Sunkind to Set Up 4 GW of Solar Module and Cell Manufacturing Units

Aseem Infrastructure Finance Secures $80 Million Green Loan from DBS Bank

MNRE Releases Draft Testing and Approval Guidelines for Solar Inverters

Adani Electricity Mumbai Buys Back $49.5 Million Debt Bonds

Emmvee Bags ₹15 Billion Solar Module Supply Order from KPI Green

BluPine Secures ₹24 Billion for 150 MW Renewable Energy Project in Karnataka

Enviro Infra Acquires 49% Stake in Renewable Energy Firm Soltrix

ACME, Patel Infrastructure Win NHPC’s 1 GWh Battery Energy Storage Auction

Bihar Commission Approves Tariffs for 238 MW Solar Projects Under KUSUM

NHPC Issues Tender for 19.2 MW Rooftop Solar Projects in Haryana

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					</table>Renewable energy sector experts have opined that battery energy storage systems (BESS) will likely phase out power banking in the coming years.
Speaking at Mercom India’s <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-coimbatore" target="_blank" rel="noopener">Coimbatore C&amp;I Clean Energy Meet</a> recently, they said energy storage solutions can provide an assured power supply and eliminate the costs associated with running diesel generators.
They said BESS has the potential to phase out power banking and reduce the load on distribution companies, as energy storage is likely to become more affordable.
Energy storage systems are gaining traction in the open access and rooftop solar segments. However, bundling storage with renewable energy remains an expensive proposition.
Seshagiri Meka, Managing Director at Winsol Cleantech, said that for an investment of ₹15 million (~$172,909.65)/MW for a 1,000 kWh energy storage solution, accounting for a 365-day life cycle and 15% discharge loss, the net utilization is 300,000 units.
He added that considering a loan with a 10% interest rate and a ten-year battery life, the cost of the solution reaches ₹3 million (~$34,585) or ₹10 (~$0.115)/kWh, which is still expensive for business.
“China is working to reduce BESS costs to ₹6 million (~$69,170) to ₹7 million (~$80,699),” he said.
He visualized a scenario where consumers could source power at ₹3 (~$0.034)/kWh to ₹4 (~$0.046)/kWh. The banking of power will be phased out by 2027, and the commercial and industrial (C&amp;I) sector will utilize power during peak hours through BESS.
“After two years, at least 20% of the power projects will have BESS,” said Meka.
He suggested that large renewable projects, such as systems with 20 MW capacity spread out over 45-50 acres, must allocate additional 1 acre per megawatt for BESS integration in future.
Rooftop solar installers who spoke at the meet also noted that companies aiming to implement the net-zero concept prefer BESS.
Terance Alex, CEO and Founder, <a href="https://wattsun.in/" target="_blank" rel="noopener">Wattsun Energy</a>, said, “The cost of a solar system is roughly ₹3 (~$0.034)/kWh to ₹4 (~$0.046)/kWh. However, along with BESS, you will have to add another ₹4 (~$0.046)/kWh to ₹5 (~$0.057)/kWh. Two years ago, the BESS prices were ₹9 (~$0.103)/kWh to ₹10 (~$0.115)/kWh, and the price has since decreased. This provides confidence to business owners to shift to storage as the other alternatives are diesel power generators.”
Alex pointed out that adding BESS to solar projects can save business owners ₹10 (~$0.115)/kWh to ₹15 (~$0.172)/kWh, considering the cost of operating diesel gensets is around ₹21 (~$0.242)/kWh.
Industry experts stated that adding a BESS to an existing renewable energy project requires an additional investment of ₹3 million (~$34,585.2) to ₹5 million (~$57,642).
“If you look at the life of BESS utilizing lithium-ion batteries, you can get 6,000 to 8,000 cycles. The return on investment will take three to four years at the current BESS prices,” said Alex.
