Executive Summary
India has been facing an acute shortage of electricity with over 30% of population devoid of electricity, especially in rural areas. The gap in demand and supply is consistently growing over the years. Gauging the high time and cost required for the rural electrification process, its imperative to search for alternative measures. Solar energy, a renewable source, doesn’t necessarily require transmission lines and transformers throughout the geography. Instead, it can be used separately so as to cater to individual homes.
Solar energy has many direct uses, including passive architectural applications such as lighting and thermal comfort provided by the use of proper building materials and orientation, as well as active water and space heating.
Solar photovoltaic (PV) cells and concentrating solar power (CSP) systems can generate electricity on a small or large scale. In addition, PV cells are used in a variety of cost-effective and “off the grid” applications, including calculators, wrist watches, road and railroad warning signs, flashing school zone lights, telecommunication equipment and emergency lighting on offshore oil rigs.
Solar energy is an inexhaustible renewable resource. The sun constantly produces vast amounts of renewable solar energy that can be collected and converted into heat and electricity.
Present scenario:
Out of the total renewable energy capacity (10,467 MW) in India, Solar energy accounts for a paltry 2 MW. Judging by the untapped potential of solar energy, we can conclude that the measures have been grossly unexplored. It has an estimated potential of 50,000MW by the year 2032 as per Infrastructure Development and Corporation Ltd. To generate power on a large scale (say a power plant)
, solar energy is considered expensive due to the high installation costs involved. It may incur a per unit cost of Rs. 12-15 to the consumer. Thus the restrained government attempt to foray into this venture could be explained.
Technology:
With the passage of time, scientists are developing new technologies to optimize the costs incurred in starting a solar power plant. Apart from it, companies in the west have successfully developed solar techniques to run phantom loads like Air-Conditioner, Refrigerator etc. This will cater well for the future and will invite entrepreneurs in this vast scope of business.
X-Factors:
Solar energy is isolated from the energy crisis to a large extent. It depends upon the sun’s rays which can be granted for next millions of years. Photovoltaic solar equipments primarily comprise silicon substrate, which is abundant in earth’s crust. The most important factor is of environmental friendliness, with solar energy having no significant impact on global warming. The renewability and clean development factor justifies the research and development in this field.
Monday, October 5, 2009
Sunday, October 4, 2009
Report -3
Barriers to Commercializing Solar
Energy Technologies
There is no one basic project finance strategy for Solar energy projects. Solar energy projects vary considerably in scale, capacity, energy resource characteristics, sale of output, status of technology and a host of other factors. As a consequence, financial strategies require innovation and flexibility to overcome a range of barriers specific to solar energy projects. Some of the major financing barriers include:
High Capital to O&M Cost Ratio
Solar energy systems tend to have little or no fuel, operation and maintenance (O&M) costs but their initial unit capital costs tend to be much higher than fossil generation systems. The higher ratios of capital cost to O&M cost are significant because they indicate that renewable energy projects carry a disproportionately heavy initial burden that must be financed and amortized over the life of the project. Additionally, the initial high capital cost of renewable energy projects is a barrier to project financing.
High Project Development to Investment Cost Ratio
The ratio of project development costs to project investment is also higher for Solar energy projects. This is due to the nature of solar energy projects, which are often dispersed, small in scale and lack established infrastructure to assist in project development. Legal, regulatory and engineering transaction costs are also generally higher, more complex and do not benefit from the economies of scale common to large conventional projects.
Small Total Investment Requirements
Solar energy projects are generally smaller in scale and therefore require smaller total investments. As a consequence many commercial banks, utilities and established independent power producers (IPPs) are not interested in pursuing these smaller investments. The time and resources they must spend to undertake .due diligence. are high, as are the perceived risks.
Weak Basis for Non-Recourse Financing
Small, independent and newly established Solar energy project developers often lack the institutional track record and financial inputs necessary to secure non-recourse project financing.
