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					</table><p>Green energy has become affordable, sustainable, and reliable over the last few years, making it not just a viable option as an energy procurement strategy for businesses but also essential for their profitability and growth, industry experts said at Mercom India’s Commercial and Industrial (C&amp;I) Clean Energy Meet in Noida.</p>
<p>The panelists also highlighted the challenges in creating awareness among micro and small businesses – typically with a turnover of about ₹50 million ($605,102) annually &#8212; which are traditionally focused on their core businesses.</p>
<p>They often lack the bandwidth to interpret government policies and the regulatory environment related to green energy adoption in their states.</p>
<p>The Clean Energy <a href="https://mercomindia.com/event/" target="_blank" rel="noopener">events</a> bring the C&amp;I sector face-to-face with green energy developers and financiers specializing in designing, implementing, and funding renewable energy solutions for businesses.</p>
<p>During the course of these events, MSMEs are exposed to various <a href="https://mercomindia.com/mercoms-awareness-on-cost-savings-increasing-brand-value/" target="_blank" rel="noopener">aspects</a> involved in going green, including the technologies available and their suitability to different kinds of businesses, system costs, the return on investment, and the financing options available in the market.</p>
<p>Sanjiv Layek, Executive Secretary, World Association for Small and Medium Enterprises (<a href="https://www.wasmeinfo.org/" target="_blank" rel="noopener">WASME</a>) said that micro and small businesses primarily focus on running daily operations and avoid making significant changes due to complex government regulations.</p>
<p>Layek added that platforms like the C&amp;I Clean Energy Meets are essential in bridging the knowledge gap among MSMEs which can enable them to be more decisive in adopting renewable energy.</p>
<p>“MSMEs have tasted success in rooftop solar adoption, and they are coming back as repeat customers in the last 4-5 years. They realize that the savings on energy costs can be diverted towards paying the EMIs on their investment made for the solar systems, making it an attractive option without creating any additional financial burden,” said Shah Masood Jafar, Regional Head-North of Rooftops at <a href="https://www.tatapower.com/" target="_blank" rel="noopener">Tata Power</a>.</p>
<p>Further, businesses looking at sourcing renewable power in their energy mix have many more options than they did a couple of years ago, which include buying green energy at a premium from the power distribution companies, captive and group captive modes of open access, and rooftop solar, said Vinay Pabba, Chief Operating Officer at <a href="https://www.vibrantenergyholdings.com/" target="_blank" rel="noopener">Vibrant Energy</a>.</p>
<p>“Businesses can save 15-30% on energy costs with renewable energy,” Pabba added.</p>
<p>Major corporations in India have seen the adoption of renewables bring in additional incentives when dealing with international export markets, particularly from Europe and the U.S., which are paying a premium for sustainably manufactured products.</p>
<p>“As one of the largest steel producers in the country, sourcing green energy is part of our goals to cut emissions by 2050. At the same time, if we want to export to the world, we must meet their standards on green products,” Corporate Head-CSR at <a href="https://www.jindalstainless.com/#Home" target="_blank" rel="noopener">Jindal Stainless Limited Group</a> said.</p>
<p>Jindal Stainless recently<a href="https://mercomindia.com/jindal-stainless-pact-renew-power-300-mw-renewable-project/" target="_blank" rel="noopener"> signed</a> a pact with <a href="https://renewpower.in/" target="_blank" rel="noopener">ReNew Power</a> to develop 300 MW of utility-scale captive renewable projects to power its facilities in Jajpur, Odisha.</p>
<p><strong>Financing renewables</strong></p>
<p>The state-owned lenders &#8212; Small Industries Development Bank of India (<a href="https://www.sidbi.in/en" target="_blank" rel="noopener">SIDBI</a>) and <a href="https://www.onlinesbi.sbi/" target="_blank" rel="noopener">SBI</a> &#8212; provided the attendees with the full range of financing options available to the businesses.</p>
<p>Hitesh Paliwal, Senior VP &amp; Zonal Head, North Zone, Corporate Banking Group, SBI, said that the green power cost for MSMEs and corporates is usually half of the conventional power at ₹8-9($0.09-0.1)/kWh.</p>
<p>He added that the bank provides about 70% of the loan for captive or group captive projects with 15-30% of the promoter’s equity. When funding a project, the bank evaluates the quality of modules and the health of the offtakers as two of the most important aspects of due diligence.</p>
<p>“Our renewable portfolio is growing very well, especially solar. Fundamentally, we are also aligning with the targets the sovereign has set for itself,” Paliwal said.</p>
<p>Abhishek Kumar, DGM at SIDBI, said that the bank dedicated to MSMEs provides 100% of the project value as loans at an interest rate that ranges from 6.7% to 7.4%.</p>
<p>The Clean Energy events offer deep market insights that help C&amp;I executives make informed data-driven decisions, along with helping the government realize its goal of installing 280 GW of solar by 2030.</p>
<p>Mercom India will <a href="https://mercomindia.com/event/" target="_blank" rel="noopener">host</a> ‘C&amp;I Clean Energy Meet’ series across major cities in the country in 2023.</p>


