Implementation Framework for Enhancing Distributed Solar PV Quality and Safety for India MNRE-USAID PACE-D 2.0 RE Program September 24, 2020
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Implementation
Framework for Enhancing
Distributed Solar PV
Quality and
Safety for India
MNRE-USAID PACE-D 2.0 RE Program
September 24, 2020
NREL | 2
Quality and
Safety Importance in DPV and
Solar PV Rooftop
Reality on roofs in India
Path to arrive at potential solutions
Background research –Indian and
Global studies
Stakeholders Interviews
- In-person
- Telephonic
- Written responses
Explore Best Practices and solutions in
other countries
Derive possible solutions list
with their characteristics
Share and explore
recommendations with
stakeholders
Support implementation
of recommended
solutions
The Distributed Solar PV Project Development Chain
Site Preparation
Erection of Structure
Wiring, Inverter & Safety
Module Installation
Commissioning O&M
Installation Stage
The Distributed Solar PV Project Development Chain – 3 distinct phases - surveys & literature show
that each distinct phase has specific issues
Design Quality (15%)
1. Fasteners (15%)
2. Handling of Modules (5%)
3. Earthing and Protections (5%)
4. Rest (10%)
1. Array Layout (7%)
2. String Inverter Mismatch (3%)
3. Access to Site (3%)
4. Rest (2%)
1. Modules (15%)
2. Structures (15%)
3. Junction Boxes (10%)
4. Rest (10%)
Components
Quality (50%)Installation & O&M
Quality (35%)
The Solar PV Rooftop Quality and Safety Corundum
The Distributed Solar PV Project Development Chain – Key quality & safety issues
& potential solutions
Stage of Project
Development
Key Issue Potential Solutions
Design
Array LayoutArray layout to conforms to shadow analysis drawing – check drawing
with actual layoutString Inverter
Matching
PV Syst/ PV Sol reports should be used to verify proper matching – on
site matching – post installation check
Site AccessPathway next to array for R&M; Access to modules – without
specialised equipment and Provision of lifeline for safety
Components
Structures1. STAAD Pro Certification
2. Material treatment
Modules
• Bill of Materials
• Acceptance Testing
• Flash Test (At factory)
• EL Test (At factory)
• Visual Inspection (At factory)• Thermal Imaging (At site)
Junction Boxes • Integrate with Inverter or test all protection devices
InstallationE&L Protection
1. Lightening arrestors effective radius covering array
2. No. of Earthing's – Min. of 3 for each system
3. Soil Resistivity in each Earth pit < 5 OhmsHandling of Modules 1. Thermal Imaging Test – and compare results with flash test
Electrical Safety
Assurance
Module Quality
Certification
Vendor Rating
NREL | 9
Vendor
Rating
Who will be rated?
Any agency or firm which is responsible for the design, procurement and installation of PV rooftop and / or distributed PV systems
2Developer with in-house EPC and / or Installer team
Focus on small systems Rating open to all decentralised solar PV systems
1 Investor Developer
3 EPC without in-house Installer team
5 Installer agency / firm
4EPC with in-house Installer team
Yes
Yes
Yes
Objective, Goal and Salient Points
• A procedure to rate vendors on a variety of factors related to the design, procurement and installation
• Provide a single point of reference for all stakeholders – to identify top-rated quality vendors
• Allow consumers, developers and investors to compare and rank vendors on the quality of workmanship/procured components, installation practices and level of safety
• Provide incentive to Vendors to raise their game, offer better services and ensure delivery of quality systems
What is Vendor Rating?
Accelerate deployment of quality rooftop solar systems by providing consumers and investors an informed choice about the Vendors
Provide objectively verifiable data and information about vendors to consumers and key stakeholders
Goal of Vendor Rating
Objective of Vendor Rating
How will Vendor Rating work?
