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India Solar PV Advisor Narsimhan Santhanam

Email: narsi@clixoo.com
Interested in Solar PV? Don′t go ahead without this Mobile: +91-98413-48117 (India)

If you are an entrepreneur or investor exploring the fast growing solar energy opportunities in India, this authoritative guide is for you.

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The launch of the National Solar Mission has given a big impetus to solar energy in India. The highlights of the mission are
given below

Installed capacity of 20000 MW by 2022

Establishment of a single window investor friendly mechanism

Envisages an investment of Rs 90,000 crores over the next 30 years

Initial investment of Rs 4,337 crores provided by the Government of India

Last Updated : July 26, 2010

As a result of this Mission, it is expected that solar PV based power plants will become an exciting business opportunity.
While power production through solar energy is possible using both solar thermal (using the heat in the sunlight) and
solar photovoltaic (using the light energy), electricity generation worldwide is more prominent through solar PV than
through solar thermal. This trend is expected to continue in India as well.

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The India Solar PV Advisor was prepared by EAI Team for those keen on investing in the Indian solar PV
based power generation sector. It was developed in response to a specific need for a high-quality,
definitive intelligence that facilitates decision-making and provides an actionable guide.

Indispensible Report for… A Great Resource for… Prepared by the EAI Solar PV team which has…
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In-depth understanding of Entrepreneurs planning to develop a solar Studied the Indian solar PV market for

costs and returns PV power plant in India many years

Selection of site Investors exploring the investment Provided consulting services for many

Getting required approval opportunities in solar PV projects in India Indian companies venturing into solar

from civic bodies Businesses exploring a plethora of PV

Sourcing of investments opportunities along the entire solar PV Worked with companies setting up the

Identifying the diverse value chain earliest solar PV power plants

opportunities in solar PV Interacted with hundreds of entities

Vendor selection along the entire solar PV value chain

The India Solar PV Toolkit has been compiled using the intelligence gathered from extensive interactions with government departments,

existing and prospective power plant developers, consultants and other industry experts, cell and module producers, state

electricity boards, and banks/financial institutions.

What will you know after reading this guide?

Technical Free ebook Preview

(Click here to view ebook)
1. Is this the best time to invest in solar PV in India?
To download a copy of the preview to your machine , click here
2. How do you choose an ideal location within a particular state for setting up

of a solar power project?

3. What is the space / area / land required for the power plant?

4. What technology options are available in solar PV?

5. Which is better – thin film or crystalline solar panels?

6. What can be done to counter technology obsolescence in the solar PV industry?

7. Which are the ideal states for setting up solar power projects?

8. Is it a good idea to produce the solar panels ourselves, or should we only focus on the power plant?

9. What is the time required for “concept to commissioning” - from the date of commencing the project, before the plant can go 'live' and revenues

starts flowing?

10. What is the lifetime of the solar PV power plant?

11. What is the current and future potential for deriving energy from solar in India?

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Investment and Cost

1. What is the total investment required for a grid connected solar power plant, per MW? What are the cost breakups?

2. What are the operations & maintenance costs?

3. What is the payback period?

4. What is the return of the investment? Send this page to my email

5. What is the cost of debt for investments in solar PV? Is it possible to get loans at soft interest rates?

6. What is the loan tenure?

7. What are the equity & project IRRs?

8. What is the cost of insurance for the equipments?

9. Do you have a complete financial model for a 1MW or 5MW plant?

10. What types of venture capital and private equity investments are happening in this industry?

11. Is there a critical mass / scale required for the cost per MW (installed cost) and cost per unit of production (operating cost) to be minimum?

12. How does solar PV perform when compared to other renewable energy options such as wind, small hydro and biomass?

Government Incentives

1. How can we increase the chances of allocation under the NVVN scheme?

2. What incentives are available from the central government?

3. Is there a capital subsidy?

4. What are the tax benefits?

5. Are carbon credits available? If yes, what are the monetary returns from carbon credits?

6. What are the incentives available in specific states?

7. What are the eligibility criteria to apply for a 5MW project under NVVN Scheme?

8. What are the guidelines for allotment of a 5MW project under NVVN Scheme?

Power Production

1. How much power will be produced in one year, per MW?

2. Can we sell power to third parties?

3. Can we set up power plants for captive consumption?

Next Steps

1. What are the next steps I should take if I’m interested in exploring further?

Solar PV Value Chain

The solar PV value chain consists of a number of specific and distinct steps from the production of silicon to the end use
in solar power plants or in solar panels used for distributed power generation (e.g. solar panels on residence rooftops).

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Range of business opportunities available along the entire value chain is explained in the report.

A detailed value chain of entire solar PV industry is given below

Solar PV Value Chain Detailed Schematic

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Key take-aways from the India Solar PV Advisor

While a majority of PV cells produced today use crystalline silicon, thin-film based solar PV is expected to grow from its 14% share in 2008 to 31%

share in 2013.

