March 20, 2017 | Author: FreshersJobs | Category: N/A
Solar Power Plant Project – Setup Details TABLE OF CONTENTS
1. LATEST SOLAR NEWS AND VIEWS IN ANDHRA PRADESH 2. CAPITAL COST OF SOLAR PV - MW SCALE POWER PLANTS 3. TWO ROUTES TO SOLAR POWER GENERATION: PPA / REC 4. IDEAL LAND FOR SOLAR POWER PLANTS 5. SOLAR POWER GENERATION PROJECT FINANCING 6. REC 7. APPC COST PER UNIT STATE WISE 8. ACCELERATED DEPRECIATION 9. SUBSTATION LOCATIONS AND POWER GENERATION POTENTIAL 10. UNBID AND UNDERBID SUBSTATIONS - OPPORTUNITY! 11. GRID CONNECTIVITY AND EVACUATION PROCEDURE 12. SOLAR PARK: AVAILABILITY IN AP 13. STEPS FOR SOLAR CAPTIVE FOR FACTORY 14. AP SOLAR POLICY 15. DESIGN OF ROOF TOP 16. OTHER SOLAR BUSINESS OPURTUNITIES 17. DNI AND NEWS OF DISTRICTS IN ANDHRA PRADESH 18. FAQ'S
SOLAR NEWS AND VIEWS *AP GOVT GIVES SOLAR PROJECT DEVELOPERS TIME TILL 30TH SEPTEMBER TO ACCEPT RS 6.49/UNIT 2 august 2013 Solar photovoltaic power generation companies, who have submitted bids to set up units in Andhra Pradesh, or those now interested, have been given time till September 30, 2013 to submit their proposals. The Government had recently decided to allow more companies interested in taking part in the projects under the State solar power policy. As a part of development of green power, particularly the solar, the Andhra Pradesh Government represented by AP Transco has given opportunity to all the solar developers, including those who have not participated in the recently concluded competitive bidding for 1000 MW, to submit their applications for executing the solar projects. *AP GEARS UP FOR SOLAR NET METERING POLICY: ROOFTOP SOLAR POWER24 august 2013 The state energy department on Friday said citizens going for roof top solar power generation could get their system connected to the grid or remain off the grid. *AP GOVT HAS COME OUT WITH A INCENTIVE SCHEME TO ENCOURAGE SOLAR ROOF TOP !!! You need to invest just Rs 50,000 to set up a solar rooftop system with a capacity to generate power of one KW in Andhra Pradesh. *SEED TO PROVIDE SOLAR DRYERS TO BOOST THE DRY FISH INDUSTRY IN BHEEMILI: AP In a bid to turn Bheemili into a hub of dry fish trade, the Greater Visakhapatnam Municipal Corporation (GVMC) has mooted a proposal of introducing solar dryers with the help of Hyderabad-based Society for Energy Environment and Development (SEED). *500 VILLAGES IN AP STILL LACK POWER SUPPLY12 august Around 500 hamlets across the state still lack power supply. Three years have passed since a Rural Electrification Plan was launched but there are over 10 lakh un electrified rural as well as BPL households in the state. REC SOLAR TO SET UP 6.5MW SOLAR PLANT FOR EENADU NEWSPAPER: ANDHRA2 AUG 2013 REC, a leading global provider of solar electricity solutions, will supply 25,720 REC Peak Energy Series solar panels aggregating to 6.5 MWp to power a groundmounted tracker system in Andhra Pradesh, India. All electricity produced – 12,289,500 kWh of clean, green electricity each year – will be used for the printing of the Eenadu, the largest circulated Telugu newspaper in Andhra Pradesh, owned by the Ramoji Group.
*CNPV DELIVER 10MW SOLAR MODULES TO RAYS POWER INFRA!!!: AP30 JULY 2013 LUXEMBOURG and DONGYING, China, July 30, 2013 /PRNewswire/ -- CNPV Solar Power SA, a public limited liability company organized under the laws of the Grand Duchy of Luxembourg and a leading integrated manufacturer of solar photovoltaic products, today confirmed their on-time progression with Rays Power Infra Private Limited, Jaipur, India ("Rays Power") as part of their 30 MW strategic agreement. Started as a brain child of professors and students of Indian Institute of Technology (IIT), they are among the largest solar power service provider in India. Today, Rays Power Infra has rapidly evolved into one of the biggest Solar park developer & service providers in India. Services are offered in either a "turnkey" form or on an EPMC basis, making Rays Power Infra Private Limited. The "one stop shop" for solar power plant projects.
*ENVIRONMENT MINISTRY HEADQUARTERS TO BECOME FIRST 'NET ZERO ' CONVENTIONAL ENERGY CONSUMPTION BUILDING!!!14 july 2013 The country's first "net zero" conventional energy consumption multi-storey building - the new headquarters of the environment ministry will be completed in Jor Bagh next month. The building will meet its annual requirement of 14 lakh units of electricity by generating solar power on the site. *ZUARI CEMENT INAUGURATES A 850MW PLANT IN YERRAGUNTLA, ANDHRA PRADESH 12 july 2013
Zuari Cement inaugurated its solar power project at Yerraguntla on 9th July 2013, a bold initiative towards energy sustainability in line with the Italcementi Group energy policy.
2. COST OF A 1 MW SOLAR POWER PLANT: ESTIMATE Rs (in lakhs) ITEM Supply, Installation, Erection & Commissioning of Modules
400 (REC)
Module Mounting Structure and associated civil works
80
Installation, Erection & Commissioning of Inverters
60 (AEG)
Cables and associated civil works
40
Testing & Commissioning of Transformer
18
H. T. Panel and associated civil works
15
Meters with C.T. & P.T., Isolators, four pole structure & related evacuation system with switchyard lighting and civil works
18
SCADA, Weather station, Earthing & Lighting Protection
25
ACDB, DCDB, Batteries with Chargers, Control Panel etc.
08
String Combiner Boxes
12
Inverter & Control room, Boundary wall work, approach road with water tank
30
Insurance
09
Engineering & Men Power & Out of Pocket Expenses
15
Miscellaneous
Total
730 lakhs (7.30 Crores)
Mounting Structurers (with tracking - Single Axis)
80
Mounting Structurers (with tracking - Dual Axis)
140
Its a known fact that single axis and dual axis tracking technologies provide more than 15% additional generated power. However technical experts choose to operate without both single axis and dual axis tracking systems, simply to avoid any moving part in the plant. They want to avoid the risk of a breakdown ever.
Even CERC has estimated the cost of a solar power plant without taking tracking systems. There are some newer Tracking systems which claim lower costs and higher efficiencies. Costing less than 10 % of the project cost and providing more than 25 % efficiency. These seem pretty good to go. Here’s a breakup of the costs for Solar PV projects as recommended by CERC:
SNO
Particulars
Capital Cost Norm for Solar PV project (Rs.Lakh/MW)
1
PV Modules
344.50
43%
2
Land Cost
16.80
2%
3
Civil and General Works
94.50
12%
4
Mounting Structures
105.00
13%
5
Power Conditioning Unit
60.00
7%
6
Evacuation Cost up to Interconnection point (Cables and Transformers)
105.00
13%
7
Preliminary and PreOperative Expenses including IDC and contingency
80.00
10%
Total Capital Cost
805.80
% of total cost
100%
COST OF 1MW WITH CNPV/ CSUN
Rs (in lakhs) ITEM Supply, Installation, Erection & Commissioning of Modules
360
Module Mounting Structure and associated civil works
80
Installation, Erection & Commissioning of Inverters
60 (BONFIGLIOLI)
Cables and associated civil works
35
Testing & Commissioning of Transformer
18
H. T. Panel and associated civil works
15
Meters with C.T. & P.T., Isolators, four pole structure & related evacuation system with switchyard lighting and civil works
15
SCADA, Weather station, Earthing & Lighting Protection
20
ACDB, DCDB, Batteries with Chargers, Control Panel etc.
08
String Combiner Boxes
10
Inverter & Control room, Boundary wall work, approach road with water tank
35
Insurance
09
Engineering & Men Power & Out of Pocket Expenses
15
Miscellaneous Total
680 lakhs (6.80 Crores)
WHAT IS THE REAL CAPITAL COST OF A SOLAR PV PLANT?(BY EAI NARSI) Nirvana’s have the basic data of the component costs for solar PV power plants – the panel cost, the balance of system cost, land costs, installation & evacuation costs. There is significant variability in practically all the cost components Panels – could be thin film or crystalline (not to mention CPV), and could be made in India, or imported from high-quality, high cost countries such as Germany, or from our nice neighbor China at dirt cheap prices (with questionable quality of course) Balance of systems – It capital cost depends on whether you wish to use trackers or not, for instance. The cost of inverters can vary a lot, based on the brand. Many of the other commoditized components, cables, transformers etc., can be estimated with a fair degree of precision
Land cost – Is it 3 lakhs per acre or 10 lakhs per acre. Depends on where you put it up, doesn’t it? Installation costs – EPCs come in many varieties, it is 5% of project cost or 7%? 2% is a lot of money when you are talking about project costs upwards of 10 crores. Taking low-end estimates for each of the above gives me the following number (all costs per MW)
Panels – Rs 3 crores (thin film, 60 cents per W)
Balance of system – Rs 4 crores
Land cost – 0.12 crores (3 lakhs per acre)
Installation cost & evacuation – 0.35 crores approx (5% of total cost) The total comes to approximately 7.5 crores Now, zip to the high end (all costs per MW)
Panels – Rs 4 crores (crystalline, 80 cents per W)
Balance of system – Rs 5 crores (super quality inverters and trackers)
Land cost – 0.4 crores
Installation cost & evacuation – 0.65 crores (7% of total cost) The total comes to approximately 10 crores Now, this is the band most of us have been talking about – Rs 7.5-10 crores. Of course, there are folks talking about sub-7 crores as well, and I would like to hear from them too how they arrived at those numbers. COST OF A 1MW SOLAR PLANT WITH TIER2 PANELS & PRACTISES
ITEM
Rs (in lakhs)
Supply, Installation, Erection & Commissioning of Modules
330
Module Mounting Structure and associated civil works
90
Installation, Erection & Commissioning of Inverters
55
Cables and associated civil works
35
Testing & Commissioning of Transformer
18
H. T. Panel and associated civil works
10
Meters with C.T. & P.T., Isolators, four pole structure & related evacuation system with switchyard lighting and civil works
18
SCADA, Weather station, Earthing & Lighting Protection
15
ACDB, DCDB, Batteries with Chargers, Control Panel etc.
08
String Combiner Boxes
12
Inverter & Control room, Boundary wall work, approach road with water tank
30
Insurance
09
Engineering & Men Power & Out of Pocket Expenses
15
Total
645 lakhs (6.45 Crores)
This is avoidable, solar power generation is a profitable project. With an investment of Rs.2 Crores one can earn upto 40 crores and more in the ensuing 25 years, so it’s better to go with tier 1 panels, BOS and practices. EPCs that use best brands. Best practices with proven performances. Accelerated Depreciation of 80 % of the capital to companies with tax liability REC route ideal for Companies with high tax liability, with AD benefit Promoter’s equity approx Rs 2 cr/ MW Detailed Project report cost included in the project cost Bank loan can be 70%, with collateral security from promoter Project viable even with own capital without bank loan, It takes 6 months to complete a project As per REC route Rs 12.60/ unit (discom2.60, rec9.30) can be realized, REC price range of Rs9.30-13.40 will be valid till 2017 march. Post 2017 march the price band will be announced by MNRE .It is likely to be low to very low approx Rs 2-3.1 MW can generate approx 1.5- 1.7million units per year
3. TWO ROUTES IN WHICH YOU CAN PRODUCE SOLAR POWER PPA& REC MAJOR STEPS TO MW SCALE SOLAR Designing and Planning
Detailed Project Report
Power evacuation planning
DPR preparation
Codes & Standards interpretations
Regulatory approvals
Power Purchase Agreement (PPA) facilitation
Technology Tie Ups
Banking documentation
Financial closure
Project Structuring & Designing
Project Management
Security cover & major clause
Electrical works
Project commissioning
Through competitive bidding
Fixed tariff
Allotment not assured
Average but fixed returns
Limited allotments
No trading
Minimum 5 MW
Viable only to companies
No Accelerated Depreciation benefit
Open access
High but variable returns
Any capacity
Allotment is assured
Certificates to be traded
Variable tariff
PPA Projects
REC Projects
Unlimited allotments due to huge demand
KCP LIMITED IS THE FIRST COMPANTY IN ANDHRA PRADESH TO GET ACCREDITATION AND REGISTRATION FOR SOLAR POWER GENERATION UNDER REC MECHANISM.
Total Capacity (MW) = 5.75 | Number of Projects = (1) Sr.No
State
Energy Source
RE Generator
Project No.