He also stated that BESS could serve as a solution to distribution companies’ concerns about grid stability due to increased renewable energy injection. Even the residential consumers are contemplating BESS due to frequent power outages in certain states.
Savings in Open Access and Rooftop Solar Projects
The demand for open access solar remains high in the C&amp;I sector. Businesses prefer group captive projects due to the limited technical knowledge required by the power offtaker.
Speakers opined that the payback period in group captive solar projects was as low as eight months.
Rahul Makahaniya, CMO at <a href="https://www.soleosenergy.com/" target="_blank" rel="noopener">Soleos Solar Energy</a>, stated that consumers opting for captive or group captive mode to procure solar energy can realize savings up to ₹3 (~$0.034)/kWh to ₹3.5 (~$0.04)/kWh.
“In a captive solar project, your equity payback period is nearly three and a half years, and the project payback period is six to seven years. Under the group captive mode, the payback period is eight months. Group captive is the driving force for large solar projects in the open access segment,” said Makahaniya.
Group captive power projects also remain a cost-effective option for companies that are hesitant to own power assets.
Rooftop solar projects also see demand due to their better utilization of empty spaces.
Sanjay Kapoor, President of Marketing and Business Development at <a href="https://sungreenpower.net/" target="_blank" rel="noopener">Sungreen Power and Renewable Energy</a>, said that installers can utilize up to 80% to 100% of the space in larger rooftops.
Alex added that advancements in solar module technology have led to higher power generation from rooftop space. He said that earlier installers needed 100 sq ft for a 1 kW solar project, which has now come down to 60 sq ft. The use of TOPCon modules and modules with higher wattage capacity has reduced the requirement for larger spaces for rooftop solar systems.
Sandeep Anaparthi, CEO and Co-Founder at <a href="https://vyomaa.com/" target="_blank" rel="noopener">Vyomaa Energy</a>, stated that a rooftop solar project can yield significant savings for the C&amp;I sector.
He said C&amp;I consumers can source power from rooftop solar installations at ₹4 (~$0.046)/kWh to ₹ 5 (~$0.057)/kWh. A good-quality rooftop system of 100 kW, featuring a Tier 1 panel, a reliable inverter, and a trusted energy partner, would cost approximately ₹4.5 million (~$ 51,872.90) to ₹5.5 million (~$63,400.21).
“In places like Coimbatore, a 100 kW system would generate up to 150,000 to 170,000 units per year. You can save up to ₹1.1 million (~$12,680.04) to ₹1.3 million (~$14,985.5) a year, and the payback period will be four to five years. The companies can also benefit from accelerated cost depreciation on solar power projects,” added Anaparthi.
Mercom India will <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-hyderabad/brochure" target="_blank" rel="noopener">host</a> its next C&amp;I Clean Energy Meet in Hyderabad on August 22, 2025. If you are a C&amp;I business unit, clean energy solutions provider, component manufacturer, lender, investor, or industry associate, you should attend this event. Facility and plant managers, C-level executives of C&amp;I businesses, engineers, procurement managers, and other decision-makers will especially gain from meeting the experts and networking. You can register for free <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-hyderabad/brochure" target="_blank" rel="noopener">here</a>.
Mercom is also<a href="https://www.mercomindia.com/event/renewables-summit-2025/" target="_blank" rel="noopener"> hosting</a> the fifth edition of its Renewables Summit on July 24-25 this year at the Hyatt Regency, New Delhi. It brings together all the stakeholders who are shaping India’s renewable energy industry. You can register for the Summit <a href="https://www.mercomindia.com/event/renewables-summit-2025/register" target="_blank" rel="noopener">here</a>.

