Grid Connected Solar Rooftop Net-metering in AndhraPradesh and Telangana

GridTiedRooftopSolarPlant

Background

In January 2010, the Government of India launched the Jawaharlal Nehru National Solar Mission (JNNSM) as part of its National Action Plan on Climate Change (NAPCC) and set out a target to achieve 20 GW of grid-connected solar power by 2022

This target was revised to 100 GW by 2022 in late 2014. Of this, 40 GW has been targeted through grid-connected rooftop solar PV. The market potential of rooftop solar power in India has been estimated at 124 GW in a recent study by TERI1

To achieve the planned ramp-up of solar capacity from the existing 3 GW to 100 GW by 2022, many opportunities for investment have been created through a variety of schemes launched by the Government

In addition to the policy push by the Central Government, a number of State Governments have also come out with policies and regulations concerning grid-connected rooftop solar PV power. So far, 15 states have released relevant policies and 21 states have released regulations on grid-connected rooftop solar PV power

As part of this initiative Government of Andhra Pradesh has announced a policy on Net Metering for solar grid interactive rooftop and small Solar Power plants in the state vide G.O.Ms.No.22, dated 25.03.2013, which is now applicable for both AP and Telangana

Central Financial Assistance(MNRE Subsidy)

According to the latest notification by MNRE, subsidy of 30% on Benchmark Capital Cost is available for all consumers (except for Commercial & Industrial consumers), including the following consumer categories:

 Residential All types of buildings
Institutional Schools, health institutions including medical colleges & hospitals, educational institutions (both private and public), R&D institutions, etc.
Government Both Central & State Governments buildings covering all Government offices, Government PSUs, all buildings owned by Government directly or by any Government-owned societies, companies, corporations or organizations.

All Panchayati Raj buildings.

Government organizations owned systems anywhere including on private, commercial and industrial organizations will also be eligible.

Social Sector Community centers, welfare homes, old age homes, orphanages, common service centers, common workshops for artisans or craftsmen, facilities for use of community, any establishment for common use, etc.

It is to be noted that the subsidy will be admissible for the above categories even if the power connection is classified under industrial or commercial category.

Private, commercial and industrial buildings will not be covered under this subsidy unless the solar PV system is owned by a Government organization.The scheme is for projects size in between 1kWp to 500 kWp

Tax Incentives

Commercial, Private  and Industrial customers can leverage Accelerated depreciation benefit, Solar power generation projects have the option of profiting from Accelerated Depreciation benefit by the Central Government, as per Section 32 of the Income Tax Act, 1961. Companies can use this to substantially reduce tax burden in the first few years of the project, up to 100% of the project cost (80% accelerated depreciation and 20% additional depreciation)

Under Section 80-IA of the Income Tax Act, 1961 the Central Government provides a 10-year tax holiday, in which the beneficiary has the freedom to choose a 10-year continuous period in the first fifteen years of the project life to avail the tax benefit. The projects are taxed using the Minimum Alternate Tax (MAT) rate, which is significantly lower than the corporate tax rate

The Central Government has mandated concessions and exemptions on specific materials imported for manufacture of solar power generation products as well as for use in solar power generation projects

What is a Grid-Connected Rooftop Solar PV System? 

A grid-connected rooftop solar PV system refers to a solar PV system that is located on the roof of a building and is connected to the local distribution grid. It is a form of distributed power generation

The electricity generated can be stored, used directly, or fed back into grid. Solar PV is a reliable and clean source of electricity that can suit a wide range of power generation applications for residential, industrial, agricultural and commercial consumers

How do Grid Connected SPV Plants Work?

A grid-connected Solar Photo Voltaic (SPV) power plant consists of SPV array, Module Mounting Structure, Solar Grid Inverter (SGI), control and protection devices, circuit breakers, interconnection cables and switches

When the solar power generated by the grid connected solar plant is more than the load requirement, the excess power is automatically fed to the grid

For buildings with grid-connected solar PV systems, a bidirectional meter is installed which records import kWh and export kWh separately

What is Net Metering?

In grid-connected Solar Photo-Voltaic (SPV) systems, solar energy is fed into the building loads that are connected to the public electricity grid through a service connection with surplus energy being fed into the grid and shortfall being drawn from the grid

Production of surplus energy may happen when solar energy produced exceeds building load energy demand. This surplus is fed into the grid. During the night, or when during the day energy demand in the building exceeds solar energy production, energy is drawn from the grid

Net metering is the net energy between export of generated energy and import of grid energy for a billing month

Who Should Consider Solar Grid Tied Net-Metering System?

Residential and Commercial customers who are paying more than ₹1,500 in monthly electricity bills should consider installing a grid tied solar net metering system to save their electricity bills by 20% – 30%

Look at the ROI Calculator below for details

Assumptions:

Current Electricity Price: 10.50/KWH
Solar Plant Life: 25 Years
Warranty: 5 Years

Plant Size Plant Cost Subsidy/AD Plant Cost After Subsidy/AD Units Generated/Mth Savings Per Month Payback

in Months

1KW ₹89,998.00 ₹27,000.00 ₹63,000.00 150 ₹1,500.00 42
2KW ₹1,68,245.00 ₹50,473.50 ₹1,17,771.50 300 ₹3,000.00 40
3KW ₹2,35,550.00 ₹70,665.00 ₹1,64,885.00 450 ₹4,500.00 38
4KW ₹3,02,813.00 ₹90,843.90 ₹2,11,969.10 600 ₹6,000.00 36
5KW ₹3,70,014.00 ₹1,11,004.20 ₹2,59,009.80 750 ₹7,500.00 34
10KW ₹7,00,000.00 ₹2,10,000.00 ₹4,90,000.00 1500 ₹15,000.00 32

Customers can obtain loan for 70% of plant cost with a loan tenure of 5 years and 12% annual interest, remaining 30% is paid upfront and will be returned in the form of subsidy or income tax deduction

As monthly EMI is less than the amount saved in monthly electricity bills, it makes financial sense to install a grid tried rooftop solar plant with net-metering for commercial and industrial customers as they are paying close to ₹11 per kWH(unit) of electricity consumed

Click here to calculate the solar plant size based on your monthly power bill and potential monthly saving

We offer end to end solution for seting-up a rooftop grid tied solar plant, from initial feasibility to obtaining necessary NREDCAP and DISCOM approvals, obtaining financing, engineering, procurement, erecting the plant, operations and maintenance of the plant

Call us today at +91 9550004871 or email us at info@macsolartech.com for a free consultation to get the process started!

Please see links below for latest MNRE Guidelines for obtaining 30% subsidy and Net Metering Application documents

CFA_Notice_Grid_Connected_Rooftop_19112015-2

APSPDCL__APP_NETMETERING_APP

 

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2 thoughts on “Grid Connected Solar Rooftop Net-metering in AndhraPradesh and Telangana

  1. How to Create a Passive Income Stream by Investing in a Grid Tied Rooftop Solar Plant in Andhra Pradesh & Telangana – MAC Solar Tech's Blog

  2. Grid Tied Rooftop Solar Net-Metering Awareness Workshop @ Ongole, Andhra Pradesh – MAC Solar Tech's Blog

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