Solar Mangos India Solar EPC Blueprint

1|Page
 Solar Mangos India Solar EPC Blueprint

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.

To purchase the India Solar EPC Blueprint,

Send an email to enquiry@solarmango.com, with the subject: Purchase Solar EPC Blueprint
Or contact Ramya for further information ramya@solarmango.com

Visit the official website for more information - http://www.solarmango.com/blueprint-solar-epc-

opportunity-india/

2|Page
 Solar Mangos India Solar EPC Blueprint

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. Solar Power Potential in India .......................................................... Error! Bookmark not defined.
1.1 Solar Potential in India ............................................................. Error! Bookmark not defined.
1.1.1 Prominent Regions for Solar Power Plants ...................... Error! Bookmark not defined.
1.1.2 Performance of Operating Plants .................................... Error! Bookmark not defined.
1.2 Solar Power Growth & Trends ................................................. Error! Bookmark not defined.
1.2.1 JNNSM Mission ................................................................ Error! Bookmark not defined.
1.2.2 Lever's Affecting Growth of Solar PV in India .................. Error! Bookmark not defined.
1.2.3 Across geographies .......................................................... Error! Bookmark not defined.
1.2.4 Across specific segments ................................................. Error! Bookmark not defined.
1.2.5 Across business models ................................................... Error! Bookmark not defined.
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 State Policies .................................................................... Error! Bookmark not defined.
1.3.4 Recently concluded and upcoming allocations................ Error! Bookmark not defined.
1.3.5 Challenges with the REC Model ....................................... Error! Bookmark not defined.
1.3.6 Rooftop Solar Policies/ Incentives ................................... Error! Bookmark not defined.
1.3.7 Net Metering in Major States .......................................... Error! Bookmark not defined.
1.4 Business & Revenue Models for Solar Power Plants in India .. Error! Bookmark not defined.
1.4.1 Business Models............................................................... Error! Bookmark not defined.
1.4.2 Revenue Models .............................................................. Error! Bookmark not defined.

3|Page
 Solar Mangos India Solar EPC Blueprint

2. Indian Solar Market Segmentation .................................................. Error! Bookmark not defined.

2.1 Region ...................................................................................... Error! Bookmark not defined.
2.2 Type of end user ...................................................................... Error! Bookmark not defined.
2.3 Size of the project .................................................................... Error! Bookmark not defined.
2.3.1 Off-grid & Rooftop ........................................................... Error! Bookmark not defined.
2.3.2 Ground-mounted ............................................................. Error! Bookmark not defined.
3. Solar EPCs in India ............................................................................ Error! Bookmark not defined.
3.1 EPC with focus on:.................................................................... Error! Bookmark not defined.
3.1.1 Rooftop solar power plants.............................................. Error! Bookmark not defined.
3.1.2 Ground-mounted solar power plants .............................. Error! Bookmark not defined.
3.1.3 Companies Diversifying into EPC Business....................... Error! Bookmark not defined.
3.2 Turnkey EPCs ............................................................................ Error! Bookmark not defined.
3.3 EPCs with Local/Regional Focus ............................................... Error! Bookmark not defined.
3.4 EPCs taking up mainly sub-contract work from larger EPCs .... Error! Bookmark not defined.
3.5 Specific functions alone ........................................................... Error! Bookmark not defined.
3.6 Pure- play design firms............................................................. Error! Bookmark not defined.
3.7 EPCs with an O&M focus.......................................................... Error! Bookmark not defined.
4. Business Potential Analysis for Solar EPCs in India .......................... Error! Bookmark not defined.
4.1 Segment-wise Potential ........................................................... Error! Bookmark not defined.
4.2 Region-wise Potential .............................................................. Error! Bookmark not defined.
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 Attractive C&I Sectors ...................................................... Error! Bookmark not defined.
4.3.2 Attractive Institutional Sectors ........................................ Error! Bookmark not defined.
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 EPC Opportunities ............................................................ Error! Bookmark not defined.
4.5.2 Value Added Services that can be provided by EPCs ....... Error! Bookmark not defined.
4.5.3 Technology innovations ................................................... Error! Bookmark not defined.
4.5.4 Innovative Concepts in Residential Rooftop .................... Error! Bookmark not defined.

4|Page
 Solar Mangos India Solar EPC Blueprint

4.6 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. Insights & Recommendations .......................................................... Error! Bookmark not defined.
5.1 Skills and Human Resources Solar EPCs Need ......................... Error! Bookmark not defined.
5.2 Insights on Marketing, Sales & Distribution............................. Error! Bookmark not defined.
5.2.1 Shortening Long Sales Cycles ........................................... Error! Bookmark not defined.
5.2.2 Sales & Marketing Partnerships ....................................... Error! Bookmark not defined.
5.2.3 Brand Building .................................................................. Error! Bookmark not defined.
5.2.4 Insights on Competition ................................................... Error! Bookmark not defined.
5.2.5 Other Recommendations for Sales Strategies ................. Error! Bookmark not defined.
5.3 Best of Breed Practices ............................................................ Error! Bookmark not defined.
5.4 Opportunities for Innovation ................................................... Error! Bookmark not defined.
5.5 Identifying Profitable Niches.................................................... Error! Bookmark not defined.
5.6 Leveraging Technology ............................................................ Error! Bookmark not defined.
5.7 Parameters on Which Solar EPCs are Evaluated by Prospects Error! Bookmark not defined.
6. Profiles & Case Studies..................................................................... Error! Bookmark not defined.
6.1 Profiles of the Prominent Solar EPCs in India .......................... Error! Bookmark not defined.
6.2 Variations of EPCs .................................................................... Error! Bookmark not defined.
6.3 Key Mistakes to Avoid .............................................................. Error! Bookmark not defined.
7. 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 Step 1 ............................................................................... Error! Bookmark not defined.
7.2.2 Step 2 ............................................................................... Error! Bookmark not defined.
7.2.3 Step 3 ............................................................................... Error! Bookmark not defined.
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.