Battery Energy Storage Systems are Phasing out Diesel Generators

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					</table>Solar module manufacturing lines under the domestic content requirement (DCR) category are booked for the upcoming three to four months, said industry experts at Mercom India’s recent <a href="https://www.mercomindia.com/event/buyer-seller-meet-2025-coimbatore" target="_blank" rel="noopener">RE Buyer-Seller Meet</a>, held in Coimbatore, Tamil Nadu.
Mercom India hosts these events to provide a platform for clean energy buyers to engage directly with carefully selected vendors offering localized, high-quality solar solutions. The Coimbatore meet featured two sessions, during which industry experts discussed various aspects of solar energy.
“Even though India’s module manufacturing capacity has been increasing and looks quite high, all module lines in the market are currently booked. The second and fourth quarters are peak periods, which makes it essential for manufacturers to plan ahead of time to ensure quality and reduce the demand-supply gap,” said Krishna Arjun, VP-Sales, <a href="https://swelectes.com/" target="_blank" rel="noopener">Swelect Energy Systems</a>.
He also referred to a significant gap between module and cell capacity in India. “While there are various incentives to increase cell capacity, setting up a cell manufacturing line needs a good two to three years. This is also why we see shortage of DCR modules in the market due to lower availability of India-made cells.”
However, he was optimistic that the gap between cell and module manufacturing would narrow over the next three to four years.
Energy Independence: Key Driver For BESS 
Jogeswara Rao, Head of Sales (South India), <a href="https://www.fronius.com/en-in/india" target="_blank" rel="noopener">Fronius India</a>, noted that consumers in the residential, commercial, and industrial segments are seeking to become energy-efficient.
“While power cuts may be one reason, energy independence is the key driver for the expanding market for battery energy storage systems (BESS). We are developing a battery reservoir that can provide complete backup for an entire villa or a house. Besides on-grid inverters, BESS will be a major market in India,” said Rao.
He expects BESS prices to become more affordable due to a dip in lithium battery costs.
Muthukumaran S, Senior Sales Manager, <a href="https://www.fimer.com/" target="_blank" rel="noopener">FIMER</a>, concurred. “We are seeing a lot of demand in both commercial and industrial and utility-scale projects given the push by the government for BESS deployment, such as viability gap funding.”
Discussing price sensitivity in the inverter market, Rao noted that India was witnessing a rise in value-driven consumers for inverters.
“While India is a highly price-sensitive market, there is a certain section that is very conscious of quality and the lifespan of the product. When a consumer chooses an inverter as an investment, they must select the right product. Consumers are very well-educated in this field and are looking for products that last for at least 25 years,” he said.
Gobi Krishna A, Senior Manager of Projects (South), <a href="https://www.prozealgreen.com/" target="_blank" rel="noopener">Prozeal Green Energy,</a> stated that price fluctuations pose a significant challenge for engineering, procurement, and construction players.
He said, “We add a contingency cost, taking into consideration all the parameters. However, there are cases where even contingency fails, and we have to discuss the changes, such as an increase in cell or inverter prices, with the consumers and try to find a solution.”
Air-Wash Technology  
Suraj Vernekar, Co-Founder at <a href="https://aegeustechnologies.com/" target="_blank" rel="noopener">Aegeus Technologies</a>, stated that the world was facing two major problems: energy and water shortages.
“For a long time, we thought that solar modules could be cleaned manually using water, but the truth is that we cannot solve one problem and create another. If we use so much water to clean modules, there won’t be any water left for anything else,” Vernekar said.
He said that robotic cleaning was no longer an option but a necessity.
“Dry cleaning technologies are becoming a point of attention for many countries and consumers. Rooftops are another area where there are not many cleaning systems available. We have introduced a solution in backpack form, which can be used to clean rooftop modules.”
Discussing his company’s new technology, Air Wash, Vernekar said, “The technology can clean any form of dust or cement as long as it is loose. However, if the dust settles and becomes sticky, the consumer will have to resort to chemical cleaning.”
He added that many jobs, including module mounting and cleaning, are going to be automated.
At the <a href="https://www.mercomindia.com/event/buyer-seller-meet-2025-pune" target="_blank" rel="noopener">Pune RE Buyer Seller Meet</a> held earlier this month, Yogesh Kudale, Chief Executive Officer of Taypro, and Chetan Amrutkar, AVP Sales and Marketing at Genx PV, <a href="https://www.mercomindia.com/robotic-solar-module-cleaning-is-six-times-cheaper-than-traditional-means" target="_blank" rel="noopener">highlighted</a> the potential for consumers to save six times more by opting for robotic cleaning compared to traditional cleaning for modules.
Module Mounting Structures 
Another discussion at the Coimbatore meet covered the importance of a good-quality mounting structure for the lifetime of a solar project.
Ramesh Babu, Executive Vice President, <a href="https://www.metalkraft.in/" target="_blank" rel="noopener">Metalkraft</a>, said, “Geography determines the type of mounting structure that can be used in each project. A designer must inspect the area and determine the structure and materials to be used in the project.”
The material used, such as steel and aluminum, matters considerably for mounting structures. “While aluminum is desired for mounting structures by many consumers, cost plays a major role. There are a lot of new coating materials on steel; it is difficult for aluminum to be as popular,” Babu said. He added that steel remains a widely used metal for module mounting structures.
Mercom India will host its next <a href="https://www.mercomindia.com/event/buyer-seller-meet-2025-hyderabad" target="_blank" rel="noopener">RE Buyer Seller Meet</a> in Hyderabad on August 21, 2025. If you are an installer or EPC service provider, you can register for free <a href="https://www.mercomindia.com/event/buyer-seller-meet-2025-hyderabad/register" target="_blank" rel="noopener">here</a>.
Mercom is also <a href="https://www.mercomindia.com/event/renewables-summit-2025" target="_blank" rel="noopener">hosting</a> the fifth edition of its Renewables Summit, the largest conference in the sector, on July 24 and 25 this year at the Hyatt Residency, New Delhi.  It brings together all the stakeholders who are shaping India’s renewable energy industry. You can register for the Summit <a href="https://www.mercomindia.com/event/renewables-summit-2025/register" target="_blank" rel="noopener">here</a>.

