CRISIL Rating The grading reflects "the performance capability and financial strength of the channel partner to undertake

e off-grid solar projects." The grading will follow a 5x3 matrix. The matrix assesses the entity on two broad parameters: Financial Strength Highest High Moderate Weak Poor High SP 1A SP 2A SP 3A SP 4A SP 5A Moderate SP 1B SP 2B SP 3B SP 4B SP 5B Low SP 1C SP 2C SP 3C SP 4C SP 5C

Grading Process:-

Grading Fees:-

CapabilityPerformance

Solar photo-voltaic entities System Integrators & RESCOs - Fee according to turnover in the last financial year for existing entities - Fee according to project cost for new entities Upto Rs.5 crore Rs.2.5 lakh Rs.5 crore to Rs.20 crore Rs.5.0 lakh Above Rs.20 crore Rs.10.0 lakh Solar water heating system entities System Integrators & RESCOs - Fee according to turnover in the last financial year for existing entities - Fee according to project cost for new entities Upto Rs.10 crore Rs.2.5 lakh Above Rs.10 crore Rs.5.0 lakh Service tax @ 10.3% extra Re-evaluation Fees 50 per cent of first year fee, if done in subsequent year 75 per cent of first year fee, if done two years after initial rating Subsidy available on grading fees To encourage increased participation of channel partners in the scheme, solar water heating system integrators and solar water heating system RESCOs can avail of subsidies on grading fees. The United Nations Development Program (UNDP) will subsidise 50% of the grading fees, subject to a maximum of Rs.2.5 lakh, under the Global Environment Facility. This subsidy on grading fees will be applicable only for published ratings.1 Procedure for claiming subsidy of grading fees To claim subsidy on grading fees, the channel partner (solar water heating system integrator/solar water heating system RESCO) will first pay the entire fees to CRISIL. Once the ratings are published, CRISIL will forward the names, along with other requisite documents of the eligible solar water heating system entity to UNDP-GEF for claiming and routing the subsidy to the eligible solar water heating system entity. Framework for Assessment of System Integrators Performance Capability Grading 1. Promoter Track Record A. Solar capacity installed B. Promoters' relevant track record C. Quality of second-tier management team 2. Technical Expertise and Adequacy of Manpower A. Technical expertise B. Adequacy of manpower 3. Quality of Supplier And Tie-Ups A. Quality of suppliers B. Supplier feedback 4. Customer And O&M Network A. Customer feedback

B. O&M capabilities Financial Strength Grading 1. Sales 2. Return on capital employed 3. Total outside liabilities/ tangible net worth 4. Interest coverage 5. Net worth 6. Feedback of bankers on conduct of account and integrity 7. Current ratio Framework for Assessment of Renewable Energy Service Companies (RESCOs) Performance Capability Grading Relevant Links Promoter Track Record 1. Promoter's qualification and technical competence 2. Monetary value of capacity Installed 3. Promoter's track record 4. Quality of management 5. Tie-ups with system integrators Project Management Capability 6. O&M capabilities and tie-ups 7. Quality of EPC contractors and equipment suppliers 8. Supplier/EPC feedback Customer Concentration, Quality and Ability to Manage Receivables 9. Quality of customers 10. Collection capability Financial Strength Grading 1. Net worth 2. Bankers' feedback 3. Financial flexibility Project-Related Assessment 4. Gearing 5. Debt service coverage ratio 6. Interest cover 7. Project IRR