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Techno-economic review of rooftop photovoltaic systems: Case studies of industrial, residential and off-grid rooftops in Bangalore, Karnataka

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  • Ghosh, Saptak
  • Nair, Akhilesh
  • Krishnan, S.S.

Abstract

The objective of this study is to assess the financial feasibility of setting up Rooftop Photovoltaic (RTPV) systems in Bengaluru which is in the state of Karnataka, India. The Renewable Energy Policy of the state mandates the installation of 250MW of RTPV systems by 2014, while research shows that the domestic RTPV potential in Bengaluru alone is around 560MW. To achieve this potential, the Karnataka Renewable Energy Development Limited (KREDL) and the Karnataka Electricity Regulatory Commission (KERC) formulated policy incentives in the form of net metering at rates of Rs. 9.56/kWh (without the Ministry of New and Renewable Energy (MNRE) capital subsidy) and Rs. 7.2/kWh (with MNRE capital subsidy). Techno-economic assessment of RTPV systems show that these rates lead to viable business cases for the consumers. However, due to Bangalore Electricity Supply Company׳s (BESCOM) poor finances, a cap of 75% on the capacity of any installed RTPV system based on rated load has been set for all interested parties. Unless this cap is removed, the net metering scheme can never gain momentum in Karnataka because the power generated from the RTPV system will not exceed the monthly consumption. An additional amount of Rs. 81.6 crores per annum is required to reach the 250MW target. BESCOM can tap the proposed State Clean Energy Fund (SCEF) to pay RTPV project developers. Other revenue models such as feed in tariffs (FiT) and the Renewable Energy Certificates (REC) schemes have been considered for analysis of larger RTPV systems on industrial and commercial rooftops.

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  • Ghosh, Saptak & Nair, Akhilesh & Krishnan, S.S., 2015. "Techno-economic review of rooftop photovoltaic systems: Case studies of industrial, residential and off-grid rooftops in Bangalore, Karnataka," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1132-1142.
  • Handle: RePEc:eee:rensus:v:42:y:2015:i:c:p:1132-1142
    DOI: 10.1016/j.rser.2014.10.094
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    2. Federica Cucchiella & Idiano D’Adamo & Paolo Rosa, 2015. "Industrial Photovoltaic Systems: An Economic Analysis in Non-Subsidized Electricity Markets," Energies, MDPI, vol. 8(11), pages 1-16, November.
    3. Padmanathan K. & Uma Govindarajan & Vigna K. Ramachandaramurthy & Sudar Oli Selvi T., 2017. "Multiple Criteria Decision Making (MCDM) Based Economic Analysis of Solar PV System with Respect to Performance Investigation for Indian Market," Sustainability, MDPI, vol. 9(5), pages 1-19, May.
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    5. Tongsopit, Sopitsuda & Junlakarn, Siripha & Wibulpolprasert, Wichsinee & Chaianong, Aksornchan & Kokchang, Phimsupha & Hoang, Nghia Vu, 2019. "The economics of solar PV self-consumption in Thailand," Renewable Energy, Elsevier, vol. 138(C), pages 395-408.
    6. Li, Changsheng & Wang, Haiyu & Miao, Hong & Ye, Bin, 2017. "The economic and social performance of integrated photovoltaic and agricultural greenhouses systems: Case study in China," Applied Energy, Elsevier, vol. 190(C), pages 204-212.
    7. Patrick Gregory B. Jara & Michael T. Castro & Eugene A. Esparcia & Joey D. Ocon, 2020. "Quantifying the Techno-Economic Potential of Grid-Tied Rooftop Solar Photovoltaics in the Philippine Industrial Sector," Energies, MDPI, vol. 13(19), pages 1-20, September.
    8. Lang, Tillmann & Ammann, David & Girod, Bastien, 2016. "Profitability in absence of subsidies: A techno-economic analysis of rooftop photovoltaic self-consumption in residential and commercial buildings," Renewable Energy, Elsevier, vol. 87(P1), pages 77-87.
    9. Haegermark, Maria & Kovacs, Peter & Dalenbäck, Jan-Olof, 2017. "Economic feasibility of solar photovoltaic rooftop systems in a complex setting: A Swedish case study," Energy, Elsevier, vol. 127(C), pages 18-29.
    10. Zou, Hongyang & Du, Huibin & Ren, Jingzheng & Sovacool, Benjamin K. & Zhang, Yongjie & Mao, Guozhu, 2017. "Market dynamics, innovation, and transition in China's solar photovoltaic (PV) industry: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 197-206.
    11. Okoye, Chiemeka Onyeka & Bahrami, Arian & Atikol, Ugur, 2018. "Evaluating the solar resource potential on different tracking surfaces in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1569-1581.
    12. Luis Ramirez Camargo & Judith Franco & Nilsa María Sarmiento Babieri & Silvina Belmonte & Karina Escalante & Raphaela Pagany & Wolfgang Dorner, 2016. "Technical, Economical and Social Assessment of Photovoltaics in the Frame of the Net-Metering Law for the Province of Salta, Argentina," Energies, MDPI, vol. 9(3), pages 1-21, February.
    13. Shravanth Vasisht, M. & Vashista, G.A. & Srinivasan, J. & Ramasesha, Sheela K., 2017. "Rail coaches with rooftop solar photovoltaic systems: A feasibility study," Energy, Elsevier, vol. 118(C), pages 684-691.
    14. Jaymin Gajjar & Swasti Raizada & Vikash Kumar & Nikhil Abraham & Saptak Ghosh, 2019. "Economic Effect of Rooftop Photovoltaic Penetration on Retail Rates of Bangalore Electricity Supply Company," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 336-345.

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