Industry Says Gap Between Solar Cell and Module Manufacturing Capacity a Concern

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					</table>The hospitality industry is emerging as a leader in the transition to renewable energy, joining a growing number of commercial and industrial units in India with high power consumption that are turning to green energy. This shift is helping businesses lower energy costs while significantly reducing their carbon emissions.
Nashik-based <a href="https://grapecounty.in/" target="_blank" rel="noopener">Grape County Eco Resorts &amp; Spa</a> has installed a 183 kW ground-mounted solar system, which fully meets its energy needs. The off-grid system, installed at a cost of ₹ 9.1 million (~$105,695), generates 174,000 units of power a year.
Says Tejas Chavan, Director of the 20-acre resort and spa, “To co-exist with nature is our guiding philosophy.”
The resort no longer relies on the grid for its electricity needs, thanks to the solar installation.
Switching to solar energy has not only helped the resort reduce its carbon emissions but has also saved electricity costs. “Switching to solar energy has helped us save around ₹2.9 million (~$33,683) annually,” says Chavan.
Adjoining the resort was a barren land, which they have transformed into a 300-acre biodiversity park. “The core of our functioning is centered around nature. Our commitment to everything nature-friendly can be seen in our ambition to always look for innovative and sustainable options. Keeping our vision alive, opting for solar energy was an obvious choice.”
<a href="https://www.sauryouth.co.in/" target="_blank" rel="noopener">Sauryouth Energy</a>, the project installer, highlighted the various issues they faced during the installation.
“The modules used in the project were mono PERC half-cut. A unique aspect of the project was the terrain. It was rocky and uneven at times, and we had to engineer a special mounting structure that would suit the terrain and also withstand 180 km/h of wind speed,” said Yugandhar Tupe, CEO of Sauryouth Energy.
“We also utilized their parking space to install solar panels. They generate energy and also provide shade to the vehicles parked. We had to keep innovating to suit the terrain of the resort and biodiversity park.”
Many hotels and resorts have made the switch to solar energy. One of India’s most well-known IHCL-owned hotels in Mumbai, like The Taj Mahal Palace, Taj Land’s End, and Taj Wellington Mews, <a href="https://www.mercomindia.com/tata-power-mumbai-hotels-renewable" target="_blank" rel="noopener">announced</a> that it will source 60% of its requirement from renewable energy.
If you are looking for expert advice on switching to clean energy, <a href="https://www.mercomindia.com/event" target="_blank" rel="noopener">Mercom India C&amp;I Clean Energy Meets</a> are a must-attend.  These events aim to provide a platform with knowledge and the tools to help C&amp;I buyers adopt clean energy. Solar solution providers, equipped with the technology and financial mechanisms, will be present to assist C&amp;I consumers transition to clean energy.
The last event was <a href="https://www.mercomindia.com/attractive-financing-options-rooftop-solar" target="_blank" rel="noopener">held</a> on March 7, 2025 in Chennai, Tamil Nadu. The next meet will be <a href="https://www.mercomindia.com/mercom-to-host-ci-clean-energy-meet-in-mumbai-on-april-17" target="_blank" rel="noopener">held</a> on April 17, 2025 in Mumbai, Maharashtra.

Maharashtra’s 100% Solar-Powered Eco Resort Saves ₹2.9 Million Annually

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					</table>Access to safe drinking water has been a challenge in India. In rural areas where power supply is also a huge concern, solar-powered water ATMs are a viable solution.
The data by the <a href="https://ejalshakti.gov.in/" target="_blank" rel="noopener">Ministry of Jal Shakti</a> shows that in February 2021, 68.75 million households had tap water supply, which has grown to about 155 million as of February 2025. But, providing access to a reliable and long-term supply of drinking water at affordable costs is an ongoing mission.
According to a report by <a href="https://water.org/" target="_blank" rel="noopener">water.org</a>, 35 million out of India’s 1.4 billion people lack access to safe drinking water in hot and arid regions like Rajasthan and Gujarat.
In parts of India, people are forced to spend hours walking to water sources without any guarantee that the water is safe to drink.
“Something as fundamental and necessary as water should be available to all, and our community water automated teller machines (ATMs) are a step towards that,” said Arushi Kumar, VP of Marketing at Boon.
<a href="https://helloboon.com/" target="_blank" rel="noopener">Boon</a>, a Gurugram-based water tech startup, has been installing solar-powered and AI-enabled water ATMs that dispense clean drinking water at a minimal price.
The company has installed over 1,000 solar-powered water ATMs in over 100 villages spread across the country, including Punjab, Rajasthan, Uttar Pradesh, Delhi, Madhya Pradesh, and Uttarakhand.
The startup aims to provide clean drinking water at a nominal price in remote places in the country. The solar systems used to power the water purifiers vary anywhere from 3 kW to 10 kW, depending on the size of the filtration system.
“There are many places in the country where there is not enough electricity for us to power the water ATMs. The idea of using solar energy was born out of this scarcity,” said Kumar.
The company wanted to develop a microgrid to save the infrastructure requirements of the regular grid. Instead of opting for a large purification system, they developed a community-level system.
“We collaborate with local governments, institutions, self-help groups and NGOs to set up these community water ATMs. The cost of setting up the water purifiers can be anywhere between ₹500,000 (~$5,737) and ₹1.5 million (~$17,212),” said Kumar.
Chamak Singh from Punjab Water Works who had worked closely with the company, said, “Purified drinking water was a luxury for many in rural parts of Punjab. The purifiers are installed in various places such as school compounds, and railway stations in about 15 villages in Punjab. It was a collaborative effort where the resources and technology came from Boon.”
On average, the water ATMs get 20 to 50 users daily, Singh explained.
“We are in 14 states, including Uttar Pradesh, Bihar, Jharkhand, Rajasthan, and villages like Barmer and Faridpur. We are planning to expand to more villages and cities.”
Many other companies and organizations such as Piramal Sarvajal, Arosia Water, and Chennai-based Visvak engineers have also been using solar energy to power water ATMs.
Recognizing the importance of such water ATMs, Moradabad Smart City <a href="https://www.mercomindia.com/moradabad-smart-city-solar-water-atms" target="_blank" rel="noopener">floated</a> a request for proposal for setting up 25 solar-based water ATMs to provide safe drinking water in Moradabad, Uttar Pradesh.
Water ATMs fix multiple problems – they are clean, reliable, and placed in remote to highly populated areas. They reduce the use of plastics, improve health, and save time for millions of women who have to travel long distances to collect water. Solar powers these machines, especially in areas where access to reliable electricity is a question, and makes it affordable, which makes all the difference.