5|Page
 Solar Mangos India Solar EPC Blueprint

7.3.1 Overview of Solar Power Plant Technologies .................. Error! Bookmark not defined.
7.3.2 Panels ............................................................................... Error! Bookmark not defined.
7.3.3 Inverters ........................................................................... Error! Bookmark not defined.
7.3.4 Mounting Structures ........................................................ Error! Bookmark not defined.
7.3.5 Trackers ............................................................................ Error! Bookmark not defined.
7.3.6 DC-Side Electricals ............................................................ Error! Bookmark not defined.
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 Civil and Architectural Requirements .............................. Error! Bookmark not defined.
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 Billable kWh ..................................................................... Error! Bookmark not defined.
7.4.2 Tariff ................................................................................. Error! Bookmark not defined.
7.4.3 Costs ................................................................................. Error! Bookmark not defined.
7.4.4 Analysis ............................................................................ Error! Bookmark not defined.
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. Summary, Inferences & Recommendations .................................... Error! Bookmark not defined.
9. Glossary - Terms You Should Know as a Solar EPC .......................... Error! Bookmark not defined.
9.1 Technical and Operational Terms ............................................ Error! Bookmark not defined.
9.1.1 BOO Model (Build Own Operate Model) ......................... Error! Bookmark not defined.
9.1.2 Capacity Utilization Factor ............................................... Error! Bookmark not defined.
9.1.3 Central Inverters .............................................................. Error! Bookmark not defined.
9.1.4 Concentrating Photovoltaics ............................................ Error! Bookmark not defined.
9.1.5 Cross Subsidy Surcharge .................................................. Error! Bookmark not defined.
9.1.6 Crystalline Silicon/c-Si ...................................................... Error! Bookmark not defined.
9.1.7 DNI (Direct Normal Irradiance) ........................................ Error! Bookmark not defined.
9.1.8 Feed-in-Tariff.................................................................... Error! Bookmark not defined.
9.1.9 Grid-tied Solar Power System .......................................... Error! Bookmark not defined.
9.1.10 Grid Parity ........................................................................ Error! Bookmark not defined.

6|Page
 Solar Mangos India Solar EPC Blueprint

9.1.11 LCOE (Levelized Cost of Energy)....................................... Error! Bookmark not defined.

9.1.12 Module ............................................................................. Error! Bookmark not defined.
9.1.13 Module Degradation ........................................................ Error! Bookmark not defined.
9.1.14 Net metering .................................................................... Error! Bookmark not defined.
9.1.15 Off-grid Solar .................................................................... Error! Bookmark not defined.
9.1.16 Open Access ..................................................................... Error! Bookmark not defined.
9.1.17 Pyranometer .................................................................... Error! Bookmark not defined.
9.1.18 Reflection Losses in Solar Cells ........................................ Error! Bookmark not defined.
9.1.19 Shading of solar panels .................................................... Error! Bookmark not defined.
9.1.20 Smart Grid ........................................................................ Error! Bookmark not defined.
9.1.21 String Inverters................................................................. Error! Bookmark not defined.
9.1.22 Standard Test Conditions (STC) ........................................ Error! Bookmark not defined.
9.1.23 Temperature Coefficient of Solar Panels ......................... Error! Bookmark not defined.
9.1.24 Thin Film Solar Cell ........................................................... Error! Bookmark not defined.
9.1.25 Tracker ............................................................................. Error! Bookmark not defined.
9.1.26 Watt Peak (Wp) ................................................................ Error! Bookmark not defined.
9.1.27 Wheeling Charges ............................................................ Error! Bookmark not defined.
9.2 Explanation of Key Financial Terms ......................................... Error! Bookmark not defined.
9.2.1 Payback Period ................................................................. Error! Bookmark not defined.
9.2.2 Return on Investment (ROI) ............................................. Error! Bookmark not defined.
9.2.3 Net Present Value (NPV) .................................................. Error! Bookmark not defined.
9.2.4 IRR (Internal Rate of Return) ............................................ Error! Bookmark not defined.
9.2.5 Levelized tariff .................................................................. Error! Bookmark not defined.
9.2.6 PPA ................................................................................... Error! Bookmark not defined.
9.2.7 Financial Closure .............................................................. Error! Bookmark not defined.
9.2.8 Accelerated Depreciation ................................................ Error! Bookmark not defined.
9.2.9 Discounting Factor ........................................................... Error! Bookmark not defined.
9.2.10 Hedging ............................................................................ Error! Bookmark not defined.
9.2.11 Moratorium ...................................................................... Error! Bookmark not defined.
9.2.12 With recourse/Without recourse .................................... Error! Bookmark not defined.
9.3 Solar Apex Bodies & Organizations in India and their Roles .... Error! Bookmark not defined.
9.3.1 MNRE ............................................................................... Error! Bookmark not defined.
9.3.2 CWET/NIWE ..................................................................... Error! Bookmark not defined.

