India Solar EPC Blueprint - Preview PDF
India Solar EPC Blueprint - Preview PDF
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Sample Report
Why Do You Need an Expert Guide to Enter the Solar EPC Business?
Starting with the National Solar Mission in 2010, solar power, especially solar PV, has been growing at
a hectic pace in India. Unlike many other traditional sectors, a number of aspects are unique to this
sector technology, policy & regulations, and the competitive landscape that defines the business
models.
From almost insignificant installations in 2010, the total installed capacity of solar PV has crossed 7500
MW by July 2016. That is a fairly good achievement in just six years.
All these augur well for businesses. It is hence no surprise that a number of enterprising businesses
wish to become a Solar EPC.
India Solar EPC Blueprint from Solar Mango (a division of EAI), is Indias only professional expert guide
providing advice to individuals and enterprises entering the Solar EPC business. This report is written
especially for those who are new entrants in the solar sector.
This actionable guide by Solar Mango provides critical data, insights and resources that enable
businesses to take their optimal first steps in becoming Solar EPCs. This comprehensive expert report
and guide will be invaluable for those keen on entering the solar EPC business in India.
Solar Mangos India Solar EPC Blueprint, in addition to providing detailed inputs on the business and
revenue models, key market segments, key sales strategies and more, also includes important sections
on risks and risk mitigation for solar EPC where it clearly spells out the areas of uncertainties, and how
adverse effects of each uncertainty can be mitigated.
This sample report provides those interested in buying the report with a complete list of contents as
available in the Blueprint, and brief samples of perspectives, inputs, data points and tables. India Solar
EPC Blueprint costs Rs. 49500 only, and can be purchased through credit card, bank transfer, or cheque.
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Contents
List of Figures ........................................................................................... Error! Bookmark not defined.
List of Tables ............................................................................................ Error! Bookmark not defined.
Preface ..................................................................................................... Error! Bookmark not defined.
Action Plan for Becoming a Successful Solar EPC .................................... Error! Bookmark not defined.
Before You Start ....................................................................................... Error! Bookmark not defined.
List of Upcoming Solar Events .............................................................. Error! Bookmark not defined.
List of Training Program & Institutes ................................................... Error! Bookmark not defined.
List of Magazines & Websites .............................................................. Error! Bookmark not defined.
Other Partnerships ............................................................................... Error! Bookmark not defined.
Useful Data Resources ......................................................................... Error! Bookmark not defined.
1.
1.1.1
Prominent Regions for Solar Power Plants ...................... Error! Bookmark not defined.
1.1.2
1.2
Solar Power Growth & Trends ................................................. Error! Bookmark not defined.
1.2.1
1.2.2
Lever's Affecting Growth of Solar PV in India .................. Error! Bookmark not defined.
1.2.3
1.2.4
1.2.5
1.3
Overview of Central and State Government Solar Policies ..... Error! Bookmark not defined.
1.3.1
Introduction to Solar Policies and Regulations ................ Error! Bookmark not defined.
1.3.2
Central Policy National Solar Mission ........................... Error! Bookmark not defined.
1.3.3
1.3.4
1.3.5
Challenges with the REC Model ....................................... Error! Bookmark not defined.
1.3.6
1.3.7
1.4
Business & Revenue Models for Solar Power Plants in India .. Error! Bookmark not defined.
1.4.1
1.4.2
3.
2.2
2.3
2.3.1
2.3.2
4.
3.1.1
3.1.2
3.1.3
3.2
3.3
3.4
EPCs taking up mainly sub-contract work from larger EPCs .... Error! Bookmark not defined.
3.5
3.6
3.7
Business Potential Analysis for Solar EPCs in India .......................... Error! Bookmark not defined.
4.1
4.2
4.2.1
High Potential States current and future ...................... Error! Bookmark not defined.
4.2.2
High Potential Cities & Towns Current and Future ....... Error! Bookmark not defined.
4.3
Industry-wise Potential (for rooftop & captive)....................... Error! Bookmark not defined.
4.3.1
4.3.2
4.4
Costs & Potential Returns for EPCs .......................................... Error! Bookmark not defined.
4.4.1
Costs to run solar EPC operations .................................... Error! Bookmark not defined.
