Roof Mounted Solar PV Installations
Roof Mounted Solar PV Installations
Business Model Description
Install solar photovoltaics (PV) panels on the rooftops of public buildings and households as small-scale distributers and commercial facilities as medium-scale distributers. Distributers use generated electricity for own consumption and inject surplus in the national grid at the determined tariff by Central Electricity Board (CEB).
Expected Impact
Increase renewable energy share in the national electricity mix and democratize energy generation while reducing carbon gas emission and electricity costs of households and industry.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Mauritius: Pamplemousses
- Mauritius: Port Louis
- Mauritius: Moka
- Mauritius: Rodrigues
Sector Classification
Renewable Resources and Alternative Energy
Development need
Mauritius is heavily dependent on fossil fuels. In 2020, 76.1% of energy was generated mainly from fuel oil and coal. Only 23.9% of energy was generated from renewable resources. The government of Mauritius spent around MUR 24,090 million (USD 635.5 million) for fossil fuels import, which stands for 14.5% of Mauritius's total import value in 2020 (1).
Policy priority
The Long-Term Energy Strategy for 2009-2025 plans to increase the use of renewable energy sources for electricity generation to 60% by 2030 and reaching 35% self-sufficiency through renewables by 2025 (3, 4). Coal phase-out by 2030, diversification of energy base and GHG reduction are also among the government’s Nationally Determined Contributions (5).
Gender inequalities and marginalization issues
Although 83.3% of legal frameworks promote and enforce gender equality in Mauritius, only 5% of the workforce of the energy sector is women (6, 7). Tackling gender pay gaps in the energy sector and devising policies for women’s equitable access to renewable energy sources for their homes and businesses must be addressed (8).
Investment opportunities introduction
Local energy demand amounts to MUR 20 billion (USD 450 million), supplied mostly through imported fossil fuel. The Central Electricity Board (CEB) plans to invest MUR 5.3 billion (USD 128 million) in the next three years to multiple renewable energy projects and in battery storage system for stabilization (9).
Key bottlenecks introduction
Return from renewable energy projects is highly dependent on offtake agreement and pricing by Central Electricity Board (CEB). The country needs to ensure a stable network through smart grid development to address intermittence issue. Allocation of Mauritius’s scarce land for renewable energy development might become incompatible with other land use options (21).
Alternative Energy
Development need
In 2020, electricity generation accounted for 43% of the total GHG emissions in Mauritius. Mauritius' reliance on imported fossil fuels heightens the need for extensive renewable energy generation. Investments in solar, biomass and wind require private funding for the country’s transition to a green economy as well as electric vehicle and electric bus integration (2, 3, 21).
Policy priority
Mauritius targets to reach 35% self-sufficiency regarding electricity transfer and 10% efficiency in the electricity sector by 2025 in its Long Term Energy Strategy (4). In the 2021-22 budget speech, the government announced their objective of at least a 5% reduction in electricity consumption of all public institutions, and commissioned the set up of six more solar PV farms (9).
Gender inequalities and marginalization issues
External shocks that threaten energy security vulnerate marginalized segments of society more than any others. The affordability of energy is essential for reducing social inequalities in the community. Women's workforce cannot be discarded in the energy sector to accomplish the government's renewable energy production goals.
Investment opportunities introduction
Scalability and profitability incentivize solar PV investments in the short to medium term. Developing additional sources of biomass offers a viable business in the longer term and indispensable for government’s long term energy strategy. The national biomass framework allows sugar planters to benefit from USD 0.08 per kWh of electricity (9, 32).
Key bottlenecks introduction
Land scarcity, lack of national land use policy, the current regulatory framework and structure of electricity tariff, and a lack of smart grid to address intermittence issue are the key bottlenecks of the alternative energy subsector in Mauritius.