7|Page
 Solar Mangos India Solar EPC Blueprint

9.3.3 SECI................................................................................... Error! Bookmark not defined.

9.3.4 SESI ................................................................................... Error! Bookmark not defined.
9.3.5 NSEFI ................................................................................ Error! Bookmark not defined.
9.3.6 SERIIUS ............................................................................. Error! Bookmark not defined.
9.3.7 CSRI .................................................................................. Error! Bookmark not defined.
10. Annexure ...................................................................................... Error! Bookmark not defined.
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 Bill of Materials Format ........................................................... Error! Bookmark not defined.
10.4 Tax Break-up for a Typical MW-Scale, Ground-Mounted PlantError! Bookmark not defined.
10.5 Project Implementation Schedule Format ............................... Error! Bookmark not defined.
10.6 List of key component suppliers for Panels, Inverters, Cables, Mounting Structures,
Monitoring Systems ............................................................................. Error! Bookmark not defined.
10.6.1 Modules ........................................................................... Error! Bookmark not defined.
10.6.2 Mounting Structures ........................................................ Error! Bookmark not defined.
10.6.3 Cables ............................................................................... Error! Bookmark not defined.
10.6.4 Inverters ........................................................................... Error! Bookmark not defined.
10.6.5 Battery.............................................................................. Error! Bookmark not defined.
10.6.6 IT Solution Providers ........................................................ Error! Bookmark not defined.
10.7 DPR Template for a Solar PV Power Plant ............................... Error! Bookmark not defined.
10.7.1 Components of a Detailed Project Report ....................... Error! Bookmark not defined.

8|Page
 Solar Mangos India Solar EPC Blueprint

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.

9|Page
 Solar Mangos India Solar EPC Blueprint

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

10 | P a g e
 Solar Mangos India Solar EPC Blueprint

Table 35: Analysis of Key Characteristics of Region-wise Segments ------ Error! Bookmark not defined.
Table 36: Analysis of Key Characteristics of End-user Segments ---------- Error! Bookmark not defined.
Table 37: Analysis of Key Characteristics of kW-size Residential Projects ----------- Error! Bookmark not
defined.
Table 38: Analysis of Key Characteristics of Ground-Mounted Solar Projects ----- Error! Bookmark not
defined.
Table 39: Prominent Installations in AP ------------------------------------------ Error! Bookmark not defined.
Table 40: Prominent Installations in Gujarat ----------------------------------- Error! Bookmark not defined.
Table 41: Prominent Installations in Haryana ---------------------------------- Error! Bookmark not defined.
Table 42: Prominent Installations in Karnataka -------------------------------- Error! Bookmark not defined.
Table 43: Prominent Installations in MP ----------------------------------------- Error! Bookmark not defined.
Table 44: Prominent Installations in Maharashtra ---------------------------- Error! Bookmark not defined.
Table 45: Prominent Installations in Rajasthan -------------------------------- Error! Bookmark not defined.
Table 46: Prominent Installations in Tamil Nadu ------------------------------ Error! Bookmark not defined.
Table 47: Prominent Installations in Telangana-------------------------------- Error! Bookmark not defined.
Table 48: Rooftop Solar EPCs in India --------------------------------------------------------------------------------- 27
Table 49: EPCs in the Ground-mounted Sector --------------------------------------------------------------------- 27
Table 50: Companies Diversifying into EPC Business - Trends--------------------------------------------------- 28
Table 51: Summary of High Potential States------------------------------------ Error! Bookmark not defined.
Table 52: Potential Market Segments- Commercial & Industrial Sector - Error! Bookmark not defined.
Table 53: Cost Estimates for Solar EPC Operations ---------------------------------------------------------------- 33
Table 54: EPC Margins (% of Total Project Cost) - Indicative ---------------------------------------------------- 33
Table 55: Suggestions for Shortening Sales Cycles ----------------------------------------------------------------- 36
Table 56: Parameters on which Prospects Evaluate Solar EPCs ------------------------------------------------- 38
Table 57: EPCs as OEMs & Developers -------------------------------------------------------------------------------- 43
Table 58: Parameters for Selection of Solar Power Plant Components (Source: Solar Mango) --- Error!
Bookmark not defined.
Table 59: Portion of land required for what purpose ------------------------------------------------------------- 45
Table 60: Expected Generation for a 2 MW SPP ------------------------------- Error! Bookmark not defined.
Table 61: Pros and Cons of Crystalline Panels (Source: Solar Mango)---- Error! Bookmark not defined.
Table 62: Market Share of Silicon Technologies (Source: Solar Mango Estimate) Error! Bookmark not
defined.
Table 63: Details on Cost of Grid Extension ------------------------------------- Error! Bookmark not defined.
Table 64: STANDARDS AND WARRANTIES FOR CRITICAL COMPONENTS Error! Bookmark not defined.
Table 65: CERC benchmark cost breakup for a 1 MW ground mounted solar PV power plant 2016-17
(Source: CERC)-------------------------------------------------------------------------- Error! Bookmark not defined.
Table 66: COMPARISON OF CERC BENCHMARK CAPITAL COST 2010-16 (RS. LAKHS) --Error! Bookmark
not defined.
Table 67: COMPARISON OF CERC BENCHMARK CAPITAL COST 2010-15 (% OF TOTAL COST) ----- Error!
Bookmark not defined.
Table 68: Cash Flow for a 1 MW Plant -------------------------------------------------------------------------------- 48
Table 69: IRRs -------------------------------------------------------------------------- Error! Bookmark not defined.
Table 70: Degradation in Panel Generation------------------------------------- Error! Bookmark not defined.
Table 71: Usable Power Generated by a 100 kW Solar Plant --------------- Error! Bookmark not defined.
Table 72: Inverter Replacement Cost --------------------------------------------- Error! Bookmark not defined.
Table 73: Annual Maintenance Contract Cost ---------------------------------- Error! Bookmark not defined.
Table 74: Typical Solar Power Plant Components and Technical Details Error! Bookmark not defined.

