The Potential of Solar Power for

Industries

1st September, 2015

Clean Max Enviro Energy Solutions Pvt. Ltd.

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Key Points of discussion

What is the observed growth of solar in India?

How can I adopt solar for my company’s premises?

How do we minimize risks inherent to a long term PPA?

How much can I save from on-site solar power?

Will I experience a shortage/outage when it rains? What happens at night?

I’m already using open access power. How does on-site solar work for me?

Can my roof support a solar power plant?

Which are some of the companies that have already adopted on-site solar?

1

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How can I adopt solar for my company’s premises?

Build Own Operate (BOO) Solar -

• Clean Max will set up a solar power generating facility at your site, either on rooftops or on

unused land

• 100% of the capex for the plant and 100% of the lifetime O&M / repairs and maintenance

expense is borne by Clean Max.

• Clean Max will bill the customer on a monthly basis based on solar power generated, at a pre-

agreed tariff

• Customer enters into a 25 year Power Purchase Agreement (PPA) committing to buying power

from the solar plant

• Solar power will be cheaper than grid for the entire duration of the contract

The BOO solar model allows you to procure green power with zero investment and

drive energy cost savings versus grid

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How can I safeguard against risks inherent in a long term (25 year) PPA?

3

Relocation

Clean Max offers various flexibilities to

ensure the PPA is not a bottleneck for

other business activities :

TerminationTransfer of contract to

new owner of premises

Plant can be removed and

reinstalled at the same or new

location if you’re relocating,

redeveloping or renovating your

factory.

Contract can be transferred to new owner

of premises if the factory is being sold

and you are unable to relocate the plant

to another facility.

If neither relocation nor novation to new

owner are possible, PPA can be

terminated at pre-agreed termination

values.

0

2

4

6

8

10

Rs./kW

h

Years

Solar Tariff charged Grid Tariff

Pricing options to safeguard savings over PPA life

Grid Capping Grid Linking

0

5

10

15

Rs./kW

h

Years

Scheduled Solar Tariff Grid Tariff Solar tariff actually charged

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How much can I save through on-site solar?

4

5.656.50 6.15

5.50

7.21

5.50 5.30

4.51%5.65%

7.91%

4.19%

14.39%

4.29% 4.72%

6.52%

Gujarat Rajasthan Karnataka Tamil Nadu Maharashtra Haryana Andhra Pradesh

Average grid escalation in India in the last 8-10 years

Recent Energy charges (Rs/ kWp) 8-10 Yr CAGR (%) Average grid escalation (year on year)

27% 28% 30% 31% 32% 34% 35% 36% 37% 38%6.0 6.2 6.4 6.6 6.8 7.0 7.2 7.4 7.6 7.88.2 8.6 9.09.5

10.010.5

11.011.5

12.112.7

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

1 2 3 4 5 6 7 8 9 10

Year

% savings vs grid assuming 5% grid escalation y-o-y

% savings versus grid Solar tariff (Rs/kWh) Grid (Rs/kWh)

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Will I have a power outage/shortage when it rains? What

happens in the night?

5

• Solar output is synchronised with

customer’s main line for seamless working

with grid.

• At no point is the customer’s system

working solely on solar power - some grid is

always used.

• System design ensures solar power is

consumed on priority and balance is met

through grid.

• Solar generation in nil at night and low when

it is raining/cloudy – grid usage increases

accordingly to ensure adequate supply to

loads.

• Onsite solar typically accounts for on 10-

15% of the Customer’s total electrical usage

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What happens to solar power on Sundays when I don’t have

enough load?

6

0

500

1000

1500

Mon Tue Wed Thu Fri Sat Sun

kW

Solar Generation and consumption pattern at Customer’s facility

Solar generation for a 500 kWp plant Solar generation for a 1 MWp plant Customers electical load

4521 4521

9041

-2480-5000

0

5000

10000

Mon tue Wed Thu Fri Sat Sun

Savin

gs p

er

day in I

NR

Savings across the week for a .5 MWp and a 1 MWp solar plant

Savings for a 500 kWp plant Savings for a 1000 kWp plant

Savings from a plant designed for weekday load still higher than for a plant designed for Sunday load despite

under-utilisation on Sunday

Plant size (kWp) 500 1000

Weekly Savings (Rs Lakh) 0.32 0.52

Annual Savings (Rs Lakh) 16.45 26.92

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I’m already using open access power. How does this work for

me?

7

Grid (Lakh kWh) Open Access (Lakh kWh) Solar (Lakh kWh)Savings versus pure grid scenario (Rs

Lakh)

113.15 0 0 0

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

00:00 03:00 06:00 09:00 12:00 15:00 18:00 21:00

kW

Scenario 1 – Only grid power

Grid

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

00:00 03:00 06:00 09:00 12:00 15:00 18:00 21:00

kW

Scenario 2 - Grid + Open Access

Grid Open Access

Grid (Lakh kWh) Open Access (Lakh kWh) Solar (Lakh kWh)Savings versus pure grid scenario (Rs

Lakh)

25.55 87.6 0 236.52

Grid (Lakh kWh) Open Access (Lakh kWh) Solar (Lakh kWh)Savings versus pure grid scenario (Rs

Lakh)

12.05 87.6 13.5 266.22

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

00:00 03:00 06:00 09:00 12:00 15:00 18:00 21:00

kW

Scenario 3 - Grid + Open Access + Solar

Grid Solar Open Access

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Is my roof feasible for a solar installation?

