will be implemented taking in the feedback and success of the first phase of the Solar Mission which has already announced the Solar Project Winners.

Objectives of the Solar Mission in India

1) Solar Lighting-Deploy 20 million solar lighting systems for rural areas

2) Solar Heaters – Achieve 15 million sq. meters  by 2017 & 20 million by -2022 of solar thermal collector area

3) Solar Manufacturing – Global Leader in Solar Manufacturing ( Seems a Pipe Dream right now) with Targets 4-5 GW equivalent of installed capacity by 2020 including setting up of dedicated manufacturing capacities for poly silicon material to annually make about 2 GW capacity of solar cells

4) Off Grid Solar Applications – Solar Mission has set a target of 1000 MW by 2017

Three Phases of JNNSM

First Phase

1) First Phase (How it has fared so far)

Smaller 2 MW PV Projects

India has set a target of 1100 MW for the first phase with around 100 MW allocated for 2 MW projects which have the best chance of being built.Note the 2 MW project winners are already flipping the projects as many non-serious players won the projects.These companies were speculators and has no intention of building the plants anyway

Migration Projects

It has also allowed 80 MW projects to be transferred to JNNSM rate which has led to strong state objections.The State nodal agencies have also started objecting to the tariff policy as 80 MW of Solar Projects were awarded the base FIT of Rs 17.91 as they were transferred to the Indian Federal Subsidy from their initial PPAs with individual states.Note these solar project developers who have managed to get transferred will get tariffs which are almost 60% higher than the lowest bidder for the 5 MW Solar Project at Rs 10.95.This will also mean a much large taxpayer outgo to the 16 Project Winners for the 80 MW than for the 150 MW projects

Larger PV 5 Projects and Bigger Solar Thermal Plants

The rest of the 620 MW projects are in serious trouble with no major construction happening.The developers might find it profitable to lose their deposit money rather than building the plant.The government will have to potentially bailout these companies if it wants to see its Solar Mission be successful.While the first phase is already in trouble the government is already thinking of auctioning another 296 MW of solar projects in April.Don’t know how that will help as the majority of the First Phase projects are already in trouble

2) Phase II (2013-2017) – Remaining 4 yrs of 12th five yr plan Target of 3000-10000 MW
3) Phase III (2017-2022) – 13th five yr plan 20000 GW overall

Funding of Solar Mission and Role of CERC and NVVN

In order to facilitate grid connected solar power generation in the first phase, a mechanism of “bundling” relatively
expensive solar power with power from the unallocated quota of the Government of India (Ministry of Power) generated
at NTPC coal based stations, which is relatively cheaper, has been proposed by the Mission. This “bundled power”
would be sold to the Distribution Utilities at the Central Electricity Regulatory Commission (CERC) determined prices.
The Mission also provides for NTPC’s Vidyut Vyapar Nigam Ltd or NVVN to be the designated Nodal Agency for
procuring the solar power by entering into a Power Purchase Agreement or PPA with Solar Power Generation Project
Developers who will be setting up Solar Projects during the next three years, i.e., before March 2013 and are connected
to the grid at a voltage level of 33 kV and above. For each MW of installed capacity of solar power for which a PPA is
signed by NVVN, the Ministry of Power (MoP) shall allocate to NVVN an equivalent amount of MW capacity from the
unallocated quota of NTPC coal based stations and NVVN will supply this “bundled” power to the Distribution Utilities.
This Scheme is referred to as the ‘Bundling Scheme’ in these guidelines. – Source MNRE

Solar Manufacturing

Targets 4-5 GW of capacity by 2020 by setting up of dedicated manufacturing capacities with 2 GW of Solar Cells.Manufacturing to get incentives like Zero import duty on capital equipment,Low interest rate loans,Incentives under Special Incentive Package.The JNNSM also hopes to promote of Solar Thermal Technology through setting up of  2-3 large solar manufacturing tech parks.

Solar Research and Development

  • National Centre of Excellence (NCE) to be established
  • Research Council to be set for Guidance
  • 50 startups to be funded to develop solar related technologies
  • Government Fellowship program to train 100 scientists
  • Ultimate Aim to reduce solar costs and BOS costs to achieve grid parity

Solar Heater Incentives

Off Grid Solar Subsidies

The main objectives of this section of the scheme are:

