The Ministry of New and Renewable Energy (MNRE) has invited comments and suggestions on the draft guidelines for implementing the PM-Surya Ghar: Muft Bijli Yojana in the residential rooftop solar sector. The last date for receiving the comments/suggestions is April 23, 2024.

The Government of India launched the program on February 13, 2024. It aims to install rooftop solar projects in ten million households at a cost of ₹752.01 billion (~$ $8.9 billion).

The previous Phase II of the grid-connected rooftop solar program will be subsumed under the current program, along with the remaining financial outlay and liabilities, effective from the program’s launch.

The financial outlay for the program includes nine sub-components.

The program would be implemented through the National Portal.

The breakdown of central financial assistance (CFA) is as follows:

Based on the benchmark cost for FY 2023-24, rooftop solar projects up to 2 kW in households receive ₹30,000 ($361.85)/kW or part thereof, while additional capacity between 2 kW and 3 kW is eligible for ₹18,000 ($217.12)/kW. GHS/RWA will receive ₹18,000 ($217.12)/kW as central financial assistance.

The funds for the CFA and other disbursements related to the program will originate from the budget designated for the rooftop solar phase II program until a separate budget is allocated for it.

The program will be implemented until March 31, 2027, when all claims must be settled.

Eligibility

Suppose a household previously installed a rooftop solar system of 1 kW capacity under the Phase 2 grid-connected rooftop solar program and received a subsidy of ₹14,588 ($174.26) and later increases the total capacity to 4 kW. In that case, it can claim additional subsidy only for the additional 2 kW capacity under the current program, amounting to ₹48,000 ($573.42).

Similarly, suppose a household initially installs a 1 kW system and receives a subsidy of ₹30,000 ($358), subsequently expanding the total capacity to 4 kW. In that case, it can claim additional subsidy only for the additional 2 kW capacity, totaling ₹48,000 ($573).

A rooftop solar installation can receive CFA only once after installation. If an already installed rooftop solar system is relocated to a new location, it will not be eligible for CFA under the program.

The program aims to assist in installing grid-connected rooftop solar projects in the residential sector by providing central financial support from the government. However, no CFA will be extended to non-residential segments of consumers, including the government, commercial, and industrial sectors.

Vendors must register on the National Portal, where they can specify their operational states and districts.

Upon registration, vendors must submit a bank guarantee according to the type of registration:

For state-based vendor registration, each state or union territory requires a bank guarantee of ₹250,000 (~$2,989).

For national vendor registration, a bank guarantee of ₹2.5 million (~$29,892) is required for all States/Union Territories.

As vendors install capacity through the National Portal, the bank guarantee requirement will be adjusted based on the installed capacity:

Vendors can respond to beneficiaries’ expressions of interest, manage their project portfolios, showcase offered rooftop solar systems with pricing details, display their history of completed projects, and provide other relevant information for the beneficiaries’ benefit.

The implementing agency (State DISCOM or designated agency), MNRE officials, or any other authorized agency may conduct inspections of ongoing installations or installed plants.

Technical Specifications

A rooftop solar system should include components such as solar photovoltaic modules, inverter/microinverters, module mounting structures, energy meters, array junction boxes, DC distribution boxes, AC distribution boxes, protections—earthing, lightning, surge, cables, drawings and manuals, and any other necessary components based on site requirements.

Projects must be commissioned according to technical specifications published by MNRE.

Vendors will be responsible for any deficiencies or negligence/malpractice leading to bank guarantee encashment, profile deactivation, vendor blacklisting, or other disciplinary actions.

Vendors must rectify any deficiencies in the system that result in non-disbursal of CFA or non-commissioning by the DISCOM due to quality/component issues.

A prerequisite for CFA eligibility is using domestic modules manufactured from domestic cells as per domestic content requirements. No CFA will be disbursed if this requirement is not met.

MNRE may periodically notify the approved list of modules and inverters eligible for CFA based on specified technical criteria to prevent vendors from supplying poor-quality equipment.

Vendors must use one of these approved modules and inverters in all projects installed under the scheme.

Original equipment manufacturers (OEM) of enlisted inverters must share generation data reporting from their systems via API integration with the National Portal.

Data generated and transmitted by these inverter systems should be integrated with the National Portal to enhance services for beneficiaries.

Registered vendors must provide repair/maintenance services free of charge for five years from the commissioning date.

Consumers undertaking installations by bearing the capital expenditure, either by themselves or through the assistance of a bank loan and the upfront payment made to a registered vendor, will be considered projects undertaken in CAPEX mode.

All CFA requests for such projects must be made on the National Portal.

Non-performing/under-performing PV panels will be replaced free of charge during the warranty period. Beneficiaries will receive specified warranties from OEMs on system components for any future replacement of malfunctioned components.

Both beneficiaries and vendors have the option to raise grievances through the National Portal. These grievances will then be directed to the State Implementation Agency for resolution via a two-tier escalation matrix.

Tech giant Apple has announced a joint venture with Mumbai-based renewable energy firm CleanMax to power its operations in India with renewable energy as part of its goal to be carbon neutral across its entire value chain by the end of this decade.

