The document provides an overview of the solar energy sector in India. It notes that India has significant untapped solar potential but has realized less than 20% of its renewable energy capacity. Solar PV is the main technology used in India, concentrated in small-scale applications and lighting. Key challenges include the high cost of solar power generation due to high capital costs. The National Solar Mission aims to increase solar capacity through generation incentives and policies supporting manufacturers. Several companies are profiled that manufacture solar components and develop utility-scale solar plants in India.

1. Research4India
India Solar Energy Report
June 2012
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2. Table of Content
1. Solar Energy in India – Introduction………………………………………………………………………………………. 3
2. Solar Energy Segments………………………………………………………………………………………………………….. 9
3. Drivers for Solar Market ……….……………………………………………………………………………………………... 18
4. Government Incentives/NSM……………………………………………………………………………………………….. 23
5. Investment Opportunities in the Solar Sector ………..…………………………………………………………….. 29
6. Key Issues/Challenges ………………………………………………………………………………………………………….. 37
7. Companies …………………………………………………………………………………………………………………………. 45
Manufacturers of Cells/Modules/Systems Developers of Solar Power Plants
i. Moser Baer Photovoltaic (MBPV) i. Lanco Solar
ii. XL Energy ii. Moser Baer Clean Energy
iii. Websol Energy iii. Azure Power
iv. Indosolar iv. SunBorne
v. Tata BP Solar v. Kiran Energy
vi. Titan Energy
vii. Solar Semiconductor
viii. Kotak Urja
ix. Photon Energy
x. Maharishi Solar
xi. Vikram Solar
xii. Reliance Solar
xiii. PLG Power
xiv. HHV Solar
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3. Untapped potential of Renewable Energy in India
 India has an enormous potential of renewable energy (~XXMW) across various sources. However India has
realized ~xx% (~xx MW) , leaving a huge untapped potential. This is xx% of total installed power capacity
 However, the contribution of renewable energy to real power generated is only x%.
 As part of the National Action Plan on Climate Change, (NAPCC) the government has set the target of increasing
contribution of renewable energy sources in power generations to x% by 2015. The share will continue to grow
steadily with renewable energy expected to contribute as high as xx% by 2050.
Installed Capacity for Renewables in India Renewable Potential Vs Achievements in India
RE Sources Potential (MW) Achieved (MW)
CAGR 23% Wind XX XX
Small Hydro (up to
XX XX
25 MW)
Biomass + Bagasse XX XX
Solar and others XX XX
1 TW = 1000,000 MW
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Source: MNRE
Source: MNRE
India has realized less than XX% of its installed renewable energy capacity, leaving huge untapped
opportunity
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4. Methods of harnessing solar power
Installed Capacity for PV in India (MW)
Solar Photovoltaic
 Solar Photovoltaic (SPV) technology converts light directly into
electricity.
CAGR 57%
 India has current installed capacity of XXMW (PV systems and
power plants). PV installations in India today almost entirely
comprise small capacity applications.
 Ministry of New and Renewable Energy (MNRE) is aiming to
achieve XXMW grid-connected SPV capacity by 2012.
2009 2010e 2011e 2012e 2013e
Source: European Photovoltaic Industry Association
Solar Thermal
 Solar Thermal technology converts light first into heat and then electricity.
 Solar thermal can be used for heating and drying and for power generation (concentrating solar power, CSP).
 In India, there is no power generation currently using solar thermal. Solar thermal has been used exclusively for
heating and drying.
 India ranks ninth worldwide in production of solar thermal power systems.
Solar PV technology has always been the main technology adopted for solar power in India. Solar
thermal is largely confined to heating and drying applications
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5. Status of Solar Energy in India
Solar Power Capacity
Sources / Systems Cumulative Achievement
Grid-interactive Power PV constitutes a miniscule part in India’s installed
Solar Power XX power generation capacity with grid connected
From all renewable sources XX solar PV generation at a mere XXMW
Off-grid Power
Solar PV Power Plants XX
From all renewable sources XX
Total Solar Power XX
Decentralised Energy Systems (Off-grid)
Solar Street Lighting XX Bulk of India’s installed SPV capacity is in the form
of non-grid applications. They are most visibly
Home Lighting System XX seen in lighting applications (street lighting, and
home lightning systems), small electrification
Solar Lantern XX
systems and solar lanterns in rural areas.