Inaccurate Perception of Risk
Many Solar energy technologies are newly commercial and are, subsequently, not widely known among project financiers. Moreover, information about solar energy systems is not readily available and accessible to potential investors, although this is changing rapidly with greater Internet access. The reality is that many solar energy technologies are rapidly making commercial inroads in the marketplace.
Weak Project Developers
On a global scale, solar energy projects tend to be developed by smaller entities with weak financial positions. They are frequently unable to leverage the financial resources needed and as a result are unable to attract equity investors or secure debt financing.
Energy Technologies
There is no one basic project finance strategy for Solar energy projects. Solar energy projects vary considerably in scale, capacity, energy resource characteristics, sale of output, status of technology and a host of other factors. As a consequence, financial strategies require innovation and flexibility to overcome a range of barriers specific to solar energy projects. Some of the major financing barriers include:
High Capital to O&M Cost Ratio
Solar energy systems tend to have little or no fuel, operation and maintenance (O&M) costs but their initial unit capital costs tend to be much higher than fossil generation systems. The higher ratios of capital cost to O&M cost are significant because they indicate that renewable energy projects carry a disproportionately heavy initial burden that must be financed and amortized over the life of the project. Additionally, the initial high capital cost of renewable energy projects is a barrier to project financing.
High Project Development to Investment Cost Ratio
The ratio of project development costs to project investment is also higher for Solar energy projects. This is due to the nature of solar energy projects, which are often dispersed, small in scale and lack established infrastructure to assist in project development. Legal, regulatory and engineering transaction costs are also generally higher, more complex and do not benefit from the economies of scale common to large conventional projects.
Small Total Investment Requirements
Solar energy projects are generally smaller in scale and therefore require smaller total investments. As a consequence many commercial banks, utilities and established independent power producers (IPPs) are not interested in pursuing these smaller investments. The time and resources they must spend to undertake .due diligence. are high, as are the perceived risks.
Weak Basis for Non-Recourse Financing
Small, independent and newly established Solar energy project developers often lack the institutional track record and financial inputs necessary to secure non-recourse project financing.
Inaccurate Perception of Risk
Many Solar energy technologies are newly commercial and are, subsequently, not widely known among project financiers. Moreover, information about solar energy systems is not readily available and accessible to potential investors, although this is changing rapidly with greater Internet access. The reality is that many solar energy technologies are rapidly making commercial inroads in the marketplace.
Weak Project Developers
On a global scale, solar energy projects tend to be developed by smaller entities with weak financial positions. They are frequently unable to leverage the financial resources needed and as a result are unable to attract equity investors or secure debt financing.
key success factors
Key Success Factors
At Akeena Solar, we are committed to providing a solution that lasts 20-30 years and delivers optimal return on your investment. The recommendations below are based on our decades of success and in-depth understanding of Solar technology.
- Keep it simple. Complexity lowers reliability and increases the need for technical support. For example, battery systems are complicated, short-lived and require higher maintenance.
- Hire a licensed, insured Solar specialist. Akeena Solar maintains the proper levels of insurance and documentation to shelter you from any worker liabilities. Electricians are not necessarily qualified and certified by equipment manufacturers to install Solar equipment properly.
- Understand system availability. It may be best economically to meet your energy requirements with a combinations of Solar and conventional power. This may mean using Solar to reduce your highest tier electricity consumption, and choosing a time-of-use rate for greater savings.
- Be realistic about your load. Eliminate “phantom” loads such as plugged in but powered-down TVs, computers and power supplies. Inverters, wires, collector soiling and battery-charging create inefficiency even in the best-designed systems.
- Learn local weather and seasonal shading conditions. Microclimates have an impact on actual results. Morning fog in San Francisco-area locations means that solar energy systems should be designed to optimize afternoon energy collection.
- Know what hardware is available and at what cost. Tradeoffs are inevitable. It is usually wisest to install solar energy panels with the lowest cost per watt, rather than highest output per square foot., for example.
- Know the installation site before designing the system. A site visit is absolutely essential for component placement, wire runs, shading, terrain peculiarities and special requirements. A Solar Pathfinder analysis helps determine daily and seasonal shading.