Capacity (MW)
Date of Accreditation
1
Andhra Pradesh
Solar PV
THE KCP LIMITED
001
5.75
08-04-2013
Date of Registration N/A
STATES LIKE RAJASTHAN , MAHARASHTRA AND MADHYA PRADESH ARE LEADING IN REC MECHANISM
(23.04.2013)
PPA AND THIRD PARTY PPA PPA stands for power purchase agreement. In the recently concluded government auction of 1000MW in Andhra Pradesh, The Andhra Pradesh Government will provide PPA for solar purchase for the next 25years. THE GOVERMENT has announced the price of 6.49 per unit. Only sun borne energy and easel mining industries bid 6.49 and 6.52 respectively. Together at best they will be able to do 70MW. .This low unviable price literally opens up, the third party PPA plus REC route. Third Party PPA is a power purchase agreement which a developer can use and claim REC. Third party PPA REC is normally got by government authorized power trading companies. Companies that set up large solar plants of size 10MW and above can approach these companies to avail the 3rd party PPA for their solar project in Andhra Pradesh. The current third party PPA for solar power doing the rounds in Andhra Pradesh is Rs 4.50 - 5 per unit with 5% escalation once or twice a year. This third party PPA is available for 5 and 10 years tenure. Companies that avail 3rd Party PPA for their solar project in Andhra Pradesh can also avail REC benefits. LIST OF INTER-STATE TRADING LICENSEES OR POWER TRADING COMPANIES: These companies are eligible to provide third part PPA. Third party PPA plus REC route provides probably the best revenue model among the other sources of revenue in solar energy power generation. Companies in Andhra Pradesh desirous of monetizing, having strong balance sheets and are capable of investing in large projects like 15MW and above can reach out to them to get a third party PPA.
APPC PLUS REC The APPC price is 2.50 per unit. Adding APPC plus REC it works out to be rupees 11.80 ( REC 9.30).Appc prices will go up next year by more than 5%. It will not be a surprise that if appx price reach Rs 3. This estimate of Rs 3 is based on a) AP Govt is planning to buy 1000MW or more solar power at Rs 6.49 per unit) AP GOVT has ordered a purchase of 450MW OF POWER AT RS 12.50 per unit for the next six months. An official from APERC on probing accepted that APPC can go up to Rs 6 in the next two or three years. The Central Electricity Regulatory Commission (CERC) has released (APR 2013) a second set of (draft) amendments to their REC guidelines.
REC and Reverse Bidding/Tendering – Projects which have signed a PPA through any state tendering mechanisms (reverse bidding) would be ineligible for procuring REC’s. The objective of REC is to fund the gap between APPC and the viability.
APPC – The guidelines now clarify that the PPA would have to be signed at a price equal to the APPC price which was prevalent the previous year.
Electricity duty and captive generators - CERC has now proposed to remove the electricity duty exemption as a disqualification criterion as the quantum of contribution to final tariff is quite miniscule. The other criteria for disqualification such as concessional wheeling/banking would still be in force.
Time period for availing RECs – current regulations state that there is a three month time window after approval from the SLDC to get the required clearance from the central agency. However since the receipt of information from the SLDC sometimes takes more than three months to reach the central agency, it has been proposed to extend the window to six months. In addition to this, currently the application for receipt of the certificates can be made only on the 1st and 15th of each month. This has been revised to the 10th, 20th and last day of each month.
No cap on minimum capacity – previously, it was proposed that RE power plants with a capacity of 250 kW and above would only be eligible for certificates under the REC mechanism (subject to approval by MNRE) even though the CERC guidelines do not dictate a minimum requirement. CERC has clarified that there is no minimum capacity and that ANY RE generator would be eligible to claim REC provided they satisfy the prescribed criteria.
Retention of RECs – CERC has now clarified that all RECs generated through a RE captive power plant can be retained by the developer (to fulfill their obligations) thereby reducing the overheads which is subject to verification by the SNA.
Shelf-life of RECs – as reported earlier, RECs would now have a shelf-life of two years as opposed to one year and the regulations would be amended accordingly.
Date of issuance – any power plant setup under the REC mechanism would be eligible for RECs from the date of commercial operation or from the date of registration of such plant by the Central Agency whichever is later. All RE Generators are requested to pay fees & charges related to Registartion/Issuance inclusive of service tax @12.36% with immediate effect: The details of fees and charges of REC payable to Central Agency are as under: Registration Charges Sr.No.
Fee and Charges towards Registration
Amount in
Amount including Service @ 12.36%
1.
Application Processing Fees (One Time)
1,000
1,124
2
Registration Charges (One Time)
5,000
5,618
3
Annual Charges
1,000
1,124
4
Revalidation Charge at the end of five (5) years
5,000
5,618
Issuance Charges (Service tax @12.36% will be applicable on total amount)
Sr.No.
Fee and Charges towards Issuance of REC
Amount in
1.
Fees per Certificate
10
All fees and charges shall be payable by way of Electronic Clearing system (ECS) only and Payment shall be made as per the details given below
Sr.No.
Name of the Account Holder
Account No
Account Type
Bank Name
Branch Name and Code
IFSC Code
PAN POSOCO
1.
NLDC REC FEES & CHARGES
931764650
Current Account
Indian Bank
Mehrauli Institutional Area & 943
IDIB000M089
AAFCP2086B
of
4. IDEAL LAND FOR SOLAR POWER GENERATION IN ANDHRA PRADESH TOTAL LAND AVAILABLE IN ANDHRA PRADESH AND ITS GENERATION POTENTIAL 26.4 lakh acres of non - agricultural land available and 20.6 lakh acres land available under barren and uncultivable land. Total of 47 lakh acres of land available for solar power generation, If it takes approximately 5 acres of land for 1MW, we can produce more than 9,00,000 MW. Even if we have 1% of land that have access to substations if we use, We can produce about 9000MW.So there is a lot of potential. Rocky lands are not ideal for solar power generation. Many times soil testing of the land is done before deciding the feasibility Ideally the land has to be very close to a substation. 11 kva, 33 kva, 66 kva, 132 kva, etc For a 1 mw plant 11 kva is substation required. For each km the substation is away from your land, one has to incur about Rs 10 /12 lakhs for laying the transmission lines. Better than that is to buy up the land between your land and the substation. If there is some land between your land and the substation, there will ROW ie right of way issues. CAPITAL GAINS TAX At times some land brokers buy agricultural land and sell and want to sell it off as agricultural land itself to avoid short term capital gains tax. It is advisable for the potential developers to buy the converted land by sharing the short term capital gains tax with land broker. How many acres of land are required for a 1 MW solar power generation plant? The most popular solar panels are Poly crystalline and it needs 5 acres of land. 3.5 to 4acres for crystalline silicon/ mono crystalline (c-Si) technology and 6 to 7 acres per MW for thin film solar (C- CIG, CdTe) technology. In reality, it depends on other parameters like cost of land, Ground Coverage Ratio (GCR)(to avoid inter array shading, GCR can be 0.45 to 0.65 and generation will vary based on GCR) and choice of sun tracking with sun trackers the land required will be about 6acres per MW for crystalline solar modules). Which are the ideal states for setting up of solar power projects? Hot destinations are Rajasthan, Gujarat and MH, MP, Andhra, Karnataka, Tamil Nadu as far as solar radiation is concerned.
Will bankers finance Solar power generation plants? The Debt Service Coverage Ratio (DSCR) works out to an average of 1.49 which is considered quite acceptable to commercial banks for sanction of loan. The maximum debt that is permitted as per CERC norms is 70% and most banks should find this acceptable based on the financial strength and net worth of the company / promoters. The present policy driven by the National Solar Mission and PPA for 25 years with a central PSU like NTPC's subsidiary should provide adequate confidence to the Banker to finance solar power projects." MODES OF ACQUIRING LAND FOR SOLAR POWER GENERATION Got Land for Solar power generation !! Those of you, who have large acres of non cultivable lands in Andhra State near substations and do not have the resources to develop a solar power plant, can register their lands here for A) outright sale, B) lease for 26 years C) partnership with the power plant D) any other suggestion from the land owner We need the following information.
Exact location of the land: Address of land including district and taluk,
Total area in acres
Right of way ( ROW)*
Proof of its ownership.
Name, address including district and taluk,
DNI of the location:
Type of the land in government records.
Agricultural/ non agricultural/ barren/ rocky/industrial/ waste/ dry/ any other specify
KVA rating of substation nearby and distance.
Capacity available in the substation
List of solar projects in the neighborhoods, if you know.
Rate per acre. ie current market price of land available nearby, adjoining your land
Expected sale price : minimum price expected per acre.
Open for partnership: Open for leasing for 26 years? Yes / No
Are there lands available nearby: how many acres: how much do these lands cost * ROW - if you have direct access to the substation, it is fine. But if electricity produced has to go thru the neighboring lands, that means you have a ROW issue.
** Agricultural lands are not permitted to set up a solar plant, even if there is no water and no agriculture has been done for years. If you are going to convert, your land from agricultural land to any other, say so. *ANANTAPUR, LAND PRICES IN THE DISTRICT HAVE SHOT UP MANIFOLD With investors beginning to set up solar generation units in Anantpur, land prices in the district have shot up manifold. Already, these units have started generating 33 MW of solar based power. Many more such units are to follow suit, thanks to the region’s climate ideally suited to solar power generation. Nearly 51 companies including the multinational companies have sought permission to set up their units with a capacity of 585 MW of solar power generation. With so many solar power generating units coming this nondescript district is also tipped to witness a massive real estate boom. In fact, a private firm had purchased nearly 80 acres of land at Rs 2 lakh per acre that too in an interior village falling in Kadiri division recently.
5. Solar Power Project Financing Various options available for getting funding for your Solar Power projects are, 1) Asset / Collateral based Funding 2) Balance Sheet based Funding 3) Project Funding 1) Asset Based Funding: Individuals and Companies
In asset based funding the lender provides loan for solar power plants based on valuation of the assets that your company has or you have and that you can offer as collateral security for the loan.
You can even get 100 % funding depending upon the value of the collaterals.
Normally for most projects, the banks may demand 30 % equity and loan can be given for 70%.
Some banks in Hyderabad demand 35 % equity. But if the value of the collateral is high, it can be as said before, 100 % loan..
Many banks ask for urban property as collateral. It is not actually necessary. Once the banks get used to the performance of solar power generation plants, they will minimize the need for collaterals.
Already many banks are accepting less than 70 % of collaterals when the projects are pledged.
2) Balance Sheet Based Funding: Companies only The profit that the company has made in the last three years, the reserves and surplus it has etc will be taken into account and the bank can then fund. Companies that can avail Accelerated Depreciation for solar power generation will find it easier to avail loans and lower rates. Companies should note that it is not a fixed rate of interest. Good rapport based on good performance in the past can bring the interest percentage down. 3) Project Funding: Companies and Individuals The projected cash flow of the project or more specifically the PPA will determine the decision to fund. Payment security is important. Many of these types of funding can be got from India as well as from abroad. With hedging the cost of international funds also tend towards 11%. Indian banks are now getting closer to 12.5 % and if the asset / balance sheet / PPA are sound one could look at lower rate of interest. The project cash flow is much better in companies that can avail accelerated depreciation for solar power generation. COMMISSION FOR GETTING BANK LOAN. There are many Chartered Accountants who help individuals form a company and they also act as agents to get bank loans. Commission for getting bank loan is approximately 1- 2% at present in Andhra Pradesh. These agents normally help put the loan application for solar power generation plant and submit with two to three banks. This helps them get the best interest rate for solar power generation plants in AP. For companies, this may not be the ideal route, as they themselves will have a finance /accounts department with access to several banks. Whereas for individuals and NRI's, it makes more sense to go thru such chartered accountants who also help get loans, than trying it on their own. Individuals can try on their own, if they have 30% or more equity and or good collaterals. They can then go to more than one bank and try to get the best rate of interest.
BANKS THAT LEND FOR SOLAR POWER PLANT APSFC
ANDHRA BANK
STATE BANK OF HYDERABAD
CENTRAL BANK OF INDIA
BANK OF INDIA
CANARA BANK
YES BANK
AXIS BANK
SBI
CHECK LIST FOR COMPANIES AND INDIVITUALS FOR GETTING BANK LOAN TO SET UP A SOLAR POWER PLANT IN ANDHRA PRADESH
Solar power plant projects for loan proposal are new to Andhra Pradesh and particularly to the bankers. It is difficult for them to comprehend a business proposition with no raw material and little capital like a solar power generation project. After a few years, once several loan sanctions happen for solar power projects. The process will become more simple as the bankers will have a better idea. A. CONSTITUTION: A solar power generation plant can be started in any one of the following constitutions i.e. (1) Proprietary Concern,
(2) Partnership Firm,
(3) Private Limited/Limited Companies,
GENERAL REQUIREMENT 1. Proprietary Concern Bio-data of the proprietor by way of copies of PAN Card / Passport / Voters identity card / Bio-data with photo and signature attestation by Gazetted Officer. 2. Partnership Firms that are applying for a bank loan for a solar power generation plant a. Copy of Partnership Deed b. Copy of Firm Registration Certificate c. Extract of Form-A from Registrar of Firms (for old firms and in case of additional loans) regarding existing partners as on date. d. Bio-data of partners and copies of PAN card/passport/voters identity card/bio data with pass port size photograph and signature duly attested 3. Private Ltd Companies or Public limited companies applying for a loan for solar power generation plants a. Memorandum & Articles of Association. b. Bio-data of Promoter Directors affixing colour photo duly attested / Copies of PAN Card/Copies of Passport./voters identity card. c. Resolution of Board of Directors of the company authorizing two directors to raise loans from and sign necessary loan security documents and affix common seal thereof. d. Copy of certificate of incorporation if it is a Private Limited Co. e. Copy of Certificate of Incorporation and Commencement of Business in the case of Limited companies. f. Copy of General Body Resolution u/s.293 (i) (d) of Companies Act in case of Limited Companies, permitting the company to borrow in excess of paid-up capital and free reserves and Resolution u/s.293 (1) (a) of Companies Act for mortgaging the fixed assets of the company in favour of the Corporation. g. Consent letters from the Directors about furnishing of their personal guarantee with copies of property documents. h. Search Report from CA/Extract of register of charge from ROC in case of existing companies and companies seeking additional loans.
