ROOFTOP SOLAR KEY TRENDS, OPPORTUNITIES & CHALLENGES ...€¦ · munjal rangwala (director) 2...

ROOFTOP SOLAR

KEY TRENDS, OPPORTUNITIES & CHALLENGES

HARSHA ABAKUS SOLAR PVT. LTD.

22nd Nov, 2017

MUNJAL RANGWALA (DIRECTOR)

2

PRESENTATION FLOW

HARSHA ABAKUS SOLAR – COMPANY OVERVIEW1.

REFERENCE LIST2.

ROOFTOP MARKET POTENTIAL AND KEY GROWTH DRIVERS3.

OPPORTUNITIES AND CHALLENGES4.

5. BUSINESS MODELS

3

PRESENTATION FLOW

HARSHA ABAKUS SOLAR – COMPANY OVERVIEW1.

REFERENCE LIST2.

ROOFTOP MARKET POTENTIAL AND KET GROWTH DRIVERS3.

OPPORTUNITIES AND CHALLENGES4.

5. BUSINESS MODELS

HARSHA GROUP OVERVIEW

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• Inception of Harsha in 1972

• Pioneer of Bearing Cage manufacturing in India

• Proven capability of manufacturing Stamped & MachinedBearing cages / Automotive components

• Customer base of world class companies across 5 continents

• 5000+ products ranging from 20 mm to 2000 mm diameter

• TPM Excellence award winner

• System Certifications:

• ISO/TS16949

• ISO 9001 & ISO 14001

• ISO : 50001 : 2011

GLOBAL PRESENCE

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• India : Head office and two plants

• China: Two plants

• Romania : One plant

• USA: Representative Office

• Warehouses : Germany, USA, China, Italy, Poland

Head Office

Plants

Rep. Office

Warehouses

SOLAR BUSINESS SNAPSHOT

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• Est. in 2010 -Seven years of success in India!

• MNRE channel partner having category A rating

• Experienced team with 200+ professionals

• Three offices in India –200 MW+ built

• In-house Engineering and PMC team having combined experience of installing at least 1000 MW

• Strong presence in Roof-top segment with more than 20 MW commissioned

• Access to land banks and investors across India for captive use as well as for private PPA

HARSHA ABAKUS OFFERINGS

7

HASPL OFFERINGS

Complete Turnkey solution

Comprehensive O & M

Government Liaison

Land Acquisition

Third Party PPA/Captive

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MARKET PRESENCE

UTILITY SCALE ROOFTOP SOLAR PARK

PRIVATE

GOVERNMENT

CAPEX

OPEX

TURN-KEY

KEY CLIENTS

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KEY COMPONENT PARTNERS & STRATEGIC TIE UPS

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PRESENTATION FLOW

HARSHA ABAKUS SOLAR – COMPANY OVERVIEW1.

REFERENCE LIST2.

ROOFTOP MARKET POTENTIAL AND KET GROWTH DRIVERS3.

OPPORTUNITIES AND CHALLENGES4.

5. BUSINESS MODELS

12

REFERENCE PROJECTS-MW SCALE (1/10)

20 MW single axis tracker – Kutch, Gujarat

Commissioned in July 2015 under JNNSM VGF Scheme

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REFERENCE PROJECTS-MW SCALE (1/10)

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REFERENCE PROJECTS-MW SCALE (2/10)

20 MW Seasonal Tilt, Charanka, Gujarat

• Seasonal Tilting arrangement• Among the highest generating

plants in the Solar Park• One of the first one to commission

under SECI scheme

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REFERENCE PROJECTS-MW SCALE (2/10)

16 16

REFERENCE PROJECTS-MW SCALE (2/10)

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REFERENCE PROJECTS-MW SCALE (3/10)

36 MW Seasonal Tilt Based, Uttarakhand

Commissioned in March 2016

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REFERENCE PROJECTS-MW SCALE (4/10)

18 MW Single Axis Tracker, Tamilnadu

Commissioned in March 2016

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REFERENCE PROJECTS-MW SCALE (5/10)

34 MW, Karnataka Solar ParkMarch 2016

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REFERENCE PROJECTS-MW SCALE (6/10)

1 MW, KutchMarch 2016

1 MW, JamnagarMarch 2016

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REFERENCE PROJECTS-MW SCALE (6/10)

• Farming & Solar Pilot Project• Seasonal Tilting arrangement- Up

to 85 Degrees

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REFERENCE PROJECTS-MW SCALE (7/10)

1 MW – Tarapur, GujaratDecember – 2011

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REFERENCE PROJECTS-MW SCALE (8/10)

5 MW – Surat, GujaratJanuary - 2012

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REFERENCE PROJECTS-MW SCALE (9/10)

2 MW – Raipur, ChatisgarhMay - 2013

11 MW – Bikaner, RajasthanJune - 2013

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REFERENCE PROJECTS-MW SCALE (10/10)

12 MW – MPJanuary - 2014

5 MW – Tamil NaduDecember - 2013

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REFERENCE LIST-KW SCALE PROJECTS (1/5)