SPV Pumps XX
Solar Water Heating In India, solar thermal technology has been used
XX exclusively for heating and drying.
System
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6. Availability of public and private capital
PE deals in solar in the last 4 years
Date Investor (s) Company Value($Mn)
Oct-11 GE Energy Financial Services Company 1 XX
Jun-11 IFC Company 2 XX
New Silk Route, Bessemer Ventures and Argonaut Company 3 XX
Jan-11
Ventures
Oct-10 IFCI Ventures Company 4 XX
Oct-10 New Silk Route, Argonaut, Bessemer Company 5 XX
Oct-10 IFC Company 6 XX
Aug-10 Blackstone Group Company 7 XX
Jul-10 Bessemer Venture, IFC Company 8 XX
Apr-10 IFC Company 9 XX
Mar-10 IFC, Helion Venture Partners, Foundation Capital Company 10 XX
Dec-09 Khosla Ventures, General Catalyst Partners Company 11 XX
May-09 Pangea Capital Company 12 XX
Company 13 XX
Nov-08 Sherpalo Ventures, KPCB, Applied Ventures
Oct-08 General Catalyst Partners Company 14 XX
Sep-08 Helion Ventures, Foundation Capital Company 15 XX
Morgan Stanley, Credit Suisse, IDFC PE, Nomura Company 16 XX
Sep-08
Holdings, Others
Mar-08 Aureos India, SIDBI VC Company 17 XX
Investing in solar power plants could fit in PE portfolio owing to the fact a long power purchase
agreement with a government-backed entity assures them of a stable revenue flow
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7. Incentives under National Solar Mission
Incentives under National
Solar Mission
Incentives for power plant Incentives for solar PV/thermal
developers manufacturers
NTPC Vidyut Vyapar Nigam
Generation Based Incentive Semiconductor Policy and
(NVVN) for large scale power
(GBI) for roof top and small Special Incentive Package
PV plants (5-25 MW) and
scale power plants (1-5 MW) Scheme
thermal plants (20-100 MW)
 Reduce the cost of grid connected  NVVN will enter into PPA with solar  20% subsidy on capital expenditure
solar systems power developers to purchase solar for SPV project in a SEZ while 25%
 GBI to power developers: Rs.12/ power @ CERC tariff (Rs 17.91/kWh subsidy in case of a non SEZ.
KWh for SPV and of Rs.10/KWh for PV and Rs. 15.40/kWh for  No Central Excise duty on specific
for Solar Thermal Power Plants thermal) capital equipment, critical materials
 GBI for a period of 10 years  NVVN to get equivalent MW from and project imports
NTPC  Low interest rate loans
 NVVN will sell bundled power to  Promote solar water heating systems
State utilities at the rates determined ensuring that applications below 80
as per CERC regulations °C are solarised
Aims at 100 MW power by 2013
Aims at 1,000 MW power by 2013 Aims at 4-5 GW capacity by 2020
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8. High cost of solar power
Cost of power generation (Rs /kWh)
The estimated unit cost of generation of
electricity from SPV and solar thermal route is
much higher than the electricity obtained from
conventional fossil fuels.
Thermal Solar Thermal SPV
Source: TERI Min Max
Cost of setting up power plants (Rs Mn/MW)
The primary reason for the high cost of solar
power is the high capital cost.