4.4.2
Margins made by Solar EPCs in India ............................... Error! Bookmark not defined.
4.5
Growth Opportunities for Solar EPCs ...................................... Error! Bookmark not defined.
4.5.1
4.5.2
Value Added Services that can be provided by EPCs ....... Error! Bookmark not defined.
4.5.3
4.5.4
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Key Challenges for the Solar EPCs in India ............................... Error! Bookmark not defined.
4.7
General Risks Associated with Solar Power Plants that EPCs Should Be Aware Of ........ Error!
Bookmark not defined.
5.
6.
7.
Skills and Human Resources Solar EPCs Need ......................... Error! Bookmark not defined.
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
Other Recommendations for Sales Strategies ................. Error! Bookmark not defined.
5.3
5.4
5.5
5.6
5.7
Parameters on Which Solar EPCs are Evaluated by Prospects Error! Bookmark not defined.
Profiles of the Prominent Solar EPCs in India .......................... Error! Bookmark not defined.
6.2
6.3
Solar Power Plant Reference Details ............................................... Error! Bookmark not defined.
7.1
Land and Infrastructure Requirements for Setting up the Solar Power Plant ................ Error!
Bookmark not defined.
7.1.1
Land Details Area required, and other pre-requisites for the land ... Error! Bookmark
not defined.
7.1.2
Details will also be provided for what portion of land is required for what purpose
Error! Bookmark not defined.
7.1.3
Instructions on how to evaluate your land ...................... Error! Bookmark not defined.
7.2
Estimating Generation from Your power plant ....................... Error! Bookmark not defined.
7.2.1
7.2.2
7.2.3
7.2.4
Expected Generation for a 2 MW Solar PV Power Plant over 25 years Error! Bookmark
not defined.
7.3
Technical Features and Equipment for a Solar Power Plant .... Error! Bookmark not defined.
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Overview of Solar Power Plant Technologies .................. Error! Bookmark not defined.
7.3.2
7.3.3
7.3.4
7.3.5
7.3.6
7.3.7
AC Side Electricals Such as Transformers, Switchgear, Cables..... Error! Bookmark not
defined.
7.3.8
Other Balance of Systems Monitoring Systems ............... Error! Bookmark not defined.
7.3.9
Details of Substation Required for Evacuation ................ Error! Bookmark not defined.
7.3.10 Details of Load Flow Study Required for Your Solar Power Plant ... Error! Bookmark not
defined.
7.3.11
7.3.12
Component Selection Standards and Warranties ......... Error! Bookmark not defined.
7.4
Financial Analysis of Ground-mounted Solar Power Plants..... Error! Bookmark not defined.
7.4.1
7.4.2
7.4.3
7.4.4
7.4.5
Case Study Cash Flow for 1 MW Plant .......................... Error! Bookmark not defined.
7.5
Financial Analysis of a Rooftop Power Plant ............................ Error! Bookmark not defined.
8.
9.
Glossary - Terms You Should Know as a Solar EPC .......................... Error! Bookmark not defined.
9.1
9.1.1
BOO Model (Build Own Operate Model) ......................... Error! Bookmark not defined.
9.1.2
9.1.3
9.1.4
9.1.5
9.1.6
9.1.7
9.1.8
9.1.9
9.1.10
9.1.12
9.1.13
9.1.14
9.1.15
9.1.16
9.1.17
9.1.18
9.1.19
9.1.20
9.1.21
9.1.22
9.1.23
9.1.24
9.1.25
9.1.26
9.1.27
9.2
9.2.1
9.2.2
9.2.3
9.2.4
9.2.5
9.2.6
9.2.7
9.2.8
9.2.9
9.2.10
9.2.11
9.2.12
9.3
Solar Apex Bodies & Organizations in India and their Roles .... Error! Bookmark not defined.
9.3.1
9.3.2
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9.3.4
9.3.5
9.3.6
9.3.7
10.
10.1
Details of Solar Policies & Regulations ..................................... Error! Bookmark not defined.
10.2 Estimation of High Potential C&I sectors for Rooftop and Ground-Mounted Solar ....... Error!
Bookmark not defined.
10.3
10.4
Tax Break-up for a Typical MW-Scale, Ground-Mounted PlantError! Bookmark not defined.
