‘Faith is the bird that feels the light when the dawn is still dark.’
Is the Faith in Renewable Hopeful with Budget 2021-22?
With a lot of Hope to look further in 2021 and leave behind the 2020 blues, FM Sitharam proposed the Budget 2021-22. The BSE & NSE boosts portrayed the happiness of the investors and the acceptance of the proposed budget.
Here is a quick overview of the Budget fueling growth in the Energy Sector of India with focus on renewables.
Government has massively funded DISCOMs to uplift their loss-making status and upgrade the entire eco-system.
The government has dropped proposal on direct benefit transfer (DBT) of subsidy to electricity consumers and instead would first de-license the Electricity Distribution.
The consumers can select their own distribution company. However, it will not disrupt the existing licenses.
This move is intended to induce competition in electricity distribution and empower consumers to switch networks but will not disrupt the existing licenses.
In all, it will also induce fair competition and address monopoly concerns.
It will also assist DISCOMs for infrastructure creation tied to financial improvements, including prepaid smart metering, feeder separation, and up-gradation of systems.
PLI stands for Production Linked Incentive Scheme that is devised to enhance the AtmaNirbhar Bharat drive.
The motto is to promote the growth of manufacturing industries to become an integral part of the global supply chain.
The government has committed Rs.1.97 lakh crores in 13 sectors and the PLI is launched to create the manufacturing global champions.
The energy sector has been dedicated with 24%, Rs.4,500 crores for ‘High Efficiency Solar PV Modules’ which will be implemented by MNRE (Ministry of New & Renewable Energy).
Considering the current scenario of solar industry, the domestic manufacturing industry has limited annual capacity of around 2,500 MW for solar PV cells and about 10,000 MW for solar PV modules.
The manufacturing too moreover depends upon imported solar PV cells, PV modules and other raw materials.
Thus, the scheme is proposed to boost the domestic manufacturing needs and further create demand for locally produced balance of raw materials like EVA, Solar Glass, Backsheet, Junction Box, etc. to augment the entire Solar Manufacturing Eco-system.
The custom duties are increased to combat the imports and promote the domestic manufacturing focusing on the AtmaNirbhar Bharat mission.
This did not meet the expectations of more elaborate support for RE industry and especially solar industry.
The budget has Additional capital infusion of:
As part of Intended Nationally Determined Contributions (INDC), India targets to reduce carbon emissions intensity of its GD by 33-35% as against 2005 level.
It targets to install at least 40% of its electricity generation capacity through non-fossil sources by 2030.
The budget infusion would help the SECI & IREDA’s – the apex bodies for Indian renewables in contributing initiatives to fulfill the set ambitious targets.
Capital infusion will also enable SECI to set up innovative projects of with an investment of around Rs.17,000 Cr.
The International lenders are happy to channelize their funds to India’s large RE market through IREDA. Thus, it will enable IREDA attract and keep intact with the foreign investors.
Only 3 times in the past the budget has followed a contraction in Indian economy. This time it’s because of a global pandemic like in other countries. The government is fully prepared to support and facilitate the economic reset.
Budget 2021 has focused on growth, investment and jobs. The renewable sector, especially solar manufacturing and related services has got the keen eye from investment prospect which will help to create jobs.
The reviews of all the investors and solar industry delegators reassure that the faith for better recovery of the declined repo rate is up and high.
PIXON – a Marwadi Group Company into Solar panel manufacturing and solar EPC installation services is hosting Solar Gandhi – Dr. Chetan Singh Solanki.
Dr. Solanki is also known as the Solar Man of India. He has authored about 100+ research publications in international journals, several books on Solar and Renewable Energy and 4 US credited patents with a few more in review.
He has bagged several awards for his work. Starting his journey from a small village with no bus connectivity yet and a primary school with just 2 classrooms now, he studied in IIT-B and further in Europe to bag the title of Doctor. With knowledge across the globe, his roots are still intact to the struggles rural areas face. This is how his journey to contribute to society began. People joined and accolades followed.
Dr. Chetan led many environmental drives in the nation like: ‘Is winter fridge band kar’ He undertook a global movement – a solar yatra to 30 countries with the mission of providing 1 million students to make their own solar lamps. This agenda with a base of Gandhian principles tagged him the title of ‘Solar Gandhi’.
He has now taken a national movement on name of Energy Swaraj Yatra 2020-30. This is a 11-years stay-and-travel in a solar bus across the country to spread Solar Energy Awareness. The motto is also to promote the solar energy adoption in context of, “By Locals for Locals”.
PIXON bestows the name of MARWADI GROUP and the trust people lay upon it since past 27 years.
