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As of August 2016, in terms of its total installed Solar Photo-Voltaic Capacity, India has surpassed

8 GW1. It is estimated that India will reach 10 GW by 2020 and 49 GW by 2025 2. In retrospect,
this remarks the unparalleled success of the JNSSM, especially considering that the prevailing tariff
of SPV projects is [tariff], which is only [percentage] of the weighted average of the quoted tariffs
for SPV at the time of launch of JNSSM in 2010 3, and is also approximately within 15% of the coal
power tariff.
For an economy which is largely reliant on traditional sources of power such as coal and other
fossil fuels4 for meeting its energy needs, such a two-faceted cost reduction of solar power reflects
brightly on its upward growth trajectory.
In terms of the JNSSM, an ambitious target of [X GW] was set by the MNRE to be achieved by
[2022] under its 3-phased scheme5. Achievement of such a target would offer several benefits to
an energy-crunched state like India, including constant power supply in rural areas, little-to-no
reliance of households and commercial establishments on diesel-powered generators, drastically
reduced power cuts and cheaper electricity.
Given that practical considerations such as the tedious process of land-acquisition demand that the
usage of land be prioritized to an extent for other purposes such as [other purposes], Solar
Rooftop PV projects, at least in theory, seek to overcome this practical hurdle by enabling a large
number of households to become energy-efficient, given that India enjoys at least 300 sunny days
a year.
However, the achievement of this target set out by the MNRE is hurdled with several practical
difficulties, some of which have been discussed below in the order of their severity.
1.Steep set-up cost of an SPV Rooftop System
It is estimated that setting up of an SPV Rooftop System in India costs roughly []. This
cost estimate is still largely unaffordable for a majority of the Indian households. In terms
of the JNSSM, a 30% subsidy on the system cost is provided through Solar Energy
Corporation of India (SECI), a government-run implementation agency 6 (however, notably,
no such fiscal benefits are extended to grid-connected SPV system owners).
In addition to fiscal incentives, it is also the prerogative of GOI to ease the manufacturing of SPV
systems in India, which at present faces its competition with China. The consequent

1 http://mnre.gov.in/file-manager/UserFiles/grid-connected-solar-power-projectinstalled-capacity.pdf
2
https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/E
NRich2015.pdf
3 INR 12.16/unit, as available in the policy document of JNSSM accessible here:
http://mnre.gov.in/file-manager/UserFiles/draft-jnnsmpd-2.pdf

4 [Insert Data]
5 http://mnre.gov.in/file-manager/UserFiles/draft-jnnsmpd-2.pdf
6 http://www.epw.in/node/129147/pdf

expected benefit of this would be cheaper, higher-quality SPV systems in several


households across India.
There have also been several reportable instances of the GOI not doling out/belatedly
doling fiscal incentives to SPV owners. While the RBI has allowed loans given to individuals
to set up off-grid solar and other renewable energy solutions for households as priority
sector loans7, further and time-bound incentivization for developers and owners of SPV
systems is required in order to ensure that household/rooftop owners are not deterred
from investing in SPV rooftop systems.

2. Storage systems and other necessary infrastructure


[photovoltaic system capacity low]
While net metering solves the storage related problems for grid-connected SPV systems,
for off-grid SPV systems, this is especially an issue as full-time battery backup is required
especially during night time or non-sunny days when despite the advanced systems which
can possibly reduce the gestation period of solar energy conversion to electricity, such
homes would be deprived of electricity8.
However, even in an ideal scenario where every SPV system is connected to the grid,
storage systems are necessary to cope with intermittent and unexpected shortage of
power. Further, it must be borne in mind that solar power is an intermittent source of
energy and it is generated during the day time when solar irradiations are high. The power
generated must be consumed as soon as possible because the existing battery
technologies have limited capacity in terms of energy storage 9. Proper energy-storage
technology and guidelines with respect to its usage would aid the case of off-grid SPV
systems to a large extent, at least until India has the requisite infrastructure to bring every
SPV system onto its grid.
3. Grid Issues
The power grid in India has been known to have severe stability problems with major grid
collapses. Solar power, being more erratic than conventional power, poses an important
challenge to grid stability. With multiple small solar projects connected to the grid, there is
a possibility that the electricity network can become imbalanced. As the number of these
projects increase, it will be vital to monitor grid stability for its sustainability 10.
4. Investors risk perception and awareness among individuals [Financing]
At present, the risk-perception of investors insofar as investing in SPV Rooftop projects is
concerned, is rather negative.

7 EPW
8 http://www.teriin.org/eventdocs/files/Rooftop-Solar-PV-Experience-in-India.pdf
9 http://www.prnewswire.co.in/news-releases/india-solar-rooftop-market-forecastand-opportunities-2021-techsci-research-report-582691761.html
10 http://www.epw.in/node/129147/pdf

Earlier this month the World Banks International Bank for Reconstruction and
Development (IBRD) approved a $625 million, 20-year loan to fund rooftop solar PV across
the country11. The bank has also approved a 40-year co-financing loan of $120 million and
a $5 million grant from Climate Investment Funds (CIF) Clean Technology Fund.

http://mnre.gov.in/file-manager/dec-solar-thermal-systems/aa-rpssgp-2010-11.pdf
PV Programme link

Rooftop

https://cleantechnica.com/2016/06/21/can-india-accelerate-rooftop-solar-deployment/
That is a pricey assumption for an average Indian household, Gaebler noted, but added that the
returns make attractive reading. With the governments 30% capital subsidy scheme, we calculate
that this discounted payback is just 5.2 years, with an IRR of 17% and a total annual electricity bill
saving of INR 134,000, its a no-brainer.
Read more: http://www.pv-magazine.com/news/details/beitrag/rooftop-pv-and-manufacturing-the-next-two-hurdles-for-indian-solar_100026054/#ixzz4K5QMuX3G

11 http://www.pv-magazine.com/news/details/beitrag/india-implements-new-40gw-rooftop--small-pv-plant-program-_100024678/#axzz4K1wyrse9

Rough
The program is divided into three phases: 20102013; 20132017 and 20172022 and the
respective targets are: 200 MW, 1000 MW and 2000 MW (for off-grid) and 1000-2000 MW,
4000-10,000 MW and 20,000 MW (grid power including roof top). Although the JNNSM has
been hailed as an unparalleled success, its success has been challenged on the grounds of
delayed project commissioning and failure to deploy solar thermal systems 12.

T&D Losses

Key measures include those that improve contractual security, make international investment
easier, make the setting up of new businesses easier and further improve the health of the power
sector, including raising power tariffs. A key driver will also be the development (or nondevelopment) of coal-fired power generation in India. In the past, bottlenecks around railway and
port infrastructure, and the mining and procurement of coal have led to shortages that in turn
make distributed, privatized solutions around solar more attractive. Also, realistically pricing in the
dramatic environmental and social costs of fossil fuels would make solar much more attractive by
comparison13.

http://www.greenpeace.org/india/Global/india/report/2013/Rooftop-Revolution.pdf
source

Good

http://www2.deloitte.com/content/dam/Deloitte/in/Documents/energy-resources/in-enr-solarpower-in-karnataka-noexp.pdf Page 19 very good

12 http://www.ijrer.org/ijrer/index.php/ijrer/article/viewFile/1970/6586
13 http://www.pv-magazine.com/opinion-analysis/blogdetails/beitrag/the-state-ofdistributed-solar-in-india_100019848/#axzz4K1wyrse9

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