During the recent RENERGY 2013 exhibition at Chennai, I met the representative of CRISIL. CRISIL is a company that provides ratings, research, risk and policy advisory services. CRISIL provides ratings/grades to other companies based on quality parameters, infrastructure/manpower strength, financial capability to execute projects, etc.
As you may know, the authorities at Jawaharlal Nehru National Solar Mission (JNNSM, part of MNRE) have been working quite aggressively to promote renewable energy in general and solar energy in particular. Currently, JNNSM offers generous subsidies to its channel partners (for implementing solar projects), who can in turn pass the benefits to buyers.
The channel partners who want to avail these subsidies need to submit their projects to JNNSM, either directly or through state nodal agencies. JNNSM allows certain reputed channel partners to submit projects directly, if they get a certain minimum level of grading/rating from rating agencies like CRISIL. This might enable channel partners to claim their subsidies faster, and might also enable to differentiate efficient/quality/resourceful players from others.
Some factors that are taken into account while grading channel partners/RESCO's, etc. include: Solar capacity installed, quality of manpower, capability of management team, technical expertise and adequacy of manpower, customer/supplier network and feedback, sales, revenue, outside liabilities net worth, project execution capability, etc.
CRISIL grades channel partners using a 5 x 3 matrix, with performance capability and financial strength being the two major factors considered. The grading varies from SP 1A, SP 1B, SP 1C, SP 2A, ...... , SP 5C. A, B, C refer to the financial strength (maximum to minimum) and 1, 2, 3, 4, 5 refers to performance capability (maximum to minimum).
SP 3B is the minimum CRISIL rating required for companies to get accredited as a channel partners for MNRE (JNNSM). These ratings are generally valid for 1-2 years, depending on the company. CRISIL charges a fee for grading channel partners based on the turnover or project cost.
Please note that the above mentioned information is subject to change and hence, for further details and latest information, please refer to the CRISIL website or contact their representative.