10.5
10.6 List of key component suppliers for Panels, Inverters, Cables, Mounting Structures,
Monitoring Systems ............................................................................. Error! Bookmark not defined.
10.6.1
10.6.2
10.6.3
10.6.4
10.6.5
10.6.6
10.7
DPR Template for a Solar PV Power Plant ............................... Error! Bookmark not defined.
10.7.1
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List of Figures
Figure 1: Radiation map of India ---------------------------------------------------------------------------------------- 18
Figure 2: Choosing the Region for a MW Scale Plant ------------------------- Error! Bookmark not defined.
Figure 3: Yearly Proposed Targets For Rooftop And Ground-mounted Solar PV (Source: MNRE) - Error!
Bookmark not defined.
Figure 4: Total Rooftop Solar Installed Capacity (Source: Solar Mango Estimate) Error! Bookmark not
defined.
Figure 5: India Solar Installations (MW) (Source: AF Mercados EMI) ----- Error! Bookmark not defined.
Figure 6: Revenue Models for MW Scale Solar --------------------------------------------------------------------- 21
Figure 7: State-wise installed capacity (source: MNRE & Solar Mango Analysis) --------------------------- 32
Figure 8: Market Share of Solar PV Technologies ----------------------------- Error! Bookmark not defined.
Figure 9: Classification Of Silicon Technologies (Source: Solar Mango) --------------------------------------- 47
Figure 10: Types of Inverter based on Modularity ---------------------------- Error! Bookmark not defined.
Figure 11: Grid Tied System --------------------------------------------------------- Error! Bookmark not defined.
Figure 12: Off-Grid System ---------------------------------------------------------- Error! Bookmark not defined.
Figure 13: Hybrid System ------------------------------------------------------------ Error! Bookmark not defined.
Figure 14: effect of tilt on energy capture -------------------------------------- Error! Bookmark not defined.
Figure 15: DC Cables ------------------------------------------------------------------ Error! Bookmark not defined.
Figure 16: Junction Box -------------------------------------------------------------- Error! Bookmark not defined.
Figure 17: Plug Connectors---------------------------------------------------------- Error! Bookmark not defined.
Figure 18: DC Disconnects for SPP ------------------------------------------------ Error! Bookmark not defined.
Figure 19: AC Cables ------------------------------------------------------------------ Error! Bookmark not defined.
Figure 20: Analytics from DataGlen Monitoring Solution ------------------- Error! Bookmark not defined.
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List of Tables
Table 1: Prominent locations with good radiation where solar plants/parks have been constructed
--------------------------------------------------------------------------------------------- Error! Bookmark not defined.
Table 2: Estimated CUF and Generation Sample Data from Some States--------- Error! Bookmark not
defined.
Table 3: Levers Impacting Growth of Utility Scale Solar In India (Source: Solar Mango) ------------ Error!
Bookmark not defined.
Table 4: Levers Impacting Growth of Rooftop Solar In India (Source: Solar Mango) ---Error! Bookmark
not defined.
Table 5: State-wise Commissioned Capacity - 31.03.2016 ------------------ Error! Bookmark not defined.
Table 6: Projected Solar Capacity Additions in India From 2015-2020 (Source: EAI and Bridge to India)
---------------------------------------------------------------------------------------------------------------------------------- 19
Table 7: Installed Capacities under Various Business Models - Ground-Mounted (Source: Solar
Mango Estimates) --------------------------------------------------------------------- Error! Bookmark not defined.
Table 8: Growth Rate under Various Business Models Ground-Mounted (Source: Solar Mango
Estimates) ------------------------------------------------------------------------------- Error! Bookmark not defined.
Table 9: Project Capacity under REC scheme (Source: Solar Mango Estimates) --- Error! Bookmark not
defined.
Table 10: Capacity added under CAPEX and OPEX Models (in MW) (Source: Solar Mango Estimate)
--------------------------------------------------------------------------------------------- Error! Bookmark not defined.
Table 11: Projected Capacity Additions under Various Business Models - Rooftop ----Error! Bookmark
not defined.
Table 12: Allocations and Bidding Results --------------------------------------- Error! Bookmark not defined.
Table 13: Solar Tariffs in AP --------------------------------------------------------- Error! Bookmark not defined.