11 | P a g e
 Solar Mangos India Solar EPC Blueprint

Table 75: Tax break-up for a typical solar PV project -------------------------------------------------------------- 53

Table 76: List of Inverters ------------------------------------------------------------------------------------------------ 54
Table 77: List of IT Solution Providers -------------------------------------------- Error! Bookmark not defined.

12 | P a g e
 Action Plan for Becoming a
Successful Solar EPC
Becoming a solar EPC looks easy enough after all, it requires no capital upfront, and appears to need
only easily accessible skills in electrical and construction projects. Dig a bit deeper, and you realize that
while anyone can become a solar EPC quite easily, only a few will graduate to become really successful
EPCs.

While this blueprint provides extensive details on how to build a successful EPC business, here are the key
building blocks for building a great solar EPC business, mentioned in the form of an Action Plan. Ensure
you start working on each of these building blocks, with the help of insights provided in the various
chapters of this guide.

Remember, the key aspects mentioned under each of the four dimensions need to be worked on right in
the beginning of an EPC business. That is why these are called the building blocks!

We have decided to structure the Action Plan on the following dimensions:

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.

13 | P a g e
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.

14 | P a g e
 Before You Start
This section provides you quick pointers on some immediate actionable to promote your EPC business
and useful data resources available in the report.

List of Upcoming Solar Events

Event Name Date & Location Website

Intersolar India Oct 19th 21st, 2016 - https://www.intersolar.in/

Mumbai

Renewable Energy India 7th -9th Sept, 2016 - http://www.renewableenergyindiaexpo.com/

Expo India Expo Centre,
Greater Noida, India

National Conference & 22nd 23rd Sept, 2016 http://www.solar.missionenergy.org/

Expo Roadmap for Mumbai
Innovation in Solar
Energy - RISE 2016

4th International 12th Jan 2017 Nehru http://www.esiexpo.in/

Conference & Exhibition Centre, Mumbai
on Energy Storage &
Micro-grids in India

World Renewable Energy 21st - 23rd Aug, 2016 http://wretc.in/

Technology Congress & New Delhi
Expo

Rooftop Solar 28th 29th July, 2016 http://solarquarter.com/index.php/events/849-

Construction Hotel The Suryaa, New rooftop-solar-construction-management
Management Delhi

Solar PV Module Tech 4th August, 2016 http://firstviewgroup.com/index.php/upcoming-

India 2016 Hotel The Suryaa, New events-2/business-events/solar-pv-moduletech-
Delhi india-2016

15 | P a g e
List of Training Program & Institutes
Global Sustainable Energy Solutions India (GSES)
The Energy and Resources Institute (TERI)
National Institute of Solar Energy (NISE)
Gujarat Energy Research and Management Institute (GERMI)
Steinbeis Solar Research Centre
World Institute of Sustainable Energy (WISE)
kWatt Solutions Private Limited (kSPL)
SOLBIZZ- Solar Entrepreneur Training Program

List of Magazines & Websites

Solar Today
Energetica India
Solar Quarter
EQ International
Bridge to India
Energy Alternatives India
Power Today

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

16 | P a g e
 Premier Solar

Useful Data Resources

Please refer the sections and tables listed below for some useful information that may come in handy for
potential and prospective EPCs.

Section 10.6 - List of key component suppliers for Panels, Inverters, Cables, Mounting Structures,
Monitoring Systems
Section 7.3 - Technical Features and Equipment for a Solar Power Plant
Section 9.3 - Solar Apex Bodies & Organizations in India and their Roles
Table 58 - Parameters for Selection of Solar Power Plant Components (Source: Solar Mango)
Table 64: Standards and Warranties for Critical Components
Section 10.1 - Details of Solar Policies & Regulations
Section 10.3 - Bill of Materials Format
Section 10.5 - Project Implementation Schedule Format

17 | P a g e
1. Solar Power Potential in India
This detailed chapter provided inputs and insights on the solar potential, growth
trends and the key policy and other drivers contributing to the growth of the industry.

Topics Covered
Solar Potential in India
Solar Power Growth & Trends
Overview of Central & State Government
Solar Policies
Business & Revenue Models

18 | P a g e
1.1 Solar Potential in India
A solar plant should be located in a region where there is plenty of sunshine. The map on the following
page can be used to estimate solar radiation at the location of the site.