The top three states in India for solar PV potential are respectively Gujarat, Rajasthan and Madhya Pradesh

PV constitutes a miniscule part in India’s installed power generation capacity with grid connected solar PV generation at a mere 6 MW as of March

2010. Off-grid installed capacity of solar PV power plants including street lights are 100 MWp

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PV installations in India predominantly comprise of small capacity applications. These are most visibly seen in lighting applications (street lighting,

and home lightning systems) in cities and towns, and in small electrification systems and solar lanterns in rural areas.

By 2050, about 69% of the electricity produced in India will come from renewable energy sources, according to Greenpeace.

Under the Jawaharlal Nehru National Solar Mission (JNNSM), India is expected to reach a total solar installed capacity (both PV and CSP) of 20,000

MW and a total electricity generation of 25-30 TWh per year by 2022.

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The JNNSM has proposed a feed in tariff rate of Rs 17.91 for solar PV power plants with a power purchase agreement for 20 years.

Currently, the capital cost for a solar PV power plant is about Rs 16 crores per MW, with about 50% of it going towards solar panels, 25% towards

inverters and balance of systems, and final 25% towards installation and other infrastructure.

Capital cost for solar PV power plants is likely to be about Rs 8 crores per MW by 2020.

Under the National Solar Mission, investors can expect an equity IRR of about 19% and project IRRs of about 15%. The payback period is about 6

years.

In India, the electricity sector falls under the “Concurrent List”. This means that both the central and state governments are involved in the legislation

for the sector.

A 1MW solar PV power plant can generate about 1.5-1.6 million units (kWh) of electricity per year.

The levelized cost of electricity production from solar PV is about Rs 14 per kWh (including amortization costs).

Prominent domestic banks that fund renewable projects are IDBI, ICICI, IFCI, SBI, and PNB among others.

According to MNRE, the cost of power generation from solar PV is likely to be competitive with grid tariff by 2023 (“grid parity”) and with pure coal

based power generation by 2026.

On the technology part, in India, crystalline silicon technology to accounts for most of the market, and currently, the market share of thin film

technology, though fast increasing, is estimated at only about 10%.

Currently, thin film technology has not reached the efficiency level of crystalline solar cells and is unlikely to be used for large-scale power

production until 2012.

Currently, India does not have any infrastructure for raw material production (polysilicon) and is entirely dependent on imports for the same

India has always been a net exporter of solar PV technology, with about 66% of cumulative domestic PV production till 2009 catering to overseas

markets

Germany is the most preferred source for solar PV imports, followed by Taiwan. During 2008-09, about 80% of the total solar PV imports were from

Germany and Taiwan

Business opportunities in the solar PV industry go far beyond power plants; these opportunities are present in all three sectors: manufacturing,

trading and services. Among these, the largest number of opportunities are present in the manufacturing segment, followed by services.

List of Contents

Section I: Should I Invest in Solar PV?

Tables
1. Solar PV Business Analysis
Levelized cost of different energy sources
Sunshine hours for the major cities of the world
1.1 Is this the Best Time to Invest in Solar PV?

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1.2 What Are the Key Aspects You Should Consider While

Investing in Solar PV?

1.2.1 Capital and Operational Costs

1.2.2 Evaluation of Locations

1.2.3 How Do You Use Solar PV Technology as a

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Differentiator?

1.2.4 Central & State Policies, Incentives

1.2.5 Evaluation of Opportunities along Entire

Value Chain & Key Industry Segments

1.3 SWOT Analysis for the Solar PV Industry in India

Section II: What are the costs and return on investment?

Tables
2. Solar PV in India – Costs, Investments and Returns
Break-up of capital expenses per MW
Capital cost of solar PV systems by scale
2.1 Costs and Returns
Capital costs for solar PV modules by timeframe
2.1.1 Costs Projection of capital costs over time
IRR & payback calculations
Capital Costs and Break-ups

Figures
Capital Costs for Photovoltaic Systems
Cost Projection for Grid Parity of Solar PV in India
by Scale

Capital Costs for Photovoltaic Modules

by Timeframe

Operational Costs

2.1.2 Returns

Internal Rate of Return for Solar PV

Payback Period

2.2 Financial Modeling and Scenario Analysis for Solar PV

Projects

2.3 Investment Trends in Solar PV for India

2.3.1 Renewable Energy Financing in India

Financing Options Available for Solar

PV

Nodal Agencies that Support

Renewable Energy Financing in India

Financial Institutions that Fund

Renewable Energy Projects in India

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List of Venture Capital and Private

Equity Companies in India Active in the

Renewable Energy Sector

2.3.2 Examples of Investments in India for Solar PV

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Section III: What incentives are available from the government?

