About 12 sqmt. area is required to setup 1kWp Grid connected rooftop Solar system.
There are provisions of concessional import duty/excise duty exemption, accelerated depreciation and tax holiday for setting up of grid connected rooftop power plants.
Department of Financial services has instructed to all Public Sector Banks to encourage home loan/ home improvement loan seekers to install rooftop solar PV plants and include cost of system in their home loan proposals. So far, nine PSBs namely Bank of India, Syndicate Bank, State Bank of India, Dena Bank , Central Bank of India, Punjab National Bank, Allahabad Bank, Indian Bank and Indian Overseas Bank have given instructions to extend loan for Grid Interactive Rooftop Solar PV Plants as home loan/ home improvement loan.
The grid connected rooftop system can work on net metering basis wherein the beneficiary pays to the utility on net meter reading basis only. Alternatively two meters can also be installed to major the export and import of power separately. The mechanism based on gross metering at mutually agreed tariff can also be adopted.
In case the grid fails, the solar power has to be fully utilized or stopped immediately feeding to the grid so as to safe-guard any grid person/technician from getting shock (electrocuted) while working on the grid for maintenance etc. This feature is termed as ‘Islanding Protection’.
There can be many possible business models, some of which can be considered are as follows:
(a) Solar installations owned by consumer
i) Solar Rooftop facility owned, operated and maintained by the consumer(s).
ii) Solar Rooftop facility owned by consumer but operated and maintained by the 3rd party.
(b) Solar installations owned, operated and maintained by 3rd PartyIf the 3rd party implements the solar facility and provides services to the consumers, combinationscould be:
i) Arrangement as a captive generating plant for the roof owners. The 3rd party implements the facility at the roof or within the premise of the consumers; the consumer may or may not invest as equity in the facility as mutually agreed between them. Thepower is then sold to the roof owner.
ii) Solar Lease Model, Sale to Grid The 3rd party implementing the solar facility shall enter into a lease agreement with theconsumer for medium to long term basis on rent. The facility is entirely owned by the 3rd partyand consumer is not required to make any investment in facility. The power generated is fed into the grid and the roof top owner gets a rent.
(c) Solar Installations Owned by the Utility
i) Solar installations owned operated and maintained by the DISCOM The DISCOM may own, operate and maintain the solar facility and also may opt to sub contractthe operation and maintenance activity. The DISCOM may recover the cost in the form ofsuitable tariff. The electricity generation may also be utilized by DISCOM for fulfilling the solar renewable purchase obligation.
ii) Distribution licensee provides appropriate viability gap funds The DISCOM may appoint a 3rd party to implement the solar facilities on its behalf and provideappropriate funds or viability gap funds for implementing such facility.