Table 14: Solar Tariffs in Gujarat--------------------------------------------------- Error! Bookmark not defined.
Table 15: Solar Tariffs in Karnataka ----------------------------------------------- Error! Bookmark not defined.
Table 16: Solar Tariffs in MP -------------------------------------------------------- Error! Bookmark not defined.
Table 17: Solar Tariffs in Rajasthan ----------------------------------------------- Error! Bookmark not defined.
Table 18: Solar Tariffs in Tamil Nadu --------------------------------------------- Error! Bookmark not defined.
Table 19: Solar Tariffs in Telangana ----------------------------------------------- Error! Bookmark not defined.
Table 20: Summary of Tariffs in Different States ------------------------------------------------------------------- 20
Table 21: Some Recently Concluded PPAs -------------------------------------- Error! Bookmark not defined.
Table 22: Recently Concluded Solar Allocation in Jharkhand --------------- Error! Bookmark not defined.
Table 23: Bidding Results of Jharkhand Auction ------------------------------- Error! Bookmark not defined.
Table 24: Solar Tariffs under Jharkhand Allocation --------------------------- Error! Bookmark not defined.
Table 25: Karnataka 1.2 GW Solar Auction Results --------------------------- Error! Bookmark not defined.
Table 26: Solar Tariffs in Karnataka Auction - 1.2 GW------------------------ Error! Bookmark not defined.
Table 27: Solar RECs Sales Until AUG 2015 ----------------------------------- Error! Bookmark not defined.
Table 28: Net Metering Summary - Maharashtra ----------------------------- Error! Bookmark not defined.
Table 29: GBI Scheme in Delhi ----------------------------------------------------- Error! Bookmark not defined.
Table 30: Net Metering Summary - Delhi---------------------------------------- Error! Bookmark not defined.
Table 31: Net Metering Summary - Tamil Nadu ------------------------------- Error! Bookmark not defined.
Table 32: Net Metering Summary - Karnataka --------------------------------- Error! Bookmark not defined.
Table 33: Net Metering Summary - Andhra Pradesh ------------------------- Error! Bookmark not defined.
Table 34: Pros and Cons of various Business Models -------------------------------------------------------------- 21
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Market
Skills
Differentiation
Partnerships
Market
Decide the market to focus on. Trying to focus on any market is as good as trying to focus on no
market. Extensive details on the various markets to focus on are provided in this blueprint. Depending on
your strengths and existing assets you can leverage (which includes your location), decide on the markets
you will focus on in the first couple of years.
Become an early mover. Whatever be your industry, being an early mover gives you considerable
advantage. Try to quickly latch on to some of the emerging opportunities in the Indian solar sector, so
that you have this advantage. Remember, the same effort applied to an emerging opportunity could
provide 3-5 times the returns that such an effort would for a crowded marketplace. Details of such
emerging opportunities are provided in many sections of this report.
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Skills
Invest in getting key skills in your team. Three different skill sets are required for you to build an
EPC business that can succeed in a sustained manner. Design & engineering skills, project management
skills and business development skills. Ensure that you invest time and money in procuring these skills in
your team. It could be tempting to outsource some or all of these, but we can tell you it is a bad idea.
Differentiation
Differentiate. You can differentiate in any business. If companies can differentiate in selling water and
salt, achieving differentiation in a service sector such as solar EPC must be far easier. All across this guide,
you will see direct and indirect insights that can be used by your team to arrive at a sustainable
differentiation for your EPC offering. Ensure you spend time and energy to kick off the differentiation
process right in the beginning.
Partnerships
Invest in powerful partnerships. An EPC service is not your product. The product you are promising
your customer is actually a well-functioning solar PV power plant. It thus follows that in order to deliver a
great product, it is not enough if you and your team members are good enough. Every partner of yours
be it the component vendors, logistics partners or communications partner needs to be well qualified.
Invest time and energy in building a powerful partnership ecosystem.
Whichever way you wish to read this guide, please ensure that you incorporate as many recommendations
as possible provided for the above four key aspects into your business. All along this blueprint, you will
find examples, insights and suggestions for all the aspects mentioned above.
The India Solar EPC blueprint report provides insights on how each of the above aspects
can be leveraged to the clients advantage.
