Global Power Sector Overview:

Power plays the vital role of the modern economies and comprises major share of the
increasing energy services. Due to increase in disposable income of households further
increases the demand of the power, with the electrification of the transport and moving
towards digital world.
CO2 emission from power sector was very high in 2018 due to increase in electricity demand
and there are many available ways to produce decarbonized power which led to decrease in
emissions in the year 2019. Renewable energy plays a vital role in producing decarbonized
electricity. We can see that during the lock down demand of electricity decreased from
industrial as well as commercial but it increased from residential but the supply of electricity
from the fossil fuels shifted towards renewables because of the difficulties in the supply chain
due to lack of transport. It will increase the demand of electricity from industrial and
commercial post lockdown but source of electricity from fossil fuels will become costly but
solar and wind will be the cheap source of electricity which leads to the increase in demand
for solar and wind sources of electricity.

In Q1 2020, global electricity demand would fall 5%, with 10% reductions in some regions.
Low-carbon energy sources would far outstrip coal-fired generation globally, extending the
lead established in 2019. A faster, V-shaped economic recovery would cut the impact on
electricity demand by half, leading to smaller year-on-year falls for coal, gas and nuclear
power.
Power Sector Overview in India:
India is the 3rd large electricity producer in the world according to key world energy statistics
published by EA in 2019 also India ranked 6th among the list of countries investment in clean
energy. Growing population in India is driving towards increase in per capita consumption of
electricity to 1894.7 Twh by 2022.
India’s power sector is one of the most diversified in the world. Sources of power generation
range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear
power to viable non-conventional sources such as wind, solar, and agricultural and domestic
waste. Electricity demand in the country has increased rapidly and is expected to rise further
in the years to come. In order to meet the increasing demand for electricity in the country,
massive addition to the installed generating capacity is required.

In May 2018, India ranked fourth in the Asia Pacific region out of 25 nations on an index that
measures their overall power. India is ranked fourth in wind power, fifth in solar power and
fifth in renewable power installed capacity as of 2018. India ranked sixth in list of countries
to make most investments in clean energy with US$ 90 billion.

India, not only has to be ready to cater to the increased power demands from industries but it
also has to provide ‘Power to all’, while limiting its carbon emissions. About two-thirds of
the power supply in India comes from coal.
India’s reliance on coal will persist even in 2047, the year when India turns 100, with an
estimated 42-50 per cent share in the energy mix.  At the same time, the penetration of
renewables is definitely going to increase with its share rising to 11-14 per cent in 2047 from
3.7 per cent in 2012, according to NITI Aayog.

The most exciting part of renewables is that the technology is still in the early stages of
evolution, which means further advancements and growth in industry volumes will continue
to make clean power cheaper. The dramatic fall in tariffs, the rising awareness towards
renewables, improved storage technology, and stricter regulatory framework among other
factors will change the energy landscape dramatically in the years to come. As a result, a
different kind of infrastructure — distributed and decentralised — could be witnessed 
World Solar PV Overview:

Solar PV generation increased 22% (+131 Twh) in 2019 and represented the second-largest
absolute generation growth of all renewable technologies, slightly behind wind and ahead of
hydropower. Despite decelerating growth due to recent policy changes and uncertainties in
China (the largest PV market globally), 2019 was a year of record global growth in PV
capacity. As competitiveness continues to improve, solar PV is still on track to reach the
levels envisioned in the SDS, which will require average annual growth of 15% between
2019 and 2030.

SOURCE:https://www.iea.org/data-and-statistics/charts/solar-pv-power-generation-in-the-
sustainable-development-scenario-2000-2030
SOLAR PV Sector Overview in India:
As on 31-12-2019, a total solar power capacity installed is 33,730 MW. In addition, tenders
of around 22,839 MW are in pipeline for which LoI has been issued but not commissioned
and for around 28,578 MW tender issued but LoI yet to be issued. Based upon availability of
land and solar radiation, the potential solar power in the country has been assessed to be
around 750 GWp.

Source: https://mnre.gov.in/img/documents/uploads/file_f-1585710569965.pdf
Grid connected rooftop solar programme was approved for with a target for achieving a
cumulative capacity of 40,000 MW from Rooftop Solar (RTS) Projects by the year 2022 in
27 February 2019.
The programme will be implemented with the total central financial support of Rs 11,814
crore through DISCOMs.

Market Size
As of February 2020, the installed renewable energy capacity is 86.75 GW, of which solar
and wind comprises 34.40 GW and 37.66 GW respectively. Biomass and small hydro power
constitute 9.80 GW and 4.6 GW, respectively. Off-grid renewable power capacity has also
increased. As of February 2020, generation capacities for Waste to Energy, Biomass
Gasifiers stood at 139.80 MW and 9,806.31 MW, respectively.
With a potential capacity of 363 gigawatts (GW) and with policies focused on the renewable
energy sector, Northern India is expected to become the hub for renewable energy in India.

 
Government initiatives
Some initiatives by the Government of India to boost the Indian renewable energy sector are
as follows:

 India plans to add 30 GW of renewable energy capacity along a desert on its western
border such as Gujarat and Rajasthan.
 Delhi government decided to shut down thermal power plant in Rajghat and develop
it into 5,000 KW solar park
 Rajasthan government in Budget 2019-20 exempted solar energy from electricity duty
and focuses on the utilization of solar power in its agriculture and public health
sectors.
  A new Hydropower policy for 2018-28 has been drafted for the growth of hydro
projects in the country.
 The Government of India has announced plans to implement a US$ 238 million
National Mission on advanced ultra-supercritical technologies for cleaner coal
utilisation.
 The Ministry of New and Renewable Energy (MNRE) has decided to provide custom
and excise duty benefits to the solar rooftop sector, which in turn will lower the cost
of setting up as well as generate power, thus boosting growth.
 The Indian Railways is taking increased efforts through sustained energy efficient
measures and maximum use of clean fuel to cut down emission level by 33 per cent
by 2030.