Figures
3. Government Incentives and Support
Schematic Representation of National Solar Mission

3.1 Central Government Incentives

3.1.1 Semiconductor Policy and Special Incentives

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3.1.2 Generation-based Incentives

3.1.2.1 Portfolio of Solar PV and Solar

The kit has FAQs, white papers and a preview of the
Thermal Technology Projects
most authoritative guide on Indian solar PV industry!
3.1.3 NVVN SCHEME

3.1.3.1 Minimum and Maximum NameAdd your name CompanyAdd

Capacity of Each Project your company RoleYour designation
3.1.3.2 Expression of Interest for Short- EmailAdd a valid address
listing and Selection of Projects MobileYour mobile no
3.1.3.3 Qualification Criteria for Short- ProfileYour Background
Listing of New Projects
Addressto which kit has to be sent
Financial Criteria
(only within India)
Technical Criteria

Land Arrangement for the

Project

Connectivity with the Grid

Water Arrangement

3.1.3.4 Domestic Content

3.1.3.5 Short-listing of Projects

3.1.3.6 Role of State Level Agencies

3.1.3.7 Selection of Projects

3.1.3.8 MoU between Project

Developer and NVVN

3.1.3.9 Power Purchase Agreement and

Power Sale Agreement

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3.1.3.10 Performance Guarantee
3.1.3.11 Minimum Equity to be Held by
the Promoter
3.1.3.12 Financial Closure of the
Project
3.1.3.13 Commissioning
3.1.3.14 Power to Remove Difficulties
3.1.3.15 Time Schedule for the Process
3.2 State-specific Incentives
3.3 Feed-in-tariff Success Stories
Section IV: What should be my next steps for putting up a solar PV power plant?
4. Next Steps to be taken by a Solar PV Power Plant
Developer
4.1 Preparing Prefeasibility and Feasibility Reports
4.2 Meeting Government Departments
4.2.1 Lists and Contact Details of Government
Departments in Various States
4.2.2 Central Government Relevant Department
Details and Contacts
4.2.3 Other associations for Solar Energy in India
4.3 List of Solar PV Cell and Module Manufacturers in India
5. Developing a Prefeasibility Report
5.1 Solar Power Technical Feasibility Report Template
5.2 An illustration of technical feasibility of a solar power project
5.2.1 Solar Radiation Assessment
5.2.2 Assessment of Area Required
5.2.3 Major Equipments in Solar PV Power Plants
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Tables
IRR & payback calculation for various capex levels – State-specific
scheme
IRR & payback calculation for various opex levels - State-specific
scheme
IRR & payback calculation for different tariff rates - State-specific
scheme
IRR & payback calculation for various capex levels - NVVN scheme
IRR & payback calculation for various opex levels - NVVN scheme
Cash flow for a 5 MW solar PV power plant under the NVVN scheme
Organizational set up of the Indian power sector
Lists and contact details of government departments in various states
Central government relevant department details and contacts
Associations for solar energy in India
List of solar PV cell and module manufacturers in India
Solar PV tariff in Gujarat
solar PV tariff in Rajasthan
Comparison of salient features of NVVN and GBI scheme
Real-life data of electricity produced per MW from solar PV plants
Figures
Flow Chart Depicting Next Steps to be Taken by a Solar PV Power
Plant Developer
Organizational Set up of the Indian Power Sector
Figures
Template for Preparing Prefeasibility Report
Map Showing Solar Radiation Data in Various Parts of India
Solar Irradiation Data for Jhulwania,
A Simple Schematic of a Grid-connected Solar PV Power Plant
Detailed Schematic of a Solar PV Grid-connected Power Plant
Diagrammatic Representation of PV Module Efficiency
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5.2.4 Electricity Production

Figures
6. Project Development for Solar PV Power Plants
Flow Chart Depicting Project Development Stages

6.1 Project Development Stages

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6.2 Selection Criteria for location of Solar PV Power Plant

Section V: What are the opportunities available in solar PV, other than power
production?

7. Solar Energy Value Chain and Business Opportunities
7.1 Solar PV Value Chain
7.1.1 Processes in Solar PV Value Chain
Manufacturing Wafers
Manufacturing Cells and Modules
Crystalline Solar Cells
Thin-Film Solar Cells
Concentrating PV Cells
Tables
Business opportunities in polysilicon manufacturing
Business opportunities in solar glasses
Business opportunities in ingot and wafer manufacturing
Business opportunities in solar cell manufacturing
Business opportunities in crystalline solar module production
Business opportunities in thin film solar cell manufacturing
Business opportunities in concentrating PV manufacturing
Prominent companies along the solar PV value chain
Figures
Solar PV Power Value Chain
Value Chain for Crystalline Silicon Solar Cells