Solar Technology and Project Developers
Pipeline Opportunity
Roof Mounted Solar PV Installations
Install solar photovoltaics (PV) panels on the rooftops of public buildings and households as small-scale distributers and commercial facilities as medium-scale distributers. Distributers use generated electricity for own consumption and inject surplus in the national grid at the determined tariff by Central Electricity Board (CEB).
Business Case
Market Size and Environment
Rooftop PV potential at 20.04 GW, with an annual energy output of 32,512 GWh
Mauritius' rooftop PV potential at the country-scale is estimated at 20.04 GW with an annual energy output of 32,512 GWh (15).
The Central Electricity Board (CEB) has opened two schemes to deploy a total of 20 MW of household and commercial solar PV systems, with half of it linked to the home and the rest for charging of electric vehicles (EVs). If fully subscribed the programs could drive 80 MW of new solar capacity (17).
The Budget Speech 2022/23 acknowledges that energy consumption in 2030 will require 1,196 MW installed capacity whereas current capacity stands at 761 MW, of which 165 MW comes from renewable resources. Government trajectory is to generate additional 435 MW from renewable resources by 2030 (42).
Indicative Return
> 25%
Leal Energy Ltd, which completed over 350 rooftop PV installations in Mauritius and Rodrigues, recorded a gross profit margin of 32.2% (41).
Investment Timeframe
Medium Term (5–10 years)
On a rate of MUR 6.14/kWh tariff, the average payback period for a >40kWp solar PV system is approximately 6.5 years (11).
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Market - Highly Regulated
Business - Supply Chain Constraints
Market - Volatile
Impact Case
Sustainable Development Need
Mauritius relies heavily on non-renewable resources. The remaining share is obtained from renewable resources including bagasse (13.3%), solar PV (5.1%), hydro (4%) and landfill gas (0.9%) (20). Heavy reliance on imports further presents vulnerability to energy shocks and supply-chain constraints.
Mauritius' energy sector accounted for 57.1% of total greenhouse gas emissions in 2019 (21), due to the high importations of coal and fuel oil (15), highlighting the need to enhance the share of renewables in the country's energy mix.
The increasing pace of urbanization and related urban developments further constrain the availability of land that can be allocated for large-scale renewable energy projects, necessitating the incorporation of renewable technology to the island's urban fabric (15).
Gender & Marginalisation
In 2017, 15.9% of female-headed households were in relative poverty compared to 7.6% of male-headed households, constraining the affordability of electricity and energy security (22).
Expected Development Outcome
Solar rooftop PV installations will contribute to the decarbonization of the national electricity grid and the government's goals of achieving the national target of 35% and 60% shares of renewable energy in the electricity mix by 2025 and 2030, respectively (24).
Providing the opportunity to domestic customers investing in solar PV systems to sell excess generation to the grid will democratize the electricity generation business, offering an alternative income stream for users (24).
Solar rooftop PV also Improve environmental quality and welfare in urban areas where projects are adopted, and increase opportunities for energy generation feeding into the electric vehicle fleet.
Gender & Marginalisation
Energy access can increase access to information and ability to study, enhancing female literacy through the availability of lighting, radio and television (23).
Integrating renewable energy in women's business activities can significantly reduce costs, empowering female entrepreneurship across the country (23).
Primary SDGs addressed
7.1.2 Proportion of population with primary reliance on clean fuels and technology
7.2.1 Renewable energy share in the total final energy consumption
>95% (2019) (26).
Renewable energy production contributed 23.9% of the total electricity generation in 2020 (1).
N/A
35% renewable energy by 2025 (27) and 60% of electricity production from renewable resources by 2030 (3).
13.2.2 Total greenhouse gas emissions per year
Net CO2 emission in Mauritius was 3.309 tons and 3.37 tons per capita in 2019 (21).
The government targets to achieve a 40% reduction in overall GHG emissions by 2030 (28).
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Outcome Risks
Lack of proper and efficient framework to safely dispose of used solar cells and panels can potentially harm the environment (20).
Impact Risks
Existing national electricity grid needs to be expanded and modernized to take up the increased power generated from solar panels (20).