Solar-Powered Water ATMs Provide Clean Drinking Water to 100 Villages

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					</table>The Uttarakhand Electricity Regulatory Commission (<a href="https://uerc.gov.in/" target="_blank" rel="noopener">UERC</a>) has determined an additional surcharge of ₹1.12 (~$0.013) per unit for open-access power consumers from October 1, 2024, to March 31, 2025.
The decision comes in response to a petition filed by Uttarakhand Power Corporation (<a href="https://www.upcl.org/" target="_blank" rel="noopener">UPCL</a>) seeking to recover fixed costs arising from its obligation to supply electricity to open-access consumers.
The additional surcharge aims to compensate UPCL for stranded power costs due to consumers opting for open access.
UERC calculated the surcharge based on data from October 2023 to March 2024, considering factors such as slot-wise surrendered and stranded power, open access energy consumption, and fixed costs of six generating stations.
The Commission determined that 35.97 million units (MUs) of power were stranded at the state periphery due to open access consumers during the reference period.
UPCL&#8217;s fixed costs for the six generating stations totaled ₹697.6 million (~$8.3 million) during this time.
Stakeholders raised objections to UPCL&#8217;s petition, including questions surrounding the use of estimated data versus audited figures, concerns about the calculation of stranded power, and queries regarding UPCL&#8217;s power purchases from energy exchanges.
UPCL responded to these concerns, stating that its calculations were based on actual data and followed established regulations and methodologies.
The UERC examined the data provided by UPCL and stakeholder comments before arriving at its decision. The Commission emphasized that the additional surcharge was determined in accordance with the Electricity Act, 2003, National Tariff Policy, 2016, and UERC (Terms and Conditions of Intra-State Open Access) Regulations, 2015.
The charge will be applicable to open-access consumers for the specified six-month period, subject to any future revisions by the Commission.
The Gujarat Electricity Regulatory Commission recently <a href="https://www.mercomindia.com/gujarat-sets-additional-surcharge-of-%E2%82%B90-93-kwh-for-open-access-consumers" target="_blank" rel="noopener">set</a> an additional surcharge of ₹0.93 (~$0.011)/kWh for the consumers of four state-owned distribution companies who avail power through open access.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

Uttarakhand Regulator Sets ₹1.12/kWh Additional Surcharge for Open Access

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					</table>Textile units in Tamil Nadu with solar projects for captive consumption have opposed a directive by Tamil Nadu Green Energy Corporation (<a href="https://www.tn.gov.in/detail_contact/126260/5" target="_blank" rel="noopener">TNGECL</a>) to use only solar modules included in the Approved List of Models and Manufacturers (ALMM).
The Tamil Nadu Spinning Mills Association has written to the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/notice-category/tenders/" target="_blank" rel="noopener">MNRE</a>) urging the withdrawal of the directive. It has threatened legal action if the demand is not met.
The Non-Conventional Energy Sources (NCES) wing under Tamil Nadu Generation and Distribution Corporation (<a href="https://www.tangedco.org/en/tangedco/" target="_blank" rel="noopener">TANGEDCO</a>) recently mandated the use of only ALMM-approved solar modules in the solar projects to be commissioned and grid tie-up approval to be granted after due verification.
According to documents available with Mercom India, Kaiser Green Energy, and Armstrong Spinning Mills were asked by TNGECL to use only ALMM-approved modules in response to their applications to wheel power for captive use and under the Intra-state Open Access System.
Urging the withdrawal of the mandate for private entities, the spinning mills association wants the MNRE Secretary to rescind the Chief Engineer-NCES&#8217; communication and allow the import of solar modules for their projects.
The association requested the MNRE to keep private entities out of the ALMM mandate, enabling them to wheel solar power for captive use. The industry emphasized that the industry is heavily dependent on captive solar power due to the unreliability of utility power supplied by the distribution companies.
Association chief advisor K Venkatachalam argued that the ALMM list only applies to government-related projects, but TANGEDCO has placed restrictions on private entities. TANGEDCO said those not complying with the ALMM mandate will not be issued connectivity. &#8220;The measure will likely lead to huge losses as many companies have already placed orders from other countries. Different companies are at various stages of the establishment of captive solar projects. While some imports are stuck at Indian ports, some have already cleared import duties and are about to establish the system in a few months.&#8221;
Captive solar power generators find it cost-efficient to import solar modules. The textile industry remains a major contributor to renewable energy generation in Tamil Nadu, accounting for 75% of installed capacity.
The association said importing modules also guarantees them higher efficiency modules at a cost-efficient margin. &#8220;There will be a nearly 30% increase in costs if we rely on domestic procurement,&#8221; said Venkatachalam.
However, a senior official from NCES maintained that the ALMM mandate applies to private and government entities. &#8220;There was an exception for a year for private entities, but now it applies to all entities, effective April 1, 2024. We have issued the order in compliance with MNRE regulations.&#8221;
The ALMM was <a href="https://www.mercomindia.com/almm-reimposed-april-no-exemptions-open-access-solar" target="_blank" rel="noopener">reimposed</a> on April 1, 2024, after the MNRE kept the mandate in <a href="https://www.mercomindia.com/mnre-almm-exemption-solar-projects-march-31-2024" target="_blank" rel="noopener">abeyance</a> for a year.

