An Overview: Solar Power Optimizer

With changing times, technology of solar has also changed. We have seen efficiency of modules growing from 12 to 23 %. With advancing technology in solar module, why should other components lag behind. Welcome a innovative product that has  recently entered into Indian market. This product has already created buzz in US  and is currently dominating US solar sector. Its, Solar Power Optimzer.

A power optimizer is a DC to DC converter technology developed to maximize the energy harvest from solar photovoltaic or wind turbine systems. They do this by individually tuning the performance of the panel or wind turbine through maximum power point tracking, and optionally tuning the output to match the performance of the string inverter.

Presently, SolarEdge is the only distributor of Power Optimizer in India. SolarEdge is a global leading inverter manufacturer with has shipped over 7.5GW of its DC optimized inverter systems shipped, and over 600,000 SolarEdge PV sites monitored in 125 countries around the world. SolarEdge has partnered with India's electrical giant, Havells India Limited. 

Havells  India Limited is a leading US$ 1.3 bn Fast Moving Electrical Goods  (FMEG)  Company  with a market capitalisation US$ 3.3 bn and a major  power distribution equipment manufacturer with a strong global presence in 45Countries. Havells enjoy enviable market dominance across  a  wide spectrum of products, including Industrial & Domestic Circuit  Protection  Devices,  Cables  & Wires, Motors, Fans, Modular Switches,  Home Appliances, Electric Water Heaters, Power Capacitors, CFL   Lamps,  Luminaires  for  Domestic,  Commercial  and  industrial Applications.

                                 

By entering Indian market in partnership with Havells India Limited, has created a sense of insecurity for their fellow solar inverter manufacturer because of its advance technology. SolarEdge has entered with their high end products: Solar Power Optimizer, Solar Grid Tied Inverter, Environmental sensors and communication gateways.

Since India is a price conscious market and it takes time to accept new technology, it will be early to decide its growth & sale in Indian Solar market.  Looking at the US market, the efficiency and performance of Power Optimizer is better as comparison to conventional inverter. But the question lies whether this futuristic gadget are pocket friendly or not. Secondly, will they perform equally good in Indian climate condition as it is a bit harsh comparing US. Time will tell about its performance and future of power optimizer in India.

Renewable Energy Certificates (REC)

Renewable Energy Certificate (REC) mechanism is a market based instrument to promote renewable energy and facilitate compliance of renewable purchase obligations (RPO). It is aimed at addressing the mismatch between availability of RE resources in state and the requirement of the obligated entities to meet the renewable purchase obligation (RPO). REC would be issued to RE generators and to the eligible Distribution Licensee. One Renewable Energy Certificate (REC) is treated as equivalent to 1 MWh. 

• There are two categories of RECs, viz., solar RECs and non-solar RECs.Solar RECs are issued to eligible entities for generation of electricity based on solar as renewable energy source, and non-solar RECs are issued to eligible entities for generation of electricity based on renewable energy sources other than solar.
• The solar certificate shall be sold to the obligated entities to enable them to meet their renewable purchase obligation for solar, and non-solar certificate shall be sold to the obligated entities to enable them to meet their obligation for purchase from renewable energy sources other than solar.

Revenue for a RE generator under REC scheme includes revenue from the sale of electricity component of RE generation and the revenue from the sale of environmental attributes in the form of RECs:

 (1) A generating company engaged in generation of electricity from renewable energy sources shall be eligible to apply for registration for issuance of and dealing in Certificates if it fulfils the following conditions:

a) it has obtained accreditation from the State Agency;

b) it does not have any power purchase agreement for the capacity related to such generation to sell electricity, with the obligated entity for the purpose of meeting its renewable purchase obligation, at a tariff determined under section 62 or adopted under Section 63 of the Act by the Appropriate Commission:

Provided that in case of renewable energy sources based co-generation plants, the connected load capacity as assessed or sanctioned by the concerned distribution licensee, shall be considered as the capacity for captive consumption for the purpose of issue of certificates, irrespective of the capacity of such plants covered under the power purchase agreement.

c) it sells the electricity generated either 

(i ) to the distribution licensee of the area in which the eligible entity is located, [at the pooled cost of power purchase of such distribution licensee as determined by the appropriate commission 

(ii) to any other licensee or to an open access consumer at a mutually agreed price, or through power exchange at market determined price.

