PM-KUSUM Component C Explained: Feeder-Level Solarization

The PM-KUSUM Project (Component-C FLS) enables interested farmers or landowners to lease their land to establish solar power plants. This process facilitates developers in setting up renewable energy projects while providing farmers with predetermined lease rents. Below is a detailed guide for both farmers/landowners and developers.

Application Process for Farmers or Landowners

• Register on the State Implementing Agency Portal: Farmers or landowners must register their land on the designated state agency portal.
  (Check your State Agency Portal here: https://pmkusum.mnre.gov.in/#/landing/more-about-C-FLS)
• Log In and Select a Substation: Log in to the portal and select a nearby 33/11 kV substation suitable for the solar power plant.
• Upload Land Documents: Upload the necessary land ownership documents to the portal for verification.
• Pay Registration Fees: A registration fee of ₹1,000 + 18% GST (may vary by state) is required.
• Land Credential Verification: The applicant’s land credentials will undergo verification by the State Implementing Agency.
• Joint Survey: A joint survey will be conducted by DISCOM officials along with the landowner to assess:
  • Land Feasibility: Suitability of the land for a solar power plant.
  • Transmission Line Feasibility: Evaluation of the land’s connectivity to nearby substations.
• Registration Completion: Once feasibility is confirmed, the land will be successfully registered and made visible to developers on the portal.
  The land will now be available for lease or self-development as a solar power plant.

Application Process for Developers

• Register on the Portal: Developers must register on the portal by paying a registration fee of ₹5,000 + 18% GST.
• Search for Suitable Substations: After registration, developers can search for a suitable 33/11 kV substation from the portal’s list.
• Select Landowner: Developers can view the registered landowner’s details, including feasibility status, and select the desired land.
• Obtain Contact Details: Contact details of the selected landowner will be provided through the portal.
• Participate in the Tender Process: Developers must participate in the RESCO developer selection tender.
• Submit Land Lease Agreement: Finalize and submit the land lease agreement as part of the tender process.

Additional Information

1. Farmers as Developers:
   Farmers or landowners can develop solar power plants independently if they possess the necessary financial resources and technical expertise. This empowers farmers to directly participate in renewable energy generation and benefit from the associated revenue streams.
2. Capacity Limitation:
   There is no specific MW scale limit for the solar power plant; however, the plant’s capacity must be equivalent to the energy requirement of a 7.5 HP pump.
3. Land Requirements:
   Registering a land parcel for solar power plant development requires a minimum of 5 acres of contiguous land. This ensures feasibility for installation and operation.

Lease Rates and Simplified Land Lease Agreements

To support farmers and landowners in leasing their land for solar power projects, several states currently offer lease rates ranging from ₹25,000 to ₹50,000 per acre per year or 6% of the ready reckoner rate, whichever is higher. These rates include an annual 3% increment on the base rate, ensuring fair and consistent compensation over time.

To simplify the leasing process and ensure transparency, the Nodal Agency, DISCOM/SPV, may act as a single entity to handle land lease agreements with all landowners. This eliminates the need for individual landowners to interact directly with Solar Power Developers (SPD), reducing uncertainties about timely lease payments.

Key Features of the Simplified Process:

1. The Nodal Agency will sign agreements with individual landowners, consolidating the leasing process.
2. A tripartite agreement will be established among the DISCOM, Nodal Agency, and SPD to ensure clear roles and responsibilities.
3. Lease rent payments will be transferred to the Nodal Agency, which will then distribute them to the landowners, ensuring timely and reliable payments.
4. The Nodal Agency will collaborate with the District Collector or District Magistrate to identify land requirements and connect with farmers willing to lease their land for solar power projects.

This structured approach simplifies the process for landowners and promotes trust and fairness, making it easier to implement large-scale solar projects.

Benefits of the PM-KUSUM Component-C Feeder Level Solarization Scheme

For Farmers

1. Access to Daytime Solar Power: Farmers can access reliable solar power during the day, ensuring uninterrupted energy for agricultural activities.
2. Additional Income: Farmers can earn lease rent by leasing their land for solar power projects, creating a stable source of supplementary income.