Tamil Nadu Textile Units with Captive Solar Projects Decry ALMM Module Order

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					</table>India has millions of Micro, Small, and Medium Enterprises (MSMEs), which are the growth engine of its economy and represent the nation&#8217;s entrepreneurial spirit.
Power is one of the largest components in the input cost of an MSME, and given the availability of sunshine across the country, going solar is an ideal way to reduce operating costs and hedge long-term electricity inflation.
Over the years, falling costs of solar, tax incentives, and <a href="https://mercomindia.com/emi-rooftop-solar-savings-on-power-costs-tata-power/" target="_blank" rel="noopener">increased awareness</a> have resulted in rooftop solar growth in MSMEs, but there has not been a radical uptake. Despite the tremendous potential, scaling <a href="https://mercomindia.com/product/rooftop-solar-market-report-q3-2022/" target="_blank" rel="noopener">rooftop solar</a> has been challenging due to multiple reasons. One such challenge that&#8217;s less discussed is customer acquisition strategy.
In this multi-part series, I would share some of the learnings from my travels <a href="https://mercomindia.com/renewable-experts-decode-ways-for-green-at-mercom-indias-event/" target="_blank" rel="noopener">selling solar to MSMEs</a> across India. In a diverse and complex country, it is imperative to understand the cultural and business nuance at the last mile.
Critical Drivers
Two critical drivers support MSME solar adoption. The first is the obvious &#8211; <a href="https://mercomindia.com/here-is-how-much-businesses-are-saving-from-installing-solar/" target="_blank" rel="noopener">cost savings</a>. It is critical to map which states and industries have the highest C&amp;I tariffs, but it is also important to determine the net savings on the electricity bill after solar has been deployed.
If the net savings on the bill, after paying the EMI, are less than 5-7%, the hassle of solar and the risk of damaging the roof far outweigh the incremental savings. The accelerated depreciation tax benefit is also not seen as a major driver.
MSMEs regularly buy equipment and have a good understanding of depreciation. Net electricity bill savings have to be large enough to garner interest.
A major non-financial driver to consider is if your customer is an <a href="https://mercomindia.com/eus-carbon-deal-accelerate-exporters-transition-renewables/" target="_blank" rel="noopener">exporting entity</a> or one that is selling to a large Indian / international player, which has to measure Scope 3 emissions.
In the pursuit of decarbonization, large corporates are mandated to work on their Scope 3 emissions through their supply chain. It is not uncommon for a large international buyer to visit the MSME to check for quality and safety standards but also check for green and climate-friendly practices.
Approach 
According to the MSME ministry, India has over 400 industrial clusters, and they are the best place to launch your go-to-market strategy. This is because factories are geographically close to each other. They may be a single industry cluster like Chakan, Pune (Auto and Auto Ancillaries), or multiple industry clusters like Tarapur in Boisar (Chemicals, Textiles, Steel).
The buy-in from the local industrial association will be critical to amplify your offering. Awareness events at these associations – with chai, samosa, and biscuits – are the best way to get in front of customers and then get invited for a one-on-one meeting at the factory. A lot of business happens over chai in this country.
Please study the health of the industry before approaching the cluster. I once made a trip to Chittorgarh only to realize that the marble industry was reeling with headwinds from demonetization and 28% goods and services tax (GST).
It helps to have a grasp on the energy situation in the cluster – sometimes the power distribution company’s (DISCOM) office is in the cluster itself, and you will get a first-hand understanding of the last mile efficiency for changing meters and any other permissions.
It is highly likely that SMEs will not purchase the equipment outright and will ask for financing and have some options ready. A large cluster would usually have a small branch office of a public sector bank – meeting the branch manager there will also give a sense of the business activity in the cluster.
Don&#8217;t miss the nuance
Many of the customers will be family-run businesses; hence, it will be critical to quickly ascertain who the decision maker is. In these firms, the promoter looks at the finances but depends heavily on the opinion of their chartered accountant, who might act as a gatekeeper.
Having the required numbers ready will help in moving through the sales process quickly. Communication will more likely happen on WhatsApp rather than email and in the regional language rather than English. It&#8217;s essential to find someone who speaks the local language, ideally from the same area.
The real India moves at a slower pace than the big city rush. Constant follow-ups are not required, after a point, let the magic unfold – solar is important for an industrial customer, if they trust you and if the need arises, the customer will themselves find a way to reach you.
In the following parts of this series, we travel to different parts of India and look at specific industrial states and clusters where I have had the joy of having very sweet chais.
Mercom India&#8217;s C&amp;I event series is targeted to get solar service providers in front of C&amp;I consumers throughout India. Find out more <a href="https://mercomindia.com/event/" target="_blank" rel="noopener">here</a>.
(Author: Sishir Garemella, Founder Sunvest and Head of International Business Development for PV Evolution Labs. More articles in the series will follow. Watch this space.) 
&nbsp;

