Que: Could you provide an overview of the current state of distributed solar energy in India, especially in the residential rooftop solar segment and how government policies are influencing the growth of distributed solar energy in India?

Ans: India’s rooftop solar sector is perfectly poised to increase its contribution to the country’s total fossil-free energy capacity. Currently, rooftop solar accounts for approximately 12 GW out of India’s total installed solar capacity which is about 87 GW. However, with the Indian government’s robust policy support and evolving consumer attitudes, this is set to increase rapidly.

Government initiatives like PM Surya Ghar Yojana and PM Suryodaya Yojana are key to this transformation. These initiatives provide substantial subsidies, about 50 percent of the capital costs on a 3 kW system, making rooftop solar a lucrative investment for an average home-owner. Additionally, supportive measures like near-zero electricity pricing for the first few units, enhanced public sector bank financing, and a dedicated USD 80 million budget for awareness campaigns are expected to drive rapid adoption. These features combined with a growing awareness and financial benefits among end-users, India is projected to see its rooftop solar capacity grow to nearly 100 GW by 2030, playing a pivotal role in meeting India’s energy needs and advancing towards a sustainable future.

Que: What are your predictions for the growth of the distributed solar energy market in India over the next 5-10 years? What role do you see Fenice Energy play within this expanding market?

Ans: The potential for distributed solar energy in India is estimated at 637 GW, translating to approximately USD 200-250 billion in value over the next decade. Drawing insights from the US and European markets, it's likely that 6-7 major industry leaders will emerge, capturing significant market share, while smaller, local providers may struggle to compete. As customers become more aware of the shortcomings of subpar systems, they will increasingly value the quality offered by established brands, potentially leading to the formation of an oligopoly. This trend can be compared to the evolution seen in the DTH-cable and telecom sectors.

Currently, the barrier to entry for rooftop solar providers is relatively low. However, as customers demand higher quality, better experiences, and greater reliability, we anticipate the emergence of strong brands. Technological advancements in solar energy are expected to align with global trends, with improvements in module and cell manufacturing already underway. Additionally, customers are seeking advanced technology and diverse energy subscription models, which will foster innovation in both software and hardware.

We have also worked diligently to make solar financing as accessible as car loans, and we expect financing options to become increasingly user-friendly. Ancillary services such as maintenance and spare parts are likely to grow, and new financial products tied to solar's attractive return on investment will emerge. Community solar initiatives and virtual power plants are already in policy development stages.

Fenice Energy's strategy is designed with these developments in mind. We aim to be a versatile platform addressing diverse energy transition needs, from offering power purchase agreements to societies to providing storage solutions for emergency care centres. Our goal is to position ourselves among the top 6-7 industry leaders who will shape India's energy landscape over the next decade.

Que: Can you share some case studies or success stories that highlight Fenice Energy’s impact on its clients and the broader RE sector?

Ans: Fenice Energy is reshaping lives and businesses with our cutting-edge renewable energy solutions.

● “I reduced my Electricity bill from INR 18,000 to INR 8000 with Fenice Energy’s solar installation, saving my house from daily power cuts. Now 75 percent of my society is choosing Fenice for solar rooftops.” - Vivek Harivyasi.

● “I achieved my goal of earning money by selling electricity to the government. My summer bills dropped from INR 3500 to INR 200 after Fenice’s solar rooftop installation. People were impressed by my setup, which did not compromise my roof space or garden area due to the high-rise structure.” – Vamsi Krishna

● “After thorough research, I chose Fenice Energy for their competitive pricing and professional, knowledgeable installers. Unlike others with cheap products, Fenice Energy proved reliable. My electricity bill dropped from INR 25,000 to INR 10,000 per month. I’ve recommended Fenice Energy to all my friends.” - Abhinav Jain

In addition to the glowing testimonials from our satisfied customers, Fenice Energy is at the forefront of innovation in the renewable energy sector. We proudly lead the market in utilising advanced microinverter technology, enhancing the efficiency and reliability of solar installations.

Que: How do you compare distributed solar energy to large-scale utility solar in terms of cost, efficiency, and scalability?

Ans: Distributed solar systems typically cost around INR 60,000 per kWp for residential installations, compared to roughly INR 27,000 per kWp for utility-scale projects. To reduce the initial investment for distributed solar, the government offers a subsidy of INR 30,000 per kW for systems up to 2 kW, and an additional INR 18,000 per kWp for systems between 3-10 kW. This makes the cost of distributed solar comparable to that of utility-scale power plants on a per kWp basis.

Financing options for residential and small commercial solar systems have also become more accessible. Combined with net-metering benefits, this has significantly increased the returns on distributed solar, ranging from 30 percent to 75 percent, making it a more lucrative investment compared to many traditional savings instruments.

In terms of efficiency, distributed solar systems benefit from reduced transmission losses due to on-site power generation. However, their performance can be limited by factors such as roof space, shading, maintenance issues, and varying installation quality due to the lack of standardised quality controls. These issues can be addressed through thorough planning, shade analysis during design, stringent quality and safety processes, and regular maintenance. Additionally, using products like microinverters can boost generation by 10-15 percent compared to standard string inverters over the life of the system.

Despite these advantages, managing the essential 70-80 components required for each installation across various locations presents scalability challenges. This often leads vendors to operate on a local scale. However, this challenge also creates opportunities for companies like Fenice, which can leverage a digital platform to streamline and manage decentralised operations more efficiently.

Que: What is your vision for Fenice Energy in the next five years, and how do you plan to navigate the challenges accompanying rapid expansion?

Ans: We aim to build a comprehensive energy transition platform that facilitates various customer segments in shifting to clean energy. Currently, we cater to residential and small commercial clients, including apartment complexes. With approximately 7,000 rooftop solar providers registered on the MNRE portal, this market is highly competitive and price-sensitive. Despite this, we stand out due to our consistent quality, exceptional customer experience, and reliable power generation.

Managing the performance of thousands of plants nationwide is a formidable challenge, but it's becoming a significant competitive advantage for us. Our robust end-to-end digital interface simplifies the process of adopting solar energy, and we are committed to ongoing improvements in this area. We are also focused on enhancing our supply chain to serve our customers more effectively and efficiently. Additionally, we will continue to collaborate with the MNRE to support PM Modi’s vision of solarising 10 million homes.