  1. To promote off-grid applications for meeting the targets set in the JNNSM.
  2. To create awareness about the usage of solar systems
  3. To encourage and promote sustainable business models
  4. To support channel partners and potential beneficiaries
  5. To organize consultancy services and seminars, awareness campaigns
  6. To help replace kerosene and diesel, wherever possible
  1. For off-grid  Solar PV Installations of a maximum capacity of 100 kW per site, and for mini-grids for remote electrification with a maximum capacity of up to 250 kW the subsidies are as follows
  2. Subsidy, which is calculated on the basis of a cost benchmarked by MNRE, is notionally equal to 30% of benchmarked cost of solar power systems. For 2010 it is fixed at Rs. 90 per Wp with battery storage, and at around Rs. 70 per Wp without battery storage. These subsidies will be changed every year.
  3. Solar PV plants in micro-grid mode/local distribution network, to meet unmet community demand for power in unelectrified rural areas, will be provided a capital subsidy of Rs 150/watt  In special category states of North East Inida, Sikkim, Himachal Pradesh, and Uttarakhand, a capital subsidy of  90% of installation cost .In Border areas and islands like  Lakshadweep, Andaman and Nicobar Islands  the subsidy availed will also be 90% for solar PV installations.Note soft loans of 5% interest rate can also be availed.

Role of Different Entities in the Solar Power Mission

  1. RESCOs (renewable energy service providing companies): These companies install, own and operate the renewable energy systems.
  2. Financial and Microfinance institutions: These institutions are mainly into providing loans to the consumer and accessing the interest subsidies through refinancing
  3. Financial Integrators: These firms serve the manufactures and service providers by integrating different sources of finance available for them.
  4. System Integrators: These entities are the ones which provide design, supply, integration and installation and O&M to the clients.
  5. Program Administrators: Administrators include central and state ministries and departments, state nodal agencies, utilities, PSUs and reputed NGOs. These bodies are responsible for implementing the scheme.

The Indian Government’s launch of the ambitious Jawaharlal Nehru National Solar Mission(JNNSM) was done with much fanfare with a target of reaching 20 GW of Solar Capacity by 2022 under 3 phases from the 81 MW currently.While the government had the best intentions and had laid down a well defined 10 year plan with subsidy support for both Solar Thermal and Solar PV Technology,it has already run into problems.Due to high interest the government went in for bidding of projects which led to irrationally low bidding from unknown firms.This has put the entire exercise in question with the the biggest private utility saying JNNSM is a failure.Without extensions of deadlines it looks highly unlikely whether the 37 winners will actually put up the plants.

JNNSM is divided into 3 phases with the ultimate goal of reaching grid parity with coal by 2030.I don’t know where they came with the 2030 figure as I think solar should reach grid parity much earlier and should be below coal cost much  before

1)Phase I (up to 2012/2013) – remaining period of 11th five yr plan & first yr of 12th yr plan Target of 1100 MW
2) Phase II (2013-2017) – remaining 4 yrs of 12th five yr plan Target of 3000-10000 MW
3) Phase III (2017-2022) – 13th five yr plan 20000 GW overall


The Objectives of the Solar Mission

1) Solar Lighting-Deploy 20 million solar lighting systems for rural areas

2) Solar Heaters – Achieve 15 million sq. meters  by 2017 & 20 million by -2022 of solar thermal collector area

3) Solar Manufacturing – Global Leader in Solar Manufacturing ( Seems a Pipe Dream right now) with Targets 4-5 GW equivalent of installed capacity by 2020 including setting up of dedicated manufacturing capacities for poly silicon material to annually make about 2 GW capacity of solar cells

4) Off Grid Solar Applications – Solar Mission has set a target of 1000 MW by 2017

Funding of the JNNSM will be done by

1) Renewable Energy Credits (REC) – State Electricity Regulatory Commissions (SERC) to fix a minimum
percentage of energy purchase from renewable sources of energy

2) NTPC’s Trading Arm NTPC Vidyut Vyapar Nigam Ltd ) is chosen as the nodal agency for entering into a Power Purchase Agreement (PPA) with solar power  developers.NTPC will mix expensive solar power with cheaper coal power .

3) Incentives

  • Zero import duty on capital equipment, raw materials and excise duty
    exemption
  • Low interest rate loans, priority sector lending
  • Coal tax
  • Budgetary Support for MNRE though 2011 Budget has not given anything
  • UNFCCC Funds – Again not certain as no international agreement ( another pipe dream)

First Phase (How it has fared so far)

Smaller 2 MW PV Projects

India has set a target of 1100 MW for the first phase with around 100 MW allocated for 2 MW projects which have the best chance of being built.Note the 2 MW project winners are already flipping the projects as many non-serious players won the projects.These companies were speculators and has no intention of building the plants anyway

Transfer Projects

It has also allowed 80 MW projects to be transferred to JNNSM rate which has led to strong state objections.The State nodal agencies have also started objecting to the tariff policy as 80 MW of Solar Projects were awarded the base FIT of Rs 17.91 as they were transferred to the Indian Federal Subsidy from their initial PPAs with individual states.Note these solar project developers who have managed to get transferred will get tariffs which are almost 60% higher than the lowest bidder for the 5 MW Solar Project at Rs 10.95.This will also mean a much large taxpayer outgo to the 16 Project Winners for the 80 MW than for the 150 MW projects