As part of the collaboration, CleanMax has installed 14.4 MW of rooftop solar power projects across six industrial sites in India. These installations are expected to mitigate around 207,000 tons of CO2 emissions over their operational lifetime.

The projects will power Apple’s offices, its two retail stores in the country, and other operations.

The company said the partnership will assist Apple in addressing the emissions associated with its India operations.

“It showcases an industry-leading approach to the creation of green energy assets,” said Kuldeep Jain, Managing Director of CleanMax.

CleanMax has a portfolio of 2 GW of operating renewable assets, according to the company website.

Separately, Apple also announced that more than 18 GW of clean electricity now powers its global operations and manufacturing supply chain, which has tripled since 2020. This includes new investments in solar power in the U.S. and Europe to help address the electricity used to charge and power Apple devices.

Apple has also signed a power purchase agreement with Germany-based ib vogt for 105 MW of solar power in Spain. The project uses bifacial solar panels and is expected to come online by the end of 2024

Over 320 of Apple’s suppliers – representing 95% of its direct manufacturing spend – have already transitioned to using clean electricity for Apple-related operations, the company claimed.

This has resulted in 16.5 GW of renewable energy capacity throughout its supply chain, avoiding more than 18.5 million metric tons of carbon emissions last year. It also has over 1 GW of new wind and solar projects in China through the company’s China Clean Energy Fund.

In 2021, Apple announced that it had more than doubled the number of suppliers committed to using 100% clean energy.

The recent reimposition of the Approved List of Models and Manufacturers (ALMM) regulation by the Ministry of New and Renewable Energy (MNRE) has once again raised questions for existing and aspiring solar manufacturers on the elaborate process for getting ALMM-enlisted.

The ALMM mandate is back in force from April 1, 2024, clearing the confusion caused over the exemption of open access and private rooftop solar power projects in MNRE’s previous order.

Following the reimposition order, MNRE added 4.1 GW of new solar module capacity to the ALMM.

Mercom India delves into the important points solar manufacturers must consider while applying for ALMM enlistment or renewal.

Application Fees

The application fees for solar module/cell enlistment are as follows:

If an applicant is already enlisted for one model and applies for enlistment of another:

Manufacturers can withdraw their applications before factory inspection with a refund of 90% of the application fee.

Inspection Fees

Applicants also must pay the inspection charges of the applicant’s premises. The application fees are as follows:

For manufacturing sites located in SAARC countries:

For manufacturing sites located in non-SAARC countries:

If the applicant has multiple manufacturing sites or sources finished products from other manufacturers and sells them under their brand:

The Ministry has provided an exemption from factory inspection in the case of enlistment of additional models in the ALMM list, similar to those already enlisted by the applicant but with a lower voltage. However, factory inspection will be done if the wattage of models proposed to be enlisted is higher than that of already enlisted models.

Separate inspection fees are required for preliminary and final inspections. All inspection fees should be paid to NISE.

Co-branding

Inspection may not be required if an ALMM enlisted model of a brand owner is manufactured under a co-branding arrangement in the ALMM enlisted manufacturing facility of another Original Equipment Manufacturer (OEM) using the same manufacturing process and bill of materials.

The exception will also apply if an ALMM enlisted model of an OEM is manufactured under a co-branding arrangement in the OEM’s ALMM enlisted manufacturing facility using the same manufacturing process and bill of materials but bears the brand name of another ALMM enlisted manufacturer.

Both the brand owner and the OEM must be enlisted in ALMM. The brand owner should submit the application to MNRE with a copy of the agreement between the OEM and the brand owner.

The agreement should specify the details of the brand owner and the OEM and the manufacturing capacity in MW/annum for which the co-branding arrangement has been executed. Additionally, the agreement should include the date of execution and the date until the agreement is valid.

If the brand owner wishes to enter into co-branding arrangements with different OEMs, they must submit separate applications for each OEM. Each application should be accompanied by the corresponding agreement between the brand owner and the OEM and the application fee of ₹1,000 (~$12).

The brand owner must provide an undertaking that the label of each model must display the name of the brand Owner and OEM, as well as the location of the OEM’s manufacturing unit where the model was produced. The application fee remains the same regardless of the capacity specified in the OEM and brand owner agreement.

The co-branded models will be listed under the brand owner’s name in addition to their existing entries on the ALMM List.

The ALMM enlistment of co-branded models will be valid until two years from the enlistment date, the date of expiration of the validity of the agreement between the brand owner and OEM, or the date of expiration of any ALMM enlisted model of the brand owner, applicable only in cases not requiring inspection.

Quality Checks

Quality assurance procedures entail random quality checks and tests on enlisted models and manufacturers. These checks may include inspections of manufacturing facilities. If enlisted manufacturers fail to meet standards or comply with regulations, they will be removed from the Approved List of Models and Manufacturers (ALMM).

Additionally, inspections and audits of production and sales records may be conducted if necessary to address any complaints. Enlisted units must reimburse the costs incurred for such inspections or audits within one month. Failure to do so will result in removal from the ALMM lists.