Component Amount (Rs Mn)
Solar panel arrays XX
Inverter XX
Balance of System XX
Installation XX
SPV cost breakup Others XX
Total XX
Thermal Wind Nuclear Solar Thermal SPV
Source: CERC
The main issue impending the solar industry is high cost of power generation which is due to
high capital cost
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9. Manufacturers of PV cells/modules/systems
Product
PV Solar
Company Location Capacity Wafers Cells Modules Systems Thermal Future Plans
Moser Baer
Photovoltaic Delhi XX √ √ √ XX
XL Energy Hyderabad XX √ √ XX
Websol Energy Kolkata XX √ √ XX
Indosolar Noida XX √ XX
Tata BP Solar Bangalore XX √ √ √ √ XX
Titan Energy Hyderabad XX √ √ XX
Solar
Semiconductor Hyderabad XX √ √ XX
Kotak Urja Bangalore XX √ √ √ XX
Photon Energy Hyderabad XX √ √ √ XX
Maharishi Solar Delhi XX √ √ √ √ √ XX
Vikram Solar Kolkata XX √ √ XX
Reliance Solar Mumbai XX √ √ XX
PLG Power Mumbai XX √ √ XX
HHV Solar Bangalore XX √ √ XX
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10. Websol Energy Systems
BACKGROUND AND OVERVIEW PRODUCTS AND SOLUTIONS
 Established in 1990, Websol Energy Systems Ltd. (formerly Webel SL Products/solutions Details
Energy Systems Ltd.) is a leading manufacturer of photovoltaic Solar Photovoltaic  Crystalline Cells
monocrystalline solar cells and modules.  Crystalline Modules
 The Company’s production facility is located at Falta SEZ, West  The product range from 5 watt to 220 watt caters to
Bengal and has the manufacturing capacity of 42MW. needs ranging from rural electrification to big power
plants.
 Websol solar modules have been certified by various reputed
institutes like Underwriters laboratories Inc , TUV Rhienland MANAGEMENT
Germany, EuroTest Laboratori S.R.l Italy and CSA International
Canada. Name/Designation Profile
 The Company manufactures cells and modules for stand-alone and Mr. S L Agarwal, Mr. Agarwal is a commerce graduate from Kolkata
Founder and University and has more than 25 years experience in
grid connected projects.
managing different types of businesses and organisations.
Managing Director
 Websol primarily focuses on the international markets: Mr. Agarwal is a recipient of the prestigious Udyog Ratna
Award from the President of India and Shiromani Award
− In FY10, it exported more than 99% of its production to Europe
from the Indian Institute of Economic Studies in 1987. He
and USA is also a core committee member of Indian Semiconductor
− It is selling its products to system integrators and project Association Solar PV Cell.
developers
BUSINESS STRATEGY
− In order to address customer enquiry and develop customer
relations it has set up offices at Germany and US  The Company plans to increase the capacity to XXMW by 2011 and
 In India, the companies operations are largely focused to the state to XXMW by 2012. It expects to grow peak revenues to Rs XXbn
of West Bengal once XXMW is fully commissioned, and to Rs XXbn when XXMW is
commissioned.
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11. Websol Energy Systems
REVENUES (EXPORTS AND DOMESTIC) EBITDA AND EBITDA MARGIN
FY08 FY09 FY10 FY11
FY08 FY09 FY10 FY11 FY12 EBITDA (Rs Mn) EBITDA Margin (%)
FY’12 EBITDA : Rs -1,123mn
PAT AND PAT MARGIN RETURN ON NET WORTH AND RETURN ON CAPITAL EMPLOYED
FY08 FY09 FY10 FY11
FY08 FY09 FY10 FY11
Net Profit (Rs Mn) PAT Margin (%) RoE RoCE
FY’12 PAT : Rs -1,489mn
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12. Developers of solar power plants
Capacity
Under
Company Location Current Future Plans
implementation
Lanco Solar Delhi XX XX XX
Moser Baer Clean Energy Delhi XX XX XX
Azure Power Delhi XX XX XX
SunBorne Gurgaon XX XX XX
Kiran Energy Mumbai XX XX XX
KVK Energy Hyderabad XX XX XX
Rajasthan Sun Technique
Mumbai XX XX XX
(Reliance Power unit)
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