Shaping the Future of Distributed Solar Insights – Jay Kumar Waghela, CEO Distributed Solar, Fourth Partner Energy

What is Fourth Partner Energy’s vision for distributed solar, and how has it evolved to meet growing demand?

Founded in 2010, Fourth Partner Energy set out with the mission to address the challenge faced by customers in receiving a reliable and greener source of energy. Over the years, FPEL has evolved to become India’s leading renewable energy solutions provider, catering to the diverse needs of Commercial and Industrial clients. Today, we provide comprehensive renewable energy solutions including OnSite, Inter State and Intra State open-access, wind-solar hybrid, energy storage, and renewable energy certificates. The company is committed to helping businesses switch to a cleaner, sustainable, and economical source of energy thereby enabling India and Southeast Asia to emerge as global leaders in the transition to a low-carbon economy through its customer-centric and innovative approach.

What are the main challenges and opportunities for distributed solar adoption in India and key markets?

The key challenges in the adoption of distributed solar are as follows:

• Regulatory complexity: Navigating diverse state-wise policies and approvals related to net metering, net billing, and gross metering leads to an increase in project execution timelines.
• Inconsistency between intent and adoption: There is often a lack of uniform understanding of policies and regulations leads to discrepancies between intent and on-ground implementation by DISCOMs.
• Lack of financing options: A significant portion of the SME sector remains untapped due to the limited availability of financing options for organizations with lower credit ratings, restricting their ability to adopt distributed solar.
• However, the distributed solar market is growing at a rapid pace due to several opportunities:
• Corporate sustainability goals: Rising demand from businesses aiming to achieve net-zero targets which drives the adoption of distributed solar.
• Energy cost optimization: Distributed solar offers significant savings over grid tariffs, making it an attractive option for businesses and individuals.
• Favorable policies: Government initiatives such as PM Surya Ghar and PM-KUSUM are driving increased adoption of distributed solar in the residential and agricultural sectors by providing financial incentives and subsidies.

How are technologies like IoT, AI, and energy storage enhancing distributed solar systems at Fourth Partner Energy?

Fourth Partner Energy integrates cutting-edge technologies to optimize system performance and deliver enhanced value to its clients:

• IoT: Early on, we made a strategic decision to develop an in-house system for real-time monitoring of generation, consumption, and asset performance. Today, this system seamlessly tracks data across our 1000+ onsite and open-access plants, empowering our performance management team with actionable insights for data-driven decision-making and enhanced operational efficiency.
• AI: As an early adopter, Fourth Partner Energy leverages AI for predictive analytics and advanced weather forecasting, enabling precise power scheduling for open-access projects and ensuring greater reliability.
• Energy storage: Fourth Partner Energy has been a pioneer in delivering solar-plus energy storage solutions tailored to diverse client needs. We have successfully demonstrated multiple use cases, enabling some clients to achieve complete energy independence by going off-grid. By integrating battery storage, we not only help smoothen the generation curve of variable renewable energy sources but also offer an ideal solution to enhance grid stability and reliability, making renewable energy more accessible and consistent.

The adoption of these advanced technologies has significantly enhanced system reliability, improved efficiency, and strengthened our ability to provide comprehensive, innovative energy solutions for our clients.

How do policies impact distributed solar growth, and what policy changes could further boost the sector

Policies are instrumental in driving distributed solar adoption by offering regulatory clarity and financial incentives. Since energy from distributed solar is the most cost-effective alternative compared to other sources, promoting it can significantly enhance the global competitiveness of products and services manufactured in India.

The adoption of distributed solar in the C&I sector gained momentum with the introduction of the Net Metering policy allowing installations of up to 1 MW in 2015. Similarly, the residential sector has witnessed a surge in rooftop solar adoption, driven by subsidies introduced under the PM Surya Ghar policy.

To further accelerate the growth of distributed solar, the following policy changes could be implemented:

• Uniform policies across states: Establishing uniform definitions, rules for additional charges, and consistent net metering regulations to eliminate regional discrepancies.
• Single-window approval system: Introducing a transparent approval mechanism with defined timelines. Approvals not processed within the stipulated timeframe should be automatically deemed granted.
• Increase in net metering capacity: Raising the allowable capacity for net metering to at least 5 MW to enable larger installations.
• Flexibility for net metering and open access: Allowing consumers to simultaneously avail of net metering/net billing along with open access, enabling greater flexibility and scalability for diverse energy needs.

By addressing these areas, policies can create a more supportive and efficient ecosystem, driving the widespread adoption of distributed solar and contributing to India’s clean energy transition.

How does Fourth Partner Energy customize its solutions for commercial, industrial, and residential clients?

At Fourth Partner Energy, we take a highly customer-centric approach to tailoring energy solutions for commercial and industrial clients. The process begins with a thorough understanding of the client’s objectives, such as cost savings, sustainability goals, or energy independence, as well as any operational constraints.

We then conduct a detailed analysis of Annual electricity consumption and load profile, Available space within the premises for solar installations, prevailing state regulatory framework and its implications, Potential savings across different energy solutions, and estimated reduction in carbon footprint to align with sustainability targets.

Based on this comprehensive evaluation, we develop a customized roadmap that may include a mix of onsite solar installations, offsite renewable energy procurement, energy storage systems, and renewable energy certificates. This tailored approach ensures that each client receives a solution that maximizes value while meeting their unique energy requirements.

What emerging trends in distributed solar could shape the industry over the next five years?

Emerging trends in distributed solar that could shape the industry over the next five years include the integration of advanced energy storage solutions, the adoption of higher Wp, more efficient TOPCon bifacial solar panels, installation of floating solar plants, carports, agrivoltaics, use of AI and machine learning for predictive maintenance and grid management, innovative policies like virtual net metering, group net metering, peer to peer trading, financing solutions and introduction of subsidies/incentives for MSMEs enabling wider participation.