FIGURE 1: RADIATION MAP OF INDIA

19 | P a g e
1.2 Solar Power Growth & Trends

1.2.1 Lever's Affecting Growth of Solar PV in India

The answer to whether India will reach 100 GW by 2022 depends on a variety of factors. Electricity being
a concurrent subject is influenced by decisions both at the Central and State levels. Solar Mango has
consolidated a list of key drivers which we believe will drive solar growth in India. Each of these drivers
has the potential to become possible game changers for the Indian Solar industry.

In our analysis, we have pointed which of these drivers are likely to play out by the end of 2016 and 2020.

1.2.2 Across specific segments

1.2.2.1 Rooftop

Despite the 40 GW target set by the government under the JNNSM mission, rooftop solar has a cumulative
installed capacity of only 850 MW as of June 2016, which contrasts with the rate of capacity addition in
the ground-mounted utility-scale sector.

1.2.2.2 Future Capacity-Additions

The following table lists EAIs (parent of Solar Mango) year wise estimated solar capacity addition in India.

TABLE 1: PROJECTED SOLAR CAPACITY ADDITIONS IN INDIA FROM 2015-2020 (SOURCE: EAI AND BRIDGE TO INDIA)

Year EAI Bridge to India

Capacity Capacity Cumulative Capacity Capacity Cumulative end
Added- Added- end of year Added- Added- of year (MW)
Utility Rooftop (MW) Utility Rooftop
Scale Solar Scale Solar
2016
2017
2018
2019
2020

20 | P a g e
1.3 Overview of Central and State Government Solar Policies

TABLE 2: SUMMARY OF TARIFFS IN DIFFERENT STATES

AD/Non Tariff
State Year -AD Low High Comments
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

1.4 Business & Revenue Models for Solar Power Plants in India

1.4.1 Business Models

CAPEX Model
OPEX Model

1.4.2 Revenue Models

A utility scale Solar PV plant can be monetized through several avenues:

21 | P a g e
 FIGURE 2: REVENUE MODELS FOR MW SCALE SOLAR

Pros and Cons of the Business Models

TABLE 3: PROS AND CONS OF VARIOUS BUSINESS MODELS

Biz Model Pros Cons
Sale to Utility

Sale to Private Consumer

Captive Consumption

22 | P a g e
2. Indian Solar Market Segmentation
This chapter provided inputs and analyses of the Indian solar market along three dimensions:
Geography, End-users and Project Sizes. Characteristics and trends are analyzed for each
segment.

Topics Covered
Region-wise Segmentation
End-user Segmentation
Segmentation based on Project Size

23 | P a g e
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 Parameters
Classification Load shedding Price Sizes Cost of grid
sensitivity power

Urban Not very Highly Medium-Large Depends on the

frequent like in variable scale solar sector
rural areas among both projects (commercial,
High residential mainly for C&I industrial or
dependence of and sectors residential)
C&I sectors on industrial Gaining
electricity makes /commercial popularity of
solar attractive community
sectors
solar
Ground-
mounted
unsuitable due
to space
constraints
and high land
cost

Semi-urban

Rural

State-based

24 | P a g e
2.2 Type of end user

End-user Parameters
Classification
Cost of grid Size/scale of Technology End use Price
power solar power applications sensitivity
requirement

Residential

Commercial

Industrial

Institutions

Government

2.3 Size of the project

2.3.1 Rooftop
2.3.1.1 kW size residential projects (1-10 kW)
Size of Parameters
Project
Customer Motivation Type Price Geography / Other
profile sensitivity demographics Expectations

100 W-1 kW

1-3 kW

3-10 kW

Greater than 10
kW

25 | P a g e
2.3.2 Ground-mounted

Project Parameters
Size
Type/profile of Typical Type of Margins Extent of Outsourcing
Developer/Investor Business EPC EPCs can that could be
Model expect required

1-3 MW

5-10
MW

10-50
MW

50+
MW

26 | P a g e
 3. Solar EPCs in India
This chapter provided inputs on the various types of solar EPCs in India and their
characteristics.

Topics Covered
Rooftop & Ground-mounted EPCs
Turnkey EPCs
EPCs with Local/Regional Focus
EPCs taking up mainly Sub-contract Works
Specific Functions Alone
Pure-Play Design Firms
EPCs with O&M Focus

27 | P a g e
3.1 EPC with focus on:

3.1.1 Rooftop solar power plants

TABLE 4: ROOFTOP SOLAR EPCS IN INDIA

Segment Number of EPCs Major EPCs operating in this
sector

Very Small Residential (1-10

kW)

Small-Medium Residential (10-

25 kW)

Small C&I (25-50 kW)

Medium C&I (25 100 kW)

Large C&I (100 kW & above)

*Only does OPEX-based installations

3.1.2 Ground-mounted solar power plants

TABLE 5: EPCS IN THE GROUND-MOUNTED SECTOR

Segment Number of EPCs Major EPCs operating in this

sector

V small ground mounted (1

mw and less)

Small-medium (1-3 MW)

Medium (3-10)

Medium-large (10-50)

28 | P a g e
 Large & v large (50+)

3.1.3 Companies Diversifying into EPC Business

There is a huge interest among businesses and the corporate sector in India (and from corporates outside
India too) to invest in this sector. Some of trends seen and companies involved have been tabulated
below.

