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Demand Aggregation Rooftop Solar: A Way forward for India’s Solar Market

Demand Aggregation Rooftop Solar - The aggregated demand in the geography is bid-out to the developers, thereby decreasing the effective transaction costs of the developers due to aggregation and economies of scale. Interest from various developers is solicited for the aggregated demand and the demand is then awarded to the most qualified bidder. The asset is securitized by developing the draft model PPA format post consultations with all the stakeholders involved, including the lenders.

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Demand Aggregation Rooftop Solar: A Way forward for India’s Solar Market

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  1. Demand Aggregation Rooftop Solar: A Way forward for India’s Solar Market www.suprabha.org

  2. Introduction • Rooftop solar projects have not experienced a high growth rate as compared to ground mounted solar projects. • Cumulative rooftop installations as of December 2019 are 5.440 GW vis-à-vis a cumulative installed solar capacity of 35.7 GW. • Rooftop solar has been maintained at ~10% share of overall solar capacity. This is much lower than other key markets such as US, Germany, China, Spain and Australia. www.suprabha.org

  3. Challenges Modest uptake of grid connected rooftop solar systems can be attributed to the following: • The individual installation approach • Lack of asset securitization • Non-bankable PPA • High transaction costs for the developers etc. www.suprabha.org

  4. Ways to Overcome The Challenge • Aggregating the demand can accelerate the uptake in geography. • Marketing / lead generation / transaction costs which form a significant portion of the total expenditure of the developers can also be reduced by demand aggregation rooftop solar. • States can adopt the aggregation route for accelerating the installation of rooftop solar systems in the state. www.suprabha.org

  5. In this process, the aggregated demand in the geography is bid-out to the developers, thereby decreasing the effective transaction costs of the developers due to aggregation and economies of scale. Interest from various developers is solicited for the aggregated demand and the demand is then awarded to the most qualified bidder. The asset is securitized by developing the draft model PPA format post consultations with all the stakeholders involved, including the lenders. www.suprabha.org

  6. Result The indicators of success are evident from • Substantial reduction in transaction cost for developers • Discovery of competitive bidding rates • Large developer turn around and market participation • Creation of a ready pool of consented consumers • Potential assessment and creation of centralized repository of data of sites and seamless execution of multiple residential rooftop solar tender. www.suprabha.org

  7. Contact Us SUPRABHA TA Program EY LLP, WorldMark 1, Aerocity District, New Delhi - 110037, India Phone: +91 11 66718000 Email: info@suprabha.org Website: www.suprabha.org Follow: www.suprabha.org

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