Larger PV 5 Projects and Bigger Solar Thermal Plants

The rest of the 620 MW projects are in serious trouble with no major construction happening.The developers might find it profitable to lose their deposit money rather than building the plant.The government will have to potentially bailout these companies if it wants to see its Solar Mission be successful.While the first phase is already in trouble the government is already thinking of auctioning another 296 MW of solar projects in April.Don’t know how that will help as the majority of the First Phase projects are already in trouble

SUMMARY

The First Phase of the JNNSM has not inspired much confidence and compared to successful programs in Germany seems a total failure.State Governments like Gujarat and Rajasthan are pushing solar energy much better than the Federal Government.The fast declining costs of solar energy IMHO will pretty much make this policy obsolete anyway in a couple of years.

Author Links on JNNSM

  1. Renewable Energy in India Biggest Hurdle is the Poorly Managed Electricity EcoSystem
  2. Indian Solar Energy Feed in Tariff Federal Discrimination leads to State Pushback
  3. India Solar Thermal Bidding sees Massive Discounts;479 MW Projects to be constructed with 90% in Rajasthan
  4. Can ADB rescue India’s JNNSM with Loan Guarantees and Equity Investment
  5. Solar Energy in India – Domestic Content Requirements may be made more Stringent for Longer Time
  6. Green Industry in India – Solar Energy runs into Debt Hurdle even as Government plans Smart Meter Rollout
  7. “Renewable Energy Certificate” Policy Starts in India – What you need to Know and Who will Benefit
  8. USA Opposes India’s Solar Energy Domestic Content Requirements
  9. “Buy American” Solar Panel Military Law reveals Policy Confusion and Protectionist Hypocrisy
  10. List of Current and Future Solar Photovoltaic Energy and Solar Thermal Plants/Projects in India
  11. German Development Bank Kfw joins ADB,World Bank in funding Clean Energy in India
  12. Green Energy in India gets unexpected boost as Central Electricity Regulatory Commission (CERC) mandates 6% Renewable Energy generation
  13. Solar Energy in India – Biggest Energy Opportunity of the 21st Century
  14. Solar Power Companies in India Growing by the Day but a Long Way to Go

Australia is the biggest exporter of coal in the world and one of the leading emitter of GHG emissions.Its huge mining industry generate tons of carbon and earns billions for the Australian Treasury.However despite its leading role in global warming,Australia has almost no subsidies for green energy.The federal government has conveniently used the recent Queensland Floods to cut off a number of Green Programs such as Green Car Innovation Fund, Cleaner Car Rebate Scheme, the Carbon Capture and Storage Flagships and Solar Flagships, the Solar Hot Water Rebate, Green Start Program, Solar Homes and Communities Plan.The Solar Flagships Program which was supposed to generate around 1 GW of Solar Energy has also been killed.Note Australia generate 92% of its electricity from Fossil Fuel which is quite high compared to other developed countries.

Solar Energy Program Cutbacks To Help Pay Australia’s Flood Bill

In a speech to the National Press Club a short time ago, Prime Minister Julia Gillard outlined spending cuts and deferments to help provide funding to rebuild infrastructure ruined by Australia’s worst flooding disaster – some of the programs to fall include solar power initiatives.

Its quite shocking that developed countries like Canada,UK and Australia have such a apathy towards problems of climate change.Japan and Europe appear to be angels in this regard compared to these countries.The recent Queensland Floods can be indirectly be linked to global warming so you would have though the thich headed government there would  have increased green funding.Instead they have killed the funding because they have to use those funds for flood relief.Apathy towards global warmings and climate change has been rising with the failure of the Cancuan and Copenhagen climate meets.Australia has been leading the way in anti-global warming efforts.

Australia Sabotages Copenhagen By Excluding Huge Agriculture GHG Emissions

Australia is a world leading greenhouse gas (GHG) polluter as shown by the following data. As of 2008, “annual per capita greenhouse gas (GHG) pollution” in units of “tonnes CO2-equivalent per person per year” (2005-2008 data) is 0.9 (Bangladesh), 0.9 (Pakistan), 2.2 (India), 3.2 (the Developing World), 5.5 (China), 6.7 (the World), 11 (Europe), 16 (the Developed World), 27 (the US) and 30 (Australia; or 54 if Australia’s huge Exported CO2 pollution is included

This latest decision of the Rudd Labor Government means that world leading per capita GHG polluter Australia is telling the World a few weeks before the December 2009 Copenhagen Climate Change Conference that it will continue to pollute the atmosphere with GHGs domestically at more than 50% of its current level FOREVER, while continuing to expand its world leading coal exports.