Hartek, One Of India's Top Power Contractors, Is Betting On Rooftop Solar Model

One of India's top power sector contractors has increased focus on rooftop solar projects as awareness grows with companies from Coca Cola India to Bikaji Foods Ltd. going for it.

“Right now, we are focused on the onsite capex model (the industry jargon for rooftop solar) as we see a huge momentum going ahead,” Simarpreet Singh, executive director at the Hartek Group, told BQ Prime. The open access model to set up independent solar projects has been a challenge, he said.

Under the onsite capex model, industries and commercial buildings invite companies to install solar panels on roofs at their own cost. In the open access arrangement, companies like Hartek develop their own plants and have the freedom to sell power to other users.

A majority of customers are looking at an onsite set-up as they are not sure of the quality of open-access projects and if they will be ready on time despite signing power purchase agreements, Singh said. “That is a reason why some of the players go with the onsite capex model first, to get the flavour of solar and renewables.”

India has subsidised rooftop solar projects as the nation looks to quadruple solar generation capacity to 280 gigawatts by 2030 to lower imports of fossil fuels and curb pollution. The awareness has grown as the total capacity rose to 8.5 gigawatts in the year ended March, according to the Ministry of New and Renewable Energy. More than 1,000 MW was added in six month through May.

Open access is also a great model too, according to Singh. But, it will take some time before customers become comfortable with it, he said.

Since net metering—where surplus power produced from rooftops can be sold to grid—is capped at 500 kilowatts, industries and large buildings don’t go for it, Singh said. Although their connected node is close to 20-30 megawatts, they are putting only 4-5 MW on the roof, he said.

"Majority of the projects we are doing are the captive consumption projects. The enquiries are actually growing year-on-year.," Singh said. "The challenge with open access is the quality of power plants and the commitment of the PPAs."

Hartek Power, a subsidiary of Hartek Group, is in the business of transmission distribution and works towards setting up grid infrastructure.

The 40% duty levied on imported solar panels last year impacted the company's independent power producers and delayed its projects.

The impact, however, lasted the first quarter of FY23, Singh said. “The story was sold off from the second quarter as people became conscious about sustainability and their carbon footprint."

The developers were confident that the payback time will only increase marginally from 3.5 years to 4 years. They were also impressed with the quality of solar panels available from domestic manufacturers, Singh said.

It is good that the approved list of models and manufacturers was extended as it will help developers import from China, he said. "Now, it needs to be seen if we will be cross-setting up of 20 GW solar capacity this year."

The company expects rooftop projects from textile, steel customers, and beverage companies.

“We did a 2 MW project for Bikaji Foods and have secured another 2 MW project from them. We have also set up 5 MW solar project for Coca Cola," he said," he said. "There are also large steel plants and textile companies that are looking to set up captive renewable plants. We see a great opportunity there.”

The company also sees opportunity in floating solar plants. Hartek completed North India’s largest such project of 2 MW and has bagged another 22 MW floating solar project. Once completed, Singh said, it will be the largest project in the Punjab, Haryana and Himachal region.