Renewal

The process for renewing enlistment in ALMM mirrors that of fresh enlistment, requiring submission of relevant documents and payment of renewal fees, set at 50% of the current application fee. All conditions, procedures, and inspection fees for fresh enlistment also apply to renewal.

When applying for renewal, manufacturers must provide all necessary documents required for a fresh application. Upon renewal, enlistment is extended for another two years. The validity of enlistment is unaffected by the enlistment or renewal of additional models.

Module efficiency

MNRE introduced significant changes to the ALMM by enlisting cadmium telluride thin film-based models in addition to the existing crystalline-silicon models from manufacturers that adhere to Bureau of Indian Standards norms and meet specific minimum module efficiency criteria. The minimum efficiency listed for cadmium telluride thin film-based modules is as follows:

The minimum module efficiency for crystalline-silicon models is 20% for utility-scale projects, 19.5% for rooftop and solar pumping, and 19% for solar lighting.

The European Commission and member states have signed the European Solar Charter, outlining a coordinated set of actions to support the continent’s struggling solar photovoltaic (PV) industry and tackle unfair competitive practices.

The EU has targeted at least 42.5% renewable energy by 2030.

A heavy reliance on imported solar modules, primarily from China, has threatened the viability of existing European solar manufacturers. The plummeting prices of imported panels have led some European companies to scale back operations or shift production to other markets, such as the U.S.

Europe’s solar industry, represented by SolarPower Europe, warned in September last year of bankruptcies over cheap Chinese imports. It had said that despite efforts by the European Commission and member states to support the resurgence of European solar manufacturing, Chinese manufacturers were intentionally undercutting prices, undermining these initiatives.

To address these issues, the Charter has committed to promoting a resilient supply of high-quality, sustainable solar products within Europe.

A core element of the Charter is using non-price criteria in renewable energy auctions and public procurement. This will include resilience, sustainability, responsible business conduct, and innovation considerations.

The Charter also calls for providing EU funding and state aid support to spur new investments in the solar supply chain, leveraging earlier programs.

The Innovation Fund, for instance, has allocated €400 million (~$425 million) to solar manufacturing projects and made €1.4 billion (~$1.5 billion) available for its 2023 clean tech manufacturing call.

Additionally, the Charter promotes innovative forms of solar energy deployment, such as agri-PV, floating solar, and building-integrated PV. It calls for removing regulatory barriers, adapting or creating public support schemes, and encouraging new business models, like turnkey projects for PV integration in buildings.

The European Commission has also called for facilitating access to EU funding for solar manufacturing through mediums like the State Aid Temporary Crisis and Transition Framework (TCTF) and Important Project of Common European Interest (IPCEI) to drive innovation in the solar value chain.

Earlier this month, the European Commission launched investigations into Chinese solar component manufacturers who may have benefited from state subsidies to win a bid to design, construct, and operate a 110 MW solar photovoltaic park in Romania.

In January this year, Meyer Burger Technology, a Europe-based solar cell and module manufacturer, announced that it has started the process of shutting down its manufacturing facility in Freiberg, Germany. The closure is a part of the company’s plan to cut its losses in Europe and move the manufacturing base to the U.S.

Sprng Energy, AMPIN Energy Transition, Juniper Green Energy, ReNew Solar Power, and Avaada Energy have won NTPC’s auction for the supply of 1,000 MW power from inter-state transmission system-connected wind-solar hybrid power projects anywhere in India under Tranche V. Sprng Energy secured 150 MW with a tariff of ₹3.41 ($0.0407)/kWh, while AMPIN Energy secured an equal capacity at ₹3.42 ($0.0408)/kWh. Juniper clinched the same capacity at a slightly higher tariff of ₹3.43 ($0.0410)/kWh.

Auctioned solar capacity in India surged to over 25 GW in the first quarter (Q1) of 2024 from 820 MW in Q1 2023, primarily due to the new bidding guidelines mandating that auctions be conducted within 110 days of bid submission dates. According to Mercom India Research data, solar auctions increased by 229% quarter-over-quarter (QoQ) from 7.62 GW and 2,957% year-over-year. Solar tenders floated by various agencies during Q1 2024 rose 122% YoY to over 30.7 GW and 92.2% QoQ.

Global cumulative wind power capacity surpassed the 1 TW mark in 2023, achieving a YoY growth of 13%, according to the Global Wind Energy Council’s Global Wind Report 2024. Onshore wind witnessed 106 GW of capacity added to the grid in 2023, achieving a 54% YoY growth. For the first time, more than 100 GW of new onshore wind capacity was installed globally in a single year. China and the U.S. remained the world’s two largest markets for onshore wind additions, followed by Brazil, Germany, and India.

Bengaluru-based biofuels firm GPS Renewables has secured $50 million in debt financing from a consortium of banks and non-banking financial companies to accelerate the nationwide rollout of its Compressed Biogas and Renewable Natural Gas projects. The company provides end-to-end solutions for developing, producing, and distributing biofuels, focusing on technologies such as CBG/RNG, 2G ethanol, and green hydrogen. It had previously raised $20 Million in equity funding.