For DISCOMs

1. Cost-Effective Solar Power: The availability of affordable solar power at the distribution level helps reduce power purchase costs and Aggregate Technical and Commercial (AT&C) losses.
2. Flexibility in Plant Capacity and Location: Unlike Component A, there are no restrictions on the capacity or location of the solar plants, offering greater operational flexibility.
3. Reduced Transmission Infrastructure Costs: Localized solar power generation minimizes the need for extensive transmission infrastructure, leading to cost savings.
4. Improved Renewable Purchase Obligation (RPO) Compliance: Enhanced compliance with RPO targets results in potential savings of ₹1 per unit, currently borne by DISCOMs due to shortfalls in compliance.

For the Government

1.  No State Financial Assistance Required: The scheme operates without financial assistance from the state government, reducing the fiscal burden.
2. Lower Tariff Subsidy Burden: The initiative may reduce the subsidy burden associated with agricultural power tariffs.
3. Support for Renewable Energy Targets: Contributes significantly to the 4,000 MW Distributed Generation Target by 2024-25 as outlined in Solar Policy 2019.
4. Daytime Solar Power for Agriculture: Ensures the availability of clean solar power for agriculture consumers, aligning with the FY 2020-21 budget announcement.

Bidding Process Details: PM-KUSUM Component-C Feeder Level Solarization

Type of Bidding:

• Single Stage, Two-Part Bidding (Technical and Financial proposals).
• Tariff-Based Competitive Bidding for selection of bidders.

Eligibility of Bidding Entities

• Individual companies registered in India.
• Joint Ventures (JV) of up to two members, with one designated as the Lead Member.
• Eligible participants include:
  • Proprietors.
  • Partnerships or Limited Liability Partnerships (LLPs).
  • Farmers or landowners.
  • Groups of farmers, cooperatives, panchayats, or Farmer Producer Organisations (FPOs).

Additional Requirements

1. Essential Documents:
   • Permanent Account Number (PAN) card.
   • GST Registration (to be obtained within one month of receiving the work order).
2. Mandatory Undertakings:
   • Non-blacklisting or non-debarment undertaking (required for both members in case of JV).
   • No conflict-of-interest undertaking.
3. Authorization:
   • Valid power of attorney for authorized signatory.
   • Undertaking for landowners or farmers, if applicable.
4. Acceptance of Terms:
   • Token of acceptance for the Request for Selection (RfS) document.

Selection Criteria

1. Tariff-Based Selection:
   • The bidder offering the lowest (L1) levelized tariff for each solar power plant will be selected.
   • In case two or more bidders quote the same tariff, a lottery system will be used to determine the selected bidder.
2. Bid Security and Performance Bank Guarantee (PBG):
   • Bid Security: ₹1 lakh per MW of capacity.
   • PBG: ₹5 lakhs per MW of capacity

Technical Requirements

1. For Landowners/Farmers/Individuals (Sole Bidders with Required Land):
   An undertaking on non-judicial stamp paper of ₹500 confirming:
   • Ownership of clear title land of adequate size corresponding to the required capacity of the solar power plant.
   • Ownership of assets (movable and immovable) amounting to at least 20% of the total project cost, where the total cost is calculated at ₹3.5 Crores per MW of quoted capacity.
2. For Firms or Other Entities:
   An undertaking on non-judicial stamp paper of ₹500 ensuring:
   • Access to clear title land of adequate size suitable for the proposed solar power plant.
   • Commitment to the availability of all technical prerequisites for project implementation.