How to Convince India’s MSMEs to Go Solar

The Ministry of Power (<a href="https://powermin.nic.in/" target="_blank" rel="noopener noreferrer">MoP</a>) has issued The Electricity (Rights of Consumers) Rules, 2020 laying down the rights of power consumers to minimum standards of quality.
The rules cover the rights of consumers and obligations of distribution licensees, the release of new connections and modifications in existing ones, metering arrangements, billing and payment, disconnection and reconnection, reliability of supply, among other areas.
One noteworthy provision in the rules is the provision that mandates net metering for loads up to 10 kW and gross metering for loads greater than 10 kW. This provision was created under the section addressing the rights of consumers as prosumers. The section said prosumers would enjoy the same rights as the general consumer. They will also have the right to set up renewable energy generation units, including rooftop solar systems themselves or through a service provider.
In September, the MoP had <a href="https://mercomindia.com/gross-metering-residential-rooftop-solar/" target="_blank" rel="noopener noreferrer">proposed</a> net metering for rooftop solar projects of capacity up to 5 kW, and projects above 5 kW to have gross metering. The ministry had invited comments and suggestions from all the stakeholders regarding the regulations proposed.
Under gross metering, a consumer is compensated at a fixed feed-in-tariff for the total number of solar energy units generated and fed into the grid. The consumer then pays the DISCOM a retail tariff for the solar power consumed. Here the feed-in-tariff is always lower than the retail tariff. On the other hand, in net metering, the exported solar power is adjusted in the electricity bill against the energy consumed.
Net metering has been the primary <a href="https://mercomindia.com/net-metering-drag-rooftop-solar-growth/" target="_blank" rel="noopener noreferrer">impediment</a> for rooftop growth in the country. Even though the net metering policy exists in most states, implementation has been rocky. Mostly, distribution companies (DISCOMs) are vehemently opposed to net metering across states. The primary reason for this aversion to net metering is that it deprives DISCOMs of the opportunity to earn more revenue from premium consumers.
Many rooftop installers <a href="https://mercomindia.com/net-metering-removal-rooftop-solar/" target="_blank" rel="noopener noreferrer">believe</a> that net metering is one of the major unique selling points which draw people towards solar installations.
In the new rules, the Ministry also established a Consumer Grievance Redressal Forum (CGRF) to include consumer and prosumer representatives. DISCOMs are expected to specify a timeline for addressing these grievances and the maximum timeline to address them is 45 days.
The new regulations stipulate that it is the duty of distribution companies (DISCOMs) to supply electricity based on the request made by an owner or occupier of any premises.  Consumers have the right to a minimum standard of service for the supply of electricity from DISCOMs.
The new regulations aim to ensure that new electricity connections, refunds, and other services are delivered in a timely manner and the government has imposed penalties on any infringements to consumer rights. These rules will benefit over 300 million existing and prospective consumers in the country, it added.
New connections and modifications to existing connections must be released in a transparent, simple, and timely manner. They must be done within seven days in metro cities, 15 days in other municipal areas, and 30 days in rural areas. No connections must be issued without a meter.
Distribution licensees are now expected to supply power 24&#215;7 to all consumers. Respective state commissions can specify shorter durations for certain categories like agriculture. Licensees are expected to implement an automated mechanism to monitor and restore power outages if any. These measures come on the heels of several support measures <a href="https://mercomindia.com/bailing-out-power-discoms-every-crisis/" target="_blank" rel="noopener noreferrer">announced</a> in the past to help improve the status of DISCOMs. Despite financial support and incentives, DISCOMs <a href="https://mercomindia.com/discom-dues-renewable-generators-2/" target="_blank" rel="noopener noreferrer">owed</a> over ₹110.67 billion (~$1.5 billion) to renewable energy generators (excluding disputed amounts) in overdue payments across 439 pending invoices, according to data from the Ministry of Power.

