Serving India’s Solar Energy Needs

5th & 8th August 2008

Overview of Orb Energy• A leading solar system

integrator in India• Experienced team of 130

personnel from PV industry• One stop shop for solar PV,

solar thermal, and WS hybrid solutions

• Serving residential and commercial customers

• Unique with network of franchised branches and consumer finance schemes

• Focussed on ‘customer’s experience’ of solar– Includes installation and

after-sales service

Our Franchised Branches – 40 in Karnataka

Our core product

Solar Photovoltaic System

Solectric 3000 – Residential (Rural)

Solectric 4000 – Residential (Urban)

Solectric 3000 – Commercial

HPCL Mangalore

Solectric 3000 – Commercial

Residential Appartment

Customer Speaks….

Customer Speaks……

Customer Speaks……

Kerosene Lantern vs. Solar PV Kerosene Lanterns Solar PV

• Inconvenient• Dim light• Smoke • Risk of fire• Does not run appliances• Scarcity of supply• Recurring costs

• Convenient - flip of a switch• Bright, cool white light• Clean / healthy • Safe • Runs all appliances• 1 time investment• Saves money

Solar PV delivers better light for lower cost

Monthly Costs - Lanterns v PV

-

100.0

200.0

300.0

400.0

500.0

600.0

Monthly Cost

Rs

per m

onth

40 Watt PV System

Wick Lantern / Batteries

Petromax / Batteries

E.g. Customer switching from kerosene to PV

Diesel vs. PV for back up power (low loads)

Diesel Genset Solar PV• Inconvenient• High-maintenance• Create a lot of noise• Smoke / pollution• Dangerous - risk of fire• High running cost

• Consumption of fuel and oil• Cost of maintenance

• Much more convenient

• No need to manually start • Virtually maintenance free• No fuel collection / filling

• Pleasant to use • Quiet • No pollution • Very safe

• 1 time investment• Saves money at low loads

10% down-payment, up-front costs are lower

Upfront Cost - Diesel and Solar PV with 10% Downpayment

4100042000430004400045000460004700048000490005000051000

Up-front Cost

Rs A

mou

nt

Diesel 2 kVASolar 1 kWp

PV vs. Diesel with 5 year loans at 12%

Estimated 5 lakhs over 10 years (2.5 kVa)

Government Off Grid PV PolicyApplication Units MWp

Solar street lights

61,321 4.6

Solar home systems

313,859 12.55

Solar lanterns 565,658 5.65

Solar mini-grids

N/A 1.87

Total 24.7

• MNRE – Ministry for New and Renewable Energy, founded in 80s

• ‘Nodal agencies’ per state• Around 300,000 SHS over 20

years < 1 % of unelectrified households in India

• To improve diffusion of solar PV it is critical to engage private sector finance

• See examples of Sri Lanka and Bangladesh

Sri Lanka – 100,000 SHS over 7 years• 5 banks, 13

competing solar firms by 2006

• 15% down payment, commercial loans 1- 5 years

• 100,000 systems reached in 7 years

• Equivalent to 15% of unelectrifed households

Bangladesh – 100,000 SHS over 5 years

• 15 NGOs / firms that also provide finance

• 10% down payment, commercial loans 1-3 years

• 100,000 systems reached in just 5 years

Policy Pilot in India – Low Interest Finance

• UNEP programme 2004-2006

• Loans 5 years, 5% interest

• Syndicate and Canara Bank

• 5 participating vendors

• 14,000 systems in just 2 years in just one state

UNEP Low Interest Loan Scheme

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2003-4 2004-5 2005-6 2006-7

Fianancial Year

No.