TABLE 6: COMPANIES DIVERSIFYING INTO EPC BUSINESS - TRENDS

Companies Trends

3.2 Turnkey EPCs

1) Larsen and Toubro Construction Solar Projects L&T have commissioned several hundred MWs on
ground in India, and also built one of the largest rooftop solar plants in India of 7.52MWp in Punjab.
They have also provided financing assistance for solar projects of different capacities.

3.3 EPCs with Local/Regional Focus

Well, there are both pros and cons for EPCs to be regional/local focused.

29 | P a g e
3.4 EPCs taking up mainly sub-contract work from larger EPCs
A number of small EPCs are starting off this route rather than undertake costly marketing and promotion
to win full EPC business, they instead market it the B2B way they market themselves to the larger EPCs
who give them a slice of the total turnkey implementation.

3.5 EPCs taking up mainly sub-contract work from larger EPCs

Another special type of an EPC is one who specializes in only one aspect of the solar power plant
implementation, for instance, only on civil works you could even say that such a firm cannot be
technically called an EPC as they do not perform all the roles that EPCs perform.

3.6 Pure- play design firms

While most EPCs ostentatiously have design teams, these teams mostly comprise individuals with some
knowledge of design, but not a real lot. As a result, many of these EPCs (both small and large) sometimes
turn to specialized design firms, who focus almost entirely on solar power plant design.

30 | P a g e
 4. Business Potential Analysis for
Solar EPCs in India
This is an important section as analyses of where the greatest potential lies and focusing on
those segments is key to any business success, and so too in the case of EPCs.

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

31 | P a g e
4.1 Segment-wise Potential
Ground Mounted Potential

As of Jul 2016, of the 7500 MW installed capacity of solar power in India, almost 90% of installations are
ground mounted solar power plants with capacities 1 MW and above.

This statistic alone shows the potential of ground mounted solar power plants in the country today.

Rooftop Solar

Starting 2014, both the adoption of rooftop solar, as well as interest of the major EPCs in this sector,
started showing a significant increase.

By 2015, almost every large EPC had done some rooftop solar installations at least. Even EPCs such as L&T
did some rooftop solar projects, albeit pretty large ones (L&T did one of the worlds largest rooftop solar
projects in Punjab, of 7.5 MW, in Amritsar in Sep 2014).

4.2 Region-wise Potential

4.2.1 High Potential States current and future

Broadly, Solar Mango analyses the following parameters for the top states:

Installed Capacity
Policy Framework
Power Evacuation Infrastructure
Economic fundamentals
State of Discom

32 | P a g e
 State-wise Installed Capacity (MW)
1400
1200
1000
800
MW

600
400
200
0

As of May 2016 As of March 2015

FIGURE 3: STATE-WISE INSTALLED CAPACITY (SOURCE: MNRE & SOLAR MANGO ANALYSIS)

4.2.2 High Potential Cities & Towns Current and Future

4.3 Industry-wise Potential (for rooftop & captive)

4.3.1 Attractive C&I Sectors

Solar Mango has estimated the potential of C&I segments for both rooftop and off-site systems by
evaluating six parameters. They are:

1. Profit Margins
2. Day-time energy consumption
3. Overall Energy consumption
4. Availability of Rooftop Space
5. Grid Tariff, and
6. Pioneer Mentality

4.3.2 Attractive Institutional Sectors

Airports
Sea Ports
Railways
Metros

33 | P a g e
4.4 Costs & Potential Returns for EPCs

4.4.1 Costs to run solar EPC operations

TABLE 7: COST ESTIMATES FOR SOLAR EPC OPERATIONS

Category Costs Notes

Set-up costs

Running Costs

Wages

Marketing

Rent & electricity

Other expenses
communication, travel

Total running costs

4.4.2 Margins made by Solar EPCs in India

TABLE 8: EPC MARGINS (% OF TOTAL PROJECT COST) - INDICATIVE
Segment Gross Margins (%) Net Margins (%)

Rooftop solar high quality

Rooftop solar average

quality with price sensitive
customer

Ground mounted power plants

1-10 MW for a quality
conscious customer

Ground mounted power plants

1-10 MW at average quality
and for price conscious
customer

34 | P a g e
 Large ground-mounted power
plants

4.5 Key Challenges for the Solar EPCs in India

Infrastructural challenges

Purchasing Land One, purchasing large tracts of adjacent land areas is always a challenge. This might
however not be a tough challenge if EPCs are responsible for land selection.

Project Implementation Challenges

Financial challenges

Liabilities for a Solar EPC

35 | P a g e
 5. Insights & Recommendations
How can businesses win in the market? One of the sure shot ways is to build sustainable
competitive advantages. This chapter, a critical one for EPCs, looks at how EPCs can build
assets critical to success and at the same time differentiate themselves from the rest of the
pack. Insights are provided on the following:

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

36 | P a g e
5.1 Skills and Human Resources Solar EPCs Need
In order to excel in a highly competitive and dynamic market, EPCs must ensure that the right guys with
right skillsets are hired. Solar power plant implementation jobs require personnel with a good blend of
technical as well as managerial expertise.

