Saral State Rooftop Solar Attractiveness Index Executive summary With the renewable energy market becoming increasingly relevant to ...
Saral State Rooftop Solar Attractiveness Index
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.
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 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.
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.
- Identify states that need credit.
- Measure the impact of financial assistance in terms of loans for the growth of rooftop solar.
- Identify states which can yield better returns on investment in solar rooftop.
- Provide input to their capital budgeting process.
|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%|
|Economic Outlook||25.0%||GSDP per captia||50.0%|
Source: Ministry of New and Renewable Energy