B. PRIMARY SECURITY The primary security can be either leasehold interest or freehold interest. If the solar power plant is going to be started in a leasehold lands, it is called leasehold and if the solar power plant is going to be started in own lands, it is called freehold.
Original Regd. title deed in the name of the Proprietor/ Firm / Company along with certified copy having clear approach road.
Pattadar Pass Book/title deed issued by MRO/RDO in the name of the proprietor/firm/company/society.
Original/Copies of link documents (Vendor’s title deed) pertaining to the property under the scheme along with copies of Pass Book and Title Deed reflecting the sale entry. If pass book and title deeds are not issued, a certificate from MRO to that effect is required.
Extracts of revenue records i.e. Khasra Pahani for 1954-55 along with Pahanies in Telangana Area and 10 (1) along with Adangals in Andhra Area for the last 13 years.
No PT Certificate in case of Telangana Area.
E.C for 13 years (or) from the date of document if title deed is of beyond 13 years to the date of deposit disclosing all transactions.
ULC permission u/s.26/exemption under ULC Act as the case may be in case the land is within urban agglomeration.
Permission from Urban Development Authority/ Building Plans if the site is within the Master Plan of Urban Development Authority.
Affidavit by promoters to the effect that there are no courts cases pending against the property under the scheme.
C. COLLATERAL SECURITY Generally, Banks insists for Collateral Security and the percentage of Collateral Security is dependent upon the location and the nature of industry and the nature of loan. Also many Banks insists for preferably urban immovable property towards Collateral Security and preferably belonging to the borrowers. The Collateral Security can be either in the form of vacant land, house, apartment, fixed deposits, Bank Guarantee. Vacant land: a. Original Regd. title deed in the name of the surety along with certified copies. b. Original link documents (Vendor’s title deed). c. Extracts of revenue records i.e. Khasra Pahani for the year 1954-55 e. E.C for 13 years from the date of document and in case title deed is beyond 13 years from the date of document to the date of deposit disclosing all transactions. f. ULC permission u/s.26/exemption under ULC Act as the case may be in case the land is within urban agglomeration. g. Copy of the Approved Layout/Sketch drawn by Mandal Surveyor demarcating the site/plot with Sy.No and boundaries and a land mark for identification. If it is house: A. Original Regd. Conveyance Deed along with certified copy. B. All the relevant Link Documents. C. EC for 13 years (or) from the date of document in case title deed is beyond 13 years to the date of deposit disclosing all transactions. D. Tax Demand & Receipt/Ownership Certificate/ Extract of property tax demand register for the last 13 years. E. Approved building plans from Competent Authority.
If it is an Apartment:
Original Registered Sale deed in the name of the surety.
Copy of the development agreement and link documents.
Copy of the approved building plan.
Encumbrance Certificate for the last 13 years.
It shall be established that the original title deeds of the project are not mortgaged to bank or any financial institution availing project finance, by way of declaration from Builder/Landlord.
Mutation in favour of the surety.
Tax Demand and Receipt / Ownership certificate/ EPPDR.
Fixed Deposits as collateral for loan for a solar power plant
The beneficiary/payee of fixed deposit should give a consent letter for pledging the fixed deposit with the Bank as Collateral Security in consideration of sanction of loan to the unit to which the security is being offered.
The beneficiary/payee of the fixed deposit should also assign the proceeds of fixed deposit in favour of the Corporation by a proper endorsement by the concerned bank.
A discharge voucher from the beneficiary/payee of fixed deposit duly affixing necessary revenue stamp (without mentioning the date) on the backside of the FDR.
Bank Guarantee: Individuals who have good banking record and good rapport with the local bank can get bank guarantee to the lending bank. Such bank guarantees can be considered as collaterals. The collateral security can be offered by the borrower by way of Bank guarantee also in such a case the following documents shall be submitted: Bank guarantee executed by the concerned Bank on required stamp paper by the authorized signatories of the Bank affixing their rubber stamp containing the serial number of the signatory as per the Bank rules. A confirmation copy shall be forwarded by the Bank Manager to the lending Bank in a sealed cover by post. A letter from the Bank that they will pay the amount in case the Bank guarantee is invoked in time.
Format for Bank Guarantee (To be furnished on non-judicial stamp paper of appropriate value as per Stamp Act relevant to place of execution.) (Note: - Bank Guarantee is to be submitted “on or before estimate processing for evacuation of power generated (A) or before executing any agreement for wheeling/sale of power generated (3 rd party/captive/pooled costs) (B) or 45 days from issuance of technical feasibility, whichever is earlier (A/B/C)” and the bank guarantee amount is Rs.2 lakhs per MW.) Notes: The Stamp Paper of Rs. 100/- Non Judicial Paper should be in the name of the Executing Bank.
The purpose of this bank guarantee is for early completion of the project within two years from the date of issuing of this Bank Guarantee. This bank guarantee is valid for two years and two months till the date------------ with additional claim period of one month till the date……………. In consideration of the ----------- [Insert name of the solar power developer ] (herein after referred to as solar power developer) submitting the proposal for establishment of solar power project of the capacity of ______ MW, at …………[Insert the location], for supply of solar power to APCPDCL (herein after referred to as DISCOM) under third party sale / captive utilization purpose / pooled cost sale to Discom. This guarantee shall be valid and binding on this Bank up to and including ___[Insert Date]___________ and shall not be terminable by notice or any change in the constitution of the Bank or the term of contract or by any other reasons whatsoever and our liability hereunder shall not be impaired or discharged by any extension of time or variations or alternations made, given, or agreed with or without our knowledge or consent, by or between parties to the respective agreement. Our liability under this Guarantee is restricted to Rs._______(Rs._ only). Our Guarantee shall remain in force until [Insert date] / The DISCOM shall be entitled to invoke this Guarantee till [Insert date]. The Guarantor Bank hereby agrees and acknowledges that the DISCOM shall have a right to invoke this PERFORMANCE BANK GUARANTEE in part or in full, as it may deem fit. The Guarantor Bank hereby expressly agrees that it shall not require any proof in addition to the written demand notice by DISCOM, made in any format, raised at the above mentioned address of the Guarantor Bank, in order to make the said payment to DISCOM. The Guarantor Bank shall make payment hereunder on first demand without restriction or conditions and notwithstanding any objection by ------------[Insert name of the Solar Power Developer] . The Guarantor Bank shall not require the DISCOM to justify the invocation of this PERFORMANCE BANK GUARANTEE, nor shall the Guarantor Bank have any recourse against the DISCOM in respect of any payment made hereunder This PERFORMANCE BANK GUARANTEE shall be interpreted in accordance with the laws of India and the courts at Andhra Pradesh shall have exclusive jurisdiction. The Guarantor Bank represents that this PERFORMANCE BANK GUARANTEE has been established in such form and with such content that it is fully enforceable in accordance with its terms as against the Guarantor Bank in the manner provided herein. This PERFORMANCE BANK GUARANTEE shall not be affected in any manner by reason of merger, amalgamation, restructuring or any other change in the constitution of the Guarantor Bank. This PERFORMANCE BANK GUARANTEE shall be a primary obligation of the Guarantor Bank and accordingly the DISCOM shall not be obliged before enforcing this PERFORMANCE BANK GUARANTEE to take any action in any court or arbitral proceedings against the Solar Power Developer / Project Company, to make any claim against or any demand on the Solar Power Developer / Project Company or to give any notice to the Solar Power Developer / Project Company or to enforce any security held by the DISCOM or to exercise, levy or enforce any distress, diligence or other process against the Solar Power Developer / Project Company . The Guarantor Bank acknowledges that this PERFORMANCE BANK GUARANTEE is not personal to the DISCOM and may be assigned, in whole or in part, (whether absolutely or by way of security) by the DISCOM to any entity to whom the DISCOM is entitled to assign its rights and obligations under the PPA dated: . Notwithstanding anything contained here in above, our liability under this Guarantee is restricted to Rs. _________(Rupees ___________ only) and it shall remain in force until [Insert date] with an additional claim period of thirty (30) days thereafter. We are liable to pay the guaranteed amount or any part thereof under this Bank Guarantee only if the DISCOM serves upon us a written claim or demand. Signature
Power of Attorney No. For
Name
[Insert Name of the Bank]
Banker's Stamp and Full Address. Dated this day of , 20 Witness: 1. …………………………………… Signature Name and Address
2. ………………………………….. Signature Name and Address
D. GENERAL GUIDELIENS: For purchase of land, which is an Inam land, occupancy certificate/Form-B patta from competent authority shall be obtained.
Assigned lands should not be purchased without prior written permission of RDO.
For purchase of joint family property, the borrower should ensure that all the co-parceners of the vendor family join in the execution of the sale deed.
For purchase of lands covered under Master Plan of the respective Urban Development Authority, the borrower shall ensure that the proposed land is falling within the Industrial Zone.
If the borrowers are seeking loans on land & buildings, the borrower shall purchase the lands in the name of proprietor/firm/company/ society as the case may be.
Generally, the Corporation will not accept third party collateral security.
The following are the loan security documents to be executed by the borrowers in favour of the Bank and the required documents for a particular loan are to be taken from amongst the documents mentioned below: 1. Deed of Hypothecation 2. Memorandum of Deposit of Title Deeds 3. Guarantee Agreement 4. Loan Agreement 5. Promissory Note 6. Assignment of Development Rights The applicable documents from out of the above shall be executed by the borrowers in favour of the Bank. The solar power developer, in this case the borrower shall pay the necessary stamp duty that is to be payable and applicable in the State of Andhra Pradesh on the security documents. The above list is not exhaustive and after scrutiny of the documents that are submitted, if some more documents are required for establishing a valid marketable title for the properties being offered as security for the loan sanctioned by the Bank, the entrepreneurs have to submit the same. For any clarifications, you may contact the Legal Officer in the Branch or Legal Department in the Head Office. SANCTION
Brief project report
Copy of company registration certificate
Bio-data of proprietor / partners / directors with 2 pasport size colour photographs as per preform along with copies of certificates regarding academic qualifications, experience etc.
Solvency declaration of proprietor / partners / directors as per proforma (on rs.20 non-judicial stamp paper)
Copy of partnership deed & firm registration in respect of firms/memorandum and articles of association & certificate of incorporation in respect of companies.
Copy of land sale deed/ sale agreement / allotment letter of apiic ltd.
Building plans (approved plans in respect of hotels/nursing homes/commercial & residential complexes proposals)
Civil estimates
Letter from the lessor expressing willingness to let out the building and execution of regd. Lease agreement for 25 years in the unit is proposed in leasehold lands with rough plan.
Quotations for machinery and equipment from standard suppliers alongwith comparartive quotations.
Copy of panchayat / municipal approval.
Copy of power feasibility letter from A.P.TRANSCO.
Copies of collateral security property documents.
Working results (audited balance sheets and profit & loss accounts) for the last 3 years in respect of existing units and the provisional for the current year with all schedules.
Working results (audited balance sheets and profit & loss accounts) for the last 3 years of associated concerns of promoters, in the case of existing cos.
Particulars of available assets (land, buildings, machinery) in respect of existing unit.
Other details such as raw material & market tie-ups, technology tie-up with background of technical consultant etc.
.Copy of PPA Credentials of the party providing PPA URL of the party providing PPA
Service charge @ 0.5% of loan applied 12.36% service tax on the service charges at the time of filing the application.
