Rooftop Solar PV Vendors Empaneled at low rates in Chhattisgarh

State Price Beats MNRE Benchmark Cost

In Chhattisgarh, vendors that provide services related to supply and construction of grid-connected rooftop solar PV projects have bid lower than the central benchmark costs in a empanelment tender for construction of rooftop solar PV projects under Phase-II of the Ministry of New and Renewable Energy (MNRE) rooftop program.

The Chhattisgarh Renewable Energy Development Agency (CREDA) had issued an empanelment tender for grid-connected rooftop solar PV projects under three capacity categories; category 1 (1 kW – up to 10 kW), category 2 (above 10 kW – up to 100 kW) and category 3 (above 100 kW – up to 500 kW). The lowest bid for category 1 was Rs.40,000/kW, for category 2 was Rs.38,000/kW and for category 3 was Rs.36,000/kW. These rates are much lesser than the MNRE benchmark rates. Only in Delhi and Uttar Pradesh has the industry witnessed quoted rates below these  in Chhattisgarh.

After taking into account the subsidy provided by the MNRE, the state of Chhattisgarh has become one of the low-cost rooftop solar PV states for project implementation. The MNRE provides 40% of capital cost as subsidy for grid-connected rooftop solar PV projects of capacity 1 kW to 3 kW; as a result, in Chhattisgarh the cost per kW for a rooftop project up to 3 kW capacity will be calculated at the rate of Rs.24,000/kW. MNRE also provides a 20% subsidy on capital incurred for rooftop solar PV projects of capacity 3 kW to 10 kW. To install projects of capacity between 3 and 10 kW; the cost will be Rs.30,400/kW.

A member of the SUPRABHA program team that engaged with and supported Chhattisgarh State Power Distribution Company Limited (CSPDCL) and CREDA in this empanelment tender, upon being contacted said, “The State of Chhattisgarh has achieved these rates only because of the Net-metering Regulations the hon’ble commission has approved for distributed renewable sources (CSERC) (Grid Interactive Distributed Renewable Energy Sources) Regulations, 2019 to facilitate the growth of renewable energy generation systems in the state.”

The source further said, “The regulations have allowed Distribution licensee to procure excess energy generated at a rate determined through competitive tariff by DISCOM or lowest bids of SECI’s tender. This is a great step and we are looking forward to heightened installation as these rates are feasible for a state like Chhattisgarh.”

CREDA has empaneled 17 vendors under category 1, 14 under category 2 and 15 under category 3. Zenbi Energy Pvt. Ltd., Comgen Infosystem Pvt. Ltd., Greensol Renewable Power Pvt. Ltd., Electromech Devices MFG Co., Windsun Renewables Pvt. Ltd., Greenfinity Powertech Private Ltd., are few of the empaneled vendors.

Sekhar Reddy, CEO, Zenbi Energy Pvt. Ltd., was elated at having been selected as the lowest bidder under all three categories. We will be taking subsidy from the government and providing seamless service to our customers, he said.

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Saumy Prateek

Saumy Prateek

Saumy has been a writer with Reuters, Mercom India and Rystad Energy.

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