3000 KW-Maharashtra

1000 KW-UP

17 MW+ Rooftop Projects Installed till date

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REFERENCE LIST-KW SCALE PROJECTS (2/5)

2000 KW-Delhi

1000 KW-Gujarat

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500 KW-Gujarat

650 KW-Delhi

REFERENCE LIST-KW SCALE PROJECTS (3/5)

500 KW-Gujarat

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REFERENCE LIST-KW SCALE PROJECTS (4/5)

300 KW-Gujarat 100 KW-Gujarat

1000 KW-Haryana

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REFERENCE LIST-KW SCALE PROJECTS (5/5)

100 KW-Haryana 100 KW-Karnataka

100 KW-Maharashtra

100 KW-Gujarat

100 KW-Tamilnadu500KW-Gujarat

200 KW-Gujarat

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PROJECT PIPELINE AS ON NOVEMBER - 2017

Sr. No. Project Capacity Location Current Status

1 2.4 MWp GJ, UP, HR Project is under execution stage

2 9 MWp PAN India Project is under designing stage

3 1.5 MWp Rajasthan Project is under designing stage

4 2 MWp Gujarat Project is under designing stage

5 2.5 MWp PAN India Project is under execution stage

In addition of the above, we have enquiries from various industrial and commercial clients to the tune of 50+ MWp.

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WHY HARSHA ABAKUS SOLAR ?

Our Capability

• 100kW to 100MW single site execution

• Inhouse design, execution, R&D team having combined experience of 1000 MW+

Our Experience

• Experience of working in all types of terrains –black cotton, rocky, RCC, inclined RCC, metal sheet

• Experience in all types of structures

• Experience in monocrystalline, polycrystalline, bifacial modules, thin films

• Experience in various industrial sectors

Innovative Solutions

• Next generation PV modules

• Inhouse robotic cleaning design

• Remote monitoring machine learning capability

• PV project with multiple end user benefits (agriculture + solar power)

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WHY HARSHA ABAKUS SOLAR ?

GSECL – Solar Power + Agriculture Pilot Project

1 MW Plant at STPS, Sikka, District Jamnagar 1 MW Plant at KLTPS, Panandhro, District Kutch

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WHY HARSHA ABAKUS SOLAR ?

2 MW R&D PROJECT

• 1500Vdc, 600V Central Inverter• 1500Vdc, 800V String Inverter• 1500Vdc, 600V String Inverter• 1000Vdc, 400V String Inverter

• Robotic Cleaning• Next Generation Solar Modules, Structure

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PRESENTATION FLOW

HARSHA ABAKUS SOLAR – COMPANY OVERVIEW1.

REFERENCE LIST2.

ROOFTOP MARKET POTENTIAL AND KEY GROWTH DRIVERS3.

OPPORTUNITIES AND CHALLENGES4.

5. BUSINESS MODELS

LEADING STATES IN ROOFTOP INSTALLATION

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163

137

88

87

83

786866

53

573

Installed Capacity: 1396 MW

Tamil Nadu

Maharashtra

Rajasthan

Gujarat

Karnataka

Haryana

UP

Punjab

Delhi

Others

• Industrial and commercial segment together account for about 65% of the total installed base

• CAPEX still accounts for about 83% of the total installation base largely due to rising power prices & AD benefit

SOURCE: BRIDGE TO INDIA

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GOI ROOFTOP TENTATIVE BREAKUP (2017-2021)

4700

4300

3500

3200

230023002200

2100

15400

Maharashtra

Uttar Pradesh

Tamil Nadu

Gujarat

Karnataka

Rajasthan

Madhya Pradesh

West Bengal

Others

TOTAL Rooftop Target = 40,000 MW

CURRENT INSTALLED BASE OF ROOFTOP IN INDIA

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• Growing demand of Rooftop driven mainly by Industrial and commercial clients.

• Wide acceptance of OPEX model could drive the rooftop business in future.

• Residential segment will be one of the fastest growing segments.

INSTALLED BASE: 1396 MW (31.03.2017)

SOURCE: BRIDGE TO INDIA

KEY GROWTH DRIVERS

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• RISING POWER PRICES(5% increase every year in variable tariff since last 10 years)

• ENFORCEMENT OF RPO(RPO enforcement is in place and obligated entities are looking for avenues to meet their obligation)

• GOVERNMENT INCENTIVES(Even at 40% rate, it makes commercial sense to profit making entities; for residential and non-government entities, subsidy @ 30% makes it affordable)

• COMPETITIVE COST OF SOLAR POWER SYSTEM(Falling price of solar system over last 3-4 years has spurred demand from industrial consumers)

• INITIATIVES BY PUBLIC SECTOR ENTERPRISES(To achieve 40 GW target, public sector outfit are taking initiatives. E.g. AAI, CPWD, etc.)

KEY GROWTH DRIVERS

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• NET METERING(allowing unused electricity to be exported to the grid makes it lucrative of commercial entities, govt. offices and residences)

• OPEN ACCESS(Incentives in wheeling and transmission charges, common evacuation infrastructure across state, uniform banking of 12 months across states)

• INNOVATION(Solar Modules – high efficiency modules, bifacial modules, thin films)

GUJARAT – LEADING FROM THE FRONT

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• One of the pioneer States in launching• Gross metering (800 MW+ under Solar Policy 2009)• Solar park at Charanka (One of the first of its kind)• Net metering policy• Residential rooftop policy

• Proactive support from all Government Agencies such as GEDA, GERC, GETCO, DISCOMS, CEIG etc.