Upfront fee @ 0.5% of the loan sanctioned 12.36% service tax on upfront fee at the time of first disbursement. Steps involved Register a company (Proprietorship or Partnership or Pvt Ltd or Public Limited) for setting up Solar power Project. Get accredition. Get registered with mnre. Preferred for REC projects. Open a bank account in the new company name if you are an individual . Old name will do if you intend running the solar power generation in the old company’s name. Acquire adequate land on your company name for setting up Solar Power Project. Create provision for evacuation or atleast get flow study done. Deposit 10% of the project cost in the bank account on company name and take proof of funds from the bank. GET Accredition from local NLDC. GET “ flow study “ approval from Transco. Prepare DPR PPA copy to be there in the DPR or bank loan application. Get permission to feed power to the T&D network Bank loan application to have 1) Proof of Land Ownership , patta, unencumberance certificate 2) DPR, 3) PPA / 4) Company incorporation certificate by an auditor 5) Bank Balance in the new bank account. Equity funding: This is probably the best way to fund and manage a solar power project. Not many developers will have their own funds. Pre financing by EPC companies: This can be done by EPCs.But mostly most EPCs operate on tight budgets. The profits in EPC business is not much and hence to expect funding from them is not right. Supplier’s credit: Normally given by module manufacturers from usa and china to large customers, it is not equity funding, but it helps a lot. It is also possible to get such credits from Inverter makers and Tracking systems makers. That is in case you are going for a tracking system. Especially those tracking systems that claim over 25 % increase in efficiency can afford to give some credit as they can recover their money from the increased power generated. Many of these companies are funded by VCs and may have provision to give suppliers credit
Non-recourse project financing – This is the preferred financing structure, wherein the lending institutions would provide debt to a special purpose vehicle set-up for the project and would have a lien on the project’s cash-flows. However as this structure does not provide recourse to the developer’s balance sheet, lending institutions require rock-solid agreements for revenues from the projects. The above structure gives an option for obtaining non-recourse Project Financing. However the developer needs to ensure that the following are in place to make the lending institutions comfortable Performance – Contractual guarantees from technology providers for the long-term performance of the plant revenues – Long-term power purchase agreements with credible consumers, i.e. direct power sale to the consumer. As discussed above, the current structure of the JNNSM PPA may not be bankable due to the credibility of many states. The government has been contemplating a tri-partite agreement between the developer, state discom and the Reserve Bank of India to ensure the PPAs bankability, however this is not confirmed yet. Renewable Energy Certificate – developers can forego the preferential tariff and trade the RECs on the energy exchange. However the market is in its nascent stage and depends on the state’s renewable purchase obligations. Project viability – In addition to the above, developers must convince lenders that projects are viable and have the capability of repaying debt without outside assistance. This could mean that the project has to fund a Debt-Service-Reserve-Account in addition to having healthy Debt-Service Coverage-Ratios, Other options for financing Other non-conventional options for financing include: Foreign funding – Large project developers can tap international banks to get lower rates of finance. However, hedging can put a substantial dent in the rate differential and only someone ready to take the currency risk should resort to this option. The idea of collecting large number of small projects and approaching exim bank, it can probably operate as supplier’s credit at best. SBICAPS SBI Capital Markets (SBICAPS) finances solar projects. Foreign banks in general are open to lending to Indian investment banks for a portfolio of similar projects. This debt is then passed on to the developers with a margin and a hedging charge. The actual lending to the developer takes place based on RBI guidelines. SBICAPS has been involved with the financing of projects developed by Tata Power Co., Kiran Energy, Sunborne, Alex Astral and Acme Tele Power. There are other investment banks operating in India include the Bank of America, Barclays Capital, BNP Paribas, Lazard, Credit Suisse, IREDA: The Indian Renewable Energy Development Agency (IREDA) is a development funding institution but operates as a NBFC under the administrative control of MNRE for providing term loans for renewable energy and energy efficiency projects. IREDA has a Rs 13 billion of credit from KFW for a broad mandate of promoting renewable power in India but has not been particularly active in financing utility scale solar projects till date. IREDA also provides loans to other banks at interest rates as low as 2-5% so as to incentivize them to finance renewable projects. Your bank manager can work with IREDA to get low cost funding. It is a less known and less used route. ADB: ADB provides financing support under the India Solar Generation Guarantee Facility (ISGGF), under its Asia Solar Energy Initiative (ASEI) . Apart from providing debt as per ADB’s LIBOR-based lending facility towards solar transmission infrastructure in Gujarat, ADB also considers direct financing and/or guarantees for projects greater than 25 MW. Reliance Power’s 100 MW CSP plant has been partially financed with both debt and equity participation by ADB. Under ISGGF, ADB provides partial credit guarantees (PCGs) available to local and foreign commercial banks that finance private sector solar power plants in the country. This guarantee covers up to 50% of the payment default risk on bank loans made to project developers. Currently, two commercial banks have been approved by ADB as eligible partner banks: L&T Infrastructure Finance Company Limited (India) and the Norddeutsche Landes bank (abbreviated Nord/LB, Germany). ADB aims to support 3 GW of solar power capacity in developing member countries by May 2013.
SOLAR OFF-GRID AND REFINANCE SCHEME About the scheme :This is a scheme of The Ministry of New and Renewable Energy (MNRE) Government of India, New Delhi for promoting commercial marketing of solar energy systems and devices in the country. This scheme is being implemented as soft loan scheme for off –grid applications of solar energy (Both Photovoltaic & Thermal) under capital subsidy. Models eligible for Loaning: MNRE finalized 11 model projects in consultation with IREDA and NABARD. Projects that are not specified by the MNRE, to be eligible for funding need prior approval from the PAC of MNRE. Applicable to Flat plate and evacuated Tube collector based solar water heating systems manufactured/installed by the BIS approved manufacturers subjected to fulfillment of terms and conditions. Implementation period: The scheme will be in operation up to 31.03.2013 and continuation of scheme shall be informed from time to time. Loan Amount: Bank loan is 50%, subsidy 30%,and margin 20%. Eligibility: Employees of Central /state Government, public sector undertakings. Salaried employees with confirmed service of 5 years and take home monthly salary of not less than Rs. 2000/- after meeting the proposed loan installment. Professional and self employed persons with Annual net income of Rs. 60000/- as evidenced by Income tax return or chartered Accountants certificate and supported by satisfactory P&C from their Bankers. In addition to the above, any individual, Institution, non commercial organization or commercial organizations including Hostels, company Townships, Hostels and colleges etc. are also eligible for finance Note: End users (other then individuals) have to give an undertaking that no depreciation allowance will be claimed under Income Tax rules) Rate of Interest and Lock in period of Bank loan 1. Rate of interest is @ 5% p.a. on residual project cost.(project cost minus capital subsidy and borrowers margin) 2. The loan repayment period would have minimum lock in period of 3 years from the date of disbursement of the first installment of the loan. Release of Capital Subsidy: The capital subsidy component would be released to the suppliers on behalf of the borrower by the financing bank only after satisfactory installation and commissioning of the system. Repayment: Maximum period of 5 years Processing and other service charges: To be levied as applicable to consumer durable Loans. Penal rate of interest: @ 2% over and above the stipulated interest rate for defaulted loans for the defaulted installments /amount Security norms: 1.
Hypothecation of assets created out of bank finance.
2.
Suitable guarantor/ co obligation good for the loan amount.
3.
No collateral security up to the credit limits of Rs. 50,000/-
4.
If the credit limits exceeding Rs.50, 000/- adequate approved securities as collateral are to be obtained.
Insurance The unit should be insured for full value and for all possible risks.
6. REC State
RPO Target for 2011-12
RPO Target For 2012-13
RPO Target For 2013-14
Andhra Pradesh
0.00%
0.25%
0.25%
PROCEDURE FOR APPLYING FOR REC ACCREDITATION: Procedure to be followed by RE generators while applying for Accreditation from APSLDC:
Log on to www.recregistryindia.in and enter the details of RE generator including the land registration / lease details, etc as per the CERC guidelines dated 09-11- 2010.
Take print out of Acknowledgement; sign on each paper and submit along with application.
Sign the declaration form & strike-off the non-applicable paragraphs for claiming eligibility and also fill the details of possession of land.
Submit the Application (hard copy) along with following documents to the Chief Engineer, APSLDC, Vidyutsoudha, Hyderabad.
1.
Undertaking of availability of land in possession for setting up generating station or Certified copy of the Registered lease/Sale Deed.
2.
Power Evacuation Arrangement permission letter from the host state Transmission utility or the concerned Distribution Licensee.
3.
Confirmation of Metering Arrangement and Metering location with single line diagram.
4.
Enclose ABT Meter Type, Manufacturer, Model, Serial Number, class and Accuracy etc. for Gross Energy Consumption, Auxiliary consumption and self- consumption (for CPPs).
5.
Documentary evidence for Date of Commissioning of RE project for existing eligible RE project or proposed date of Commissioning for new RE project for accreditation.
6.
Undertaking regarding Off-take/Power Purchase Agreement. Documentary evidence in case the generator is a Captive Power Plant.
7.
Proposed Model and Make for critical equipment (say WTG, STG, PVModule) for the RE project. Confirmation of compliance of critical equipment with relevant applicable IEC or CEA standards.
8.
Undertaking for compliance with the usage of fossil fuel criteria as specified by MNRE.
9.
Demand Draft towards application processing fees.
10. Demonstrate Compliance with the Eligibility conditions as prescribed by MNRE/Competent Authority. 11. Enclose connectivity Diagram/Single Line Diagram of the station clearly identifying the units to be considered for Accreditation and showing the Metering Arrangement. 12. Attach the copy of clearances/Approvals. A. B. C. D. E. F. G. H.
MoU between the company & NED cap. Environment Clearance Certificate from AP pollution control board, Hyderabad(if applicable). Boiler Certificate from AP boiler inspection department, Hyderabad (if applicable). Contract labour license from AP labour department. Fire safety certificate from AP fire department(if applicable). Latest tax receipt from the Municipal/Gram panchayat for the factory land(if applicable). Auditor compliance certificate regarding fossil fuel utilization. Approval from Chief Electrical Inspector.
I.
Clearance from forest department (if applicable).
13. Enclose Memorandum of Association & Articles of Association of a company and Certificate of Incorporation, in case of Pvt Ltd company/ Certificate of incorporation & certificate of Business commencement, in case of public Ltd company. 14. Appointment of Statutory Auditor. 15. Details of pending court cases, if any, with Hon’ble APERC, Hon’ble Supreme Court of India, Hon’ble High Court of A.P. or any other Court. 16. Any other related documents as requested by APSLDC. E) Fee particulars for processing of Accreditation: The application for accreditation of RE Generation Projects shall be accompanied by a non-refundable ‘one-time Accreditation Processing Fees’ at the rate of Rs.5618 /- per application (including service tax at 12.36 %). Checklist to be submitted by State Agency to Central Agency: To be submitted on letter head of concerned State Agency Checklist to be submitted by State Agency to Central Agency while recommending project for Registration under REC Mechanism Name of RE Generator: Accreditation Number: Source:
Total Capacity of Project (MW)
Accredited Capacity (MW)
S.N.
Checklist
1.
Is RE Generator opting for third party sale Is RE Generator selling power to discom at APPC
2.
Is RE Generator a CPP opting for self consumption
3.
Is RE Generator a CGP opting for for self consumption
4.
Whether all procedures for accreditation according to CERC REC Regulations and approved REC Procedures have been followed
Accredited Capacity under third party/ APPC sale (MW), if applicable
Yes (Please tick, if applicable )
Accredited Capacity utilized for self consumption (MW), if applicable
No (Please tick, if correct)
Remark / Any other information
In case RE Generator is CPP/ CGP/ RE Generator opting for REC Scheme for self consumption then please provide following details:
a
Whether electricity duty is leviable and being paid. If not, then reasons along with documentary support be furnished by the said CPP/CGP/RE Generator
b.
Whether benefits of concessional/promotional transmission or wheeling charges are availed
c.
Whether banking facility benefit is availed
It is also certified that all procedures for accreditation according to CERC REC Regulations, approved REC Procedures have been followed at our end.
Place: Date:
Name of Authorised Signatory Name of State Agency
POINTS TO REMEMBER: •All communication regarding REC Mechanism is to be addressed as follows: "The Nodal officer, REC Mechanism,1st Floor National Load Despatch Centre (NLDC) office,Power system Operation Corporation Limited (POSOCO),B-9, Qutab Institutional Area, KatwariaSarai, New Delhi-110016". •All dak regarding REC Mechanism shall be accepted only through services of India Post and no dakshall be accepted by hand or through courier services. •The Application(s) for issuance of RECs/Registration of Project or other issues should be sent by the RE generator(s) on individual project basis and the name of the RE Generator and 'Accreditation number' / 'Registration number', as applicable has to be clearly stated on the envelope. SOLAR REC AT Rs4/- AND Rs 6.50 /- ?! ?! MNRE ?! Floor Price: Solar PV The Commission determined Solar PV tariff for FY 2013-14 at Rs. 8.75 per kWh. (Without Accelerated depreciation benefit) As per the proposed REC Regulations, the floor price is the maximum difference between the Minimum viability for that technology and the APPC cost for states for that year. The minimum viability is the tariff comes out to be Rs. 6.17 per KWh. Maximum difference between minimum viability and APPC of various States, comes out to be (6.17-2.26) 3.91 Rs./KWh. Rounding off to the nearest hundred’s place, the floor price for the year 2013-14 comes out to be Rs. 4000 per kWh. Forbearance Price: Solar PV The forbearance Price as per the CERC REC Regulations is the maximum difference between the tariff determined by the Commission and the States APPC. For the year 2013-14, the Forbearance price comes out to be 6.49 Rs./KWh (8.75-2.26). Rounding off to the next hundred’s place, that Forbearance price comes out to be Rs. 6500 per MWh. Vintage based Multiplier for Solar PV Projects registered so far Floor price proposed for the Solar PV projects commissioned now onwards in FY2013-14 to Rs. 4000/REC in FY 2013-14. It is proposed that the Solar PV projects registered so far considering the Floor price of Rs. 9300 per MWh would be issued higher number of Solar RECs 31.03.2017, for 1 MWH of generation. The factor will be called VBM and this will be calculated as (Floor price during FY12 divided by the floor price of FY13). Therefore 2.32 (9300/4000 =2.32) RECs will be issued for each MWh of generation and the plant commissioned already registered so far be issued 2.32 REC for each MWh of generation.