Renewable Experts Decode Ways for MSMEs to Go Green at Mercom India’s Event


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					</table><p>Green energy adoption is indisputably good for businesses despite a less than conducive regulatory environment and the recent spike in the input cost for solar installation, industry experts said at Mercom India’s Commercial and Industrial (C&amp;I) Clean Energy Meet in Ahmedabad, Gujarat.</p>
<p>The event aimed to demystify various aspects of renewable power procurement for the C&amp;I sector. While large businesses have the financial wherewithal to navigate the field, smaller companies in the MSME categories are often doubtful about the benefits of solar power in their energy mix.</p>
<p>Mercom India’s events in major <a href="https://mercomindia.com/event/" target="_blank" rel="noopener">cities</a> over the last year have <a href="https://mercomindia.com/chennais-ci-sector-adopt-solar-meet-energy-demand/" target="_blank" rel="noopener">attempted</a> to bring together experts and C&amp;I consumers to bridge the knowledge gap and expedite renewable adoption through either rooftop solar (onsite installations) or green energy open access (offsite).</p>
<p>The government-owned Solar Energy Corporation of India (SECI) recently held a discussion with large businesses to assess the market, Ajay Kumar Sinha, Additional General Manager, SECI, said during a panel discussion at the event.</p>
<p>C&amp;I consumers have relied mainly on private developers for their renewable needs. SECI’s entry into the segment underlines the government’s push to promote renewables, Sinha said. He added that adopting clean energy for C&amp;I consumers might be a choice now but will soon become a compulsion due to its favorable economics for businesses.</p>
<p>Vinay Pabba, Chief Operating Officer of Vibrant Energy, concurred with Sinha. He said, “Adopting solar saves businesses 15-30% in energy cost depending on the states they operate in. Further, it helps the companies meet sustainability goals and places them favorably in the global supply chain, which has increasingly insisted on green products.”</p>
<p>Despite the apparent gains attached to solar, businesses are anxious about the first few steps they need to take. Subrahmanyam K V, Vice President BD at Radiance Renewables, said a company should analyze its power consumption for the last 12 months.</p>
<p>“After that, it must consider costs and savings for different types of solutions. For instance, investment in an onsite solar installation is quite low, which is ideal for consumers with relatively lesser energy needs. Further, it comes with benefits in the form of accelerated depreciation and some relief on the GST front,” Subrahmanyam added.</p>
<p>As an energy consumer who has implemented green energy options in his business, Jigar Deliwala, Head of Sustainability at Gujarat Fluorochemicals, emphasized that Mercom’s clean energy events for C&amp;I consumers were the need of the hour to resolve doubts of the C&amp;I segment and bridge the knowledge gap.</p>
<p><strong>Renewable Financing</strong></p>
<p>Securing affordable financing for renewable projects from the public sector or private lenders is easy for profit-making units, said the lenders speaking at the event. A strong balance sheet and a positive cash flow to cover the loan are mandatory requirements.</p>
<p>Anand Jain, Founder &amp; CEO at Aerem, highlighted that consumers with higher power requirements are “leaving money on the table” by not opting for renewable solutions.</p>
<p>The C&amp;I participants at the event benefited from the perspective provided by Anisha Pal, DGM, at the government-owned Small Industries Development Bank of India (SIDBI). She said that a strong balance sheet ensures that loans to set up renewable installations are attractively priced for SIDBI’s customers.</p>
<p>“Clean energy improves your balance sheet,” Pal added.</p>
<p>Mercom India events offer deep market insights that help executives make informed, data-driven decisions, along with helping the government realize its goal of installing 280 GW of solar by 2030.</p>
<p>Mercom’s next C&amp;I <a href="https://mercomindia.com/event/ci-clean-energy-meet-2022-noida/" target="_blank" rel="noopener">event</a> will be held in Noida on November 11.</p>


Mercom’s Clean Energy Meet Expands Awareness on Cost Savings, Increasing Brand Value

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