The PIXON company manufactures solar panels with state-of-the-art technology and turnkey machinery of 400 MW line capacity. The industry is spread across 65,000 sq. m of land and has EVA film (a raw material) manufacturing line as well.
The company is proud to tag ‘Make In India’ on the solar panels, while contributing to the Aatmanirbhar Bharat Abhiyan and Youth Employment post the Covid-19 blues.
Vis-à-vis, PIXON provides Solar EPC and end-to-end installation solutions. In no time, PIXON has pioneered a lot of solar projects in Gujarat. With subsidies open in all the residential, commercial and industrial sectors, the company is penetrating into the market in leaps and bounds.
As the world adheres to the solar energy revolution, PIXON envisions to globally provide efficient solar energy products & solutions. Thus, contribute and enhance the Global Climate Sustainability.
PIXON with message of “Solar is the new Green!” shall host the ENERGY SWARAJ YATRA with the message to adopt solar and “By Locals For Locals”. The Solar Gandhi himself will visit the PIXON factory, to provide his valuable insights and good wishes to the Company & its enthusiastic team.
After major achievement of 173 GW of renewable energy before the set target of 2022, our honorable PM Modi aims big with 450 GW target by 2030. PIXON is on the national mission to support the PM in achieving this target and addressing the climate change in an integrated, comprehensive and holistic manner.
The Gujarat Government under guidance of our CM Vijaybhai Rupani launched new Gujarat Solar Policy – The SURYA Gujarat, wherein the residential rooftop solar has no bars to maximum capacity installation. Thus, opening a channel for passive income via net-metering. The subsidy scheme is also active providing upto 40% benefits for residents. The motto is to reduce the unit rate and overall cost of electricity.
Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid.
Raj installs Solar PV System at his factory rooftop. He uses the energy consumed by his factory. The extra electricity is sent on grid. He is credited for it for later use.
Raj installs solar power plant at his factory that generates 1000 units. He uses those 1000 units over the month.Assuming the tariff rate of Raj’s locality as Rs.7.50, he saves Rs.7,500 (1000 units* Rs.7.50/unit).
However, this would be the ideal condition. Considering the system cost, Raj will get LCOE* at Rs.1.50/unit, much less than what government sells.
On this scheme, the government just charges nominal regulatory fees to the solar consumers and installers. The Government generated electricity and DISCOMS face the reduced profit margins for same.
In gross metering, a consumer is compensated at a fixed feed-in-tariff for the total number of units of solar energy generated and fed into the grid. The consumer then pays the DISCOM at a retail supply tariff for the solar power consumed.
Raj installs Solar PV System at his factory rooftop. The entire energy generated is sold to the grid at a predefined unit rate defined by the government. The regular electricity consumption is taken from the grid and billed as usual.
Continuing the example of Raj and considering the regular billing mechanism:On consumption of 1000 units, Raj would pay Rs.7500 (Rs.7.50/unit*1000 units) as his bill. Raj installs solar power plant at his factory that generates 1000 units. As per the gross-metering concept, the entire electricity is sold to the grid at unit rate of Rs.3.00/unit. Thus, Rs.3000 (1000 units*Rs.3.00/unit) becomes the ideal saving of the consumer excluding the project cost. However, this would be the ideal condition. Considering the system cost, Raj will get LCOE at Rs.5.50/unit.
On this scheme, the government charges regulatory fees to the solar consumers and installers. The Government also gets costing benefits on generated solar units by the consumers. But, it comes with a big question mark from the CNI perspective, considering the solar PV system adoption and installation won’t be considerable.
The Disparity of Net-metering and Gross-metering to benefit the consumers and the government both is much visible and has caught the limelight.
BANKING CHARGES clause can help attain this balance. As per the clause, the consumer is entitled to pay banking charges to government instead of completely selling it to the government. The banking charges are almost half the charges of tariff-feed-in of gross metering making it a more viable option for both the consumers and DISCOM.
On consumption of 1000 units, Raj would pay Rs.7500 (Rs.7.50/unit*1000 units) as his bill.Raj installs solar power plant at his factory that generates 1000 units.As per the banking charges concept, the consumers might have to pay banking charges on generated amount at rate of about Rs.1.50/unit. The net banking charge, Raj has to pay is Rs.1500(1000 units*Rs.1.50/unit).The electricity cost to Mr. Raj otherwise would have been Rs.7500(Rs.7.50*1000 units). But now he has to pay the bill with banking charges. Thus, the net saving for Raj is Rs.6000 (Rs.7500 – Rs.1500).However, this would be the ideal condition. Considering the system cost, Raj will get LCOE at Rs.3.00/unit.