The following section provides a list of useful data and resources that could come in handy as a starting
point for businesses planning to become solar EPCs.
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Website
Intersolar India
https://www.intersolar.in/
http://www.renewableenergyindiaexpo.com/
http://www.solar.missionenergy.org/
4th International
Conference & Exhibition
on Energy Storage &
Micro-grids in India
http://www.esiexpo.in/
http://wretc.in/
Rooftop Solar
Construction
Management
http://solarquarter.com/index.php/events/849rooftop-solar-construction-management
http://firstviewgroup.com/index.php/upcomingevents-2/business-events/solar-pv-moduletechindia-2016
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Other Partnerships
Here, Solar Mango lists down some of the prominent EPCs that you can consider partnering with:
L&T
Sterling & Wilson
Tata Power Solar
Waaree Energies
Mahindra Susten
Photon Solar
Vikram Solar
Swelect Energy Systems Limited
CleanMax Solar
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Premier Solar
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Topics Covered
Solar Potential in India
Solar Power Growth & Trends
Overview of Central & State Government
Solar Policies
Business & Revenue Models
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EAI
Capacity
AddedRooftop
Solar
Cumulative
end of year
(MW)
2016
2017
2018
2019
2020
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Capacity
AddedUtility
Scale
Bridge to India
Capacity
Cumulative end
Addedof year (MW)
Rooftop
Solar
State
Andhra
Pradesh
Chhattisgarh
Gujarat
Jharkhand
Karnataka
Madhya
Pradesh
Maharashtra
Punjab
Punjab
Rajasthan
Rajasthan
Tamil Nadu
Tamil Nadu
Tamil Nadu
Tamil Nadu
Telangana
Uttarakhand
Uttar Pradesh
Year
AD/Non
-AD
Tariff
Low
High
Comments
1.4 Business & Revenue Models for Solar Power Plants in India
1.4.1 Business Models
CAPEX Model
OPEX Model
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Pros
Cons
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Topics Covered
Region-wise Segmentation
End-user Segmentation
Segmentation based on Project Size
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2.1 Region
Solar Mango has identified the following characteristics that govern region-wise market segmentation.
Load shedding
Price sensitivity
Sizes
Cost of grid power
Region
Classification Load shedding
Urban
Parameters
Price
sensitivity
Highly
Not
very
frequent like in
variable
rural areas
among both
High
residential
dependence of
and
C&I sectors on
industrial
electricity makes /commercial
solar attractive
sectors
Semi-urban
Rural
State-based
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Cost of grid
power
Sizes
Medium-Large
scale
solar
projects
mainly for C&I
sectors
Gaining
popularity of
community
solar
Groundmounted
unsuitable due
to
space
constraints
and high land
cost
Depends on the
sector
(commercial,
industrial
or
residential)
Parameters
Cost of grid Size/scale of Technology
solar power
power
requirement
End
use Price
applications
sensitivity
Residential
Commercial
Industrial
Institutions
Government
Parameters
100 W-1 kW
1-3 kW
3-10 kW
Greater than 10
kW
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Price
sensitivity
Geography /
Other
demographics Expectations
2.3.2 Ground-mounted
Project
Size
Parameters
Type/profile of
Developer/Investor
Typical
Business
Model
Type of
EPC
1-3 MW
5-10
MW
10-50
MW
50+
MW
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Margins
EPCs can
expect
Extent of Outsourcing
that could be
required
Topics Covered
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Number of EPCs
Number of EPCs
Medium (3-10)
Medium-large (10-50)
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Trends
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Topics Covered
Segment-wise Potential
Region-wise Potential
Industry-wise Potential (for Rooftop &
Captive)
Growth Opportunities for Solar
Key Challenges for Solar EPCs
General Risks EPCs Should Be Aware of
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Installed Capacity
Policy Framework
Power Evacuation Infrastructure
Economic fundamentals
State of Discom
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MW
As of May 2016
As of March 2015
FIGURE 3: STATE-WISE INSTALLED CAPACITY (SOURCE: MNRE & SOLAR MANGO ANALYSIS)
Profit Margins
Day-time energy consumption
Overall Energy consumption
Availability of Rooftop Space
Grid Tariff, and
Pioneer Mentality
Airports
Sea Ports
Railways
Metros
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Costs
Notes
Set-up costs
Running Costs
Wages
Marketing
Rent & electricity
Other
expenses
communication, travel
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Topics Covered
Skills and Human Resources
Insights on Marketing, Sales &
Distribution
Best of Breed Practices
Opportunities for Innovation
Identifying Profitable Niches
Leveraging Technology
Parameters for Evaluating Solar EPCs by
Prospects
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Project management
Sales Professional
Electrical engineer
Solar PV design specialist
Recommendation
Technology
o Having internal design expertise
o Tech expertise for select domains such as diesel-solar hybrids
o Tech partnerships with top tier component suppliers and solution firms
o Good acquaintance with solar trackers installation and maintenance
Component Selection and Logistics
Marketing & sales
Project Management
Post-project implementation
Technical avenues
Business model avenues
O&M avenues
Innovations in marketing/branding
Other innovation avenues
Social
Cloud
Analytics
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Mobile
Details
How long ago was the EPC established?