Financial Requirements

1. For Landowners/Farmers/Individuals (Sole Bidders with Required Land):
   An undertaking on non-judicial stamp paper of ₹500 confirming:
   • Ownership of assets (movable and immovable) amounting to at least 20% of the total project cost. The total cost is calculated at ₹3.5 Crores per MW of quoted capacity.
   • Access to adequate financial tie-ups (e.g., lending institutions or banks) to meet the financial requirements for setting up the quoted capacity.
2. For Firms or Other Entities:
   • A Minimum Annual Average Turnover (MAAT) equivalent to 30% of the total project cost, calculated at ₹3.5 Crores per MW of quoted capacity over the last three financial years.

Important Note:

As per the guidelines by Bharat Sarkar, achieving a Capacity Utilization Factor (CUF) of at least 19% for two months is required to get up to 100% of the Central Financial Assistance (CFA) under PM-KUSUM Yojana.

Also, maintaining CUF  ≥ 19% over the 25-year lifetime of a plant without deration is crucial for better Return On Investment (ROI). 

1. Site Assessment (Pre-Execution)
2. Design Optimization (Pre-Execution)
3. Regular Maintenance (Post-Execution)
4. Performance Monitoring (Post-Execution)

At Heaven Designs, we specialize in Site Assessment and Design Optimization, two critical components of the Pre-Execution stage, which lay the foundation for long-term project success.

Pre-Execution Stage

1. Site Assessment

I) Solar Irradiance Measurement

Tools like pyranometers or satellite data are used to measure global horizontal irradiance (GHI), direct normal irradiance (DNI), and diffuse horizontal irradiance (DHI). This helps to analyze the historical solar data so that we can accurately estimate the energy production potential of the site, which enables better project planning.

II) Land Assessment

When planning a solar power plant, it’s important to ensure you have enough land—typically 4-5 acres per MW for ground-mounted systems. But it’s not just about the size; the land’s features matter, too! Checking slopes and elevations helps avoid costly leveling work, and soil tests ensure the foundations are strong and durable. Identifying shadow-casting obstructions, like trees, buildings, poles, etc., helps build shadow-free plants.

It is important to complete the project within the given time frame to avoid penalties. With a focus on accuracy and efficiency, we recommend and provide drone-based land assessment services.

These advanced surveys can be completed in as little as 30 minutes (depending on the site’s size and complexity). High-resolution images captured by drones provide precise details, enabling the creation of ultra-detailed 3D models. Additionally, the ability to export 3D models directly into CAD formats like DXF streamlines the design process, reducing the time needed to finalize layouts by up to 50%. 

III) Climatic and Weather Assessment

When you’re signing a Power Purchase Agreement (PPA) for 25 years, the stability of your solar power plant becomes a top priority. To make the plant truly future-proof, your power plant should prepared, whether it’s heavy rainfall, snowfall, or even flood risks.

At Heaven Designs, we handle all key aspects of climate assessments to ensure your solar power plant is future-proof. We analyze temperature variations to address efficiency losses, assess wind speeds to design robust structures, and study rainfall and snowfall patterns to create effective drainage systems and cleaning plans. Additionally, we evaluate flood risks to protect ground-mounted systems. With our expertise, your plant will be resilient, efficient, and prepared to deliver consistent performance under any environmental conditions, no matter the weather.

With the expertise of 1000+ MW design and The data that is carried out during the site assessment now, it will now help with Design optimization.

2. Design Optimization

I) Pre-Design Stage

The Pre-Design stage focuses on leveraging data from the Site Assessment to create foundational layouts and validate the feasibility of the solar power plant.

1. Data Utilization for String Design:
   The temperature data collected during the Site Assessment is critical in designing solar PV strings. PV module strings are designed to account for temperature variations using the module’s temperature coefficient. This ensures that the Maximum Power Point Tracking (MPPT) system operates efficiently. This guarantees maximum energy efficiency even in the harshest environments.
2. General Arrangement (GA) Layout:
   The General Arrangement (GA) layout, created using AutoCAD, is like the blueprint for the solar power plant. It helps us map out the plant while keeping the design shadow-free and maintaining the right pitch distance and inter-row spacing. This ensures the solar modules are arranged optimally to capture the most sunlight and make the best use of the available space.
3. Preliminary 3D Design in SketchUp:
   At the same time, we create a 3D design in SketchUp to give stakeholders a clear, realistic idea of how the plant will look. This design isn’t just for visuals—it plays a crucial role in generating a tentative PVsyst report. The report provides valuable insights into the plant’s energy generation potential and checks if the design is feasible for the location. Plus, it helps us decide whether a fixed tilt, seasonal tilt, or tracker system would work best for the site. This way, we can choose the most efficient option for the plant’s specific needs.

