Interview: Safeguard Duty Cost Impact on Rooftop Solar Could be as much as 20%

The New and Renewable Energy Development Corporation of Andhra Pradesh Ltd (NREDCAP) recently opened financial bids for the installation of 15 MW of grid connected rooftop solar PV system for government buildings in the state.

CleanMax Enviro Energy Solutions Pvt. Ltd emerged as the lowest bidder by quoting the L1 tariff of ₹3.64 (~$0.053)/kWh for 3,000 KWp.

NREDCAP had tendered 15 MW of grid-connected rooftop solar projects in June 2018. It had fixed ₹5 (~$0.074)/kWh as the upper tariff cap for this tender.

The grid-connected rooftop solar projects will be developed under RESCO model. The successful bidder will have nine months from the date of award of contract to commission the project. In this tender, NREDCAP has specified that all modules utilized for these projects must be made in India.

In response to the floated tender, NREDCAP received seven bids out of which four qualified.

Other tariffs quoted in the auction were: ₹3.69 (~$0.054)/kWh by Azure Power Rooftop (Genco) Pvt. Ltd, ₹3.98 (~$0.058)/kWh by Rich Phytocare Pvt.Ltd and ₹3.987 (~$0.058)/kWh by TEPSOL Solar Resco Pvt Ltd.

Kosol Energie Pvt. Ltd quoted ₹4.27 (~$0.062)/kWh followed by ₹4.5 (~$0.065)/kWh by Sri Savitir Solar Pvt. Ltd and ₹4.6 6(~$0.068)/kWh by Navitas Solar Solutions Pvt. Ltd but did not win the bids.

Cleanmax Quotes L1 Tariff of ₹3.64 for NREDCAP’s Rooftop Solar Tender

NREDCAP has asked the L2, L3 and L4 bidders to match the L1 price and send their acceptance before August 1, 2018.

Apart from the project development, the successful bidders will also be responsible for the operation and maintenance of the projects for a duration of 25 years after commissioning.

NREDCAP has been trying to promote rooftop solar in order to meet a portion of the increasing energy needs in Andhra Pradesh.

In April 2018, NREDCAP issued an empanelment tender for rooftop solar installers in the state. The tender covered rooftop solar projects with capacities ranging from 1 kW to 500 kW and targeted installing 35 MW of rooftop solar PV projects.

Previously, NREDCAP also tendered 2.4 MW of solar rooftop to be developed under the RESCO model in Andhra Pradesh.

Mercom recently reported that most rooftop installations are happening in the government, commercial, and industrial sectors and it is well behind utility-scale installations. Only 2 GW of rooftop solar has been installed as of Q1 2018 out of the 40 GW by 2022 target set by the government.

Image credit: Flickr

Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer