Project concept Note on Application of Solar Technology in Rural

Areas of most backward 39 Talukas in Karnataka

Objective:
To provide alternative Solar energy solutions for domestic industrial and
commercial establishments in order to mitigate the energy problems in
backward villages of the state.
To develop and deploy village specific electricity generation system and
package based on Solar Technology/ Solar Wind Hybrid Technology.
Technology:
It has been decided to focus on the development and application of the solar
energy technologies may be in combination with wind. The villages are
enabled to produce their own energy and not at the mercy of power outages
and flactuating costs.

1. Introduction

During 2006-07, the Government of India notified ‘The Rural Electrification

Policy’’, which lay down the broad framework for rural electrification
programmes in the country.
The Rural Electrification Policy has laid down that in “villages/habitations
where grid connectivity would not be feasible or not cost effective, off-grid
solutions based on stand-alone systems may be taken up for supply of
electricity. Main extracts from the Policy are given in Annexure-1. Solar
stand alone is one such system.
India receives solar energy equivalent to over 5,000 trillion kWh per year.
The daily average solar energy incident varies from 4 -7 kWh per square
meter depending upon the location. The annual average global solar
radiation on horizontal surface, incident over India, is about 5.5 kWh per
square meter per day. There are about 300 clear sunny days in most parts of

1
the country. Karnataka is ideally suited for exploiting the solar potential for
electrification with the available technology.
2. Two routes to harness Solar Energy:

Solar energy can be harnessed through two routes, namely solar photovoltaic
and solar thermal, by direct conversion to electricity and heat energy
respectively.
3.Solar energy devices and systems:

Solar Home lighting, Solar street lighting, solar water Pumps, Solar Power
Packs, Solar water purifiers.
Solar Water Heating, Systems (SWHS).
Solar Air Heating systems/Solar Cooking Devises
Solar steam Generating systems
Solar driers/Solar Stills
Solar Wind Hybrid systems

4.Current Activities:

The following programmes are implemented by KREDL as sanctioned by

the MNRE in solar energy on target basis.

5.Remote Village Electrification Programme:

The Remote Village Electrification Programme of the Ministry was

initiated for electrification through renewable energy sources of those un-
electrified remote census villages and remote un-electrified hamlets of
electrified census villages where grid connectivity is either not feasible or
not cost effective. The RVE Programme has also been suitably adapted with
the Rural electrification policy.

2
6. SPV Home lighting Systems:

The SPV Home Lighting Systems are implemented on demonstration basis.

In many situations, particularly in very small and very remote villages, no
other renewable energy option except SPV home lighting systems may
prove to be feasible. A majority of remote census villages taken up for
electrification under the programme are provided with SPV home lighting
systems (about 95%). While, before 2004-05, support was being provided
for SPV home lighting systems of up to 4 lights each, after 2005 it has been
restricted to systems of 2 lights each. BPL households are provided single
light systems with 100% subsidy. The solar home lighting systems for two
lights are designed to provide around 0.1 kWh of energy per day and cost
Rs.13000-15000 per system per household. The Ministry provides a subsidy
of upto 90% of the costs of various renewable energy devices/systems
subject to pre-specified maximum amounts.

7. Present Initiative:

The government of Karnataka desires to implement the application of solar

technology to provide rural energy solutions. The meeting held on
15.01.2009 and in this regard, presided by Hon’ble RDPR minister,
Government of Karnataka, Miss. Shobha karandlaje deliberated the matter in
detail. The following were the resolutions.

1. The Solar system application to be implemented in identified cluster

villages of the 39 most backward Talukas of the state as per Dr. D.M
Nanjundappa Committee Report.
2. Target is to cover villages with minimum of 100 households and
above and to cover a minimum of 100 village clusters during the
current financial year 2009-10.
3. Solar Technology applications to be implemented in a comprehensive
manner for solutions in following areas.
i. Domestic Home Lighting
ii. Street lights in village/panchayats limits
iii. Heating applications

3
 iv. Drinking water purification with special emphasis on

deflourination.
v. Applications in milk pasteurization plants at village/hobli
levels.
vi. Shallow well irrigation pumps for agriculture.
vii. Irrigation pumps in lift irrigation schemes.
viii. Any other.
4. The solar technology to be inconformity with MNRE GOI, standards/

specifications.
5. The technology provider to indicate the rate at which Kwh or unit of
power can be made available.
6. The Solar technology providers to identify cluster of villages/where in

they can execute and may come out with RFQs on annuity basis;
while taking full responsibility of installation, maintenance and
reliable functioning of the technology provided by them on a
sustainable basis.
7. KREDL/ RDPR respective Zilla Panchayats (Taluk Panchayts /

Grampanchayts ) and respective implementation departments in

district level will work in close coordination.

8.Guidelines for Preparation of Proposals:

1) Eligible Organizations:

All existing registered companies with solar manufacturing facilities of

approved quality standards as specified by MNRE, private sector solar
power project developers who have set up or propose to set up a registered
company in India will be eligible for offering Rural Solar Technology
solutions. Individuals, NGOs, financial institutions, societies and other
unorganized investors are not eligible to participate directly.

4
2) Eligible Projects & Eligibility Criterion:
Stand alone individual village based or decentralized solar power generation
and distribution facilities including solar wind hybrid systems for a village
cluster in the 39 most backward Talukas identified by the Dr D M
Nanjundappa Committee (Annexure-3).There may be around 39000
Villages, per Taluka@ 90 to 100 villages.
The Rural Solar Power generation and Supply Projects will be undertaken
on Build Own and Operate basis.
The projects should be owned by the solar technology provider with the
responsibility for overall operation / management resting with them for a
period of initial 10 years.
The capital cost would have to be mobilized by the solar energy technology
provider from the user fee to be collected on monthly basis as annuity over a
period of 10 years after deducting the MNRE incentive if any considered.

The Technology provider will be eligible for MNRE incentives as per

norms.
3) Technical Performance Optimization:
With a view to encourage technology development and reduction in the cost
of the project developers are expected to utilize the state of the art
technology to set up the projects. They are expected to use large capacity
and higher power output PV / Thermal modules available for the specific
technology used in setting up the power projects. Qualification of PV
modules, to be used in grid interactive power plants, in accordance the
standards issued by BIS or IEC 61215 certification or other international
Certification on qualification of PV modules will be necessary. The
interested project developer will give an undertaking in the application to
use such modules and provide to KREDL copies of such certificates either at
the time of application. Non-compliance of this requirement will result in
disqualification.

The electronics, cables, controls, structures etc. must qualify to latest BIS or
International standards which are acceptable to utilities and which fulfill all
safety norms for grid/off grid power projects. The Solar PV/Thermal power
project developers will provide a copy of the test certificate(s)/ report(s)
latest with the proposals.
5
The PV /Thermal power project technology providers are required to
optimize generation of electricity in terms of kWh generated per MWp of
PV/thermal capacity installed vis-à-vis available solar radiation at the site
(may be obtained through use of efficient electronics, lower cable losses,
maximization of power transfer from the modules to electronics and the grid,
maximization of power generation by enhancing incident radiation by
optional methods like seasonally changing tilt angles etc).
The gird interactive solar PV plant may be connected to preferably 33 KV
grid line to minimize power transfer losses. However, the choice of grid
voltage may be determined in consultation with the concerned state utility.
PV power project developers will be required to maintain and provide to
KREDL technical information on daily solar radiation availability, hours of
sunshine, duration of plant operation and the quantum of power fed to the
grid. The project developer will install suitable instruments, meters and data
loggers for this purpose. This information will be provided at the time of
commissioning. This will help in estimation of generation in kWh per MWp
PV array capacity installed at the site. The particulars of standards are given
in Annexure-2.
4) Identification of villages / hamlets:
Identification of suitable villages / hamlets, which have a conducive
environment for implementation of such Rural Solar energy Projects is
critical. The village / hamlet identified should be backward /remote, and may
include a tribal or forest-fringe village / hamlet. A cohesive and progressive
social structure is also an important requirement. The village / hamlet should
have a minimum of 100 and maximum of 500 households and should be
identified in consultation with ZP TP GP and rural development departments
/ agencies. After selection of the village / hamlet, a preliminary proposal
would have to be prepared, got duly endorsed by the KREDL and forwarded
to the RDPR for consideration of `in principle’ approval.