Is the EPC company a new entrant?
Ground-mounted or Rooftop?
Large-scale or small-scale?
Designation
Area of Expertise
Major Achievements
Companys reputation
Expertise in implementing projects successfully
Extent of the implemented projects
Performance Guarantees
Execution time
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Topics Covered
Profiles of Prominent Solar EPCs
Variations of EPCs
Key Mistakes to Avoid
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Founded in 2006
Vikram Solaris a part of Vikram Group of Industries. The group, with over 40 years of experience in
engineering manufacturing, initially entered the renewable energy sectors by manufacturing solar panels.
They manufactured mono-crystalline and multi-crystalline solar PV modules.
Being successful in this field, they were able to supply panels for several notable MW scale projects. They
expanded their services to provide a complete lifecycle of solar power solutions and developing, installing,
constructing solar power plants and operating and maintaining solar power plants. They also diversified
into providing IPP solutions.
The companys strengths include strong R&D, global networking and investing in state of the art
equipment. They also collaborated with Ark Renewable Energy College in R&D to build the first floating
PV plant in India. Such innovation and their focus on having a global presence continue to drive the
company forward. Currently they have international offices in Germany, USA, South Africa, Uganda, Dubai
and Japan.
Takeaway This is a classic example of a manufacturing company sighting an emerging business early
where it can use its manufacturing expertise, and moving quickly to build a leadership position. What has
been impressive about Vikram Solar has been the emphasis they brought to marketing and promoting
their brand, which has made it even easier for them to get into the top 10 in the country in the solar sector.
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Founded 1927
Type EPC, Electrical Contracting, Turnkey services for wide variety of Industries
Success So Far Sterling and Wilson is one of the oldest players in the Solar EPC sector in India
and has offices in India as well as several international offices. They have been bestowed with
several awards and also have been ranked as the top Solar EPC Company in India and globally
19th by IHS, a globally renowned consulting firm.
Website www.sterlingandwilson.com
Sterling & Wilson began its operations in1927 as Wilson Electric, and was formally established in 1971 as
a part of Shapoorji Pallonji Group. Initially they focused only on HV and LV Electrical Systems and built
their reputation by being associated with several prestigious projects. They later diversified into HVAC,
Electrical Systems, MEP (Mechanical electrical, plumbing) services, Diesel Generators, and finally ventured
into the solar sector in 2010, leveraging on their rich experience in the electrical sector.
Deliverables like design, engineering, project management, and implementation were the ingredients
they used for winning EPC Contracts. They initially faced challenges like stiff deadlines, logistically hostile
terrains, and availability of critical components. Domain expertise on Electricals/Civil systems backed by
strong execution and project management capabilities is what customers rely on, and were the prime
differentiators that helped Sterling and Wilson succeed.
Executing projects before deadlines, decades of experience, offices spread across the country and strong
employee base have increased the bankability of the projects done by this firm. Sterling and Wilson has
executed several projects in the last few years of varying project sizes between 1 MW to 25 MW, with a
cumulative of 300MW as of 2015.
Takeaway Sterling & Wilson had been in the construction business for quite a while, and hence the entry
into the solar EPC sector is unsurprising. The key takeaway from Sterling & Wilson is the vertical focus they
have had and ensuring that EPC solutions were all that they attempted to do, without getting distracted
by other solar ecosystem opportunities a good example of Doing One Thing and Doing It Well.