8

RCC

• Fully Non-penetrating civil pedestals casted

for mounting the solar panels

• Steel structures used, galvanised for weather

resistance

• The structure designed to handle wind

speeds of over 150 km/hr, which is the

highest

Metal Sheet installations

• Minimum penetration or zero penetration

solutions available depending upon sheet

profile

• Special aluminium clamps from top

European Vendors with over 1 GWp of solar

installation used to ensure minimizing risk of

leakage

• The entire structure will weigh no more than

25 kg/m2

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Which are some of the companies that have already adopted on-

site solar?

9

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THANK YOU

10

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ABOUT CLEAN MAX

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Selected Client List

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Enabled by high quality team…

13

Managing Director

Kuldeep Jain (ex Partner, McKinsey & Co)

PPA/off taker sales function Financing functionProjects function Procurement

West region

Sushant Arora

South region

Andrew Hines

(IIT- Bombay)

Mumbai Based

North region

Kapil M.

(Ex - BP, Suzlon,

Wharton MBA)

Bangalore Based

COO

Umkant Shende

VP - Procurement

Ritesh Singhi

(Ex - Business BU Head,

Thermax Solar PV)

Mumbai Based

(Ex - Procurement

Head, Mahindra EPC)

Mumbai Based

Head - Finance

Nikunj Ghodawat

(Ex - Lead, Renewable

Investment Banking, YES

Bank Ltd)

Mumbai Based

West Sales

Ritvik C

West Sales

Ayush M

(IIT Bombay)

TN Sales

Dinesh S

(IIT - Bombay) (IIT - Chennai)

Chennai Based

Grid PPA Sales

Vikram Reddy

(IIT – Delhi – 10 Yr

Experience)

Bangalore Based

Execution

Hub (3-4

Hubs) Investor Function

Tejas Shah

(IIT - Bombay)

Mumbai Based

Accounts, Tax

Viren Shah + 1

Mumbai Based

North Sales

(Corporate)

Indu S

(Ex - BD Head,

Danfoss)

Delhi Based

Head Design

& Eng.

Rahul Shelke

Ex – Solar DirectPune

Amit Singh

South

Pradeep G

NCR/Raj

Akash S.

Strictly Private & Confidential

North Sales

(Gov+PSU)

Randeep

Delhi Based

Ex- Bridge to India

Delhi BasedShailesh N

Ex – Chemtrols

Projects

AkashO&M

TBJ

Engg.

Vipin S

KTK Sales

Harsh D

(IIT - Chennai)

Bangalore Based

West Sales

Radhika B

(IIT Bombay)

11 14 2 4

32

`

Headcount

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PAN India presence and strong governance

14Strictly Private & Confidential

PAN India presence with five offices and projects in all major industrial

clustersStrong governance

▪ Board managed

– Majority independent board

▫ Sumit Banerjee (Previous

CEO of ACC and Reliance

Cement & Infrastructure)

▫ Somak Ghosh

(Professional Co-founder

and Head of Corporate

Finance, Yes Bank Ltd)

▪ BIG 4 as statutory auditor

– Deloitte as auditor w.e.f FY

2015-16

City/State No. of

projects

Delhi/NCR 2

Jaipur, RJ 4

Ahmedabad,

GJ

1

Vadodara, GJ 2

Pune, MH 13

Taloja, MH 1

Hyderabad 2

B’lore,

Karnataka

4

Chennai, TN 8

Total 37

HQ with finance, accounts, legal, procurement

& business development (west) functions

Regional office for north region business

development & project management

Plant locations

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Why CMES? Historical Plant Performance – Performance ratio

Actual Performance Ratio / Committed Performance Ratio (%)

- Performance Ratio is better than committed Performance Ratio for all the operating plants

(ensuring better than expected generation for the given radiation level).

15

116%

106%105%

108%

106% 105%

112%

115%

112%

107%

98%

100%

102%

104%

106%

108%

110%

112%

114%

116%

118%

Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Plant 6 Plant 7 Plant 8 Plant 9 Plant 10

109%

1. Excludes plants which are not fully commissioned and plants where remote monitoring (SCADA systems) are in process of installations

2. For plant 3, 4 & 6 actual generation v/s estimated generation is used as proxy to PR Ratio as real time PR ratios are not available

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Quality of Equipment used

ModulesOnly global top tier modules used such as Renesola, Canadian

Solar, Tata Solar, Vikram Solar or equivalent are used by Clean Max

Inverters Only high quality European or American string inverter makes used, such as Danfoss, SMA, Refusol, or equivalent

StructuresTop tier roof mounting solutions used to prevent damage orleakage and provide superior wind tolerance and weatherresilience from global leaders

Remote Monitoring

The solar power plant will be connected to SCADA based remote monitoring systems enabling live tracking of plant

generation and easy identification of issues. Data from each inverter, energy meter, and on-site weather station is relayed

through the remote monitoring system

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Selected Commissioned plants

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TATA group company – 100

kWp, rooftop, Pune

Auto spares MNC – 948 kWp,

rooftop, Bangalore

TATA group company – 206 kWp,

rooftop, Pune

Auto spares MNC – 100 kWp, rooftop, PuneTATA group company – 200 kWp, rooftop + ground, Pune

TATA group company – 125

kWp, rooftop, New Delhi

TATA group company – 250 kWp,

rooftop, Chennai