It is also proposed that in future 1.04 2017 if Floor price fixed below the proposed Floor price of 2013-14, for the projects registered so far denomination of RECs will be adjusted accordingly. Beyond 1.04 2017, it is proposed that the projects already registered will issued one Solar PV RECs for generation and injection of one MWh and will be traded between the Floor and forbearance price determined for the projects commissioned beyond 1.04 2017. Vintage based Multiplier for Solar PV Projects It is proposed that, in case of future reduction in Floor price, Solar PV projects commissioned after the date of this Order, in a particular year will be issued RECs considering their vintages for next 10 years. The Commission will determine suitable VBM for such projects and protect the interest of such projects.
7. APPC:-AVERAGE POOLED PURCHASE COST State
Current purchase price by state discoms/ ebs Rs per unit
Andhra Pradesh
2.50
Gujarat
2.98
Haryana
2.77
Himachal Pradesh
2.23
Karnataka
2.66
Kerala
1.99
Madhya Pradesh
2.09
Maharashtra
2.62
Punjab
2.71
Rajasthan
2.60
Tamil Nadu
3.38
Uttarakhand
2.34
Uttar Pradesh
2.62
West Bengal
2.43
* Please visit the respective state websites for the current prices, they may be marginally more by10 to 20 paise. * In a bid to relieve the state of power crisis, the AP Gov announced its Solar Energy Policy-2012 and invited developers to invest in solar power plants while announcing several incentives for them.
The sops will be extended to solar power developers who commission their plants by June 2014 and the incentives will be in force for a period of seven years from the date of implementation of their projects. There will be no wheeling and transmission charges from the projects to the desired locations for captive use or sale to a third party within the state through a 33 KV system subject to industries keeping within its contracted demand. However, wheeling and transmission charges for wheeling of power for sale outside the state will be as per APERC regulations. ` Cross-subsidy surcharge shall not be applicable for Open Access obtained for third party sale within the state subject to the industries maintaining their demand within its contracted demand with the Discoms. It is not applicable for captive use. All solar projects will be exempted from electricity duty for captive consumption and third-party sale within the state. VAT for inputs required for the projects will be refunded by commercial taxes department. The industries department will provide incentive in terms of refund of stamp duty and registration charges for land purchased for setting up of the projects. All projects developed with the above incentives will also be eligible for REC benefits. Power generated from a project shall be injected at an appropriate voltage to the nearest sub-station of the AP Transco. Land acquisition: The state government made it clear that no fossil fuel like coal, gas, lignite, naphtha and wood shall be allowed to be used in a solar power plant. The New and Renewable Energy Development Corporation of AP Ltd (NEDCAP) will act as a nodal agency and implement the policy. A high-level committee headed by the principal secretary (energy) will monitor the progress of executon of solar power projects under the new policy. AP's advantage: Andhra Pradesh is one of the most suitable locations in the country for installing solar power projects as, on an average, it gets about 300 sunny days in a year with solar insolation of 5.5 to 6 KWh/m². Also, well-networked power grid will facilitate projects with easy connectivity. ACCELERATED DEPRECIATION What is Accelerated Depreciation in solar power generation and how can I benefit from it? There is nothing called Accelerated Depreciation in solar power generation or for that matter in any other field. At least the IT Act and the Ready Reckoner does not talk about it. There is no such term in the glossary, appendix or the contents. Depreciation is 20 % on plant and machinery for any business. In the case of solar power generation, in order to incentivize the entrepreneurs to enter into the solar power generation market, the Government of India has allowed claiming 80% depreciation in year one of the commissioning of the solar power generation plant. Example: Let us assume that the total project cost is Rs7crores. If a solar power generation plant costs Rs7crores, the company setting up that plant can claim 80 % depreciation in the first year itself. Depreciation of 80 % is allowed on plant and machinery of the solar power plant. Deducting Rs20 lakhs (approximately) from the project cost for land costs, which are eligible for only 10 % depreciation, we get Rs6.80crores. 80 % of this is Rs5.44crores. This can be depreciated in a new solar power generating plant in year one itself. This is why they call it Accelerated Depreciation (depreciating 80% in one year instead of 20%). 33.99% of Rs5.44cr is about Rs1.85 cr. So, in a solar power generation plant of Rs7crores, Rs1.85cr is the tax saving that the company gets using Accelerated Depreciation. AD benefit in year one is Rs1.85 cr. So, the actual project cost of solar power plant for an AD client is Rs5.15cr In fact the Accelerated Depreciation or AD client will be able to depreciate 80% of the written down value of the project, next year. Thus the saving in taxes will be nearly Rs2.1crores.
Calculation of AD (as done by First Green Consulting): (Table Source) Let us try to understand how AD works in a 1MW solar power generation:
Project cost (capital cost) to be Rs800 Lakhs (Rs8 Cr)
The depreciation amount to be 90% (assuming 10 % scrap value)
Book depreciation (on fixed assets) to be 5.28 % (Dep. As per companies act)
Tax depreciation rate to be 80% (under AD benefit)
Effective tax rate (as per government) to be 33.99%
Years
Unit
Book Depreciation Book Depreciation (Capital cost*Book depreciation)
Rs Lakh
1
2
3
4
5
2.64%
5.28%
5.28%
5.28%
5.28%
21.12
42.24
42.24
42.24
42.24
Opening
%
100%
60%
12%
2%
Allowed during the year
%
40%
48.00%
9.60%
1.92%
Closing
%
60%
12%
2.40%
0.48%
Accelerated Depreciation
Rs Lakh
320.00
384.00
76.80
15.36
Net Depreciation Benefit
Rs Lakh
298.88
341.76
34.56
-26.88
Tax Benefit
Rs Lakh
101.59
116.16
11.75
-9.14
*Can a group company of a tax paying company set up a solar plant and claim depreciation? It is a case of set off of laws under the same head of income (section 70) of the income tax act. There are 6 heads of income under the income tax act. (Section 1961) There are 5 heads of income under which income of assesse is being assessed under the income tax: 1. Income from salaries 2. Income from house properties 3. Profit and gains of business and profession 4. Income from capital gains 5. Income from other sources It is a case of income under Profits and gains of business and profession. And as per section 70 of income tax act, set off of laws under the same head of income can be done.
It means a group company which is taxpaying on account of business or profession can set off its loss under the head business or profession arising from solar activities can be set off. *How do we claim the AD for a solar power generation plant? By regular tax returns or is there any special form for claiming the Accelerated Depreciation for a solar power generation plant? The rate of depreciation allowed under the income tax for solar power generation units is 80 % and it is an accelerated rate of depreciation. So we have to file the regular tax returns only. There is no special form prescribed for claiming the depreciation benefit. What solar energy devices, equipment and processes those are eligible for 80 % accelerated depreciation? 1. Flat plate collectors 2. Concentrating and pipe type solar collectors 3. Solar cookers 4. Solar water heaters and systems 5. Solar crop driers and systems 6. Solar refrigeration 7. Solar cold storages 8. Solar air-conditioning systems 9. Solar desalination systems and solar steels 10. Solar power generating systems 11. Solar pumps based on solar thermal 12. Solar pumps based on solar PV 13. Solar PV modules and panels for water pumping *What is this stipulation of 31st March and 1stSep in the claiming of Accelerated Depreciation benefit for a solar power generation plant? As per income tax provision, if an asset is put to use for less than 6 months, only the 50 % of the prescribed rate of depreciation is allowed to be deducted from the profits of business in that year. It means if the asset is put to use for more than 6 months, even for a single day more than 6 months, then 100 % of the prescribed rate of depreciation will be allowed to be deducted from the profits of the business. *Many times a group of companies come together to bid for solar power generation projects of state governments or for JNNSM. How will a consortium plan the depreciation? Is it enough if one of the companies has tax liability? What happens if a foreign company has tax liability in its country? Or will only the Indian tax liabilities be taken into account? In case of consortium agreements, the consortium is normally formed for the purpose of capital infusion, or if there is any statutory requirement as in the case of foreign cos. Normally after a successful bid, the consortium is asked to form a new company or special purpose vehicle (SPV) to take up the project. In that case all the assets are purchased by the new company the benefit of depreciation will go to the new company. *Can individuals set off depreciation benefit in a partnership firm? No. Any individual having any profit or loss cannot be assessed in the hands of a partnership firm in which he or she is the partner. So the benefit of depreciation in the case of an individual cannot be passed to the partnership firm. But as per section 70 of income tax act a loss because of business or depreciation can be set off under the same head of income. It means if an individual is having income under the head business or profession he/she can set off her business loss arising out of solar business. In other words an individual having huge business profits can enter into the business of solar power generation for the benefit of claiming accelerated depreciation so that his or her tax liability can be minimized. *Is there a standard price for depreciation? Cost of the plant and machinery will be the basis of calculating depreciation. Even the PPA will play an important role.
*In how many years does a small solar company stand a chance to get bought? Only infrastructure companies can buy to avail the section 80(I) A. Even after absorption of full depreciation, the small company can make for an attractive proposition to be purchased because it is tax free income source up to 15th year from the commencement of production. Assume an income of Rs1.5cr per annum and the total project cost of plant was Rs7cr. So, the selling price of solar power generation plant will be based on tax free income i.e. Rs1.5cr as against the cost of plant Rs7cr, so that deal can be concluded on the basis of IRR. *For its depreciation potential besides its normal business returns?? *A partnership solar company, can it sell a part and let the buyer benefit from seller’s share of depreciation? No. *Is there any lock in period for solar companies before they can sell? No. *What are the buildings in a solar plant? The office space is the building, the rooms for inverter, etc. are not considered as building. *Can the Government change the depreciation policy with relevance to solar power generation, without any prior intimation?? Government can change the rate of depreciation ANYTIME. Rate of depreciation is announced one year in advance by the income tax dept. *Wouldn’t that be a risky proposition to small firms which haven’t claimed their depreciation? Government can change the rate of depreciation ANYTIME. Rate of depreciation is announced one year in advance by the income tax dept. The plant established in a particular year cannot be denied the rate of depreciation as per the existing rate of depreciation.As the loss gets carried forward, the small firms nor the big companies stand to lose. *What all constitute plant and machinery in a solar plant? *Isn’t everything other than land is depreciated? YES *When are the profits from a solar plant taxable? After 15 years *Doesn’t it make sense to hike the project cost for a solar plant so as to avail the extra benefit from accelerated depreciation? Yes. But the banks are clever to find out. Setting up such a solar power generation plant with an eye on gaining extra from Accelerated Depreciation, will result in the Bankers viewing the project with a suspicious eye. Because there are many solar projects that are coming up, the bankers will have an idea already as to which projects are genuine and which won’t be pursued seriously after claiming accelerated depreciation benefit. *A solar company makes about Rs2crores in a year. By this depreciation rule it gains 33.99 % for an existing tax paying company. Does it make sense to borrow money at 14% (for equity) to build a plant? What are the opportunities for a small solar company with its depreciation? After claiming 80 % depreciation, the plant fails? What happens? The plant is commissioned, it produces power for a few days / months and after that it fails. Can depreciation be claimed? 80% *For how long can depreciation benefits be carried forward? Indefinite period. *Company A sets up a solar plant for Rs8cr avails 80 % depreciation and sells it to B, say at Rs4 cr. , whereas its written down value (WDV) is Rs1.6 Cr. How much depreciation can be claimed? At what rate? Rs1.6 Cr ONLY CAN BE CLAIMED. *At what stage of commissioning can one claim depreciation?