 
Road Ahead
The Government of India is committed to increased use of clean energy sources and is
already undertaking various large-scale sustainable power projects and promoting green
energy heavily. In addition, renewable energy has the potential to create many employment
opportunities at all levels, especially in rural areas. The Ministry of New and Renewable
Energy (MNRE) has set an ambitious target to set up renewable energy capacities to the tune
of 175 GW by 2022 of which about 100 GW is planned for solar, 60 for wind and other for
hydro, bio among other. As of June 2018, Government of India is aiming to achieve 225 GW
of renewable energy capacity by 2022, much ahead of its target of 175 GW as per the Paris
Agreement. India’s renewable energy sector is expected to attract investments of up to US$
80 billion in the next four years. About 5,000 Compressed Biogas plants will be set up across
India by 2023.
It is expected that by the year 2040, around 49 per cent of the total electricity will be
generated by the renewable energy, as more efficient batteries will be used to store electricity
which will further cut the solar energy cost by 66 per cent as compared to the current cost.*
Use of renewables in place of coal will save India Rs 54,000 crore (US$ 8.43 billion)
annually5. The renewable energy will account 55 per cent of the total installed power capacity
by 2030.

Rooftop State Policies of Himachal Pradesh:

Particulars
Year of Release 2014 amended in 2018
Gross or Net Net
Range Allowed 1 kW–1 MW
Lt Single Phase < 7 kW
Lt Three Phase 7 kW–20 kW
HT 20 kW–1 MW
Max. Capacity W.R.T Sanctioned Load If two-part tariff – 80%
If single part tariff
for < 5 kW – 100%
for 5 kW–10 kW – 5 kW or 70%
for > 10 kW – 7 kW or 70%
 Limitations on Transformer Capacity 30%
Export of Electricity W.R.T Consumption Above 100%
Billing Period for Settlement Monthly
Compensation Period for Surplus Yearly
Compensation Rate for Surplus 30% of the weighted APPC rate ***

Rooftop State Policies of Karnataka:

Particulars Karnataka
Year of Release 2016
Gross or Net Both
Range Allowed 1 kW–1 MW
Lt Single Phase < 5 kW
Lt Three Phase 5kW–50 kW
HT >50 kW
Max. Capacity W.R.T Sanctioned Load 100%
Limitations on Transformer Capacity 80%
Export of Electricity W.R.T Consumption Above 100%
Billing Period for Settlement Monthly
Compensation Period for Surplus Monthly
Compensation Rate for Surplus Higher of tariff agreed to in PPA or
retail supply tariff

Rooftop State Policies of Odisha:

Particulars Odisha
Year of Release 2016 amended in 2018
Gross or Net Net
Range Allowed Up to sanctioned load
Lt Single Phase < 5 kW
Lt Three Phase 5kW–70 kW
HT >70 kW
Max. Capacity W.R.T Sanctioned Load 100%
Limitations on Transformer Capacity 75%
Export of Electricity W.R.T Consumption 90%
Billing Period for Settlement Monthly
Compensation Period for Surplus Yearly
Compensation Rate for Surplus Nil

Rooftop State Policies of Telangana:

Particulars Telangana
Year of Release 2016
Gross or Net Both
Range Allowed 1 kW–1 MW
Lt Single Phase < 5 kW
Lt Three Phase 5kW–75 kW
HT >75 kW
Max. Capacity W.R.T Sanctioned Load Residential -100%, Others -80%
Limitations on Transformer Capacity 50%
 Export of Electricity W.R.T Consumption Above 100%
Billing Period for Settlement Monthly
Compensation Period for Surplus Half-Yearly
Compensation Rate for Surplus APPC Rate

Rooftop State Policies of Andhra Pradesh:

Particulars Andhra pradesh
Year of Release 2015
amended in 2019
Gross or Net Both
Range Allowed 1 kW–1 MW
Lt Single Phase < 3 kW
Lt Three Phase 3kW–56 kW
HT >56 kW
Max. Capacity W.R.T Sanctioned Load 100%
Limitations on Transformer Capacity 80% for LT, 100% for HT
Export of Electricity W.R.T Consumption Above 100%
Billing Period for Settlement Monthly
Compensation Period for Surplus Quarterly
Compensation Rate for Surplus APPC Rate

Rooftop State Policies of Tamil Nadu:

Particulars Tamil Nadu
Year of Release 2019
Gross or Net Net
Range Allowed NA
Lt Single Phase < 4 kW
Lt Three Phase 4kW–112kW
HT >112 kW
Max. Capacity W.R.T Sanctioned Load 100%
Limitations on Transformer Capacity 90%
Export of Electricity W.R.T Consumption 90%
Billing Period for Settlement Bi-Monthly
Compensation Period for Surplus Yearly
Compensation Rate for Surplus Nil

Challenges for Rooftop in India:

 High front cost of installation.

 Banks are reluctant to lend for rooftop solar projects because of perceived risks and
limited information and performance track records.
 Rooftop Solar is new technology in India and customers are concerned with
performance risk with perception that technology might not perform as expected over
its lifetime.
 Challenges in the implementation of net metering also pose a significant challenge.
 Consumer credit risk is the second biggest challenge to the third party.