Solar Power Plant Detail, ROI & Price for 1kW-1mW


Generate Electricity with Solar Power Plant:

Today, anyone can set-up a Solar Power Plant with a capacity of 1KW to 1MW on a rooftop space. The Govt. of India (MNRE) latest guidelines state that "Now anyone can generate electricity through solar power plant and surplus electricity can be export through Net-metering system. The installation of net-metering at the site will connect it to grid via Sate Electricity Board or Distribution Companies. Ministry of New and Renewable Energy (MNRE) and State Nodal Agencies are also providing 30%-70%  Subsidy Benefits for residential, institutional and non-profit organisations.

100kw and above Solar power Plants Diagram

100kw and above Solar power Plants Diagram

These regulations were long awaited. This will boost solar or green power generation across the state and encourage people to install solar Power Plants systems on their rooftops.



Different types of Solar Power Plants:

The basic work of Solar Power plant is to generate electricity from Solar Panels. Solar Panels generate DC (Direct Current) electricity from sunlight, Solar Inverter convert this power to AC (Alternative Current) and run your electrical home appliances and machines. Basically there are three type of Solar Power Plants

• Off-Grid Solar Power Plants

Off-Grid is a battery based solar Power Plant, In the first priority this system will run your home appliances or connect load (as per solar inverter capacity). And surplus power feed in to the battery bank provide with the solar power plant. This type of solar power are recommended where power cut are the major problem. Read more>>

 On-Grid Solar Power Plants

On-Grid is Grid (Main/Govt Electricity supply) connected system. In the first priority this system also will run your home appliances or connect load (Without any limit). If your connected load will exceed the capacity of installed solar power plant it will automatically use the power from main grid. And if your connected load is less, its will supply surplus power to the grid. This type of systems are recommended to reduce electricity bills only. Read more>>

 Hybrid Solar Power Plant

Hybrid is a combination of the both above said systems. Read more>>



How to get Solar Power Plant installed?

There are two ways to get solar power plant installed at your home, business, institute or industry. 

CAPEX and OPEX Model Solar Power Installations

CAPEX and OPEX Model Solar Power Installations

1st) CAPEX Model (One Time Investment)

In CAPEX model (Capital Expenditure will be yours) you will pay the complete system cost to System Installation Company in one shot and this would be your own system. And you will be get benefited for free electricity for next 25 plus years. If you are planing to install solar for your home or small business and your instillation size is less than 100kW, you have the one and only way to get it installed is CAPEX model.

2nd) OPEX Model (Pay per Unit with Power Purchase Agreement)

In OPEX model (Operation expenditure will be yours) System Instillation Company will install the complete system at their own cost on your rooftop through a 10-25 year Power Purchase Agreement (PPA) between you and installation company. After that you just need to pay per unit on monthly basis. The PPA rates (Rs. 3 to Rs.7) are depend on your installation size, PPA time period and your company credit rating. If you want to install solar power plant for your institute, business or industry and your installation size is above 100kW. You can go for OPEX model.

OPEX Model (Power Purchase Agreement)

OPEX Model Solar Power Plant Installations

OPEX Model Solar Power Plant Installations

You might not want to build your own solar plant, but rather buy just the electricity produced by the solar system. That way, you don’t have the upfront costs, construction and maintenance to worry about. Maybe someone else will be happy to build a solar plant on your roof (or nearby) and sell you the power through a Power Purchase Agreement (PPA). This model works typically for industrial and commercial consumers, and Indian companies have started offering it to residential customers in some cities. A PPA is a formal agreement between an electricity consumer (in this case, you) and the electricity generator (usually an investor) that specifies terms and conditions of electricity purchase. Details usually include the length of the PPA (typically 10- 25 years), the price (tariff) for the power from the solar plant and annual escalations (if any). This is also called the OPEX model.Power Purchase Agreement

Investment Model for 1 MW Solar Power Plant

We see a huge demand for information for investment models for setting up a 1 MW Solar Plant. We have decided to create a 1MW estimate series.