Provided further that a renewable energy generator selling electricity component to third party through open access shall be eligible for the entire energy generated from such plant for participating in the REC scheme subject to the condition that such generator does not avail or does not propose to avail any benefit in the form of concessional/promotional transmission or wheeling charges or banking facility benefit:

Provided also that if such a renewable energy generator forgoes on its own, the benefits of concessional/promotional transmission or wheeling charges or banking facility benefit, it shall become eligible for participating in the REC scheme only after the date of forgoing such benefits:

Provided also that the above mentioned condition for renewable energy generator selling electricity component to third party through open access for participating in the REC scheme shall not apply if the benefits given to such renewable energy generator in the form of concessional transmission or wheeling charges and/or banking facility benefit are withdrawn by the concerned State Electricity Regulatory Commission and/or the State Government:

Provided also that if any dispute arises as to whether a renewable energy generator has availed such concessional/promotional benefits, the same shall be referred to the Appropriate Commission for decision.

d) It does not sell electricity generated from the plant, either directly or through trader, to an obligated entity for compliance of the renewable purchase obligation by such entity.

(2) A distribution licensee shall be eligible to apply for registration with the Central Agency for issuance conditions:

(a) It has procured renewable energy, in the previous financial year, at a tariff determined under Section 62 or adopted under Section 63 of the Act, in excess of the renewable purchase obligation as may be specified by the Appropriate Commission or in the National Action Plan on Climate Change or in the Tariff Policy, whichever is higher:

Provided that the renewable purchase obligation as may be specified for a year, by the Appropriate Commission should not be lower than that for the previous financial year.

Provided further that any shortfall in procurement against the non-solar or solar power procurement obligation set by the Appropriate Commission in the previous three years, including the shortfall waived or carried forward by the said Commission, shall be adjusted first and only the remaining additional procurement beyond the threshold renewable purchase obligation - being that specified by the Appropriate Commission or in the National Action Plan Climate Change or in the Tariff Policy,whichever is higher - shall be considered for issuance of RECs to the distribution licensees.

(b) It has obtained a certification from the Appropriate Commission,towards procurement of renewable energy.

(3) A Captive Generating Plant (CGP) based on renewable energy sources,including renewable energy generating plant not fulfilling the conditions of CGP as prescribed in the Electricity Rules, 2005 but having self-consumption, shall not be eligible for participating in the REC scheme for the energy generated from such plant to the extent of self-consumption, if such a plant:

a) has been commissioned prior to 29th September 2010 or after 31st March 2016; or

b) is not registered with Central Agency under REC scheme on or before 30th June 2016.

Provided that a CGP based on renewable energy sources, including renewable energy generating plant not fulfilling the conditions of CGP as prescribed in the Electricity Rules, 2005 but having self-consumption, and fulfilling both the following conditions:

a) having date of commissioning between 29th September 2010 and 31st March 2016; and

b) registered with Central Agency under REC scheme on or before 30th June 2016

shall be eligible for the entire energy generated from such plant for participating in the REC scheme subject to the condition that such plant does not avail or does not propose to avail any benefit in the form of concessional/promotional transmission or wheeling charges and/or banking facility benefit:

Provided further that if such plant meeting the eligibility criteria for REC, forgoes on its own, the benefits of concessional transmission or wheeling charges and/or banking facility benefit, it shall become eligible for participating in the REC scheme only after a period of three years has elapsed from the date of forgoing such benefits:

Provided also that the above mentioned condition for participating in the REC scheme shall not apply if the benefits given to such plant in the form of concessional transmission or wheeling charges and or banking facility benefit are withdrawn by the concerned State Electricity Regulatory Commission and/or the State Government:

Provided also that if any dispute arises as to whether a CGP or any other renewable energy generator has availed such oncessional/promotional benefits, the same shall be referred to the Appropriate Commission for decision.