• The VRF will look at the vendors’ technical and financial resources and infrastructure, systemsand processes, and quality of work undertaken at random sample installations
• The rating will be time bound and will need to be restructured and redesigned as per thechanging requirements and nature (the validity will be 18 months)
• Random sampling of systems will compel vendors to continuously improve quality
• Aim will be to make certification essential for every EPC/installer to compete in the market
VENDOR RATING METHODOLOGY
Technical FinancialOn – site
Inspections
20% 10% 70%
Design and Procurement Documents
Annual Company Reports
Site Visits
Evaluation Parameters for the Vendor rating
Technical Capabilities
1. Growth in installed capacity over three years2. Competency of installers3. Completeness of site handover documents4. Equipment enquiry and Procurement guidelines and
samples5. O&M capabilities and contracts6. System design depth7. Cable design depth
Financial Capabilities
1. Revenue trend over three years2. Returns on capital employed3. Debt service coverage ratio
Sample Site Surveys
All potential risk factors / issues, with high frequency of occurrence over the life cycle ofsystem, will be analyzed and evaluated
1. Modules2. MMS3. Accessibility and Safety4. Inverters5. Cable Management6. Cable conduits and trays and
management7. Protection features/ devices8. Online Monitoring9. System Performance 10. Operation & Maintenance11. Documentation12. Customer feedback
Giving the rating – EVALUATION STRUCTURE
Weighted Average of vendor’s marks would be displayed within the grades
Benefits of Vendor Rating to stakeholders across the solar PV rooftop value chain
Investor Developers
• Assist in identifying quality vendors (EPC/installers)
• Increase/ enhance returns through improved system performance on ground
• Reduce transaction costs
• Access lower interest debt
Customers
• Easy in identifying and selecting high quality vendor
• Enable access to information for vendor comparison
• Enhanced system performance
• Access lower interest debt
• Ease of setting up the systems –clarity on roles
Bankers
• Quality of vendors & systems; and
• Improved performance of systems on the ground
• Faster loan approval process
Utilities
• Enhanced safety due to improved compliance by vendors
• Improved quality resulting in more predictable generation, allowing better grid management
Vendors
• Enhanced visibility and business promotion
• Access to information & feedback on benchmarking & process improvement
What are the benefits of a Vendor Rating Framework for key Stakeholders
Features of Vendor Rating
• Objective: Rate vendors under 5 grades based on on-field quality
• Process: Rating of vendors through (@70% weightage) site inspections and customer feedback
• Benefits – Dynamic; Motivation for vendor to enhance quality of work to increase grade; Useful in open market; Possibility of rating of major components (modules, inverters); Record of system performance across India
CII as Vendor Rating Agency (VRA)
▪ A specialized vendor rating agency (VRA)
▪ The VRA will develop the standards and norms for rating the vendors
• The VRA would also develop, as part of standard framework,requirements for the vendors - signed off by key players like MNRE,Investors and Discoms.
• The empanelment with discoms or state agencies can be based on thecertificate from the rating agency for technical and financial strength.
Using the Franchisee Route to scale up
Vendor Rating Agency
Franchisee Market 1
Franchisee Market 2
Franchisee Market 3
Ratings for Vendors in
these markets
Franchisees• Identify market & sell the VRS• Hire evaluators, train and certify these • Undertake ratings • Work with VRA to check and release rating
Vendor Rating Agency• Identify franchisee, establish credibility & capacity• Certify franchisee, train and integrate into system• Certify evaluators and infrastructure • Quality Control
• Allows rapid scaling up of the VRS• Reduces need for financial and institutional investment• Acts as a source of revenue to the VRA
VRA Revenue Streams
Revenue stream from EPC’s/
Developers/ Vendors
Online Advertisement
Revenue
Revenue from Consultancy and
Publications
Training and Certification
Revenue
Revenue from Membership
Main source of revenue for the VRA. Category based Fee structure
Secondary source of revenue. Online advertising by component / service
suppliers.
Can be another source of revenue –especially for large EPC’s who
operate across the country
Increasing need for surveyors / quality experts/ lenders
engineers.Certification of these
personnel can provide revenue
Opportunities like consultancy, publications,
data bases
Approach to Vendor Rating
Develop a Rating
Methodology
Identify Key Areas for
Rating Vendors
Identify Key Parameters within areas
Calculate Score & give a Rating
• Rating Methodology –based on an absolute score and relative rating
• Each vendor rated on a total score of 100
• Based on score –each vendor given a rating on a scale of 1 – 5
3 areas identified for Rating Vendors:1) Technical Capacity
– 20%2) Financial Capacity
– 10%3) Quality of
Installations on the ground – 70%
Total Score totals 100
Within each parameter identify specific parameters for scoring:• Based on the key
Q&S issues identified during stakeholder consultations & technical & financial criteria developed
Based on the score of 100 and relative standing with other vendors – rate vendor –• Top 10% - Score of 5• Next 15% - Score of
4• Next 20% - Score of
3• Next 25% - Score of
2• Rest 30% - Score of 1
The vendor rating cycle: The renewal of ratings shall be a shorter process
The Vendor Rating Cycle
Online Registration Orientation Workshop Submission of Documents
