Index of Saral State Rooftop Solar Attractive Plan


Saral State Rooftop Solar Attractiveness Index

Executive summary

With the renewable energy market becoming increasingly relevant to the Indian power and utilities sector, the renewable energy segment as a whole (and rooftop solar as a sub-segment) is witnessing substantial interests from entrepreneurs, developers, potential investors, end users and government entities. Government of India (GoI) is striving to support the rapid scale up of renewable products through several initiatives such as policy advocacy, financial assistance schemes and regulatory interventions. At the same time, various states have also adopted state-level guidelines with the aim of creating a conducive ecosystem for rooftop solar installation. Based on states’ stakeholders’ readiness, availability of natural resources and state governments’ approach towards rooftop solar, the proliferation has been non-uniform across the states, creating an avenue for experience sharing and knowledge exchange for the states. At this stage of the sector, it is, therefore, imperative for the states to exchange knowledge and learn from each other in the journey to achieve the country’s ambitious target of 40 GW rooftop solar installations by 2022.

Saral-State-Rooftop-Solar
With this background, the idea of introducing a platform for knowledge-sharing and inducing healthy competition in rooftop solar segment among Indian states was envisioned. This platform could depict the most attractive states, best practices, postive developments, while highlighting the key improvement areas across policy development and implementation, consumer involvement, and investment ecosystem.

Thus, the Ministry of New and Renewable Energy (MNRE) and its partners decided to introduce a measuring scale or an index to evaluate and rank all states according to their performance, growth, level of maturity, policy framework, and implementation environment in the rooftop solar sector. The development of State Rooftop Solar Attractiveness Index – SARAL – will empower state government entities as well as investors with evidence to make informed decisions.

To comprehensively and realistically assess the performance of rooftop solar sector in all states, five broad buckets have been identified after extensive stakeholder consultation. These buckets are:
  • Comprehensiveness/robustness of policy framework
  • Ease of implementation/effectiveness of policy support
  • Investment climate for the rooftop solar sector
  • Consumer experience
  • Business ecosystem
The team identified multiple parameters and sub-parameters to quantify those five buckets, for which data points have been captured through primary and secondary researches and subsequently mapped to a numeric scale. Finally, each score has been scaled based on the assigned weightages and an aggregate score has been computed. Based on the states’ scores, grades have been assigned on the following scales: A++, A+, A, B++, B+ and B. The exercise has been completed with the help of extensive stakeholder support from almost all the states and guidance from experts in the sector.

Aim

The aim of SARAL index is to evaluate Indian states based on their preparedeness to support rooftop solar deployment. The index aims to objectively assess states based on several parameters critical for establishing strong solar rooftop markets. These parameters belong to five broad categories:
  • Robustness of policy framework
  • Effectiveness of policy support/implementation environment
  • Consumer experience
  • Investment climate for rooftop solar sector
  • Business ecosystem

Utility and benefits of SARAL index

The index serves as an important tool to:
  • Benchmark development and deployment of solar rooftop in states.
  • Identify states that require more hand holding in terms of policy and investment push.
  • Identify investment opportunities.
  • Recognize the states that need financing support for development of solar rooftop.
  • Gradually, establish a knowledge sharing platform where the progressive states can share their experiences with the other states.
The index can accrue multiple benefits to stakeholders such as:

Central and state governments can use SARAL to
  • Initiate dialogues with potential investors.
  • Attract investment from domestic and foreign players as well as from development banks.
  • Facilitate collaborations with states looking to develop their solar rooftop capacities.
  • Compare and benchmark performance of states in regulatory and ease off setting up roof top projects.
  • Identify areas of improvement, as well as their counterparts with whom they can engage in knowledge sharing.
Institutional investors can use SARAL to
  • Identify states that need credit.
  • Measure the impact of financial assistance in terms of loans for the growth of rooftop solar.
Businesses can use SARAL to
  • Identify states which can yield better returns on investment in solar rooftop.
  • Provide input to their capital budgeting process.
The SARAL Framework
Parameters
Weightage
Sub-parameters
Weightage
Descirption
Weightage
Robustness of policy framework 20% Level of policy support 33.3% Clarity and detailing in metering regulation 25.0%
Availability of other state schemes to promote solar rooftop 25.0%
Provision of single woindow mechanism 25.0%
Provision of deemed approval process 25.0%
Convenants 33.3% Minimum GRPV system size allowed in the state 33.3%
Maximum GRPV system size allowed in the state 33.3%
Cumulative capacity of solar vis-à-vis regional DT capacity 33.3%
Billing Mechanism 33.3% Permissible settlement time 100.0%
Effectiveness of policy support/ implementation 26.3% Ease of application 60.0% Presence of interactive consumer interfaces 33.3%
Average time taken from date of application to system installation 33.3%
Ease of availing state subsidies 33.3%
Power offtake attractiveness 10.0% Deviation from the stipulated settlement period 100.0%
State of affairs of discoms 20.0% Credit rating of Discoms 100.0%
Impact of policy 10.0% Instances of retrospective changes to the policy 50.0%
The rooftop target achieved so far (in %) 50.0%
Investment climate 16.8% Driver for rooftop solar uptake 33.33% Share of C&I consumers in total GRPV installation 100.0%
Ease of financing 33.33% Ease of securing loans 50.0%
Availability of insurance providers for GRPV projects 50.0%
Maturity of market 33.33% Availability of project developers/installers/ material suppliers 100.0%
Consumer experience 26.3% Pre-installation consideration 30.0% Consumer awareness 43.0%
Tariff rise for end consumers 43.0%
System Average Interruption Duration Index 8.0%
System Average Interruption Frequency Index 8.0%
During installation 40.0% Ease of execution - from application to installation 100.0%
Post-installation experience/costs 30.0% O&M cost 50.0%
Warranty and aftersales experience 50.0%
Business ecosystem 10.6% Business enablers 37.5% Ease of doing business index 33.3%
NCAER economy rating of the state 33.3%
MSME 5 year growth rate 33.3%
Fiscal and Regulatory environment 37.5% Credit rating of the state 33.3%
Transparency in policy making 33.3%
Insitutional architecture 33.3%
Economic Outlook 25.0% GSDP per captia 50.0%
GSDP growth 50.0%

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