- Give us a glimpse about your company presence and offering in the solar sector?
- Kalpa Power is an end to end solution provider of solar power plant projects. Kalpa prides itself in being able to develop solutions which are highly customised, user oriented and seek to maximize benefits through cost effective technology deployment with least operational overheads. Our team of experienced professionals make sure installations across India occur seamlessly at the same high standards ascribed by us to achieve maximum benefits from any given locations. We have achieved a capacity of 16 + MW in solar generation across India and have another 15 MW in India and 3 MW in West Asia in the pipeline. We are in the business of solar power for the last 5 years and have the necessary experience and expertise in Design, Procurement of quality products and project execution, along with an excellent Finance and Administrative teams which manages the day to day operation and fund requirement of the company. This results in making timely project execution and commissioning. Apart from EPC team, we also have strong Operation and Maintenance team which ensures proper monitoring of installed solar power plant and aims for zero break down, by having real time monitoring system as every single unit generation from solar power plant count
Where do you see your Kalpa Power 10 years from now?
Without subsidies, in 2016, globally solar became more competitive than the coal based or thermal power plants. Since then, the solar prices have come down substantially. In 2012, less than 10% of the annual capacity added in the world came from solar. Last year, it was over 25%. Hence there are huge growth opportunities. You have got a situation where the market is projected to grow fast and by 2022 , approximately 2% to 3% of the electricity will be generated by solar globally. The opportunity over the next 10 years is immense because this number will have to go up and become a substantial number for the world energy market. As we are expanding our operation on a global level, alongwith current projects in pipeline we are optimistic we can make a remarkable achievement in the field of Renewable energy globally in the next 10 years. We have cumulative target of 50 MW in next 2-3 years.
Taking forward our knowledge and expertise in solar, we are venturing into solar powered Electric Vehicle supply equipment (EVSE). Traditional electricity sourced from conventional sources is expensive, and losses are high to convert electricity from AC to the required standards for EVSE for charging. Hence solar and EVSE are a natural fit. We’ve already received an EoI from large corporate and government entities in this regard. We have started development in this sector by designing and manufacturing of efficient smart chargers for electric vehicles which are expected to hit the market by the end of FY 2019 or by early FY 2020.
What are the key drivers of growth in the solar rooftop segments?
Solar power provides a decentralized option to address growing power needs of a vast-expansive country like India. Kalpa power envisions to fulfill the needs of the country by providing cheap and affordable power. Solar power can be designed to size so as to meet the needs and requirements of the urban as well as the rural people of India by providing independence from foreign sources of energy, thus enabling stable energy prices for the future. Increasing the supply of renewable energy would allow us to replace carbon-intensive energy sources and significantly reduce India’s total CO2 emissions.
High energy cost and tariffs usually affects the operating margins of many manufacturers, industry and commercial complexes. Green and clean energy being a prime objective and step towards sustainable development, has been a major key drivers in the solar rooftop segments. This initiative is taken by many leading industries. Another key driver for growth is net metering policy, which encourages end consumer to take benefit of excess generation from solar power plant.
How has GST impacted solar rooftop industry in India?
GST has indeed made an impact on capital cost of solar project. According to a recent study published by the Council on Energy, Environment and Water(CEEW) and the International Institute for Sustainable Development (IISD), the introduction of GST has led to an increase in cost of generation of solar power by almost 6 per cent. The current GST structure discourages a potential client to go for solar . With the government aiming for ambitious target of 100 GW and with current market scenario GST for solar need a relook from government. If you observe last three quarters, capacity addition of solar project have been declining. Cut down of GST on Solar rooftop should be major objective of MNRE, that will boost up solar capacity addition. It is important to continuously monitor and examine if fiscal measures are being effectively wielded, to support India’s larger national objectives with implications for sustainable development. The introduction of the safeguard duty on solar panels has compounded the uncertainty, resulting in delays in deployment of solar projects. Combined with the imposition of safeguard duty (making majority of the PV panels used expensive) and the cap on solar power tariffs, the GST impact may have a bearing on the profitability of companies in this sector.