MSME Rooftop

MSME Commercial and Industrial sectors have been searching for a way to reduce Electricity Bills and Hence increasing profits with the least investment. We are offering a Zero Investment plan or the BOOT/RESCO model with a minimum size of Plant 100 KWp.

Why You Should Choose Us

C&I / MSME Sector Rooftop

Rooftop Savings

After Sales Services

Solar Sector Rooftop C & I for MSMEs

A journey full of challenges and adventures

Having been in the textiles and home furnishing business for the last four decades, we were faced with several challenges while transitioning into the rooftop business. After overcoming various challenges, we faced initially, we were able to receive our first order for the solar rooftop. It was an off-grid system with a capacity of 57 kWp and was sold for INR 2.14 crores.

Between 2006 and 2013, we struggled to get more business due to the presence of unfavourable circumstances. Despite this, we decided to make changes in our police. From here on, we only took orders for plants having a minimum capacity of 100 kWp.

Our Growth through the Years: Achievements in the CapEx model for rooftops in the MSME/industrial segment throughout the years.

2006 to 2009 – Sold 45 kWp as a sample plant.
2010 to 2013 – Sold 100 kWp as the price of approximately 11 crores per MW was unaffordable for a large section of MSMEs/industrial customers. In addition, it sold a 57 kWp off-grid system (with a battery) during the same period.
2013 to 2015 – Sold approximately 9.8 MW (solar rooftop) to MSMEs/industrial customers (with a capacity of a minimum of 100 KWp to 1 MW) at an average price of 6.40 crore per MW to 32 customers, spread over 11 cities in 5 states. This was possible due to MNRE’s policy of 30% subsidy, due to which we got a subsidy of 7.20 MW for our 26 MSME/industrial customers from SNA. However, the subsidy policy of the government failed initially due to blatant red-tapism, and later due to the termination of the same policy by the succeeding government. In the end, most customers adopted the CapEx model.
2016 to 2017 – Sold approximately 12.4 MW (solar rooftop) to MSMEs/industrial customers (with a capacity of a minimum of 100 KWp to 1 MW) at an average price of 5.40 crore per MW to 36 customers, spread over 14 cities in 7 states.
2017 to mid-2019 – Sold approximately 9.7 MW (solar rooftop) to MSMEs/industrial customers (with a capacity of a minimum of 100 KWp to 1 MW) at an average price of 4.20 crore per MW to 32 customers, spread over 22 cities in 12 states
2019 (second half) to 01-03-2020 (pre-COVID) – Sold approximately 2.4 MW (solar rooftop) to MSMEs/industrial customers (with a capacity of a minimum of 100 KWp to 1 MW) at an average price of 3.60 crores per MW to 8 customers, in 5 cities in 2 states.

To this date, we have installed solar rooftop panels with a capacity of approximately 35+ MW for 111 MSMEs/Industrial customers, spread over 52 cities in 12 states.

Go through this infographic report to know more about our solar rooftop system portfolio in CapEx Model in Commercial and Industrial (C & I) & MSME sector.

Today we close near 35+ MW solar rooftop with 111 MSME/Industries customers in 52 cities from 12 states.

In the initial days, due to our 40-year-old background in both textiles as well as solar rooftop, we expected to achieve the target of installing solar rooftop plants with an output of 100 MW in the MSME / industrial sector. We commenced our solar adventure from Delhi, NCR and went on to do business with clients from different states, namely Punjab, J & K, UP, Rajasthan, MP, Gujarat, Telangana, Chhattisgarh, Bihar, and West Bengal. We are not venturing into the solar sector in the Northeast. For us, our solar journey continues to be an adventurous journey full of challenges and adventures.