- Plan periodic maintenance. Solar energy systems have an enviable record for unattended operations, but no system works without any care. Panels may need annual cleaning in dirty locations; batteries need replacement every 5-10 years.
- Perform a thorough economic analysis. Calculate the Return on Investment and Net Present Value of the system (how much all of your savings will be worth in today's dollars), and compare to various alternatives. Akeena solar can help you get the best information and results.
Our Pledge: A company of the highest integrity, skill, and quality
Akeena Solar will honor our warranty and that of our manufacturers. Our advantages include:
- A comprehensive energy audit to help you reduce your electricity usage.
- Honesty and objectivity to enable accurate estimates of potential savings.
- A price that we honor for your complete turnkey installation.
- NABCEP-Certified PV Installers™ on staff.
- Dedicated software tools to analyze your site's solar potential, determine real-world performance of your system, and perform a detailed economic analysis to determine savings and ROI. No guessing.
- A single point of contact for your solar power system design, engineering work, building permit, rebate approval, utility hookup and any required maintenance.
- Custom engineering and design in-house
- Complete building permit packages for your own installation.
- Tested proven equipment for a trouble-free 30+ year lifespan.
- A free checkup of your solar power system after one year of operation.
- Standardized best-practices installation to maximize system reliability.
- Full insurance coverage for our workers and you.
- Experienced management for company longevity and viability.
- Over 1200 installation references—all available for contact.
- In-house training courses for installers on solar codes, safety and other requirements
- Community involvement on behalf of Solar on a national (SEIA) and state basis
- Personal commitment to Solar—in our own office and homes
- Our CEO, Barry Cinnamon, is the President of CAL SEIA, the largest state solar power organization in the US. His efforts have helped change or improve solar energy legislation and regulation in California and the U.S.
About Solar Power
Solar power photovoltaic (PV) systems independently convert the sun's light into electricity.
This electricity can be used:
- directly from the sun
- stored in batteries
- fed into an electric utility's grid system.
A diagram of a typical system is shown above.
The selection and proper installation of appropriately-sized components directly affect system reliability, lifetime, and initial cost. In any installation, one must keep in mind that trade-offs are necessary in system design and component selection. Our goal in this section is to provide the background information so that you can understand the general type, size, costs and design issues of a solar energy system that is best for your home or business.
Report-2
Depth of Industry Mapping
Introduction:
Energy has been universally recognized as one of the most important inputs for economic growth and human development. There is a strong two-way relationship between economic development and energy consumption. On one hand, growth of an economy, with its global competitiveness, hinges on the availability of cost-effective and environmentally benign energy sources, and on the other hand, the level of economic development has been observed to be reliant on the energy demand.
Recent technical developments and reductions in the cost of all major categories of renewable energy technologies have been substantial. Some sources suggest that the application of all renewable technologies have expanded by nearly three orders of magnitude over the past 15 years. Renewable energy technologies such as photovoltaics (PV), solar thermal, wind, and biomass are now being used successfully
for both subsidized and commercial small-scale applications. Wind power is increasingly being used for large-scale commercial power generation projects.
Demand and supply scenarioIn the recent years, India’s energy consumption has been increasing at one of the fastest rates in the world due to population growth and economic development. Primary commercial energy demand grew at the rate of six per cent between 1981 and 2001 (Planning Commission 2002). India ranks fifth in the world in terms of primary energy consumption (Table E.1), accounting for about 3.5% of the world commercial energy demand in the year 2003. Despite the overall increase in energy demand, per capita energy consumption (Table E.1c) in India is still very low compared to other developing countries.
