Valuing Grid-connected Rooftop Solar- A Framework to Assess Costs and Benefits to Discoms

Copyright © 2019 Council on Energy, Environment and Water (CEEW).

Suggested citation: Kuldeep, Neeraj, Kumaresh Ramesh, Akanksha Tyagi, and Selna Saji. 2019.
Valuing Grid-connected Rooftop Solar: A Framework to Assess Costs and
Benefits to Discoms. New Delhi: Council on Energy, Environment and Water.

Disclaimer: The views expressed in this report are those of the authors and do not
necessarily reflect the views and policies of CEEW or BRPL. The views/
analysis expressed in this report do not necessarily reflect the views of
Shakti Sustainable Energy Foundation. The Foundation also does not
guarantee the accuracy of any data included in this publication nor does it
accept any responsibility for the consequences of its use.

Publication team: Alina Sen (CEEW), Mihir Shah (CEEW), The Clean Copy, Aspire Design, and
Friends Digital.
We would like to thank the Shakti Sustainable Energy Foundation for their
support on this report.
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About CEEW
The Council on Energy, Environment and Water (CEEW) is one of South Asia’s leading not-for-profit policy
research institutions. The Council uses data, integrated analysis, and strategic outreach to explain – and
change – the use, reuse, and misuse of resources. The Council addresses pressing global challenges through
an integrated and internationally focused approach. It prides itself on the independence of its high-quality
research, develops partnerships with public and private institutions, and engages with the wider public.
In 2019, CEEW once again featured extensively across nine categories in the 2018 Global Go To Think Tank
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Contents
Executive summary xi
1. Introduction 1
2. Implications of rooftop solar on discom revenues 3
3. Need to look beyond net-metering 5
4. Value of grid-connected rooftop solar (VGRS) 7
5. Assessing discom losses and gains from rooftop solar 9
5.1 Avoided generation capacity cost (AGCC) 9
5.2 Avoided power purchase cost (APPC) 10
5.3 Avoided transmission charges (ATRC) 11
5.4 Reduced transmission and distribution losses 12
5.5 Avoided distribution capacity cost (ADCC) 12
5.6 Avoided renewable energy certificate cost (ARECC) 13
5.7 Avoided working capital requirement (AWCC) 14
5.8 Revenue loss 14
5.9 Programme administration cost 15
5.10 Added distribution services cost 15
6. BRPL case study 17
6.1 Data inputs and assumptions 17
6.2 Key observations and recommendations 19
Annexure 25
References 27
Figures
Figure ES1: Generation-normalised aggregate costs and benefits for selected ten DTs xvi
Figure 1: Generation-normalised aggregate costs and benefits for selected ten DTs 20
Figure 2: Capacity-normalised values for individual costs and benefits parameters 21
Figure 3: Generation-normalised values for individual costs and benefits parameters 21
Tables
Table ES1: Specifications and performance characteristics of rooftop solar systems xv
Table ES2: Generation-normalised net value for each DT (all values in INR/kWh) xvi
Table ES3: Generation-normalised aggregate costs and benefits for selected ten DTs xvi
Table 1: List of benefits and costs considered in the UCT 9
Table 2: List of input parameters and associated assumptions 17
Table 3: Specifications and performance characteristics of rooftop solar systems 19
Table 4: Capacity and generation-normalised aggregate costs and benefits for
selected ten DTs 20
Table 5: Capacity-normalised values of costs and benefits (all values in INR/kW) 20
Table 6: Generation-normalised values of costs and benefits (all values in INR/kWh) 2