5) Preparation of a Village Energy Plan:

A Village Energy Plan will have to be prepared, with active and full
participation of the village community. An assessment of the total energy
demand should be made. The minimum energy services to be provided for in
any project should include requirements for:-

6
 1. Household cooking, lighting, heating and entertainment.
2. Street lights in village/panchayats limits.
3. Community, commercial facilities such as shops, streetlights, lights /
fans in the health centre, school, flour mill, information and
communication technology.
4. Pumping water for drinking, irrigation /Large scale lift irrigation and
individual river based pumping systems.
5. Drinking water purification/de-fluorination.
6. Rural / cottage industry.
Based on the total energy requirements production system would have to be
configured and latest Solar Technology Solutions offered.
6) Formation of a Village Energy Committee:

Full participation of the village community should be secured from

inception. The constitution of a Village Energy Committee should be
through the Gram Sabha and got duly notified by the Gram Panchayat as a
Sub-Committee or Standing Committee of the Gram Panchayat as per the
relevant provisions of the Panchayati Raj Act and rules in this regard. Care
should be taken that the elected Panchayat member/s from that village are
ex-officio members of the VEC. The respective Zilla Panchayat should
actively co-ordinate the formation of VECs.

7) Creation of a Village Energy Fund:

A Village Energy Fund should be got created under the provisions of the
Panchayati Raj Act, initially with nominal beneficiary contributions of Rs
200 per household for sustained operation and management of the project.
Subsequent monthly / annual user charges would have to be deposited in this
account. Grants from other Government programmes such as rural
development, tribal development, etc., if available, should be placed in this
account. The Fund should be managed by the Village Energy Committee
with two signatories nominated by the Committee. One of the signatories
would be the Gram Panchayat member who is the ex-officio member on the
Committee. A separate capital account should also be got created, for
receipts towards supply and installation of the energy production units. This
Capital Account would also be operated by the VEC in accordance with the
same procedure of joint signature and maintenance of accounts, which
govern the Village Energy Fund. Both the VEF and the Capital Account of
the VEC, being the accounts of the Gram Panchayat under the provisions of
7
the law, would be subject to the processes of accounts maintenance and audit
that apply to the Gram Panchayat. Expenditure of funds by the VEC should
be disclosed to the Gram Panchayat at its monthly meeting as prescribed
under the Panchayati Raj Act and Rules. VEC, being a Sub-Committee of a
Standing Committee of the Gram Panchayat would also be under obligation
to disclose information in accordance with the Right to Information
legislation. It will also be authorized to submit the Utilisation Certificate to
the Gram Panchayat, which in turn will submit the Utilisation Certificate to
the agency concerned at the district level. Technical facilitation and capacity
building through implementing Agencies or Consultants such as NGOs
would be focused at the VEC level through the Gram Panchayat.
9. Guidelines for Implementation of The Rural Solar Energy Projects:
The projects would be undertaken by the solar technology providers duly
facilitated by implementing agencies such as Grama Panchayats, Taluka
Panchayats and Zilla Panchayats, NGOs, entrepreneurs, franchises, co-
operatives, etc. An implementing agency would forward the proposals for
the projects to the RDPR through the KREDL.

The proposals should, inter-alia, include the following information:-

1. Village Energy Plan

2. Confirmation about setting up of Village Energy Committee
3. Creation of Village Energy Fund
4. Implementation modalities and Technology
5. O&M arrangements - Phase - I, 10 Years and phase –II, 11 to 20
years (20 years).
6. Per unit energy cost to be supplied on a sustainable basis - Phase-I,
10 Years and phase –II, 11 to 20 years on a yearly basis.
7. Commitment about capital cost and funds for operation and
management - Phase - I, 10 Years and phase –II, 11 to 20 years
8. Recovery pattern from village energy users per energy unit on
monthly basis.
9. Plan for Training village community.
10. Minimum hours of supply / day on sustainable basis

The projects should be owned by the solar technology provider with the
responsibility for overall operation / management resting with them for a
period of initial 20 years/ extendable. During this period, the implementing
agency would train local youth in the operation and management of the unit.
8
After this period, the responsibility of operation / management should be
undertaken by the Village Energy Committee. The Village Energy
Committee may hire / lease out these services to an entrepreneur as a
preferred option. The District Advisory Committees on Renewable Energy
with the Deputy Commissioners as the Chairman, CEO ZP as Member-
Secretary and comprising district-level functional heads and prominent
citizens should be involved in the implementation of the projects. The
KREDL would have to closely monitor the implementation of the projects.
The Zilla Panchayath will provide monthly progress reports to the RDPR
and KREDL until commissioning. Thereafter, they should forward quarterly
reports on performance and other feedback to the RDPR and KREDL. The
KREDL would also carry out intensive monitoring and evaluation of the
projects directly as also through independent agencies.

10. Indicative areas of technology Applications:

Solar Lighting 18 W Module 1 Light

37 W Module 2 Lights
74 W Module 3 Lights
11W lamp & a fan
Street lighting 18 W
Power Plants
Including Modules, Batteries,
Electronic Systems, Internal Cabling,
Structures, All Civil Works, Fencing
etc worked out on Costing of
Household basis
Shallow Water Pumps Shallow well With 7 to
upto 150000 liters discharge per day Irrigation 10 mtrs
DC Surface Mounted Centrifugal Lift Irrigation Suction
Pump Drinking Water head
DC Floating Pump Pumping
AC Submersible Pump @ Karnataka
has 17 Lakhs irrigation pumps
minimum 5 to 10 HP.
Drinking Water Purifications
Milk Pasteurization Plants
Village cottage industries

9
11. Implementation mode:

The following sequence of activities will be adopted for implementation of

projects:

• Notification by the state Government for the Rural Solar Technology

Programme in Cluster villages of 39 most backward Talukas.
• Submission of proposals to the Government on Village/cluster of
Villages basis in the 39 most backward Talukas.
• Preparation of Detailed Project Reports by the Solar technology
Providing agency as per the enclosed format for the villages/hamlets
to be taken up for electrification under the Programme;
• Preparation of the plan for sustained operation of the projects O&M
including the revenue model/user fee collection proposed; and
coordination with the village level bodies for actual implementation
the project.
• Approval of the DPRs and the proposals by the Government.
• Implementation of the project.
• Certification by the authorized villages/district level officials/bodies
as per the requirements of the National Rural Electrification Policies.

12. Financial Assistance Guidelines for The Rural Solar Energy

Projects:
The capital cost would have to be mobilized by the solar energy technology
provider and the Rural Solar Energy Project to be operationalised. Solar
energy technology provider will subsequently recover the costs from the
user fee to be collected on monthly basis as annuity over a period of 10 years
after deducting the MNRE incentives that may be passed on to the solar
energy technology provider as per rules.
Release of the State Financial Assistance (SFA) towards the capital cost will
be into the designated capital account of the Village Energy Committee as
per the following pattern:-

Initial and full release of state financial assistance along 10%

with the solar energy production system configured based
on the total energy requirements with due formation of
VEC and latest Solar Technology Solutions offered
indicating the supply cost /rate per unit in the DPR against

10
 work order with agreement execution.
The operation, maintenance and management costs would have to be met
through user charges for the energy services technology provider. However,
if it becomes critical for the sustainability of the project, financial assistance
towards operation, maintenance and management costs will be provided.
Evidence of serious efforts made to recover user charges would have to be
provided. Service charges @10% for monitoring and Evaluation and
reporting feedback on performance. Funds for awareness creation, training,
seminars, workshops, etc. will be provided on merit on case by case basis.
Service charges released to the KREDL after completion of the project.
Certificate of a project having been successfully implemented and made
operational, as per the Sanction Order, shall have to be provided by the State
Nodal Agency KREDL, after obtaining the same from the Village Energy
Committee. The Gram Panchayat shall cause all accounts of the Village
Energy Committee to be duly audited and sent along with the Certificate in
the prescribed format to the ZP.
13. Monitoring:
The Rural Solar Power Project Technology Providers will install suitable
instruments and make adequate arrangements to monitor the performance
and ensure satisfactory operation to supply rural energy needs on a sustained
basis.
KREDL will make suitable arrangements to monitor the progress and
performance of the Rural Solar Power Project. The KREDL may also visit
the project site and provide their feedback and recommendation to
RDPR/Government. All Rural Solar Power Projects will be open to
inspection by the officials from the Government and any independent
organization appointed by the Government for performance monitoring. The
KREDL may also undertake field evaluation studies for any of the Rural
Solar Power Projects through professional and independent organizations.
14. Progress Report:
The project developers of all approved projects will be required to submit
annual progress report about the project and the annual report of the
company, which has set up and own the rural solar power project plant.