We have identified the challenges we faced in sales and marketing in the pre-covid era. These are:

High costs incurred in generating leads, visiting and acquainting with potential customers.
Low rate of conversion of leads (less than 1%-CAPEX-Model)
Preconceived notions of consumers and hesitancy about solar power due to low popularity
High cost of solar rooftop plant
80% dependency on imports
Challenges faced in financing and approval of loans due to low ratings or poor credit history of some MSMEs.
Collateral, lengthy procedure, red tapism, high rates of interest, short tenure issue.
Short-term PPAs in BOOT-Model

C&I Solar Rooftop Installation CAPEX Model Collateral free loan scheme-

Profuse mixed level implementing authorities

Lack of clarity about regulations
Inadequate & seedless roof space
Business uncertainty in MSMEs
Dependency on DISCOMs for energy storage and high cost
Lack of information on who to contact
Lack of support from the media and lack of awareness
Lack of policy support for MSMEs
Lack of experience and a relatively new market
Net metering issues
The hassle involved in getting clearances from multiple departments
Non-availability of skilled and trained manpower
The lackadaisical attitude of the DISCOMs
Limited transformer capacity at the location
Grid-related issues
The small size of the plant and high costs of the transaction
Connected load issue
CapEx-Model systems are perceived as costly by MSMEs.
RESCO / BOOT-Model systems are perceived as risky by lenders.

Our Journey:

We expanded our reach over the years as we gradually went from serving our native state to a total of 12 states. In this process, we were faced with a great many difficulties. Despite this, we continue to expand.

We have only been able to achieve a mere 35% of our decided target of meeting 100 MW sale and installation of solar rooftop for the targeted MSMEs/industrial customers throughout 2012-mid 2019. This was a result of the various obstacles we had to overcome.

The obstacles we faced:

- The high price of solar panels and equipment.
- Setback due to demonetization of ₹500 and ₹1,000 currency notes on 9 November 2016.
- Certain unfavourable clauses in the Goods and Services Tax Bill, 2017 after GST reforms.
- In particular, the introduction of demonetization and GST reform had a significantly negative impact on the overall liquidity in the market, causing an immense setback to the MSME sector. Consequently, the investments in solar energy have decreased, leading the solar industry to suffer.

The Way Forward: Future Plans and Targets

Since we were able to achieve a mere 35% of our decided target of meeting 100 MW sales in 10 years (starting from 2012) for the targeted MSMEs/industrial customers, it leaves us with 2.5 years to achieve the remaining 65% target. Although this aspiration may seem unrealistic, it can be achieved for the following reasons:

Due to the fall in price by nearly 50% over the last 7 years, the time of payback in solar investment has reduced from 7 years to 3 years.
Increased affordability of solar power for MSMEs/ industrial customers.
The increased feasibility of solar power in comparison to conventional sources of power makes it a necessary tool for MSMEs/ industrial customers, especially after the COVID pandemic as businesses are forced to cut costs.
Earlier, we were selling the CapEx model only with TATA Power Solar due to the TATA brand value. We have now decided to focus more on the CapEx model as we aim to achieve 50% of our target solely from CapEx.
Our newly introduced Money Back Guarantee Offer for the Operation and Maintenance (O & M) services, chargeable as per the Operation and Maintenance (O & M) agreement with the customers.
Our proactive efforts to achieve targets by strategic decision-making and staying at par with the latest global trends in the Solar PV climate.

Our new venture, SANCHAY NEW AGE DEVELOPERS PRIVATE LIMITED (SNAD), with which we seek to offer innovative and customized Solar Photovoltaic Power Solutions that are both economical as well as reliable. The Solar Photovoltaic Power Solutions will be on the BOOT (Build, Own, Operate, Transfer) model, with several choices of A-grade, time tested, trusted, tried, affordable and sustainable Solar PV products from all over the world with all necessary and standard quality certifications.
To make our BOOT model a staggering success, we seek support from investors for nearly 50 MSMEs/industrial projects, with each project bearing the capacity of 500 kWp, and costing approximately INR 1.75 crore (total INR 90 crore) in 11 states in India. We expect to achieve 50% of our target from this BOOT model.
By enhancing our in-house Installation, Erection, Testing & Commissioning (I & C), and Operation and Maintenance (O & M) capacities with help from our highly skilled staff.
By maintaining our after-sale service and troubleshooting time between 2 to 24 hours in all areas spread over the 12 states in which we are already present.