Development of Survey
Methodology with Vendor
Site Surveys (only 50%)Submission of Report to
Vendor FeedbackAward of Rating
Day 0 Day 15 Day 30
Day 30
Day 45 - 60Day 75Day 90
The Vendor Rating Cycle:1. Initial cycle - only 50% of sample sites will be surveyed, rest undertaken across the year – to reflect changes in rating
with performance on new sites
Steps in Vendor Rating with stakeholders and formats
No. Step Action Document/s to be prepared/ shared
1 Vendor applies to be rated and is registered Vendor & VRA Application and Registration form
2List of Documents required for Rating - Request for documents by VRA & submission by Vendor
VRA & VendorRequest letter by VRA with list of documents & filled in documents by Vendor
3 Analysis of Documents submitted by Vendor VRA Technical (20%) and Financial (10%) Capability Score
4 Identification of sites for Site Survey/s VRA & VendorFinalisation of sampling methodology, request for list of sites and identification of sites for survey/request for information on sites
5 Information on selected sites submitted by vendor Vendor Format for submission of site related information
6 Analysis of site data, scheduling and planning of site visits VRA Site survey plan with questions and checklists
7 Site Inspections VRA Inspection checklist
8 Marking and Qualitative remarks VRA Format
9 Draft Rating Report – Technical, Financial and Market VRA Report
10 Confirmation by vendor Vendor Format
11 Final Rating report VRA Report
12 Publication of Rating Report on the rating portal VRA Report
13 Based on Rating – Provision of Rating Scale to Vendor VRA Format on Portal/ App
14Changes in Rating Scale for Vendor based on new entrants and exit of earlier entrants
VRAFormat on Portal/ App
15 Rating validity expiry notice VRA Format
Steps in Vendor Rating with stakeholders and formats
Total Score 70Modules 10Module Mounting Structure 8Accessibility & Safety 6Inverters 4Cable management 8Cable trays and conduits management
2
Protection 7Online monitoring 2System performance 6O&M 1Documentation 9Customer feedback 7
Development
Chain
Key Quality Issues Check
Design Quality
(15%)
1. Array Layout (7%)
2. String Inverter
Mismatch (3%)
3. Access to Site (3%)
√
√
√
Component
Quality (35%)
1. Modules (15%)
2. Structures (15%)
3. Junction Boxes
(10%)
√
√
√
Installation &
O&M Quality
(50%)
1. Handling of
Modules (5%)
2. Earthing and
Protections (5%)
√
√
How Solar Companies will be rated ? Approach – Percentile Based Score And Star Rating
*Percentile Calculation is done using the Rank.EQ function
• The aggregate score will be calculated by adding the scores of technical and financial parameters, with the site inspection scores.
• The percentile will be calculated according to the scores and will be assigned to the companies.
• “Star” ratings will be provided according to the table provided.
• The list of companies will also be sorted according to the scores and this aggregate score will be provided in addition to the “Star” rating provided.
Stars Percentile5 >=90 to 1004 >=75 to <90 3 >=60 to <752 >=40 to <601 0 to <40
Thank You for Your
Time & Attention
Cre
dit
: Ph
oto
sto
ck
Development of Complimentary Service Offerings – Secondary services like lenders / owners’ engineers, quality
management or 3rd party inspection.
• Objective: Empanel vendors under 15 different grades to distribute subsidy
• Process: Accreditation and Grading vendors by credit rating agencies; based on documents (performance capability and financial strength)
• Benefits: Government and subsidized customers could directly place orders
• Constraints: Static; No impact on grading by vendor work quality; Emphasis on documents about past experience
Earlier Experiences• Objective: Rate vendors based on quality of
work• Process: Rating of vendors through (>50%
weightage) site inspections and customer feedback
• Benefits – Dynamic; Motivation for vendor to enhance quality of work; Useful in open market; Possibility of rating of major components (modules, inverters); Record of system performance across India
• Constraints: High requirement of funds and manpower
Proposed VRF
Differentiating Vendor Rating Framework from MNRE’s Ratings
The data and best practices identified by the VRA can help them design Quality Assurance &
Management Systems for Financial Institutes investing or lending to the DPV sector
Trained evaluators can act as lenders’ engineers or 3rd party
inspectors for FI’s and investors
The need for rating and the need to compete on quality will also incentivise developers and customers to hire owners engineers –
these skill sets can also be provided by evaluators certified by the VRA
The VRA can provide a host of other services, improving quality, enhancing productivity and
generating employment opportunities
Phase wise launch of the Vendor Rating Framework – to change
National LaunchDesign Phase Pilot Phase State Launch
Vendor Rating Parameters & Methodology/
Stakeholder Consultation
Design of the Vendor Rating Portal/ Application
(Smartphones)
Vendor Rating Agency –Identification & Business
Plan
Training & Certification of Evaluators
Design of Pilot Launch –State, sample size
Technical & financial due diligence of vendors
Sample surveys of Vendor sites chosen for pilot
Pilot Sample Rating Calculation
Identification of Model –VRA or Franchisee for state
launch
Marketing strategy and outreach
Launch of state wide rating services
Identification of national/ state level franchisees and
strategic partners
National level roll out strategy and outreach plan
Launch of Services – Data, Consulting & Member
Launch of nation wide rating servicesStakeholder Consultation
4 Months 3 Months 3 Months 3 Months
Related Documents
