INTERVIEW
INTERVIEW
EQ: What are your USP’ s and differentiating factors as compared to your competitors?
AH: As the largest rooftop developer, we are differentiated in a number of ways:
• True pan-India scope. We have around 60 MWp of onsite installations across all major states in India. Corporate customers have facilities nationwide, and they want someone who can service them anyway in India. We have a rooftop plant in the same neighbourhood, and the same segment, of all our target customers. This gives them a lot of comfort that we can deliver and meet their expectations
• Cost-competitiveness. Our scale on rooftop installations gives us a real cost advantage, particularly on components like string inverters and module mounting structures, of which we are among the largest customers in India
• Our people. From engineering to projects to sales, we have a very high standard for people, and in turn they are a big source of competitive advantage. Our customers recognize our professionalism and expertise, and this is a major advantage for us in the market.
EQ: What are the opportunities in this space and the challenges in upscaling and mainstreaming distributed solar?
AH: Rooftop solar in India is growing at 2-3X, and this growth does not look to be slowing anytime soon. Customers are more informed, and they are ready to make decisions more quickly. Costs are extremely competitive – we can offer large discounts to grid power, from Delhi to Kanyakumari. The market is fragmented and volatile – we have seen our competition shift significantly every 6 months. This makes it hard for customers to figure out who are the serious players.
EQ: Kindly enlighten on“ Energy Storage as Game Changer”…. Technology & Cost Trends, Incentives and Government Support needed
AH: The cost curve for energy storage looks similar to that of solar PV several years ago, and we see a lot of potential. The utility segment will probably be larger in size, but we see a lot of opportunities in the B2B, onsite segment as well, and this is a strong complement to our solar business. We are looking to begin our first projects in advanced battery technologies, for some of our existing corporate customers. Accelerated depreciation on energy storage systems would be a big boost for the sector, and this is justified given the significant benefits for the grid( peak shaving) and for reducing diesel usage.
EQ: Policies & Regulations: What are the benefits, subsidies given by SECI, Central, State and Local Government, What are the key policy & regulatory features announced by the government?
AH: Given that grid parity has already been reached, the most important policy supports would be in terms of tax and financing structures. Accelerated depreciation has really helped the rooftop solar industry to grow, and removing it will dampen growth. A high GST rate on solar, and the removal of Section-80IA benefits would have a similar impact. At a state level, there is a lot that state governments, regulators, electrical inspectorates and others can do to make it easier to adopt solar. For example, in Maharashtra we have seen streamlined CEIG processes for mid-sized rooftop solar installations. These small initiatives really add up to encourage wider adoption.
EQ: Net Metering vs Gross Metering: Kindly explain what are the various metering techniques, their pros and cons
AH: Net metering is a policy which allow export of net solar energy production( generation minus consumption) to the grid. Net metering is a very important enabler of rooftop solar, particularly for commercial and industrial customers and educational institutions, whose power consumption may be very low on non-working days or holidays. Gross metering( also known as a feed-in-tariff) is effectively the sale of onsite solar
EQ: Kindly rank various states in the order of attractiveness of distributed solar market?
AH: It will be like- 1) Maharashtra 2) Tamil Nadu 3) Karnataka 4) Rajasthan 5) Gujarat 6) Haryana 7) Telangana
EQ: What are the costs of solar energy in various states for different category of consumers such as Commercial, Industrial & Residential?
AH: Large commercial and industrial rooftop solar today is in the range of Rs. 5.5-6.5 / kWh as a levelized cost, for a highly bankable offtaker with low credit risk. Costs go up as the system gets smaller, particularly as you go below 100 kWp per roof. Residential systems are much costlier, and in fact the market is so small that systems are not really standardized and it’ s hard to even get a handle on the numbers. Costs should drop and become more consistent as and when the market takes off.
power to the grid, in which the entire quantum of solar energy goes to the grid. Gross metering tends to be more important for residences and particularly warehouses, where there is not a lot of power consumption, and where a preferential rate can encourage adoption. Getting the right tariff is the key here, and Indian states don’ t have a great record here. However, gross metering could really kick-start the residential segment, which is unlikely to grow much in the meantime without such a policy.
www. EQMagPro. com EQ December 2016 59