II) Post-Design Stage

The post-design stage is about taking the initial plans and turning them into a fully refined and finalized design that is ready for execution. Here’s how we ensure your solar power plant is both structurally sound and operationally efficient:

1. Mounting Structure System (MMS):
   Once we have the Soil Bearing Capacity (SBC) reports, we can determine the most suitable foundation type for the site. We decide whether to use helical piles, earth-screws, ballasted foundations, or driven piles, depending on the soil conditions. This ensures the mounting structures are stable, durable, and perfectly tailored to the site’s requirements. Additionally, we calculate the optimal tilt angle to maximize sunlight capture and energy production, building a foundation that’s as efficient as it is robust.
2. Structural Feasibility Analysis:
   We analyze the finalized layout using STAAD Pro to guarantee the design’s structural integrity. This step verifies the plant’s ability to withstand environmental challenges like wind loads, seismic activity, and other site-specific factors. Combined with the foundation type chosen based on the SBC report, one of the most critical aspects of this service is the assurance that your solar power plant won’t become a “flying kite” during high wind events. Heaven Designs provides this essential analysis to give you peace of mind that your investment is built to last and future-proof for its 25-year operational lifespan.

3. Detailed Electrical Design:
   The final step involves creating Single Line Diagrams (SLDs), optimizing cable sizing, and configuring protection systems and inverter placement. This ensures minimal energy losses and high operational safety.
   Our electrical design covers:

• AC/DC Cable Sizing: Calculating the appropriate cable sizes to handle the expected current while minimizing losses and ensuring safety.

• DC/AC Voltage Drop Calculation: Ensuring voltage drops are kept within permissible limits to maintain system efficiency.
• Cable Layout Using Optimized Methods: Strategically designing cable routes to minimize lengths and costs while maximizing performance.
• Cable Trench Layout: Planning and designing cable trenches for safe and efficient cable installation.
• Single Line Diagram (SLD): Developing clear, detailed diagrams to outline electrical connections and system flow.

• Earthing and Lightning Arrestor Layout: Designing a reliable earthing system and lightning protection layout to safeguard the plant and personnel from electrical hazards.
• HT Side and LT Side Designing: Creating detailed designs for both High Tension (HT) and Low Tension (LT) sides to ensure seamless power transmission and distribution.

Post-Execution Stage

After successfully installing and commissioning a solar power plant, Heaven Designs strongly recommends focusing on these two key aspects: Regular Maintenance and Performance Monitoring.

I) Regular Maintenance

• Cleaning of Solar Panels: Solar module cleaning at least twice a month is recommended for solar power plants for good output.
• Inspection of Components: Routine checks of inverters, cables, mounting structures, and junction boxes to identify and resolve any wear or damage.
• Preventive Maintenance: Proactive measures like tightening electrical connections, checking for corrosion, and ensuring proper functioning of protection systems like earthing and lightning arrestors.

II) Performance Monitoring

• Real-Time Data Monitoring: Using advanced monitoring systems to track energy generation, module temperatures, and inverter performance.
• Analysis of Key Performance Indicators (KPIs): Evaluating metrics like CUF, PR (Performance Ratio), and downtime to measure the plant’s operational efficiency.
• Alerts and Fault Detection: Automated alerts for issues like string failures, inverter faults, or unusual energy drops to ensure immediate resolution.

Reference Link: https://www.youtube.com/live/Kr1msAfo4EI

Frequently Asked Questions (FAQs)