• Incentives under net metering policy• No electricity duty• Exemption from demand cut up to 50% of installed capacity• No cross-subsidy and additional surcharges

Potential Growth Drivers for Gujarat Solar Market• Allow solar plant capacity based on kWh, not on kVA/kW• Extend Banking period for 12 months• Promote Open Access by reducing wheeling and transmission charges

ROOFTOP POTENTIAL – HT CONSUMERS

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• For Example:

• A HT Consumer having 2000 KVA sanctioned load running 3 shifts of operation

• Consumer 2000 x 24 = 48,000 Kwh/day

• Eligible for 1 MW solar installation which would fetch• 4500 Kwh/day on average

• i.e. less than 10% of his daily consumption is met through solar

• Bridging this gap of 90% is more crucial which is a huge potential

43

PRESENTATION FLOW

HARSHA ABAKUS SOLAR – COMPANY OVERVIEW1.

REFERENCE LIST2.

ROOFTOP MARKET POTENTIAL AND KET GROWTH DRIVERS3.

OPPORTUNITIES AND CHALLENGES4.

5. BUSINESS MODELS

44

Major Industrial Segments in Gujarat…

• Bulk consumption with constant load pattern

• Rising power demand

– Mostly driven by end user segments which has positive outlook going forward

• Rising power cost

• Large and continuous roof space availability

• Decentralised evacuation esp. in process industry

– Suitable for LT level evacuation

– Minimising cable losses

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…that would Benefit by Adopting Rooftop Solar, however…

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Survey of Solar Potential of Delhi

Source: Bridge to India

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Survey of Solar Potential of Gandhinagar

Source: MNRE

Gandhinagar ranked 203 out of 300 Indian cities

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…following challenges remain to be addressed

Policy• Net cap on capacity for net metering• Non-uniform Banking and settlement period in

different States• Non-uniform metering policy in different States• Clarity on import duty, GST and anti-dumping

duty

Consumer• Seasonal operational characteristics of

consumers• Macro-economic factors• Growth prospects of the particular

sector• Unfavourable load pattern

Site• Improper orientation and inclination• Improper roof material – eg. Asbestos sheet• Independent weather data not available• Limited availability of usable space for solar

(transparent sheets and wind turbos reduceusable space on roof)

• Shadows due to dust and fumes within premise• Obsolete evacuation infrastructure to synchronize

solar• Non-standard alternative power sources e.g. DG sets

EPC• Poor quality of components offered by

unauthorized agencies• Poor execution• Compromise on design

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PRESENTATION FLOW

HARSHA ABAKUS SOLAR – COMPANY OVERVIEW1.

REFERENCE LIST2.

ROOFTOP MARKET POTENTIAL AND KET GROWTH DRIVERS3.

OPPORTUNITIES AND CHALLENGES4.

5. BUSINESS MODELS

50

CAPEX/OPEX BUSINESS MODEL

BUYER/USER

• Invests 100% capex (excluding/including land)• Maintains and operates plant for 20-25 years• Obtains all required statutory approvals• Produces solar PV power and consumes for captive use

to reduce fuel/electricity consumption• Avails accelerated depreciation (40% in the first year)

- Turnkey EPC- O&M Services

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OPEX BUSINESS MODEL

SOLAR PROJECT DEVELOPER

BUYER/OFFTAKER

DISCOUNTED SOLAR POWER

PRIVATE PPA

• Invests 100% capex (excluding/including land)

• Maintains and operates plant for 20-25 years or as per mutually agreed

• Obtains all required statutory approvals

• Produces solar PV power

• Buys solar PV power produced by SPD

• Provides own land/roof, is available

• Pays SPD pre-determined tariff on monthly basis

• No CAPEX or O&M expense incurred

- Turnkey EPC- O&M

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SALIENT FEATURES

Legal Structure

• PPA would be signed between BUYER and SOLAR PROJECT DEVELOPER (SPD)

Contract Duration

• 20-25 years to maximize the plant equipment usage and to generate regular income. However shorter duration PPAs are also executed with a asset handover clause

Delivery of Power

• Power will be fed into the BUYER’S internal substation or LT/HT panels

• Meters will be installed by SPD and will be jointly read by SPD and BUYER

Billing• On monthly basis. Payments due within 15 days of invoice

submitted.

Termination • As per mutually agreed term with a penalty clause according to time and reason of termination

THANK YOU FOR YOUR KIND INTEREST

CONTACT:

Mr. Munjal Rangwala (CEO & Director): munjal@harsha-abakus.com

Head office:

Harsha Abakus Solar Pvt. Ltd.

National Highway-8A,

Sarkhej-Bavla Road, P.O. Changodar

Ahmedabad- 382213, Gujarat, India

Phone : +91 2717 618200; Mobile: +91-9099019552

Fax : +91 2717 618259