Low-income households and businesses may not be able to incur the costs associated with solar panel inputs and installation.
Impact Classification
What
Roof mounted solar panels offer cost-effective energy generation solutions, while contributing to the decarbonization of national energy generation.
Who
Residential, commercial and industrial users investing in solar panels benefit from lower energy costs and income stream from selling to the national grid.
Risk
The cost of equipment incurred by low-income households and capacity problems associated with the national electricity grid may undermine the impact of roof mounted solar systems.
Contribution
Roof mounted solar installations complement utility-scale solar photovoltaic (PV) power plants in the development of scalable and mature green energy technology in the medium term (32).
How Much
Roof mounted solar installations may generate 150 MW, assuming that a quarter of 200,000 dwellings install solar systems sized 3 kW on average, of 606 MW power demand forecast for 2030 (34).
Impact Thesis
Increase renewable energy share in the national electricity mix and democratize energy generation while reducing carbon gas emission and electricity costs of households and industry.
Enabling Environment
Policy Environment
Renewable Energy Roadmap 2030, 2019: Released by the Mauritius government to increase energy generation from renewable resources, and to transition the energy sector to a greener and cleaner sector (34).
Long-Term Energy Strategy for 2009-2025, 2008: Contains Mauritius government's action plan with timelines to diversify the country's energy supply (4).
Renewable Energy Strategic Plan (RESP) 2018-2023, 2018: Released by the Mauritius Renewable Energy Agency (MARENA), it states eight different strategic goals of the agency to enhance the renewable energy sector (35).
The Government Programme 2020-2024, 2020: Includes the Mauritius government's targets to carry the country forward towards a more sustainable and green society (36).
Financial Environment
Financial incentives: Industrial users may generate up to 150% of their energy usage, from both on-site and off-site PV installations, and benefit from feed-in-tariff (FIT) of MUR 4.20/kWh (USD 0.094) and Carbon Neutral Loan Scheme by Industrial Finance Corporation of Mauritius (IFCM) (42).
Fiscal incentives: Solar PV projects are VAT, utility renewable energy projects are land conversion tax exempt, and businesses and households invested in solar units are eligible for tax deductions (30) Under Solar Energy Investment Allowance, households are eligible for income tax deduction (17)
Other incentives: The Abu Dhabi Fund for Development has provided a loan of USD 10 million to help the Central Electricity Board install solar PV systems on rooftops of 10,000 households. Development Bank of Mauritius provides concessional loans for financing solar kits for domestic use (31, 42).
Regulatory Environment
Environment Protection Act (EPA), 2002: Provides the national framework for environmental protection and sustainable development (40).
Renewable Energy Agency Act, 2015: Establishes the Mauritius Renewable Energy Agency (MARENA) (37).
Energy Efficiency Act, 2011: Establishes the Energy Efficiency Management Office, which promotes national energy efficiency awareness and carbon emissions reduction. The office also examines the necessary legislations for energy efficiency and the conditions for undertaking energy audits (38).
Utility Regulatory Authority Act, 2004: Establishes an independent body of Utility Regulatory Authority (URA) set up by the Government of Mauritius to regulate the utility services (39).
Marketplace Participants
Private Sector
Meeco Group, Leal Energie Ltd., Trina Solar, SolarEdge, SETL, ENL EnVolt, Africa Clean Energy Solutions, Go Solar.
Government
Ministry of Energy and Public Utilities (MEPU), Central Electricity Board (CEB), Mauritius Renewable Energy Agency (MARENA), Energy Efficiency, Economic Development Board (EDB), Development Bank of Mauritius.
Multilaterals
Abu Dhabi Fund for Development (ADFD), International Renewable Energy Agency (IRENA), International Energy Agency (IEA).
Non-Profit
French Development Agency (AFD).
Target Locations
Mauritius: Pamplemousses
Mauritius: Port Louis
Mauritius: Moka
Mauritius: Rodrigues
References
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