No Net Metering for Rooftop Solar Systems Over 10 kW: Ministry of Power

A recently-released survey suggests that nearly 87% of the country&#8217;s population has access to grid-based electricity, while 13% either use non-grid sources for electricity and lighting or don&#8217;t use any electricity at all.
The survey was undertaken by Smart Power India, in association with Rockefeller Foundation and the NITI Aayog. The report &#8216;Electricity Access in India Benchmarking Distribution Utilities October 2020&#8217; reveals the findings of a study commissioned to understand the current state of electricity access.
Of all customers using non-grid sources, the majority (62%) are agricultural customers. Only 4% of today&#8217;s households do not have access to grid-based electricity, while a significant proportion of agricultural customers (48%) do not have access to the grid.
<img loading="lazy" decoding="async" class="size-full wp-image-22362 aligncenter" src="https://mercomindia.com/wp-content/uploads/2020/10/Picture1-3.png" alt="Sources of electricity" width="555" height="341" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/10/Picture1-3.png 555w, https://cms.mercomindia.com/wp-content/uploads/2020/10/Picture1-3-300x184.png 300w" sizes="(max-width: 555px) 100vw, 555px" />Although India has achieved a 100% connection rate for all its willing households, providing reliable power of adequate quality regularly is an ongoing challenge for the Indian power sector.
The study aims to capture insights from both the demand side (electricity customers) and the supply side (DISCOMs) and takes a cue from global agency guidelines, such as the United Nations Sustainable Development Goal 7 and Sustainable Energy for All (SEforAll) initiative.
The study also uses the World Bank&#8217;s Energy Sector Management Assistance Program (ESMAP) Multi-tier Framework (MTF) to improve electricity viability and reliable access.
Grid Connectivity
According to the study, 92% of customers reported the availability of power infrastructure within 50 meters of their premises. Under the agricultural category, the availability rate reported was about 75%. The report suggests that the PM Saubhagya program has successfully connected households to
the grid with a 100% access rate. However, the report also states that even though electricity infrastructure is available, not all customers have a grid connection.
For customers with electricity infrastructure within 50 meters of their premises, the overall connection rate is 86%; however, the connection rate for agricultural and institutional customers is particularly low, at 70% and 81%, respectively. Yet, grid access varies across customer categories, utilities, and states.
The study also focused on finding reasons for customers not having a grid connection. There are several reasons for non-connection to the grid among customers who rely on non-grid electricity and lighting sources.
These include the distance of the nearest electric pole from the customer&#8217;s premises (47%), inability to pay for electricity costs and user charges (35%), and poor quality of service (20%).
The response to the primary survey indicates a potential lack of customer awareness, albeit electricity connections were delivered at affordable rates, as per the Saubhagya program.
The study has also highlighted that among unconnected commercial customers, almost half of them stated that the main reason was unaffordability. Meanwhile, 43% of unconnected institutional customers indicated that they were either refused a connection or had applied for one but were still waiting.
Electricity Access
The study claims that the majority (92%) of household customers with a grid-based electricity connection have a low sanctioned load of 0-1 kW (76% of customers) or 1-2 kW (16% of customers).
As utilities are focused on ensuring 24*7 power for all, the customer survey conducted under the study shows that over the past few years, the power supply has increased significantly across customer categories and stands at approximately 17 hours per day as per the survey.
The study measured power reliability through the number of power cuts and prior notification of upcoming power cuts.
Agricultural and institutional customers reported no power cuts during each day of the past week, whereas 70% of household customers reported one or more power cuts in the past week. Around 75% of household customers reported not receiving any prior notification of upcoming power cuts.
<img loading="lazy" decoding="async" class="size-full wp-image-22363 aligncenter" src="https://mercomindia.com/wp-content/uploads/2020/10/Picture2-1.png" alt="Average number of hours of supply each day in the past one week" width="602" height="343" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/10/Picture2-1.png 602w, https://cms.mercomindia.com/wp-content/uploads/2020/10/Picture2-1-300x171.png 300w, https://cms.mercomindia.com/wp-content/uploads/2020/10/Picture2-1-600x342.png 600w" sizes="(max-width: 602px) 100vw, 602px" />According to the study, power quality is determined by the number of voltage fluctuations. Overall, 63% of customers reported more than one voltage fluctuation in a week, and 10% reported more than ten voltage fluctuations per day in the past week.
The study assessed the affordability factor only for the household category. It is measured as the household customer&#8217;s paying capacity for electricity, as a share of the total monthly expenditure.
If the cost incurred on this threshold level of electricity consumption is less than 5% of total household expenditure, access is affordable. The study observed that overall access to electricity is affordable for 83% of household customers.
However, customers are not aware that the electricity tariffs they are paying are already subsidized.
The study also analyzed safety measures by asking customers in all categories to report on any electricity-related accidents in the past year, and 16% of customers reported electrical accidents in the last year.
Customer service was the final parameter considered in the study and covered the customers&#8217; expectations from electricity services such as metering, billing frequency, mode of payment, and complaint management.
The study also adopted the World Bank&#8217;s Multi-tier Framework (MTF) to the Indian context (MTF-I) to outline the overall performance on access. Customers are placed in one of five tiers based on the degree of electricity access. Most of the surveyed customers fall in tier 0, the lowest category.
While 24*7 energy access through the grid is still a distant dream in India, the pandemic has also pulled down the sale of off-grid products like solar lamps that help those without reliable power. Sales of off-grid solar products in India <a href="https://mercomindia.com/pandemic-pulls-down-sales-of-off-grid/" target="_blank" rel="noopener noreferrer">fell</a> by 50% in the first half of 2020 compared to the second half of 2019. The sales were also down 59% compared to the first half of 2019, said the latest report published by the Global Off-grid Lighting Association. Nearly 391,000 units of off-grid solar solutions were sold between January and June 2020.
Over 300,000 households have been <a href="https://mercomindia.com/households-electrified-off-grid-solar/" target="_blank" rel="noopener noreferrer">electrified</a> through solar-based standalone systems, the Minister of New and Renewable Energy said in October.
Image credit: Smart Power India

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