India is well-endowed with both exhaustible and renewable energy resources. Coal, oil, and natural gas are the three primary commercial energy sources. India’s energy policy, till the end of the 1980s, was mainly based on availability of indigenous resources. Coal was by far the largest source of energy. However, India’s primary energy mix has been changing over a period of time. Despite increasing dependency on commercial fuels, a sizeable quantum of energy requirements (40% of total energy requirement), especially in the rural household sector, is met by non-commercial energy sources, which include fuelwood, crop residue, and animal waste, including human and draught animal power. However, other forms of commercial energy of a much higher quality and efficiency are steadily replacing the traditional energy resources being consumed in the rural sector.Resource augmentation and growth in energy supply has not kept pace with increasing demand and, therefore, India continues to face serious energy shortages. This has led to increased reliance on imports to meet the energy demand.
Concentrating particularly on the power industry , the statistics are dismal.
The table below shows the gap between the electricity demanded and electricity made available in the country. This is apart from the fact that many villages in India are still not electrified.
1Indicator
2004
2005
2006
2007
2008
Electricity requirement
591373
631757
690587
739345
777039
Electricity availability
548115
578819
624496
666007
691038
Electricity shortages
43258
52938
66091
73338
86001
Electricity shortages as per cent of requirement
7.31
8.38
9.57
9.92
11.07
% Shortage of electricity required 1
In spite of the long-term decline in costs for installed capacity of renewable energy technologies, and a large demand for renewable energy in developing countries, large-scale investments remain elusive.
First, there is a need to provide grant or technical assistance funds to identify renewable energy programs and to conduct project preparation so that they can be incorporated within subsequent implementation loans. Second, market potential can be enhanced by increasing the awareness within the energy industry of the possibilities created by new and more cost efficient renewable technologies. This can be accomplished by providing education and training to people in the energy industry, financiers and regulators. Third, structural reform of the energy sector in many countries can provide the opportunity for
commercial supply of electricity, private investment and hopefully improve the returns on
renewable energy investments. Finally, to ensure long-term success of a renewable energy investment program there must be adequate attention to the preparation and financing of the program at the outset followed by continuous training, maintenance and support services for the life of the project.
Introduction:
Energy has been universally recognized as one of the most important inputs for economic growth and human development. There is a strong two-way relationship between economic development and energy consumption. On one hand, growth of an economy, with its global competitiveness, hinges on the availability of cost-effective and environmentally benign energy sources, and on the other hand, the level of economic development has been observed to be reliant on the energy demand.
Recent technical developments and reductions in the cost of all major categories of renewable energy technologies have been substantial. Some sources suggest that the application of all renewable technologies have expanded by nearly three orders of magnitude over the past 15 years. Renewable energy technologies such as photovoltaics (PV), solar thermal, wind, and biomass are now being used successfully
for both subsidized and commercial small-scale applications. Wind power is increasingly being used for large-scale commercial power generation projects.
Demand and supply scenarioIn the recent years, India’s energy consumption has been increasing at one of the fastest rates in the world due to population growth and economic development. Primary commercial energy demand grew at the rate of six per cent between 1981 and 2001 (Planning Commission 2002). India ranks fifth in the world in terms of primary energy consumption (Table E.1), accounting for about 3.5% of the world commercial energy demand in the year 2003. Despite the overall increase in energy demand, per capita energy consumption (Table E.1c) in India is still very low compared to other developing countries.
India is well-endowed with both exhaustible and renewable energy resources. Coal, oil, and natural gas are the three primary commercial energy sources. India’s energy policy, till the end of the 1980s, was mainly based on availability of indigenous resources. Coal was by far the largest source of energy. However, India’s primary energy mix has been changing over a period of time. Despite increasing dependency on commercial fuels, a sizeable quantum of energy requirements (40% of total energy requirement), especially in the rural household sector, is met by non-commercial energy sources, which include fuelwood, crop residue, and animal waste, including human and draught animal power. However, other forms of commercial energy of a much higher quality and efficiency are steadily replacing the traditional energy resources being consumed in the rural sector.Resource augmentation and growth in energy supply has not kept pace with increasing demand and, therefore, India continues to face serious energy shortages. This has led to increased reliance on imports to meet the energy demand.
Concentrating particularly on the power industry , the statistics are dismal.
The table below shows the gap between the electricity demanded and electricity made available in the country. This is apart from the fact that many villages in India are still not electrified.