Only AFTER PRODUCTION * India’s Andhra Pradesh state introduced its first solar-energy policy, offering tax benefits to projects and exemptions from powertransmission fees as the local government seeks investment to curb electricity shortages. Plants built by June 2014 will be able to claim the incentives for seven years, according to an order issued yesterday by the state energy department. “If executed appropriately, this policy would enable Andhra Pradesh to get a huge influx of investment from solar developers,” said Vishal Pandya, director at REConnect Energy Solutions Pvt., which advises companies in the industry. The southern state, which says it gets some of India’s highest sun irradiation, is promoting solar energy to boost generation capacity after suffering a 17.3 percent power deficit in July. It’s working with other states toward a national goal of becoming one of the world’s fastest-growing solar markets, with a targeted 20,000 megawatts across India by 2022. Andhra Pradesh didn’t set a specific goal for solar installations or announce higher tariffs, unlike the central government and Gujarat and Karnataka states, which have awarded above-market rates to developers for a limited amount of capacity. To attract investment, Andhra Pradesh will waive transmission fees for using state-owned infrastructure. It also won’t charge a so-called cross-subsidy fee, which is levied to compensate state-owned distributors for losses they incur on supplying power below cost to households and farmers. Solar projects will get refunds on value-added tax paid for equipment and on land duty and registration charges for sites. In addition, the state plans to speed up the approvals process, issuing permits to build grid connections within 21 days. 10. UNBID SUBSTATIONS LIST IN ANDHRA PRADESH AS ON MARCH 2013 During the recent bids (APRIL 2013) the following substations got no bids , hence people having lands in and around these substations have great chance to start up the project soon. They have to for PPA plus REC route and third party PPA plus REC route. UNDERBID LIST That means there is scope for capacity addition in these substations. MORE........................ There are another 40 substations which did not get fully bid. That is Underbid. 11. APPLICATION FOR GRID CONNECTIVITY & EVACUATION FACILITY As per Andhra Pradesh Solar Policy, 2012, vide G.O. Ms No: 39 Dt: 26.09.2012, Vide item(9), Grid Connectivity and Evacuation facility, the power generated from a Solar Power Project shall be injected at an appropriate voltage to the nearest sub-station of the APTRANSCO / DISCOMs. The evacuation line from interconnection point to grid substation shall be laid by the APTRANSCO or DISCOM at the cost of the project developer. However, if the project developer wishes to lay evacuation line by themselves, they can do so by paying the supervision charges, Engineering charges and Service Tax etc., as communicated by APTRANSCO / DISCOM to the respective organisation. The intending private developers shall submit the grid connectivity application in the prescribed format to APTRANSCO / DISCOMs under copy to NREDCAP.
Description
To whom application is to be filed
For Plant Capacity of 1MW to 10MW at 33KV level and below to be connected to 33/11KV SS at DISCOM Substations depending on existing power transformer capacity OR Dedicated 33KV feeder from 132K/33KV of STU Substations
Chief General Manager Commercial & IPC Respective DISCOMs of AP (CPDCL/NPDCL/EPDCL/SPDCL) Executive Director, Planning, RAC & Reforms Room No 149, ‘A’ Block,
Above 10 MW at EHT level based on
Vidyut Soudha, APTRANSCO,
capacity at 132KV/220KV/400KV
Khairatabad, Hyderabad email:
[email protected]
The Application fee for Grid Connectivity is as follows Sr. No
Quantum Power to be injected into Intra State Transmission system
Non-refundable Application Fees (Rs. Lakhs )
1
Up to 100 MW
2.00
2
More Than 100 MW and upto 500 MW
3.00
3
More Than 500 MW and upto 1000 MW
6.00
4
More than 1000 MW
9.00
The Application fee has to be paid by way of Demand Draft Drawn in favour of PAY OFFICER, APTRANSCO payable at Hyderabad to process Application. APPLICATION FOR GRANT OF CONNECTIVITY FOR SOLAR POWER PROJECTS IN ANDHRA PRADESH
Sr.No
Item
I. Company Details
1
Name of the Applicant /Organisation & Address for Correspondence
2
State Whether the applicant
Status /Information
/organisation is a a) Company Registered under Indian Companies act 1956. b) Co-Operative Society. c) Any other corporate entity. d) R.O.C ADDRESS i) OFFICE a) Telephone No b) Fax No: c) email Address ii) Authorised Person Prime Contact Person Designation Phone Number(Mobile) Fax: E-Mail
Number
(Landline)
3
Alternate Contact person Designation Phone Number (Landline) Phone Number(Mobile) Fax: E-Mail
4
In case of any other Corporate entity, give details of Partners/Directors/ Owners
5
Income Tax Permanent Account No:
Phone
TRANSMISSIONCORPORATIONOFANDHRAPRADESHLIMITED Vidyut Soudha, Khairatabad, Hyderabad -500 082, Website: www.aptransco.gov.in 12. ADVANTAGES AND DISADVANTAGES OF SETTING YOUR SOLAR PLANT IN A SOLAR PARK ADVANTAGES 1. Ready to move & start facility for any solar power developer with clear title land. 2. Proper North-South oriented plots to be allotted so as to reduce land wastage, which are ideal for solar plant designing 3. Reduction in time to both start and execute the project. 4. No ROW (right of way) issue will be there for laying of transmission line, which will be done only once and common to all. 5. Ease of work execution and management will be there. 6. Relief from local issues which again will result into time and money saving in project execution. 7. Evacuation from individual project will be done right from the individual plot to the discom’s sub station at 132KV level. 8. Reduced transmission losses to the tune of 1/16th of the normal at 33KV. 9. Individual plant metering at pooling substation for ease of billing. 10. Security, preventive maintenance of approach roads & transmission line etc. will be done on periodic basis. 11. Grid down time is also minimum for 132 kV sub-station, which means higher revenue generation
12. Better financials than in your own lands. DISADVANTAGES 1. Your project is not in your state, benefitting your people 2. Your project is not in your lands. Absence of Prestige value in the neighborhood. 3. You cant to do the maintenance of the solar power plant directly and daily in your village * Don’t have lands. See solar as a business opportunity. Go for Solar Park. * Want to invest in and reap regular dividends with least hassles. Go for Solar park * Interested in availing accelerated depreciation and making decent safe returns, invest in a solar park. 13. SEVEN STEPS TO DESIGNING A SOLAR CAPTIVE POWER PLANT FOR A FACTORY
There are seven steps involved in designing a successful captive solar PV installation Scoping of the project Calculating the amount of solar energy available Surveying the site Calculating the amount of energy needed Sizing the solar system Component selection and costing Detailed design Step 1 –SCOPING THE PROJECT As with any project, you need to know what you want to achieve. This basically involves detailing what you want from the captive PV installation, once installed. Do you want it to completely provide your day time electricity usage? Or do you want it to support a part of your usage? To start with, the scope of the project can be simple and later as we progress we can flesh it out to suit the requirements. Defining the scope is in fact the most important step because once the basic scope is wrong, we might not be able to get the system do, what we exactly want it to do. Step2 - CALCULATING THE SOLAR POWER AVAILABLE Solar insolation is the amount of electromagnetic energy (solar radiation) incident on the surface of the earth. Basically that means how much sunlight is shining down on the area under consideration. The values are generally expressed in kWh/m2/day. This is the amount of solar energy that strikes a square metre of the earth's surface in a single day. Of course this value is averaged to account for differences in the days' length. There are several units that are used throughout the world. By knowing the insolation levels of a particular region one can determine the number of PV modules that are required. An area with poor insolation levels will need a larger number of PV modules than an area with high insolation levels. Once the region’s insolation level is known, one can more accurately calculate collector size and energy output. The typical thumbrule that is used for the amount of electricity that solar PV can produce is as follows: On average, 1 W of solar PV, at current crystalline silicon panel efficiencies, can produce about 4 Wh of electricity per day. This is however only an average estimate and based on the location, this could be a bit lower or higher than the average.
Step 3 – SURVEYING THE SITE A site survey basically consists of a brief interview with the developer to get a feel for their electricity needs and a physical inspection of the proposed array site to see if it is suitable for solar. When a qualified photovoltaic design professional visits a potential solar site, he or she has many things to watch out for. Primarily, they will be checking the roof's orientation (azimuth) and solar access. Orientation refers to the direction the roof faces directly south is ideal, with some leeway to the Southwest or Southeast. Solar access quantifies the percentage of time when the proposed array location will be receiving the full unshaded power of the sun during different days of the year. A shady roof might disqualify a site from receiving incentive money from the state, and is not a responsible choice for solar anyway. There are ways to get around shade issues - either by looking at alternate sites, trimming or removing trees, or by using micro-inverters in the system design rather than one large central inverter. Step 4 - CALCULATING THE AMOUNT OF ENERGY NEEDED The next big task for any photovoltaic system designer is to determine the system load. This load estimate is one of the key factors in the design and cost of the stand-alone PV system. A simple way to determine the approximate ceiling for the solar PV system capacity for all electricity needs is as follows: 1.
Find out your total monthly electricity consumption. Let’s say it is 100000 kWh
2.
Divide it by 30 to get an approximate daily consumption. In the example, it is about 3300 kWh.
3.
Using the thumbrule that 1 W of solar PV can approximately produce 4 Wh of electricity per day, you can determine the approximate maximum solar PV capacity you will require to power all your systems using solar PV. In this case, if the total daily consumption of electricity is 3300 kWh, you will require a maximum of 3300/4 = 825 kW.
4.
It is however very unlikely that you would require such a high capacity for solar PV as you will need solar PV primarily as a backup power source, perhaps as a replacement for diesel based power generation.
5.
Ceiling for the solar PV required for complete diesel replacement
6.
In most cases, you will be using solar only as a backup power source to replace diesel based power production.
7.
One simple way to determine the amount of solar PV for this purpose is to determine the total amount of electricity you produce using diesel every month. In the example provided, out of the 100000 kWh of total electricity you consume every month, let’s say 10% or 10000 kWh is generated from diesel gensets. This provides you the ceiling for the solar PV system capacity for complete diesel replacement. In this case, it is 82.5 kW.
8.
As a thumb rule, one liter of diesel produces 4 kWh, so you can also compute the above with the data for the amount of diesel used every month.
9.
While estimating the load, the designer should consider energy conserving substitutes for items that are used often. Identifying large and/or variable loads and determining if they can be eliminated or changed to operate from another power source will save cost.
Step 5 – SIZING THE system From the results obtained in step 2 and step 4, we can determine the size of the solar system that will be needed to power the site. The necessary systems involved in the setting up of captive power plants are: 1) Array(collection of solar PV modules) 2) Charge controllers 3) Batteries 4) Inverters 5) Mounting systems Note: The exact procedure for sizing of a solar system has to begin with calculating the amphere hour (Ah) of each load under consideration. Without knowing this it is impossible to size the PV system.
PV array sizing – Array sizing is determined by taking into account the daily energy requirement (in Kilowatt hours) and average daily peak sunshine hours in the design month. No part of a PV array can be shaded. The shading of small portions of a PV module may greatly reduce output from the entire array. PV modules connected in series must carry the same current. If some of the PV cells are shaded, they cannot produce current and will become reverse biased. This means the shaded cells will dissipate power as heat, and over a period of time failure will occur. However, since it is impossible to prevent occasional shading, the use of by pass diodes around series - connected modules is recommended Hybrid Indicator At this point, the basic PV system configuration and size have been determined. Before proceeding to specify components for the system, a simple test is recommended to see if the application might be a candidate for a hybrid system. Two main indicators work together to alert the designer to a possible hybrid application; the size of the load, and the seasonal insolation variability at the site. The larger the load the more likely a hybrid PV-generator system will be a good economic choice. Likewise, in cloudy climates you need a larger system to meet the load demand; thus having a higher array/load ratio. Plotting the load versus the array/load ratio gives an indication of whether a hybrid system should be considered. There may be other reasons to consider a hybrid system: for example, systems with high availability requirements or applications where the load energy is being provided by an existing generator. A word of caution--the controls required for a hybrid system are more complex because the interaction between engine generator, PV array, and battery must be regulated. Obtaining advice from an experienced designer is recommended if you decide to install a hybrid system. Controllers - Charge controllers are included in most photovoltaic systems to protect the batteries from overcharge or excessive discharge. Overcharging can boil the electrolyte from the battery and cause failure. Allowing the battery to be discharged too much will cause premature battery failure and possible damage to the load. The controller is a critical component in your PV system. Thousands of rupees of damage may occur if it does not function properly. In addition, all controllers cause some losses (tare loss) in the system. One minus these losses, expressed as a percentage, is the controller efficiency. The cost of the controller increases rapidly as the current requirement increases. Controllers for 12-volt and 24-volt systems with currents up to 30 amperes are available at a reasonable cost. Controllers with 30- 100 amperes are available but 2-5 times more expensive. Controllers that will switch currents over 100 amperes are usually custom designed for the application. One way to work with currents over 100 amperes is to connect controllers in parallel. It is often less expensive to use five 20- ampere rated controllers in parallel than one 100-ampere unit. The controller must be installed in a weather resistant junction box and can be located with other components such as diodes, fuses, and switches. Excessive heat will shorten controller lifetime so the junction box should be installed in a shaded area and venting provided if possible. Controllers should not be mounted in the same enclosure with batteries. The batteries produce a corrosive environment that may cause failure of electronic components. Battery sizing - To determine the size of the battery storage required for a stand-alone PV system, it is required to make a number of decisions. Before making these choices, one should study and understand battery parameters and the concept of system availability. First, you must choose the amount of back-up energy you want to store for your application. This is usually expressed as a number of no sun days, in other words, for how many cloudy days must your system operate using energy stored in batteries. There is no “right answer” to this question. It depends on the application, the type of battery, and the system availability desired. Inverters - Power conditioning units, commonly called inverters, are necessary in any stand-alone PV system with ac loads. The choice of inverter will be a key factor in setting the dc operating voltage of your system. When specifying an inverter, it is necessary to consider requirements of both the dc input and the ac output. The choice of inverter will affect the performance, reliability, and cost of your PV system. Usually, it is the third most expensive component after the array and battery. The selection of the inverter input voltage is an important decision because it often dictates the system dc voltage. An inverter should be installed in a controlled environment because high temperatures and excessive dust will reduce lifetime and may cause failure. The inverter should not be installed in the same enclosure with the batteries because the corrosive gassing of the batteries can damage the electronics and the switching in the inverter might cause an explosion. However, the inverter should be installed near the batteries to keep resistive losses in the wires to a minimum. Mounting structures- Ground mounting of PV arrays is recommended for stand-alone systems. Regardless of whether you buy or build the mounting structure make sure it is anchored and the modules are restrained. Many module manufacturers and distributors sell mounting hardware specifically designed for their modules. This hardware is intended for multiple applications and different mounting
techniques and considerations like wind loading have been included in the design. Using this mounting hardware is the simplest and often the most cost effective. Customized array mounting structures can be expensive. Others- It is important to select wire, connectors, and protection components such as switches and fuses that will last for twenty years or more. To obtain this long life, they must be sized correctly, rated for the application, and installed carefully. Connections are particularly prone to failure unless they are made carefully and correctly.
