D eveloper Challenges in Solar Rooftop sector

1. Developer Challengesin Solar Rooftop sector Presented by Balawant Joshi Managing Director This study was carried out as a part of Partnership to Advance Clean Energy-Deployment (PACE-D) Technical Assistance (TA) Program, funded by the United States Agency for International Development (USAID).

2. Table of Contents • About USAID PACE-D TA Program • Key Objective • Approach and Methodology • Pillars for growth of solar rooftop sector • Key issues and recommendations

3. About USAID PACE-D TA Program • USAID PACE-D TA Program - Partnership to Advance Clean Energy Deployment Technical Assistance (PACE-D TA) Program is a bilateral program between the Government of  United States and Government of India to enhance cooperation on energy security, energy efficiency, clean energy, and climate change. The Program’s main focus is institutional development and strengthening of policy & regulatory framework for Solar Rooftop sector, technical assistance and capacity building to develop and implement innovative finance mechanisms, regulator partnership , capacity building, training, outreach, dissemination and sharing of best practices. The Program is assisting eight states; Assam, Andhra Pradesh, Haryana, Maharashtra, Punjab, Telangana, West Bengal, Uttar Pradesh. During the past years, the Program has also provided technical assistance to Karnataka, Madhya Pradesh and Rajasthan for large scale deployment of renewable energy. • Idam Infrastructure Advisory Private Limited is a lead consultant to USAID PACE-D TA Program. Idam is providing technical assistance to states for development and implementation of policy, regulatory and implementation framework for solar rooftop projects in eight states.

4. Key Objective 60 developers from 8 states were consulted to understand problems faced by them

5. Approach and Methodology • To understand the views of the developers on issues related to development of solar rooftop sector, following methodology was adopted • Identification of MNRE Empanelled Channel Partners for State solar rooftop development • Telephonic discussions with the selected developers • Prepared state – specific detailed questionnaire on challenges related to solar rooftop sector and shared with the respective developers of the state • One on one meetings with the solar developers • Analysis of the feedback received from various developers • Recommendations No of Developers consulted - 60 States surveyed – Andhra Pradesh (AP), Assam (AS), Haryana (HR), Maharashtra (MH), Punjab (PB), Telangana (TS), Uttar Pradesh (UP), West Bengal (WB)

6. Pillars for solar rooftop sector’s growth Regulations Policy Notified by Renewable Energy Department/SNA Notified by ERCs Solar Rooftop 40 GW to be achieved by FY 2022 Information Technology Interconnection Process Online application process d/hosted by DISCOM Process developed by DISCOM

7. Key Issues identified • Issues identified during developer feedback were categorised into following four areas: • Policy & Regulatory Framework • Interconnection Process • Implementation challenges • Capacity Building & Media Outreach

8. Issues related to Policy & Regulatory A.P.- Sanction load is 60%, however there is Lack of clarity on this for the current FY Assam- Sanction is 80%, the developers requested to make it 100% Telangana-Enhancement of sanction load from current capacity Floor Area Ration Sanction Load Uttar Pradesh- Exemption not granted. Hence in Ghaziabad & Noida region project can’t be set in line with sanctioned load Open Access Upgradation from LT to HT Clarity on Subsidy A.P.& Telangana -DISCOM doesn’t allow the upgradation of system from LT to HT U.P., Maharashtra and Assam - irregularity in distribution of subsidy to developers A.P.- Delay in Subsidy Haryana, Assam and AP – Lack of clarity on setting up solar rooftop project in Open Access • Sanction load has to be defined properly in the policy since it gives clarity on the capacity of rooftop system that can be installed. Timely enhancement of sanction load should also be carried out • Distribution of subsidy should be made online to track disbursement of the same • Details about open access should be mentioned properly in the policy • To encourage solar rooftop projects in some states like Karnataka, FAR is exempted in the policy • Provision for upgradation in case connected load is increased and system has to be upgraded from LT to HT 8 11/3/17

9. Issues in Interconnection Process No Proper Forms & Formats Guidelines for Pre/Post commissioning checks Issue in all surveyed states In all surveyed states, non availability of proper forms and formats is issue Time consuming process Not defined for Haryana, UP, Assam, Maharashtra Need of CEIG approval for small capacity Billing issues 2. Clarity on subsidy Punjab, and Telangana Delay in procurement of Meters Issue in all surveyed states Standardization of process is essential and the interconnection process must be supported by facilitative Policy and Regulatory framework 9 11/3/17

10. Need of “One Stop Shop for Solar Rooftop” Need of IT tools such as integrated web portal that address entire value chain of a solar rooftop transaction from filing of application to interaction with DISCOM, application tracking, financing, etc. No information to developer on subsidy status Time Consuming and delays Dealing with utility is troublesome Lack of information on stepwise procedure Unavailability of standardized information at a single place Status of application is offline in most of the states and not trackable to developers Inability to track application status No clarity on financing arrangements available, rate of interest and financing models Financial Challenge The states are adopting unified web portal (Andhra Pradesh), where entire rooftop transaction from filing of application to tracking of application, CEI approval, financing shall be carried out at single web portal . The portal will provide the provisions of notification to concerned DISCOM officers, developers & consumer via SMS

11. Issues related to Capacity Building and Media Outreach Lack of awareness among consumers Lack of awareness to Major Stakeholders like SNA, DISCOM, CEI Lack of awareness and hence issues in availing loans from Banks, FIs • There is need of following for upscaling of solar rooftop sector • Utility Engineer’s Training Program, • Workshops for Financial institutes • Outreach programs for consumers 11 11/3/17

13. Key Issues identified • The issues identified based on the feedback received from the developers were categorised into the following • Policy & Regulatory Framework in the states • Interconnection Process • Implementation challenges • Capacity Building & Media Outreach

14. Key Issues identified • The issues identified based on the feedback received from the developers were categorised into the following • Policy & Regulatory Framework in the states • Interconnection Process • Implementation challenges • Capacity Building & Media Outreach

15. Key Issues identified • The issues identified based on the feedback received from the developers were categorised into the following • Policy & Regulatory Framework in the states • Interconnection Process • Implementation challenges • Capacity Building & Media Outreach

16. Discussion and Inputs