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Sub-component &
Raw Materials
OEMs
EPCs
Power Plant
Developers
Power
Purchasers
EPCs belong to the downstream part of the solar PV value chain. As the solar market was wide open and
up-for-grabs for early adopters, many solar companies tried to vertically integrate to become an EPC too.
The typical combinations in which we see EPCs operate in the market are as follows:
EPC Combination
Examples
Pure-play EPC
OEMEPC
DeveloperEPC
OEMEPCDeveloper
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Topics Covered
Land & Infrastructure Details
Estimating Generation from Your power
plant
Technical Features and Equipment for the
Solar Power Plant
Financial Analysis of Ground-mounted
Solar Power Plants
Financial Analysis of a Rooftop Power
Plant
45 | P a g e
7.1 Land and Infrastructure Requirements for Setting up the Solar Power
Plant
7.1.1 Land Details Area required, and other pre-requisites for the land
Land requirement for solar PV farms
7.1.2 Details will also be provided for what portion of land is required for what
purpose
TABLE 12: PORTION OF LAND REQUIRED FOR WHAT PURPOSE
Purpose
Panels
Roads, pathways
Inverter Rooms
Offices/Quarters
Substation Area (transformer
bay, LT panels, HT panels)
Water Infrastructure (bore
wells, pumps etc.)
Others
Total
Solar resource Global Horizontal Irradiation, DNI Direct Normal Irradiance, annual and interannual variation, impact of shading.
Local climate flooding, high winds, snow and extreme temperatures
15,76,800 kWh
Crystalline Silicon The value chain involves reducing sand to raw silicon followed by purification,
wafer cutting, doping, cleaning, and coating. This forms cells which are subsequently connected
and laminated to form a solar module (panel), which can then be assembled in arrays and
combined with electrical components to form a solar power system. Crystalline Silicon can be
further divided into
o Mono-crystalline
o Poly-crystalline
Thin-Film The value chain is much shorter, as the modules are manufactured in one single step
from raw silicon and other compounds by depositing the photovoltaic material and other
chemicals on glass or transparent film. Thin-film itself comprises three different technologies
a-Si
CdTe
CIGS
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7.3.2 Panels
Silicon Technologies
Types of
Technologies
Crystalline
Polycrystalline
Thin Film
Monocrystalline
N-type mono
Amorphous
Silicon
CIGS/CIS
CdTe
P-type mono
7.3.3 Inverters
7.3.4 Mounting Structures
7.3.5 Trackers
7.3.6 DC-Side Electricals
7.3.7 AC Side Electricals Such as Transformers, Switchgear, Cables
7.3.8 Other Balance of Systems Monitoring Systems
7.3.9 Details of Substation Required for Evacuation
7.3.10 Details of Load Flow Study Required for Your Solar Power Plant
7.3.11 Civil and Architectural Requirements
7.3.12 Component Selection Standards and Warranties
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Value
O&M Cost
Annual Escalation (%)
Insurance (% of plant cost)
Annual Escalation (%)
Tariff
Tariff Escalation (%)
Inverter Lifetime
Financing
Debt
Equity
Interest
Loan Term
Depreciation
Tax rate
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50 | P a g e
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Payback Period
Return on Investment (ROI)
Net Present Value (NPV)
IRR (Internal Rate of Return)
Levelized tariff
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PPA
Financial Closure
Accelerated Depreciation
Discounting Factor
Hedging
Moratorium
With recourse/Without recourse
Solar Apex Bodies & Organizations in India and their Roles
MNRE
CWET/NIWE
SECI
SESI
NSEFI
SERIIUS
CSRI
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10.
Annexure
S.
No.
Cost Details
Modules
Supply Domestic
Supply Imported
Inverter
Supply
Structures
Supply
Service
Civil Works
Civil Works
Supply
Service
Civil Works
Electrical
Supply
Service
Pooling
Station
(33/132 kV)
Supply
Service
Civil Works
2
3
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Modules
Mounting Structures
Cables
Inverters
Battery
TABLE 15: LIST OF INVERTERS
Small-medium kW Inverters
(10-500 kW)
SMA Solar
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