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India to Auction Unsold Rooftop Solar Projects Across 7 Cities

According to reports, India, which plans to raise solar capacity eightfold by 2017, will auction projects for setting up grid-connected photovoltaic systems on rooftops across seven cities in the next two weeks.

The government received bids for half the planned 10 megawatts of rooftop solar capacity in the first round that was completed on April 3, prompting the sale of unsold capacities, said Tarun Kapoor, joint secretary at the ministry of New and Renewable Energy, in a phone interview today.

Azure Power India Pvt., Thermax Ltd. (TMX) and SEI Green Technology Pvt. won contracts to set up a total 5 megawatts of rooftop photovoltaic capacity across the cities of Bangalore, Chennai, New Delhi and Gurgaon, according to a ministry statement.

The government will seek bids for unsold capacities in the first round and for similar projects in Hyderabad, Jaipur and Greater Noida, Kapoor said.

In December, India said it will set up 9,000 megawatts of grid-connected solar plants by 2017, more than eight times its current capacity.

One comment

  1. If some one wants to install a low cost and an efficient system, why, one need to go through these agencies….. Is this a British raj without allowing Net metering system, which makes a sense rather than making these four companies to avoid paying taxes through Accelerated Depreciation and go knows when the Capital subsidy will reach to these urban people as it wrong to execute such expensive systems or projects……

    In INDIA these roof top / off grid systems are messed up completely….No sustain ability… Villagers have stopped paying as the Husk based biomass business model of two bulbs or three bulb connection which works out to be rs.40/kwh to rs.60/kwh(!!) was understood by villagers and no force can be used as it happened in Bihar (micro finance people used to extort high interest, now, Government rules have been strict against such extortion) so, villagers are drawing power, not paying or at times asking the (mis) adventurous Entrepreneur to take away the equipment etc..

    The RESCOS have taken Accelerated Depreciation by supplying to few offices (private PPA), but, unsustainable pricing or business model…… So, in INDIA, only Tax AVOIDANCE policies will not find any kind of sustainability, like what happened in WIND energy…. many companies, never bothered to know where were their wind machines, but, were only interested in adjusting the books for Accelerated Depreciation…

    Only Govt is losing the subsidy and TAX COLLECTION FROM CORPORATE COMPANIES in the form of Accelerated Depreciation (which otherwise must have been paid by these renewable energy developers) and many of these plants will be shut down due to fooling villagers / residential roof system owners etc.. Hence a revisit to roof top PV or off grid system policy is very necessary….

    In Gujarat, it could be much worse. The system of paying rs.3/kwh for roof top owner as rent/1000sft for 25 years and Azure Power (or a Contractor to whom Energy Generation contract is awarded) gets rs.6/kwh, thus, a rs.9/kwh, which Torrent is buying and in turn load to Government / Common man of Gujarat !?

    The ignorant residence owner does / may not know that he can’t sell his house / property without Azure power’s (or a Contractor to whom Energy Generation contract is awarded) consent due to long term lease agreement !?

    So, a classic business model of exploiting the people very openly with Government support!!, but, no corrective action!?… nevertheless, this has to be corrected in due course to reduce the cost of buying…

    Residential roof top projects are very expensive as of now and should stop and INDIA needs low cost solutions…

    The MNRE Ministry has sanctioned 15780 off-grid solar photovoltaic (SPV) power plants of total capacity of 13.25 MWp to be installed on individual houses in the country during 2012-13.

    Ministry of New & Renewable Energy is providing a subsidy of 30% of the project cost limited to Rs. 72 per Wp for installation of standalone power plants having module capacity upto 1 kWp on the roof tops of individual houses in the country including rural areas.

    Rs. 7.2 Crore x 13.3 = Rs. 95.4 Crore subsidy…..How MNRE is going to ensure that these projects are running or defunct (many of them are already defunct as expressed in many Seminars) and what is the use of wasting public money in the form of Capital Subsidy?? Is there any sanctity or responsibility?? Why drain public money, if the intended purpose is not met….The CAPEX per MW = 7.2/0.3 = Rs. 24 Crore/MW (i.e Rs. 240/wp??!!), whereas Ground Mounted system costs you around Rs. 8 to 10 Crore/MW during this period. What a wrong business eco system?? Pay double to for nothing and then waste the Subsidy ?? Is this the way INDIA should promote Roof top system?? Are we Engineers and Good administrators with good business sense?? Is this the right time to spend on Roof top? Is this the way the policies are driven ?? With Accelerated Depreciation, we made few companies to avoid the genuine tax collections, which is a further drain to our INDIAN economy…… People talk too many irrational things without holistic approach…. these kinds of projects or policies are highly unsustainable and we should stop for a while and implement with a transparent and meaningful business case which shall be understood by everyone to promote small entrepreneurs with the access to low cost funds…

    RENT A ROOF is by default an expensive tariff based mechanism and must be avoided at all costs….instead the Net metering when the grids are stable and the cost of roof top systems are reduced and this fictitious pricing of Rs. 240/wp or 130/wp must go at once, which is only to siphon the Subsidy from the Government and also to save taxes to corporate companies (through Accelerated Depreciation), which is a further drain to the Government revenue collection, which will increase budget deficit, which the present Solar PV (1300 MW x 10 cr/mw x 0.8 = Rs. 10,400 Crore rupees of taxes are not paid by the Solar PV project developers due to 80% Accelerated Depreciation claimed already through JNNSM or State Solar Policies….

    if government wanted to install these 1300 MW solar PV (instead of these so call privatisation to help few developer to save taxes !!), it needed only 30% equity i.e 0.3 x 1300 x 10 = Rs. 3900 Crore rest would have been From the IREDA for Government itself…. The rest of money (10,400 – 3900 = Rs. 6500 Crore could have been used for other good purposes), so, policy making shall be with COUNTRY FIRST CULTURE and for Common man’s interest….now who will get this lost tax in the form of Accelerated Depreciation freely given to Corporate companies or Project developers apart from Land and additional debt (0.7 x 1300 x 10 = Rs. 9100 Crore) to fund their other business….. Is this level playing field, is this not a colossal loss to the government exchequre through this art of Policy making?? Should not we stop immediately the Capital Subsidy (or viable Gap funding) and Accelerated Depreciation to collect taxes and let government fund small entrepreneurs with control stakes to develop Solar PV projects of 25 to 50 MW size in every Taluka in a decentralised way with good EPC companies, which are good corporate, hence, every body gets benefited. Why such huge tax benefits to corporate companies while poor farmers are drive to suicide and no power to many districts…??

    Can CAG take note of this and can the learned Panchabuta team or readers take this issue to correct such flaws in policy making in renewable energy sector in INDIA??

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