Step 6 – COMPONENT SELCTION AND SIZING Once the various components have been sized, the next important step is the selection and costing of the components. There are many players in the market vying to establish their products. At this juncture, the system developer has to select components by taking into account factors like technical specifications, reliability, and lifetime of the components in addition to the cost. Investment for the solar modules is for a period of 25 years, so selecting a high efficient solar panel is of prime importance. The manufactures of the batteries claim a lifetime of about 7 years, whereas inverters guarantee at most 2 years. As can be seen from these numbers, selection becomes a crucial part of the captive solar PV installation. Step 7 – DETAILED DESIGN Now that the major components have been sized and selected, it is time to consider how to interconnect everything as a working system. The detailed design is the more actionable form of the captive solar PV installation. The system developer accumulates all the data collected from the previous 6 steps and prepares a layout of the installation on paper. The developer removes obvious engineering fallacies and prepares a corrected version of the layout on paper. The confirmed design will have all the necessary data like the average consumption per day(kWh), the insolation levels at the area under consideration(in hours) , the optimal plant size, the area required for the same, the number of panels required to be installed in that area, the number of charge controllers, batteries, inverters required for the determined plant size, the cost of all the components and many more intricate details like the viability of installing tracking systems etc. Stand-alone PV systems will be reliable power producers for more than two decades if properly sized for the application, engineered well, and installed carefully. PV arrays for stand-alone systems are installed in many unique and innovative ways. However, there are common issues involved in any installation, whether the array is fixed or tracking, mounted at ground level, or on a pole or building. Preventive Maintenance The integral part of any completed installation is the periodic checks that are recommended for any stand-alone PV system so that little problems can be found and corrected before they affect system operation. The system should be checked soon after installation when it is presumably operating well. GOVERMENT PROVIDES SUBSIDY FOR SOLAR AT ANANTAPUR DISTRICT IN ANDHRA PRADESH The state government, which is now gradually shifting its focus on non-conventional energy sources to bridge the widening gap between the demand and supply of power, has approved a plan mooted by The New and Renewable Energy Development Corporation of Andhra Pradesh (NEDCAP) to generate 100 MW of solar power from Anantapur district. NET METERING FOR ROOF TOP Solar Government ORDER: GO 22 State Government has announced its policy for encouraging solar power production in the State vide G.O. 1st to 3rd read above. Keeping in view the good potential for harnessing solar power, it is felt that net metering facility may be provided to the consumers to generate solar power for self-consumption and feeding excess power into the grid when it is not being consumed by them. APTRANSCO has already installed 100 kW solar plant at Vidyut Soudha, Hyderabad on a pilot basis and is following the net metering facility. CMD, APTRANSCO has proposed that net metering facility can be implemented for the consumers who intend to encourage solar green energy and set up solar PV plants at unutilized places on rooftops, waste lands, buildings of individual households, industries, offices, institutions, residential complexes etc., considering that there exists subsidy from the Government of India through
NREDCAP up to 30% of the cost of the panel up to a capacity of 500 KW without battery support. Government after careful examination permits implementation of Net Metering Facility for the consumers who intend to encourage the solar green energy and set-up solar PV plants. Implementation of this facility will be as per the following guidelines: Under this facility, consumer will generate solar power for self consumption and feed excess power into the grid.
Net metering is the concept which records net energy between export of generated energy and import of DISCOM energy for a billing month. Alternatively, the meter, having the feature of recording both the import and export values, besides other parameters notified by CEA metering regulations and APTRANSCO /DISCOM procedures in vogue, shall also be allowed for arriving net energy for the billing period. PTO The net metering facility shall be allowed only for 3 Phase service consumers. Single Phase consumers are not eligible for net metering to avoid imbalance in the phases. The SPV generator shall pay for the net energy in a billing month as per applicable retail supply tariff decided by regulatory commission to the concerned DISCOM, if the supplied energy by the licensee is more than the injected energy by the solar PV sources of the consumer(s). Any excess/ surplus energy injected in to the grid in a billing month will be treated as inadvertent and no payment will be paid for such energy. The SPV generator is required to provide an appropriate protection system on their incoming side/ consumer premises with the feature of “Islanding the SPV generator” when grid fails. The SPV generator shall bear the entire cost of metering arrangement provided including its accessories. The installation of meters including CTs & PTs, wherever applicable, shall be carried out as per the departmental procedures in vogue with prior permission of DISCOMs. Such SPV generator will submit the required information in the prescribed format to the DISCOM & DISCOM will give acknowledgement for the same for the net metering as per the applicable billing period. The Solar PV panels proposed to be installed shall meet the requirements of Indian as well as IEC standards. They can avail any prevalent Government of India in this regard. Subsidy offered by The Chairman & Managing Directors of all DISCOMs & Vice Chairman & Managing Director, NREDCAP are requested to take necessary action accordingly. SOME KEY POINTS Lack of Clarity in Policy issues and clearances regarding solar energy in AP The Federation of Andhra Pradesh Chamber of Commerce and Industries today said about 750 MW of solar power projects are stranded for want of clarity in policy issues and clearances in Andhra Pradesh. While the AP Government announced its Solar Power Policy in September 2012 seeking to encourage solar power projects, those at various stages of execution were impacted by a lack of clarity, it said. Enthused by the State’s interest to tap solar power, developers who had initiated projects were still unable to complete them due to local issues. Applications for about 750 MW were submitted and many more are in the pipeline awaiting clarity, Devendra Surana, President, Fapcci, said. The Andhra Pradesh solar policy announced a few days ago has generally been hailed as a very investor-friendly policy and one that has the scope to make the State “another Gujarat.” But nevertheless, some experts see red in the details.
Higher feed-in tariff The policy does not provide a higher feed-in tariff, instead gives project developers a host of concessions, such as exemptions from several charge and tax credits on inputs, and encourages them to avail themselves of the tradable renewable energy certificates. The RECs can be traded in one of the two energy exchanges in India (IEX or PXIL) and the prescribed minimum price is Rs 9.3 a unit of electricity. But now it is dawning on many that things may not be all that simple. The policy, which relies heavily on the REC mechanism to induce developers to put up projects in the State, goes against the very principle of renewable energy certificates — that the entity will get the certificates only if it does not avail itself of other benefits. The certificates are issued by the National Load Despatch Centre, a body of the Ministry of Power. NLDC follows the guidelines of the Central Electricity Regulatory Commission (CERC). CERC guidelines The CERC guidelines clearly say that RECs will be available only to those developers who do not avail themselves of other concessions, such as lesser or exempt wheeling and banking. NLDC is allowed to follow the guidelines of the respective State Electricity Regulatory Commission, too. However, in the case of Andhra Pradesh, again the APERC’s guidelines also say (in Clause 6 (c) that those who get concessions are not eligible for RECs. The big worry in the minds of investors is whether NLDC will refuse to issue RECs to the solar projects set up in Andhra Pradesh. “The State solar policy is expected to create a serious conflict with APERC as well as CERC regulation on REC. The State Nodal Agency being appointed by APERC, would naturally follow the guidelines issued by the APERC. This means, solar project developers participating into REC mechanism might not be able to claim all the benefits that are proposed under the State solar policy,” says Vishal Pandya, Director, REConnect, a consultancy that helps companies secure and trade in RECs. Things to do to set up a MW scale solar power plant Designing and Planning, Detailed Project Report, power evacuation planning, DPR preparation, Codes & Standards interpretations, Regulatory approvals, Power Purchase Agreement (PPA) facilitation , Technology Tie Ups, Banking documentation, Financial closure, Security cover & major clause, Project Structuring & Designing, electrical works, Project Management , Project commissioning 1.
What is the space / area / land required for the plant? Generally, it is assumed at 3.5 to 4acres for crystalline silicon (c-Si) technology and 6 to 7 acres per MW for thin film solar (a-Si or CdTe) technology. In reality, it depends on other parameters like cost of land, Ground Coverage Ratio (GCR)(to avoid inter array shading, GCR can be 0.45 to 0.65 and generation will vary based on GCR) and choice of sun tracking with sun trackers the land required will be about 6acres per MW for crystalline solar modules).
2.
Which are the ideal states for setting up of solar power projects? Hot destinations are Rajasthan, Gujarat and MH, MP, Andhra, Karnataka, Tamil Nadu as far as solar radiation is concerned. Presently, only Andhra Pradesh Rajasthan, Tamilnadu and Gujarat have a clear policy and guidelines on the procedures for setting up solar power projects. Other states may also initiate the policy and procedures soon now that Jawaharlal Nehru National Solar Mission has been launched by Government of India.
3.
Are Banks interested in financing solar power projects? The Debt Service Coverage Ratio (DSCR) works out to an average of 1.49 which is considered quite acceptable to commercial banks for sanction of loan. The maximum debt that is permitted as per CERC norms is 70% and most banks should be find this acceptable based on the financial strength and net worth of the company / promoters. The present policy driven by the National Solar Mission and PPA for 25 years with a central PSU like NTPC's subsidiary should provide adequate confidence to Banker to finance solar power projects.
*ROOFTOP PV & SMALL SOLAR POWER GENERATION PROGRAMME (RPSSGP) Apart from large scale capacity projects, it is proposed to encourage Rooftop and Small Solar Power plants also of capacity 100 KW to 2 MW, connected at distribution network at voltage levels below 33 KV. The Ministry of New and Renewable Energy (MNRE), has proposed to launch these systems by extending Generation Based Incentive (GBI). The programme is called as "Rooftop PV and Small Solar Generation Programmers (RPSSGP)." Under Phase-I of JNNSM, it is envisaged to encourage Small Solar Power projects of capacity 100 kW to 2 MW, limiting the total capacity to 100 MW for the entire country, with a ceiling of 20 MW capacity for each State. Under the scheme, the Project Developer will be paid tariff as fixed by the A.P. Electricity Regulatory Commission (APERC) and a Generation Based Incentive (GBI). The GBI shall be equal to the difference between the tariff determined by Central Electricity Regulatory Commission (CERC) and the tariff decided by APERC. As per the proposed arrangement under the scheme, the GBI portion will be reimbursed to the DISCOMs by Indian Renewable Energy Development Agency (IREDA). The tariff will be paid for a period of 25 Years. The APERC has issued tariff orders for Rooftop and Small Solar Power Plants on 06.07.2010. The tariff applicable for SPV Power Projects is Rs.17.91 ps. per Kwh and the tariff is applicable for a period of 25 years. NEDCAP has issued notification calling Expression of Interest for selection of Project Proponents under Rooftop PV and Small Solar Power Generation program and selected the Project Proponents by draw of lots after allowing firm allotment to Govt. Public Undertakings and SPV manufacturers. 20 MW capacity projects were sanctioned to 22 Project Proponents. The selected Project Proponents registered with India Renewable Energy Development agency (IREDA) on 15.07.2010. IREDA has finalised the list of Project Proponents of total capacity 120 MW on 16.08.2010 based on first come first serve basis. Fourteen Project Proponents from A.P. State are in the final list. These developers are asked to sign PPAs with DISCOMs and to register again with IREDA on 23.08.2010. Accordingly, the Project Proponents have signed PPAs with DISCOMs and completed the web based registration process with IREDA. * AP Solar Policy Amendment Solar project developers will be eligible for ‘renewable energy certificates’ “subject to applicable CERC/APERC guidelines”. The developers may choose between availing themselves of “eligible incentives” under the AP solar policy or “only the incentives permissible under the CERC/APERC guidelines.” The ‘amendment’ brought in effectively cautions solar power producers that they might get market tradable RECs only if the guidelines of the Central Electricity Regulatory Commission and the Andhra Pradesh Electricity Regulatory Commission permit. By doing so, it address a lacuna in the policy. The AP policy essentially sought to encourage solar projects in the state by offering them exemptions from a number of charges such as wheeling and banking, cross-subsidy and electricity duty. These exemptions of course applied only to power sold within the state. AP to add 1,000 Mw solar energy under these guidelines, the officials will soon invite bids from private solar power
GOVERNMENT OF ANDHRA PRADESH ABSTRACT Clean and Green Energy – Development of Solar Power in Andhra Pradesh – Andhra Pradesh Solar Power Policy – Order – Issued. ----------------------------------------------------------------------------------------------------------ENERGY (RES-A1) DEPARTMENT G.O. Ms. No.39
Dt. 26-09-2012
ORDER:In order to promote generation of power from Solar Power, the State Government hereby introduce the Andhra Pradesh Solar Policy 2012, as mentioned below :-
ANDHRA PRADESH SOLAR POWER POLICY -2012 PREAMBLE Solar power is one of the important renewable energy sources. GoI have recognized the importance of Solar Energy as one of the future sources of energy and accordingly National Solar Mission was launched on 14.11.2009, under the brand name “Solar India” with an objective to maximize generation of power from solar energy. Andhra Pradesh is one of the suitable locations for installing Solar Power Projects due to the following favorable factors:
Availability of about 300 sunny days in a year with solar insolation of 5.5 to 6 KWh/m². Availability of widespread electric grid network, which facilitate Projects with easy connectivity. Growing energy demand in the State. The present situation prevailing in the State with regard to substantial gap between the demand and supply position of power calls for taking immediate measures to augment production of energy through non conventional sources on fast track. Keeping in view the conducive environment present to encourage solar power and also the fact that the production of solar power is less time consuming, it has been decided to formulate the following policy to encourage generation of solar power in the State.
