Assessment of financial models for implemention of solar PV projects in India
Student name: Mr Naga Raju Thota
Guide: Mr Sheeraz Kirmani
Year of completion: 2012
Host Organisation: Enzen Global Solutions Pvt Ltd, Bangalore
Supervisor (Host Organisation): Dr Uma Rajaratnam
Abstract: Solar Energy is the prominent renewable energy getting popular throughout the world. With the
launch of the Jawaharlal Nehru National Solar Mission (JNNSM) the solar energy presents an
exciting opportunity for India which increases the installed capacity of solar PV from 2MW in 2008
to 1300 MW by 2013. Not only National solar mission scheme, those states who have higher solar
energy potential under Electricity Act 2003, can also prepare the their own solar state policies like
Gujarat, Rajasthan, Karnataka and some other states also planning to release their state solar
policies. Not only this, one more encouraging scheme called Renewable Energy Certificate (REC)
Scheme by placing solar purchase obligation to individual captive power plants to the state obligated
entities.
The current focus of the project is a best practice manual for Utility Scale Ground Based
grid-connected Solar power project developers and financiers in India to take decision on which
scheme is beneficial to go under existed different schemes. We documented the summarization of the
all solar policies with latest updates till May 2012.
After brief study of the existing and newly amended solar policies for the fiscal year 2012-13
and their benefits to the solar projects, an excel sheet models under Indian financials, under different
schemes considered for Gujarat and Rajasthan states has been prepared. The financial model results
that in Gujarat State both REC Mechanism and under Gujarat State specific policy has bright Project
IRR and ROE. In Rajasthan state both REC Mechanism and Under NVVN Scheme has bright IRR and
ROE parameters. Finally an investor and developer are easily can take decision making with these
financial models after risk analysis.
Keywords: JNNSM, REC, IRR, ROE, Solar Policy