Project management
Sales Professional
Electrical engineer
Solar PV design specialist

5.2 Insights on Marketing, Sales & Distribution

5.2.1 Shortening Long Sales Cycles

TABLE 9: SUGGESTIONS FOR SHORTENING SALES CYCLES

Challenge Recommendation

Confusion about the basics of rooftop solar, its

benefits and constraints

Confusion about subsidies and incentives and

government regulations

Owing to corporate bureaucracy and decision-

making

Owing to negotiations and unrealistic cost

expectations

Prospect not fully ready

Owing to solar not providing a big enough

benefit

5.2.2 Sales & Marketing Partnerships

Networking works, and partnerships help sales always. In this sub-section, Solar Mango suggests some
marketing partnership strategies that can be effectively used by EPCs.

37 | P a g e
5.2.3 Brand Building

One key recommendation from Solar Mango for those EPCs keen on the rooftop solar segment is to
build a brand. Except for a few large corporate brands, there is hardly any recognizable name in the
rooftop solar EPC segment. This is an opportunity for you.

5.2.4 Insights on Competition

The three key needs for EPCs today are assistance in generating qualified sales leads, technical assistance
in specific expertise domains and optimized procurement of components.

5.3 Best of Breed Practices

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

5.4 Opportunities for Innovation

We provide a key list of innovation possibilities for EPCs in the Indian content, and given the current
phase/status of the solar PV industry and current trends.

Technical avenues
Business model avenues
O&M avenues
Innovations in marketing/branding
Other innovation avenues

5.5 Leveraging Technology

The four technologies that are changing the way companies do business are:

Social
Cloud
Analytics

38 | P a g e
 Mobile

5.6 Parameters on Which Solar EPCs are Evaluated by Prospects

TABLE 10: PARAMETERS ON WHICH PROSPECTS EVALUATE SOLAR EPCS

Parameters Details
How long ago was the EPC established?
Year of inception
Is the EPC company a new entrant?
Ground-mounted or Rooftop?
Nature and Scale of Projects
Large-scale or small-scale?
Designation
Brief background of the key
Area of Expertise
personnel
Major Achievements

Companys reputation
Evaluation of Key strengths Expertise in implementing projects successfully
Extent of the implemented projects

Awards received from government or reputed

Certifications and Awards received
private bodies

Solutions utilized for implementation of solar plant

such as capability of monitoring solution provider
Software and Methodologies etc.
Methodology in terms of approach for asset
management and design of plant
Guarantees provided
Assurance of performance guarantee in terms of
Performance Guarantees
the output and efficiency of the plant and its
components

Delays expected with regard to availability of the

Execution time
components

Insurance measures undertaken for risk aversion

Risks and Liabilities they cover Components covered and terms & conditions under
the insurance agreement

39 | P a g e
 Has the EPC used trackers for any of their plants?
(This could possibly give us an insight into how
advanced they are in terms of technology)
Do they have repeat customers?
What part of EPC work do they sub-contract?
Would they allow site visit to one of their solar
Other Parameters/ questions plants?
Apart from EPC works, what does the company
offer in terms of solar power plant implementation?
(For example, they could be manufacturers/dealers
of modules, mounting structures, or any other
component or equipment)

40 | P a g e
 6. Profiles & Case Studies

The best way for any new EPC to start and strategize is to look at the profiles and activities of
incumbent EPCs. This chapter provides profiles and inputs on a wide range of EPCs in India,
and also analyses their activities on key dimensions. Inputs are provided on the following:

Topics Covered
Profiles of Prominent Solar EPCs
Variations of EPCs
Key Mistakes to Avoid

41 | P a g e
6.1 Profiles of the Prominent Solar EPCs in India
Vikram Solar

Key Highlights

Founded in 2006
Entrepreneurs H.K Chaudhary
Location Kolkata (India)
Type Manufacturing and EPC
Key Activities/Solutions Solar EPC Services, O&M, Panel Manufacturing
Success So Far Vikram Solar has commissioned more than 50 MW of projects throughout India.
They have also installed the first floating Solar PV Plant in India and won the EPC World Award
2014
Website www.vikramsolar.com

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.

42 | P a g e
Sterling & Wilson

Key Highlights

Founded 1927
Entrepreneurs Started by the Dracula Family, Now part of ShapoorjiPallonji Group
Location Kolkata (India)
Type EPC, Electrical Contracting, Turnkey services for wide variety of Industries
Key Activities/Solutions Solar EPC Services for PV and CSP, O&M
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.

43 | P a g e
6.2 Variations of EPCs
Broadly, the typical solar value chain is as shown below.

Sub-component & Power Plant Power

OEMs EPCs
Raw Materials Developers 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:

TABLE 11: EPCS AS OEMS & DEVELOPERS

EPC Combination Examples

Pure-play EPC

OEMEPC

DeveloperEPC

OEMEPCDeveloper

44 | P a g e
 7. Solar Power Plant Reference
Details
This is a handy reference section providing you data and inputs on a comprehensive list of
solar power plant aspects. These data have been compiled by Solar Mangos team over a long
period and through rigorous analyses, and hence are authentic.

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

Type of solar panels used

Whether the solar farm uses trackers technology

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 Land Area Required (sq. ft.) Percentage of total land area

Panels

Roads, pathways

Inverter Rooms

Offices/Quarters

Substation Area (transformer

bay, LT panels, HT panels)

Water Infrastructure (bore

wells, pumps etc.)

Others

Total

7.1.3 Instructions on how to evaluate your land

Selecting a suitable site is a crucial part of developing a viable solar PV project. In selecting a site, the aim
is to maximize output and minimize cost.