OBJECTIVE : Main objectives of the Solar power policy are: 1. 2. 3. 4. 5. 6.
To encourage, develop and promote solar power generation in the State with a view to meet the growing demand for power in an environmentally and economically sustainable manner. To attract investment in the state for the establishment of solar power plants. To promote investments for setting up manufacturing facilities in the State, this can generate gainful local employment. To promote the Off-Grid Solar applications to meet the power needs on Stand-alone basis. To contribute to overall economic development, employment generation and improvement in public services by provision of electrical energy for various needs. To encourage Decentralised, Distribution Generation system in the State to reduce T&D losses.
The policy shall be known as the “Andhra Pradesh Solar Power Policy– 2012 ” Operative Period: The policy shall come into operation with effect from the date of issuance and shall remain applicable till 2017. Eligible Developers: All registered companies, Central and State power generation/ distribution companies and public / private sector solar power project developers will be eligible for setting up of Solar Power Projects, either for the purpose of captive use and/or for selling of electricity, in accordance with the Electricity Act-2003, as amended from time to time. The entity desiring to set up Solar Power Project, either for sale of power and/ or for captive use of power within the state, shall submit a proposal to the Nodal Agency. Installed capacity Utility Grid Power Projects for Captive use /direct sale to 3rd Party/States other than A.P. State The State will promote Solar Power Developers to set up Solar Power Plants for captive use or sale of power to 3 rd party/States other than AndhraPradesh. Utility Grid Power Projects for sale through RE (Solar) Certificate Mechanism The State will promote Solar Power Developers to set up Solar Power Plants for sale through RE (Solar) Certificate mechanism. The Solar Power Developers will be required to apply for accreditation to the State Accreditation Agency and thereafter to Central Agency for registration and issuance of RE (Solar) certificate under REC mechanism as per order/regulations of appropriate Commission issued in this regard. SLDC will give clearance for REC applications within 15 days from the date of application. The Power generated from these power projects shall be purchased by AP DISCOMs at Pooled Cost of Power Purchase as determined by A.P.E.R.C. from time to time. The Solar Power Developers will sell RE (Solar) Certificates as per the regulations/orders of A.P.E.R.C.
Open Access for Third Party Sale If the Open Access is granted to any developer, they shall pay the applicable Open Access charges and losses as approved by APERC from time to time for sale to third party outside the State. Wheeling and Transmission Loss: Producer will bear the wheeling and transmission losses as per actual. Banking Banking of 100% of energy shall be permitted from January to December of that year. There will be no banking for energy produced being consumed on the same day. However, banked units can not be consumed/redeemed between February to June and also during peak hours i.e. 6.30 PM to 10.30 PM. Developer will be required to pay 2% of the banked energy towards banking charges. The energy unutilized by December of that year gets lapsed. Incentive: In order to encourage the immediate production of Solar Power to reduce the present gap in demand and supply position of power and provide industries with a possibility to utilise the power produced through solar power, following incentives will be extended to those solar power Developers who commission their solar plant by June 2014. These incentives will be in force for a period of seven years from the date of implementation. a. Wheeling and Transmission Charges There will be no wheeling and transmission charges for wheeling of power generated from the Solar Power Projects , to the desired location/s for captive use/third party sale within the state through 33 KV system subject to industries maintaining their demand within its contracted demand. However, wheeling and transmission charges for wheeling of power generated from the Solar Power Projects for sale outside the state will be as per APERC regulations b. Cross Subsidy charges Cross subsidy surcharge shall not be applicable for Open Access obtained for third party sale within the state subject to the industries maintaining their demand within its contracted demand with the DISCOMs. It is not applicable for captive use. c. Electricity Duty exemption All Solar Power projects will be exempted from paying Electricity Duty for captive consumption and third party sale within the state. d. VAT refund VAT for all the inputs required for solar power projects will be refunded by the Commercial Tax Department. e. Refund of Stamp Duty and Registration charges Industries Department will provide incentive in terms of refund of Stamp Duty and Registration charges for land purchased for setting up solar power project. f. REC All projects developed with the above incentives will also be eligible for REC benefits. Deemed injection into the grid for in-house captive solar generation plant (in the same premises) will be considered for issue of REC. Grid Connectivity and Evacuation facility The power generated from a Solar Power Project shall be injected at an appropriate voltage to the nearest sub-station of the AP Transco / Distribution Licensee. The evacuation line from interconnection point to grid substation shall be laid by the APTRANSCO or DISCOM at the cost of the project developer. However, if the project developer wishes to lay evacuation line by themselves, they can do so by paying the supervision charges to APTRANSCO/DISCOM. APTRANSCO/DISCOMs will ensure the technical feasibility for evacuation is granted within 21 days of applying. Land: It is the responsibility of the Project Developer to acquire the land required for the project. Restriction on use of Fossil Fuels: No fossil fuel viz., Coal, gas, lignite, naphtha, wood etc., shall be allowed to be used in a Solar Power Plant. Reactive Power Charges: The drawl of Reactive Power by the solar power plant shall be charged as decided by the APERC.
Nodal Agency: New and Renewable Energy Development Corporation of A.P. Ltd (NREDCAP) shall be the State Govt. Nodal Agency for clearance, facilitation and implementation of the proposed Solar Power Policy. Project Monitoring A “High Level Committee” constituted with the following members will monitor the progress of implementation of the Solar Power projects cleared under the proposed policy: If any difficulty arises in giving effect to this policy, the High Level Committee is authorized to issue clarification as well as interpretation to such provisions, as may appear to be necessary for removing the difficultly either on its own motion or after hearing those parties who have represented. Review State Govt. will undertake review of this policy after a period of two years. (BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH) MRUTUNJAY SAHOO PRINCIPAL SECRETARY TO GOVERNMENT The following incentives are the main attraction:
Banking: 100% banking is permitted from January to December of the year. However, banked units cannot be adjusted during February to June and during evening peak hours 6.30 PM to 10.30 PM. The banked energy will attract banking charge of 2%.
Exemption of Wheeling and Transmission Charges: For all the intra-state open access transactions (through 33kV sys-tem), wheeling and transmission charges are exempted.
Exemption of Cross Subsidy Surcharge (CSS): Consumers purchasing power from solar projects are exempted from CSS. This will be a great relief for consumers as CSS remains the major cause of worry for consumers as well as develop-ers opting for third-party sale / open access.
Exemption of Electricity Duty: E-Duty is also exempted for all the solar power projects opting for third party sale and/or captive usage.
Refund of VAT, Stamp Duty and Registration Charges: Solar developers will be able to get the refund of the said charges. The above incentives are applicable only if the project is commissioned by June 2014. The incentives are extended for the period of 7 years. The major concern is for the CPPs in the state as they cannot claim RECs on availing the above benefits. It will raise conflict regarding the state and central regulation on REC mechanism. SALIENT FEATURES OF POLICY The policy shall come into operation with effect from the date of issuance (26/9/2012) and shall remain applicable till 2017. Installed capacity: It intends to promote utility grid power projects for Captive Use/ Direct Sale to third party/within the state and Utility Grid Power Projects for sale through RE (Solar) Certificate Mechanism. Also, it intends to promote the Off-Grid Solar applications to meet the power needs on Stand-alone basis. Wheeling & Transmission charges: Producer will bear the wheeling and transmission losses as per actual. Banking: Banking of 100% of energy shall be permitted for one year from the date of banking. The settlement of banked energy will be done on monthly basis. However, banked units cannot be consumed/redeemed from February to June and also during TOD hours as amended from time to time. Developer will be required to pay 2% of the banked energy towards banking charges.
OA charges: Intra-state Open Access clearance for the whole tenure of the project or 25 years whichever is earlier will be granted within 15 working days of application to both the generator and consumer irrespective of voltage level. Additional Incentives: To promote investments in AP, the following incentives would be applicable till June 2014. These incentives will be in force for a period of seven years from the date of implementation. No wheeling and transmission charges will be applicable for sale of electricity within the state from the Solar Power Projects, to the desired location/s for captive use/third party sale through the grid. However, producer has to bear (As per APERC regulation) the wheeling and transmission losses as per actual in case of captive/open access sale outside the state. - No Cross Subsidy charges for third party sale within the state and for captive use. - Exemption from electricity duty for captive consumption and third party sale within the state. - Refund of VAT ,paid in AP only, by Commercial Dept for all the good used for Solar developers - Refund of Stamp duty and registration charges paid for land purchase Projects claiming above benefits can claim REC benefits provided they are in line with the APERC/CERC regulations. Evacuation infrastructure: The evacuation line from interconnection point to the grid substation shall be laid by the APTRANSCO or DISCOM at the cost of the developer. Land: It is the responsibility of the Project Developer to acquire the land required for the project. Reactive Energy charges: Reactive charges applicable to the project developer as per APERC regulation. Amendment to Andhra Pradesh Solar Policy 15. STEPS INVOLVED IN DESIGNING A ROOF-TOP SOLAR PV system WITH BATTERY BACKUP A stand-alone PV plant for AC and DC loads: The broad steps involved in designing a roof-top stand-alone solar PV plant are: o o o o o o o
Estimation of total loads and energy Selection of an inverter Sizing of battery bank Sizing of PV array Selection of other components Installation and commissioning Testing and evaluation
Estimation of total loads and energy:
Sum the total AC connected watts Sum the total DC connected watts Calculate the AC average daily energy requirement Divide this by the inverter efficiency to obtain the DC energy required to the AC load Calculate the total energy requirement due DC loads Add the DC energies obtained by step 4 and step 5 This quantity is the total DC energy load on the battery bank
Selection of inverter:
The capacity of the inverter must be more than that of the total daily average AC loads, including their surge requirement The nominal DC input voltage of the inverter will be the battery bank voltage and is decided by the design of the inverter The output will be single phase or three phase , 230/440V & 50Hz, to be compatible to the AC loads requirement The conversion efficiency at minimum load (10%) should be 80% Total Harmonic Distortion (TDH) < 3% The wave shape, crest factor, power factor etc, to be as per the load requirements
Battery bank sizing:
The total DC energy ÷ the nominal input voltage gives the daily Ampere Hour (AH) requirement from the battery bank The daily AH hours X autonomy ÷ discharge limit provides the battery bank Ampere hour capacity Battery bank AH capacity/Individual battery AH gives the number of batteries in parallel (generally it is 1) AC system voltage ÷ the battery voltage gives number of batteries in series
PV array sizing:
Average daily AH requirement from the battery ÷ battery columbic efficiency gives the AH to be put in by the PV array in a day AH required from PV array ÷ average peak sun hours in a day of the site gives Amperes required from PV array Amperes from array peak ÷ panel (or module) peak ampere gives number of PV panel strings required in parallel Nominal system DC voltage ÷ nominal operating module voltage gives the number of SPV modules in one series string Number of modules in one series string X number of parallel strings gives the total number of SPV modules in the power plant Number of PV modules X PV module wattage is the total PV array wattage
Other components:
Charge controller maximum current capacity should be one and half times that of total short circuit current of all parallel strings The total open circuit voltage of all the modules in series should give the maximum voltage of the charge controller The cables connecting the module to Junction boxes, to that of DC board and battery bank should be selected as per the standards Cut-outs, fuses and other control components should be as per the National standard of Electrical current ratings
Easy Steps to Plan your solar roof top solution
Nirvanas Group (Solar Power Plant Basic Process Information)