11
15. General Terms and Conditions:

• Mere submission of application/proposal would not mean approval of

government to any of the project.
• The government may through KREDL or through hired experts, get
the performance of the approved project appraised, for its operations as
per stated conditions.
• The government may also designate outside consultants/institutions
for monitoring the performance after commissioning. The technology
provider will undertake as a precondition to provide all necessary
assistance and data to the authorized consultant.
• The technology provider will be required to provide data on
performance of the project on quarterly basis to the concerned ZP/TP/GP
and also to KREDL.
• The technology provider will have to submit the operating and design
data for a period up to 5 years after commissioning and the
government /KREDL may use it in whatever manner deemed necessary
for promotion of the programme and fulfillment of the objectives.
• The government /KREDL will have right to publish case
studies/success stories/articles technical papers on the performance of the
project, wherein due acknowledgement to the technology provider will be
given.
• The achievements made during the course of the project will be
covered photographically/electronically and sent to the
ZP/TP/GP/KREDL.
• The technology provider will display a notice board at a prominent
place at the project site to the effect that the project is a pilot project for
Rural Solar Technology.
• The award of the project by the Government/ KREDL/ ZP/TP/GP will
not make it a party to any liability which may arise on account of
operation of the project such as accidental injury to human or livestock,
damage of any property or surroundings etc.

12
16. Format for Preparation of Preliminary Proposals for Rural Solar
Energy Projects on Annuity Basis:.

(To be furnished by the Solar technology provider for each village / village
clusters where they intend to provide requested service)

1. Name & Full Address of the Solar Technology Provider

2. Name of the District/Taluka in which the project proposed
3. Name of Gram Panchayat in which the project proposed,
4. Name of Village / hamlet selected for the Project
5. Number of Hamlets in the Village
6. Village census code
7. Distance from nearest road-head
8. Distance from the grid
9. Total population of the village / hamlet
10. Male / Female ratio
11. Rate of literacy
12. No. of households
13. Type of Social Structure
14. Community buildings – school, PHC, panchayat office Veterinary Hospital,
youth organizations, library, religious places etc.
15. Main occupation, indicating cash crops
16. Irrigation Pump-sets including lift irrigation (Nos, capacity, hours run,
cropping period)
17. Dairy / milk collection centers/ Milk Pasteurization Plants facilities
18. Availability of water and water quality particulars with supply system
19. Existing pattern of energy / fuel use and average monthly expenditure per
household
20. Existing renewable energy devices in the village, if any
21. Indicative Estimate of Energy Demand
(a) Household – cooking, lighting, other
(b) Community services, including streetlights
(c) Irrigation Pumps/Agriculture Operations
(d) Commercial
(e) Village Industrial needs
22. Indicative capacity of the energy systems
23. Confirmation from the Gram Sabha that the proposed systems are
acceptable

13
 24. Role of local community in planning, implementation and management,
including revenue management
25. Details of any local NGO already associated with the village / hamlet
26. Any other information