The RE generators who fulfil the eligibility criteria can apply for the accreditation to concerned State Agency. After successful accreditation the eligible entity (RE generator) may apply for registration to the Central Agency. After successful registration the eligible entity may obtain REC through the 'process of issuance of REC' by Central Agency. The detailed procedures for Accreditation, Registration, Issuance and Redemption of REC can be downloaded from CERC/NLDC(POSOCO) websites: www.cercind.gov.in, https://posoco.in, www.recregistryindia.nic.in

Solar Energy: More Sunny, More Money

Solar Energy, a topic which is receiving close review as compared to any other sectors. And why not, it is not only a fabulous way to reduce the issue of various environmental problems but also a chance for us to balance the overutilized conventional resources. By switching to solar we all are reducing the pressure on our fast depleting resources such as coal, petroleum etc. Here I wouldn't be discussing about already known social and environmental benefits. Here I would be discussing solar energy as a business prospective, I see solar as a fantastic opportunity for business, especially when there is strong support from government in form of subsidy and incentive, it give every individual to monetize solar. From a MNC point of view, its a great way to add some CSR credit under their belt.

The Government of India has appointed Ministry of New And Renewable Energy, commonly called MNRE  as government body to govern Solar Energy sector. Solar energy power plant are considered to be easy to  earn instead of  other renewable sources.There are different models or schemes through which one can generate electricity and sell it. 

1. Power Purchase Agreement:

 It is an agreement between an EPC contractor/ System Integrator and government for 25 years. The government purchase electricity at a fixed tariff decided by competitive bidding. Government releases tender periodically, and system integrator can participate in these tender, offline or on-line.

2. Net Metering:

It is a not necessary that an owner uses all its the electricity generated by the Solar PV system. In order to utilize the maximum from the system, government give opportunity to owner to monetize the unused electricity generated from PV system. For each unit supplied to grid , a certain tariff is provided  OR can be compensate from the next billing cycle. 

Incentive= (Electricity in kWh generated from Solar PV system - Electricity in kWh consumed)* tariff

Net metering policy also helps in lowering to the cost slab which indirectly helps in reducing electricity bill.

The net metering policy differs from state to state. So it is recommended to go through net metering policy before investing.

3. Gross Metering:

It is similar to net metering except in gross metering policy, instead of providing incentive on difference of the electricity unit; incentive is provided on total electricity generated from solar PV system. None of the electricity produced can be utilized by the owner. The policy is applicable in few state only.

4. Third Party Sell:

It is privatized version of power purchase agreement. In this case, the power agreement is made between developer and non-government body( private party) on a mutual tariff and mutual time period. It is generally referred to as RESCO model.

In RESCO model, the initial investment has to be made by developer.Before investing in such model, it is suggested to go through company profile and credit rating. 

5. Captive Usage:
"Money saved is Money earned"
This is mainly applicable for industrial and commercial users. These include, manufacturing plants, cold storage, hotels and retail outlet etc. In the mentioned areas, the consumption is quite high. In order to reduce their monthly bill , it is advisable to install solar system. These sectors are blessed with large area, hence hundreds of kW  of capacity can be easily installed.

6. REC
It stands for Renewable Energy Certificates. It is mandatory for any electricity generating company to resources to generate 2%  through renewable resource and facilitate compliance of renewable power obligation. The government provides an flexibility to them of purchasing REC. The value of 1 REC = 1MWh, this means that person/ company possessing 1 REC has generated 1 MWh units of electricity. Now instead of installing on solar system, one can simply buy REC from other party. The REC once issued shall remain valid for One thousand and ninety-five days from the date of issuance of such Certificate. REC would be exchanged only in the CERC approved power exchanges. For more details on REC,click here.