46 | P a g e
Some of the main constraints that need to be assessed include:

Solar resource Global Horizontal Irradiation, DNI Direct Normal Irradiance, annual and inter-
annual variation, impact of shading.
Local climate flooding, high winds, snow and extreme temperatures

7.2 Estimating Generation from Your power plant

E.g. If the CUF for your region is 18%, then generation from a 1 MW plant will be

Annual Generation (kWh) = CUF x Capacity (kW) x 24 x 365

= 18% x 1,000 x 24 x 365 = 15,76,800 kWh

7.3 Technical Features and Equipment for a Solar Power Plant

7.3.1 Overview of Solar Power Plant Technologies

Current Solar PV technology mainly comprises two types of solar cell technology: Crystalline Silicon and
Thin-Film

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

47 | P a g e
7.3.2 Panels

Silicon Technologies

Types of
Technologies

Crystalline Thin Film

Amorphous
Polycrystalline Monocrystalline CIGS/CIS CdTe
Silicon

N-type mono P-type mono

FIGURE 4: CLASSIFICATION OF SILICON TECHNOLOGIES (SOURCE: SOLAR MANGO)

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

48 | P a g e
7.4 Financial Analysis of Ground-mounted Solar Power Plants

7.4.1 Case Study Cash Flow for 1 MW Plant

7.4.1.1 Overview and Assumptions

In this case study, we have considered a sample 1 MW AC plant. Generation is estimated to be 18% CUF.
The developer can avail accelerated depreciation, and a low tariff of Rs. 5.5/kWh is considered. This cash
flow has been deliberately chosen to simulate a problematic cash flow projection.

This cash flow is a sample only based on a number of assumptions (provided below). We urge you to
calculate your returns with your Chartered Accountant and EPC. Please read the cash flow along with the
notes and analysis provided after the cash flow.

TABLE 13: CASH FLOW FOR A 1 MW PLANT

Details Value
Plant Capacity
Capacity Utilisation Factor
Annual Degradation (%)
Capital Cost

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

49 | P a g e
7.5 Financial Analysis of a Rooftop Power Plant
Returns are calculated by generating a 25-year cash flow (for the lifetime of the solar plant) that
incorporates all revenues and costs (for solar and the grid/diesel power that it is substituting). Based on
the cash flow projection we can calculate the IRR, payback period, and other financial metrics. We
recommend these calculations are performed by your Chartered Accountant/Financial Advisor based on
the inputs provided below.

50 | P a g e
 8. Summary, Inferences &
Recommendations
Data and Inputs
Chapter 1 - Solar Power Potential in India

Chapter 6 - Profiles & Case Studies

Chapter 7 - Solar Power Plant Reference Details

Insights, Analyses and Recommendations

Chapter 2 - Indian Solar Market Segmentation

Chapter 3 - Solar EPCs in India

Chapter 4 - Business Potential Analysis for Solar EPCs in India

Chapter 5 -Insights & Recommendations

51 | P a g e
 9. Glossary - Terms You Should
Know as a Solar EPC
Technical and Operational Terms
BOO Model (Build Own Operate Model)
Capacity Utilization Factor
Central Inverters
Concentrating Photovoltaics
Cross Subsidy Surcharge
Crystalline Silicon/c-Si
DNI (Direct Normal Irradiance)
Feed-in-Tariff
Grid-tied Solar Power System
Grid Parity
LCOE (Levelized Cost of Energy)
Module
Module Degradation
Net metering
Off-grid Solar
Open Access
Pyranometer
Reflection Losses in Solar Cells
Shading of solar panels
Smart Grid
String Inverters
Standard Test Conditions (STC)
Temperature Coefficient of Solar Panels
Thin Film Solar Cell
Tracker
Watt Peak (Wp)
Wheeling Charges

Explanation of Key Financial Terms

Payback Period
Return on Investment (ROI)
Net Present Value (NPV)
IRR (Internal Rate of Return)
Levelized tariff

52 | P a g e
 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

53 | P a g e
 10. Annexure
10.1 Tax Break-up for a Typical MW-Scale, Ground-Mounted Plant
TABLE 14: TAX BREAK-UP FOR A TYPICAL SOLAR PV PROJECT

S. Cost Details Tax type (as applicable)

No.

1 Modules
Supply Domestic
Supply Imported
2 Inverter
Supply
3 Structures
Supply
Service
Civil Works
4 Civil Works
Supply
Service
Civil Works
5 Electrical
Supply
Service
6 Pooling Station
(33/132 kV)
Supply
Service
Civil Works

7 Design & Engineering

54 | P a g e
10.2 List of key component suppliers for Panels, Inverters, Cables,
Mounting Structures, Monitoring Systems
Modules
Mounting Structures
Cables
Inverters
Battery

TABLE 15: LIST OF INVERTERS

V-Small kW Inverters (1-10 kW) Small-medium kW Inverters Large kW Inverters (>500 kW)
(10-500 kW)
SMA Solar SMA Solar SMA Solar

55 | P a g e
To purchase the India Solar EPC Blueprint,

Send an email to enquiry@solarmango.com, with the subject: Purchase Solar EPC Blueprint
Or contact Ramya for further information ramya@solarmango.com

Visit the official website for more information - http://www.solarmango.com/blueprint-solar-epc-

opportunity-india/

56 | P a g e