The major benefit to government is of RPO & Transmission loss saving. Moreover, it gets additional amount of Rs.1.50/unit of solar as permanent source of income.
Banking charges is much viable and profitable option for both the consumers and the DISCOM or government entities, over the gross metering.The flow of solar units trade and the definition of Banking charges is not provided in the policy
The Net-metering, applicable up to 10kW of systems has been a bang-on model accepted by the people with bumper perks and benefits. Removal of capacity restriction has opened doors for people to have a new source of income generation.
The Gross-metering, applicable above 10kW of PV system has arouse a lot of debates in the Solar Industry of India. The saving margin and project payback are reduced and lengthened to greater figures respectively.
The Banking Charges clause instead of Gross-metering has been pitched by the Gujarat State government in their power policy which seems to be a better model for both – the consumers and the DISCOMS or government entities.
PIXON supports and talks in the favor of the Gujarat Solar Power Policy that talks of Banking charges over the gross-metering implication. However, a lot of clarity is still required for smooth conduct. Probably, what everybody is looking for in the upcoming Implementation Policy (for Gujarat at least).
With all the technology, we can finally have an electricity power plant on top of the house. All the required equipment, to setup a Solar PV System at top of your house or for acre-spread power station are as discussed further.
Solar panels are electronic devices that convert light energy of thesun into electricity. Used in satellites for decades, solar panels are now made viable economically for masses to adopt and use it. All the solar panels fit into three major categories:
Made from single silicon cells, Mono-panels are ideal for premium market that seek long-lasting power efficient PV system like solar farms.
Made from multiple silicon cells, poly-panels are ideal for residential setups and cost conducive applications.
Most ideal for specific applications only like electronic powering circuits, home-light applications, etc.
Moreover, the thin films have lost their space in PV systems and are preferably used in solar products like lamps, portable chargers etc. The mono and poly panels have widespread use and are getting more efficient with all the research and advancements each day.
Generally made of steel or aluminium, mounting structures are needed for panels’ installation as a support structure for following reasons:
Lightweight, cost-efficient and low or no maintenance structures are preferable.
There are three major types of mounting structures: Single pole, Rooftop Mounting/Double Pole, Tin Shade.
Easiest and straightforward type of solar installation.
Need a lot of un-used space.
Ideal for limited commercial and agricultural installations.
Used anywhere in yard, field, or residential rooftops.
Needs dedicated space.
The height can be raised to use the space below.
These mounting structures are ideal for slanting rooftops.A variety of construct designs options are available based on the roof material and type.
Weight balancing and roof strength are considerable parameters for choice of mounting construct.
Systems onunused flat roofs are ballasted at an optimal angle by using simple ballast structures.
These can be steel, aluminium or plastic and polymerized structures.
The type of mounting structure one should prefer for a given PV system moreover depends on the site of installation and its pre and post installation usage.
There are three major types of solar inverters: central inverters, power optimizer-based systems, and micro-inverters.
A single central inverter will efficiently convert the DC electricity produced by panels to AC electricity. In case of huge power plants, the panels are connected into string-sets to a string inverter, which are further connected to a single central inverter.
Central and string inverters are a least expensive inverter option.
A micro-inverter converts the electricity from DC to AC right at the panel. Which means, each panel has its own micro-inverter attached to it.
Since we need a micro-inverter with each panel, the costing is ought to be higher based on the PV system size. However, the prices are certainly decreasing with tech advancements and demand.
Power Optimized inverters working is similar to that of micro-inverters. The only difference is that they condition the DC electricity and send it to String or Central Inverter. It is a more cost-efficient option than micro-inverter.
The power optimizers are additional components for each panel apart from the string inverter. These are costliest of all the inverters but certainly worth for the system efficiency enhancement.
However, the efficiency and warranty should be key considerable parameters while choosing an optimal inverter for your solar system.
The electrical panel with switches and circuit breakers are used to protect all the electronic equipment against various electrical faults and hazards like:
The requirement may vary based on the PV system capacity. There might be PV designs wherein, we would just not need the system at all.
AC current flows through outer surface due to ‘Skin Effect’. AC cable needs Multi-stranded Copper or Aluminium Conductor bunch for their efficient flow of current.
Whereas DC current flows throughout the whole cross section diameter of conductor. So DC cable needs Single Strand.
The quantity of required cables may vary based on the inverter setup you choose for your PV system, as discussed before.
The use of meters in this case differs from State to State.
Some states may require only one meter that reads the ‘net’ energy consumed by the system owner.
However, few other states may require two meters – one to measure solar energy generation and the second to measure the units consumed from the utility grid.