Opportunities for rooftop solar PPAs in Indian market
As India continues to embrace solar energy as a sustainable and cost-effective solution, the market for rooftop solar power purchase agreements (PPAs) has grown significantly. With government initiatives and incentives, companies across various industries are turning to rooftop solar to meet their energy requirements and reduce their carbon footprint. This blog article explores the opportunities available in the Indian rooftop solar PPA market, various tenders for companies to develop their rooftop solar PPAs, and recent tenders issued in different states.
Rooftop solar PPAs are agreements between a solar developer and a building owner, where the developer installs solar panels on the building’s rooftop and sells the electricity generated to the building owner at a predetermined price. The building owner benefits from lower energy costs, reduced reliance on the grid, and a cleaner source of energy, while the developer receives a long-term revenue stream from the sale of electricity.
One of the significant opportunities in the Indian rooftop solar PPA market is the government’s push towards renewable energy. The Ministry of New and Renewable Energy (MNRE) has launched several initiatives and schemes to promote the adoption of solar energy in the country. The government has set a target of achieving 175 GW of renewable energy capacity by 2022, out of which 40 GW is expected to come from rooftop solar installations.
To facilitate the development of rooftop solar PPAs, various tenders are available for solar developers to participate in. These tenders are typically issued by state electricity boards, government agencies, and smart cities. Through these tenders, solar developers can bid for the right to install rooftop solar systems on buildings and sell the generated electricity to the building owners.
One such recent tender is Haryana’s 10.4 MW rooftop solar tender issued in July 2021. The tender invited bids for the installation of rooftop solar systems on government buildings, educational institutions, and other public sector buildings. Similarly, Madhya Pradesh’s 41 MW rooftop solar tender, issued in April 2021, aimed to install solar systems on government buildings and other public facilities.
Lucknow Smart City’s 8.5 MW rooftop solar tender, issued in August 2021, invited bids for the installation of solar systems on various government buildings and public facilities. The tender aimed to reduce the city’s reliance on non-renewable energy sources and contribute towards its sustainability goals.
Apart from government buildings, procurement of solar power for government buildings is also a significant opportunity in the Indian rooftop solar PPA market. The MNRE has launched a scheme to install 100 GW of solar capacity by 2022, out of which 40 GW is expected to come from rooftop solar installations. Through this scheme, solar developers can participate in tenders to install solar systems on government buildings and sell the generated electricity to the government at a predetermined price.
For instance, Tata Power has been selected by Kerala State Electricity Board to develop a total of 84 MW of solar rooftop capacity across all districts of Kerala, covering individual households (64 MW) and housing society projects (20 MW). Similarly, MGVCL Gujarat’s 300 MW rural and 700 MW urban tender, issued in February 2022, aimed to install solar systems on government buildings and other public facilities in Gujarat.
Other recent tenders issued in different states include PDD Nagaland’s 3.8 MW rooftop solar tender, Himachal Pradesh’s 7 MW tender, REMCL Madhya Pradesh’s 14 MW rooftop solar tender for railways, and BCPL West Bengal’s 2 MW rooftop solar tender.
In conclusion, the Indian rooftop solar PPA market presents significant opportunities for solar developers to participate in tenders and install solar systems on buildings. With the government’s push towards renewable energy and the increasing awareness of the benefits of solar energy, the market for rooftop solar PPAs is expected to grow significantly