1Indicator
2004
2005
2006
2007
2008
Electricity requirement
591373
631757
690587
739345
777039
Electricity availability
548115
578819
624496
666007
691038
Electricity shortages
43258
52938
66091
73338
86001
Electricity shortages as per cent of requirement
7.31
8.38
9.57
9.92
11.07
% Shortage of electricity required 1
In spite of the long-term decline in costs for installed capacity of renewable energy technologies, and a large demand for renewable energy in developing countries, large-scale investments remain elusive.
First, there is a need to provide grant or technical assistance funds to identify renewable energy programs and to conduct project preparation so that they can be incorporated within subsequent implementation loans. Second, market potential can be enhanced by increasing the awareness within the energy industry of the possibilities created by new and more cost efficient renewable technologies. This can be accomplished by providing education and training to people in the energy industry, financiers and regulators. Third, structural reform of the energy sector in many countries can provide the opportunity for
commercial supply of electricity, private investment and hopefully improve the returns on
renewable energy investments. Finally, to ensure long-term success of a renewable energy investment program there must be adequate attention to the preparation and financing of the program at the outset followed by continuous training, maintenance and support services for the life of the project.
see this
- What supplies you will need
- The best way to structure your site
- Maximizing the number of customers
- What prices to charge
- Opening a solar power company with minimal expense
- Securing sites for your solar business
- Finding customers for your business
- Upselling your customers
- Where to buy your materials and panels
- Marketing for your solar power business
- How to sell additional items to make more money
- And much, much more
Intro
Introduction:
Energy has been universally recognized as one of the most important inputs for economic growth and human development. There is a strong two-way relationship between economic development and energy consumption. On one hand, growth of an economy, with its global competitiveness, hinges on the availability of cost-effective and environmentally benign energy sources, and on the other hand, the level of economic development has been observed to be reliant on the energy demand.
Demand and supply scenario
In the recent years, India’s energy consumption has been increasing at one of the fastest rates in the world due to population growth and economic development. Primary commercial energy demand grew at the rate of six per cent between 1981 and 2001 (Planning Commission 2002). India ranks fifth in the world in terms of primary energy consumption (Table E.1), accounting for about 3.5% of the world commercial energy demand in the year 2003. Despite the overall increase in energy demand, per capita energy consumption (Table E.1c) in India is still very low compared to other developing countries.
India is well-endowed with both exhaustible and renewable energy resources. Coal, oil, and natural gas are the three primary commercial energy sources. India’s energy policy, till the end of the 1980s, was mainly based on availability of indigenous resources. Coal was by far the largest source of energy. However, India’s primary energy mix has been changing over a period of time.
Despite increasing dependency on commercial fuels, a sizeable quantum of energy requirements (40% of total energy requirement), especially in the rural household sector, is met by non-commercial energy sources, which include fuelwood, crop residue, and animal waste, including human and draught animal power. However, other forms of commercial energy of a much higher quality and efficiency are steadily replacing the traditional energy resources being consumed in the rural sector.
Resource augmentation and growth in energy supply has not kept pace with increasing demand and, therefore, India continues to face serious energy shortages. This has led to increased reliance on imports to meet the energy demand.
Executive summary : An approach
Executive Summary
Market:
Solar energy market in India is worth USD xx mn
Accounts for less than x% of total installed renewable energy capacity
Government plans to increase the share of renewable energy to y% by 2032
Solar energy is harnessed through either of the two methods
1. Solar Thermal Plant/Concentrated Solar Power Plant
2. Solar Photovoltaic (SPV)
Drivers & Challenges:
Drivers:
Positive Government Policies, entry of new players in polysilicon market, abundant solar radiation in India, export demand of solar equipment
Challenges:
High unit cost of solar energy, volatility in polysilicon prices, and dependence on raw material imports
Trends:
Increase in M&A activity in renewable energy sector
Domestic and international players are moving in solar energy space
Public and private investment have increased in solar energy market
Competition:
Major players
New players
Companies have increased their investment in solar technology
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