Annexure-1

Relevant extracts from the National Rural Electrification Policies, 2006

Goals include provision of access to electricity to all households by the

year 2009, quality and reliable power supply at reasonable rates, and
minimum lifeline consumption of 1 unit/household/day as a merit good by
year 2012.
For villages/habitations where grid connectivity would not be feasible or not
cost effective, off-grid solutions based on stand-alone systems may be taken
up for supply of electricity. Where these also are not feasible and if only
alternative is to use isolated lighting technologies like solar photovoltaic,
these may be adopted. However, such remote villages may not be
designated as electrified.
State government should, within 6 months, prepare and notify a rural
electrification plan which should map and detail the electrification delivery
mechanism. The plan may be linked to and integrated with district
development plans. The plan should also be intimated to the appropriate
commission.
Gram panchayat shall issue the first certificate at the time of the village
becoming eligible for declaration as electrified. Subsequently, the Gram
Panchayat shall certify and confirm the electrified status of the village as on
31st March each year.
The state government should set up a committee at the district level within 3
months, under the chairmanship of chairperson of the Zila Panchayat and
with representations from district level agencies, consumer associations, and
important stakeholders with adequate representation of women.
The district committee would coordinate and review the extension of
electrification in the district and consumer satisfaction, etc.
Panchayat Raj institutions would have a supervisory/advisory role.
Institutional arrangements for backup services and technical support to
systems based on non-conventional sources of energy will have to be created
by the state government.

14
 Annexure-2

Model – 1 (1 light point)

Component Specification
PV module 1 X 18 Wp under STC
Lamps 1X CFL (9W/11W)
Battery 1X 12V. 20 AH Tubular Plate, low maintenance type, lead
Acid Battery
Other Control electronics, Module mounting hardware, Battery box,
Components Inter-connecting wires/cables, Switches Operation,
Instruction and maintenance manual
Model – 2 (2 light point)
PV module 2 X 37 Wp under STC
Lamps 2X CFL (9W/11W)
Battery 1X 12V. 40 AH Tubular Plate, low maintenance type, lead
Acid Battery
Other Control electronics, Module mounting hardware, Battery box,
Components Inter-connecting wires/cables, Switches Operation Instruction
and maintenance manual

Solar Street lighting

A stand alone solar photovoltaic street lighting systems comprises a
compact fluorescent lamp, lead acid battery, PV module(s), Control
electronics, Battery box, Inter-connecting wires/cables, Module mounting
hardware, Battery box, Operation Instruction and maintenance manual
Duty Cycle
The systems should be designed to automatically switch ON at dusk operate
throughout the night and automatically switch OFF at the dawn under
average daily insulation of 5 kWh /sq.m on a horizontal surface.
Lamp
1. The lamp will be of compact fluorescent (CFL) type, either 4 pin or 2
pin types, with a rating of 11W For the 4 pin type CFL, adequate pre-
heating circuit must be provided.
2. The light output from the lamp should be around 900 + / - 5 %
lumens.

15
Battery

1. Flooded electrolyte type, positive tubular plate, low maintenance lead

acid battery
2. The battery will have a minimum rating of 12V, 75Ah (at C/10)
discharge rate.
Electronics
1. The inverter should be of quasi sine wave/sine wave type with
frequency in the range of 20 – 35 KHz. Half -wave operation is not
acceptable.
2. The total electronic efficiency should be at least 80%.
3. Electronics should operate at 12V and should have temperature
compensation for proper charging of the battery through out the year.

P V Module(S)

1. The PV modules shall contain crystalline silicon solar cells

2. The power output of the module(s) under STC should be a minimum
of 74 W. Either two modules of minimum 37 W output each or one
module of 74 W output should be used.
3. The operating voltage corresponding to the power output mentioned
above should be 16.4 V
4. The open circuit voltage of the PV module under STC should at least
21 Volts.

16
 Annexure 3
Particulars of Most Backward Talukas (Dr. D.M. Nanjundappa Committee)

Sl No District Taluka
1 Bellary Sandur
2 Kudligi
3 Bidar Balki
4 Humnabad
5 Basavakalyan
6 Aurad
7 Gulberga Sedam
8 Shorapur
9 Yadgir
10 Chittapur
11 Afzalpur
12 Shahapur
13 Aland
14 Chincholi
15 Jevargi
16 Koppal Kustagi
17 Yelburga
18 Raichur Sindhanur
19 Manvi
20 Lingasgur
21 Devdurga
22 Bijapur Muddebihal
23 B Bagewadi
24 Indi
25 Sindhgi
26 Bangalore (R) Kanakapura
27 Magadi
28 Chitradurga Hosadurga
29 Davangere Channagiri
30 Harapanahalli
31 Kolar Bagepalli
32 Tumkur Kunigal
33 Madhugiri
34 Gubbi
35 Sira
36 Pavagada
37 Chamarajnagar Chamarajnagar
38 Mysore H D Kote

17
39 Kodagu

18