Benefits of the BOOT Model for MSMEs/Industrial Customers:

Reduction of electricity bill by almost 50%.
Utilization of roof or land which is not already in use.
No unnecessary or expensive investments.
Free ownership of plant at zero cost after the end of PPA tenure.
An opportunity to be a part of Green Energy.

Benefits of the BOOT Model for Investors:

Safe and secure investment in prioritized Green Power Solar Project.
IRR as high as 16 to 17 per cent.
Short payback period of 5 years.

Grid power is a considerable portion of the running costs of most businesses. In this day and age, the entire MSME sector, as well as the C & I sector, can be self-sufficient with no investment if they choose the RESCO/BOOT model. Adopting solar roof-top power can help them produce enough power for captive use. In addition, with the help of Net Metering, they can feed the extra power into the grid.

We are convinced that the Post COVID era will bring with it huge opportunities & stability for all entrepreneurs. It will also present us with a new set of challenges that most businesses will have to endure. This can only be done by strategic and wise decisions from the key players and a practical vision to guide the same. Feasible cost-cutting measures need to be put in place so that they can establish their autonomy over solar rooftop power and gain an edge over their competitors.

The aid package of Rs 20 lakh crores granted by the government will help businesses deal with the unprecedented and adverse effects of the COVID pandemic. Out of these 20 lakh crores, nearly 3.7 lakh crores have been directed towards MSMEs. This is likely to affect the approach and strategies of most MSMEs. This has created an environment of stability in the solar rooftop industry, and, consequently, even fairly low investments are bound to produce high returns for the MSMEs/industrial customers of the solar rooftop. This is a favourable situation for both solar businesses as well as customers.

We are convinced of the success of our drive for the C & I MSME sector due to our persistent efforts and the presence of favourable circumstances. Some of these are:

Post-covid economic package of INR 3.7 lakhs for MSMEs.
Highest IRR and ROI for end owners.
High ROIs for more than two decades.
One time investment
Positive financial attitude
Increasing awareness among the customers of the C & I sector.
Viability & profitability of all RESCO / BOOT and CapEx models
Increasing high-grid tariff
Full support throughout the payback period.
Our highly experienced team of skilled workers is an added advantage.
We plan to target auto components and pharmaceutical MSMEs in the future.
Financial support to MSMEs will urge more MSMEs to adopt solar rooftops.
We have put in place an impeccable quality check mechanism.
With the post-covid economic package of INR 3.7 lakhs for MSMEs, we forecast self-cloning of rooftops in MSMEs within three to six months.

Of the 40,000 MW target set by the government, only 7.5 MW was achieved by 2019-20.

The RESCO/BOOT-Model is not across the board as very few developers focus on the MSME segment.
Various supporting financial mechanisms are available in the market for the CapEx model.
Availability of various credit options for solar rooftops, such as CTF (Clean Technology Fund) by the World Bank.
In the case of rooftop solar, loans extended to RESCOs/BOOT consumers can be bundled into a pool. These can later be sold to capital market investors through an SPV.
Payment streams from a PPA, lease or loan agreement for solar systems provide the cash flows underlying security.
Rating agencies may subsequently assess the pooled assets according to the probability of payment default. These assets can then be categorised to match the risk/ return expectations of different types of investors.

The MSME sector is a major contributor to the Indian economy. It adds significantly to the GDP, promotes manufacturing output, generates employment, creates skilled labour, and also adds to exports. The aid package of Rs 20 lakh crores granted by the government will prove to be a game-changer for MSMEs. Out of these 20 lakh crores, nearly 3.7 lakh crores have been directed towards MSMEs. This is likely to affect the approach and strategies of most MSMEs positively. This has created an environment of stability in the solar rooftop industry, and, consequently, even fairly low investments are bound to produce high returns for the MSMEs/industrial customers of the solar rooftop. This is bound to revolutionize the way solar rooftop business is carried out, particularly in the MSME sector.