Sys

tem

s

AnnualCumulative

Syndicate Bank finishes quota

5%, 5 year loans

Use low interest finance to drive PV market• Low interest finance works for

solar water heaters: 2%, 5 years

• Recommendations for PV– 2%, 5 year loans up to 1 lakh– Cap per loan - 10 lakh– Set minimal specifications– Allow private banks to

participate• Benefits to GoI

– Investment into rural areas / jobs

– Displace kerosene and diesel– Reduce load on stretched grid– Improve power in rural homes

Solar thermal and PV –ideal combination

New PV Grid Connect Policies in India

• Jan 2008: MNRE created a new feed-in subsidy– State Electricity Board: Rs 3-4 per unit (8-10 US cents)– MNRE Subsidy: Max Rs 12 per unit (30 US cents)– Total: Max Rs 15 per unit (37-38 US cents)

• No accelerated depreciation• Subsidy for 10 years only• Max 5 MW per developer, 10 MW per state• Target: 50 MW in 2009, 500 MW over 5 years

Moving into Grid Connected Solar

Typical 1 MW Solar PV Power PlantSolar modules•Type - Silicon Solar Cells•Module power - 210 Wp each•Number of Modules - 4762

Inverter•Type - Indoor, Vertical Mount•Capacity - 500 kVA•Units - 2 nos.•Output voltage - 660 V•Control - IGBT high frequency

(20 kHz), 3 phase, 4 wire

Orb’s Value Proposition for Grid Connected Solar

• Total project planning • Design of solar power plants• Procurement and delivery• Turn key installation• Project management• Operation and maintenance

Orb’s Solar Technology Partners

Uni-solar, USA for thin films(20% extra output from triple junction

amorphous silicon)

and

Sunpower, USA for Polycrystalline(highest efficiency solar cells)

Uni-Solar Advantage..Energy Production (kWhr)

Uni-Solar Electricity Generation Advantage

Uni-Solar for large roof-top solutions

Unique building-integrated applications

Solar roof-top solutions

Flexible, light-weight and attractive

Sunpower – 10 MW plant in Bavaria, Germany

No. of Solar Panels 57,600

Photovoltaic Surface 25 Hectares

Technology Sunpower Tracker

Project Description 20 year power purchase guaranteed under German renewable energy law. Located at 3 sites delivering significantly more power than conventional fixed tilt generation system

Project Locations Solar park Mulhausen : 6.3 MWSolar park Gunching : 1.9 MWSolar park Minihof : 1.9 MW

Sunpower – 10 MW plant in Bavaria, Germany

Sun Tracker for more power

•Higher energy delivery•Single axis design•No panel shading•Efficient use of land•Fully scalable•Reliable and robust design

Sunpower – 11 MW plant in Serpa, Portugal

Sunpower – 11 MW plant at SerpaNo. of Solar Panels 52,000

Photovoltaic Surface 60 Hectares

Technology Sunpower Tracker

Project Description 15 Year power purchase guaranteed under Portugal renewable energy policy. The solar generated electricity will produce power sufficient to cater to 8,000 homes and farms in the region.

Environmental benefit Portugal’s new policy focuses on renewable energy meeting Kyoto protocol commitments. Plant is expected to reduce GHG by more than 30,000 tons a year.

Big scope for grid connected solar in India• Today only 2-3 MW of grid connected systems in

India, but big potential • Ideal solution for India with the solar radiation ranging

from 4 – 7 kWh / sq meter / day• Technology for solar grid connected systems has

matured – no technological barrier for growth• MNRE policy, incentives and regulatory frame works

can help make solar grid connected systems a viable investment proposal (currently around 10% IRR ?)

• Feed in tariff and net metering has huge potential to meet peak energy demand - Other Indian states to learn from WB.

• Strong interest for ‘green reasons’ – e.g. green buildings

Key part of India’s renewable energy future“....to deliver a sustained growth of 8% through 2031,

India would, in the very least, have to grow its primary energy supply by 3 to 4 times and electricity supply by 5 to 7 times of today's consumption. By 2031-32, power generation capacity would have to increase to 778,095 MW....”

(Integrated Energy Policy Report, August 2006)

– Today 140,000 MW and 7.5% renewables – Former President Kalam’s call: 25% renewables by 2030– Would mean growth from 10,000 MW to 195,000 MW in 20 years !!– Solar has a key role to play in meeting this target

Thanks