7.2 Diverse Business Opportunities in Solar PV

7.2.1 Manufacturing Opportunities in Solar PV

Polysilicon Manufacturing

Solar Glasses

Ingot and Wafer Manufacturing

Solar Cell Manufacturing

Crystalline Cell Manufacturing

Thin-film solar cell manufacturing

Crystalline Solar Module Production

Concentrating PV

Non-core Solar PV Business

Opportunities

Electrical Components:

Inverters, Wires and

Transformers

Machinery & Equipment for

Manufacturing Solar PV

Cells – Crystalline and

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Thin-film

Manufacturing Chemicals for

Solar Industry

7.2.2 Service Opportunities

Solar Panel Installation Services

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Project Development Support

Financing Support

Design and Engineering Support

Construction and Commissioning

Support

Operation and Maintenance

Decommissioning

Others

7.2.3 Trading Opportunities

7.3 List of Prominent Companies in the Various Stages of Solar

PV Value Chain

Section VI: What are the current trends in the solar PV industry in India?

8. Solar PV in India – Industry Status and Trends
8.1 Introduction
8.1.1 Introduction to Alternative Energy Sources
8.2 Solar PV Technology
>8.2.1 Solar PV - Crystalline Silicon PV Cells
8.2.2 Solar PV - Thin Film Solar Cells
Tables
Share of various solar PV technologies
Top 5 districts with the best solar irradiation in Gujarat
Top 5 districts with the best solar irradiation in Rajasthan
Top 5 districts with the best solar irradiation in Madhya Pradesh
Renewable energy installed capacity in India
Projection of solar pv installed capacity
Projection of solar electricity generation capacity
Solar PV projects installed
Proposed solar PV projects

8.2.3 Solar PV - Concentrating Photovoltaic

Figures

8.2.4 Solar PV Market Status and Trends

8.3 Status and Trends of Solar Industry in India
8.3.1 Solar Energy Potential in India
8.3.2 Regional Potential for Solar Power
8.3.3 Current Solar PV Scenario in India
8.3.4 Future Solar PV Scenario
8.3.5 Solar PV Future Contribution in Indian
Electricity Supply
8.4 Prominent Solar PV Power Projects & Companies in India
Solar PV Value Chain Detailed Schematic
Classification of Energy Sources
Solar Energy Technology
Photovoltaic Market in 2009
Thin film vs. Crystalline Solar Panel Production
Annual Mean Daily Solar Radiation in India
Solar Irradiation Data for Patan
Solar Irradiation Data for Jaisalmer
Solar Irradiation Data for Neemuch
Trends in Production of Solar PV Cells and Modules (MWp) in India
Application of Solar PV Cells (MW) in India – Sectorwise
Trends in Foreign Trade of Solar PV in India
Imports of Solar PV in India – 2008-09
Exports of Solar PV in India – 2008-09

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8.4.1 Solar PV Power Projects Installed

8.4.2 Proposed Solar PV Projects

8.4.3 Solar PV Projects in India – News and

Updates

8.5 Key Challenges to growth of Solar PV in India

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Reference

Solar Energy Related Web resources & Other Alternative Energy Web Resources

Solar Energy Web Resources

Solar Energy News

Solar Energy Blogs

Solar Energy Forum

Solar Energy Portal

Other Alternative & Renewable Energy Related Web Resources

Renewable Energy News Sites

Renewable & Renewable Energy Blogs

Renewable Energy Forums

Renewable Energy Portals & Guides

Diverse Industries Benefitted from the India Solar PV Advisor

Solar PV Developers System Integrators

EPCs Heavy Engineering

Mining and Metals Management Consulting

Technical Consulting Foreign Financial Investors

Foreign Trade Commissions Real Estate & Construction

NRIs Investing in India Small and Medium Businesses

The price of the report is Rs. 43000 (950 US $). Payments can be made either using credit card, or by cheque or bank wire transfer.

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Email :

Narsi Santhanam
Message : Email: narsi@clixoo.com
Mobile: +91-98413-48117 (India)

About EAI

Energy Alternatives India (EAI), part of Clixoo, provides support services and solutions to the renewable energy industry
in India. EAI has today emerged as a leading consulting and market strategy company for all the primary renewable
energy sources solar, wind, bio-fuels, hydro and waste to energy.

EAI was formed by a team of renewable energy professionals from prestigious institutes such as the IITs and IIMs having
over 15 years experience in sales & marketing, and is based in Chennai, India. They are supported by a strong research
team this combination enables us to view a situation holistically, and come out with practical solutions.

Our acquaintance with the Indian renewable energy industry, along with our deep understanding of the technology,
industry dynamics and emerging trends in renewable energy sources worldwide, make EAI the most effective partner for
those keen on getting an exceptional understanding of the Indian renewable energy industry, along its entire business
value chain.

Contact Us

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Narsi Santhanam

Mobile: +91-98413-48117

Email: info@clixoo.com

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