India cuts solar rooftop tender from 1000MW to 500MW

How will the subsector be affected?

The Solar Energy Corporation of India (SECI) has amended the tender document pertaining to the 1,000MW solar rooftop auction for government buildings, reducing the capacity to 500MW, according to Mercom Capital Group. 

Mercom previously reported that the SECI tendered 1,000 MW of rooftop solar to be installed on government buildings and offices throughout the country. Of the 1,000 MW, 300 MW were planned to be developed under the CAPEX (purchase) model and 700 MW under the RESCO (lease) model.

According to an SECI survey, the proposed potential capacities related to all the states, union territories and islands comes out to be 500 MW combined in both Part-A (CAPEX) and Part-B (RESCO), requiring a reduction in the tender.

Here's more from Mercom Capital Group:

The SECI amendments now state that 50 MW will be tendered under the CAPEX model (Part-A) and 450 MW under RESCO model (Part-B). Under Part-A, bidders can apply for a minimum aggregate capacity of 500 kW and maximum aggregate capacity of 5 MW. Under Part-B, bidders can apply for minimum aggregate capacity of 2 MW and maximum aggregate capacity of 50 MW.

A single bidder can apply for a maximum capacity of 55 MW under Part-A and Part-B together. The successful bidder is required to complete installation of the rooftop system within 11 months from the date of issue of the allocation letter for general category states and union territories, and within 14 months from the date of issue of the allocation letter for special category states and union territories.

The SECI will reduce incentives if at least 40 percent of the project is not complete within the stipulated timeframe.

Cutting the rooftop tender for 1000 MW to 500 MW is a blow for rooftop installers who are looking at the government for new projects. Cumulative rooftop installation in India now stands at 857 MW.