Investment Model for 1 MW Solar Plant

Capacity of Power Plant

1 MW

Generation per Year

17.50 Lakhs

Degradation 1st 10 years

0.05%

Degradation 11 to 25 years

0.67%

Debt Percentage

70%

Equity Percentage

30%

Rate of Interest Indian

13.0%

Rate of Interest Foreign

10%

Repayment Period Indian

11 years

Repayment Period Foreign

15 Years

Percentage of Indian Loan

70%

Sale of Electricity

Rs. 6.49

Cost of Project per MW

450 Lacs

O&M Cost per MW

8 Lacs/year

Depreciation

5.28%

Corporate Tax

30.28%

Minimum Alternate Tax

18.38%

Project Cost

450 Lacs

Debt

355 Lacs

Equity

95 Lacs

Financial model for 1 MW Solar Plant investors

 For Ten years are as below (Lacs):

Years

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

Total

 

Revenue

113.5

113.5

113.4

113.4

113.3

113.2

113.2

113.12

113.1

112.9

1133

 

Operational Expenses

8

8

8

8

8

8

8

8

8

8

80

 

Bank Interest Payment

57.1

51.8

46.4

41

35.6

30.2

24.9

19.5

14.1

8.7

330

 

Depreciation

34.3

34.3

34.3

34.3

34.3

34.3

34.3

34.3

34.3

34.3

343

 

Total Expense (without AD)

99.4

94.1

88.7

83.3

77.9

72.5

67.2

61.8

56.4

51.0

753

 

Profit Before Tax (without AD)

14.1

19.4

24.7

30.1

35.4

40.7

46.0

51.2

56.7

61.9

380

 

Taxation (without AD)

2.7

3.7

4.7

5.7

6.8

7.7

8.7

9.7

10.8

11.8

72

 

Profit After Tax (Without AD)

11.4

15.7

20.0

24.4

28.6

33.0

37.4

41.5

45.5

50.2

308

 

Profit After Tax (Without AD)

11.4

15.7

20.0

24.4

28.6

33.0

37.4

41.5

45.5

50.2

308

 

Depreciation

34.3

34.3

34.3

34.3

34.3

34.3

34.3

34.3

34.3

34.3

343

 

Bank Debt Service amount

41.37

41.37

41.37

41.37

41.37

41.37

41.37

41.37

41.37

41.37

413

 

 

Balance sheet of 1MW Solar Power Plant Investors

INCOMEAMOUNTEXPENDITURE AMOUNT
Total Revenue for 10 years113,300,000Operational Expenses8,000,000 
  Bank Interest Payment33,000,000 
  Depreciation34,300,000 
  Total Expense (without AD) 75,300,000
  Profit Before Tax (without AD) 38,000,000
  Taxation (without AD)7,230,000 
  (Min Alternative Tax 19%)  
  Profit After Tax (Without AD)30,770,000 
Total Income113,300,000  113,300,000

 

Depreciation34,300,000
Profit After Tax (Without AD)30,770,000
Total amount in account65,070,000
Bank Debt Amount41,300,000
Balance cash in hand23,770,000

Scope of Solar Energy in India:

Solar Enegy India with one of the largest distributed portfolio of operating solar power projects pan India, has demonstrated that solar power can work in meeting India's growth objectives in a sustainable manner.Solar Enegy India builds, owns and operates solar power plants all over India under long term power purchase agreements that insures its customer’s uninterrupted and reliable source of clean energy at affordable prices. With each solar power asset that Solar Enegy India builds, it helps in promoting inclusive growth and contributes to the economic development of the local communities by generating reliable power and generating income through employment creation.



You could also be a part of this social and economic development if you associate with Solar Enegy India to identify waste/ barren lands for solar power development. Interested parties/ companies preferably owners who want to sell or lease their land in india can submit the information below to associate with us. Please note that the size of the parcel must be 50-2000 acres and minimum term for lease arrangement must be 33 years.

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We deals in all reputed solar brands Including TATA Solar, LUMINOUS Solar, SUKAM Solar, HAVELLS Solaredge, MICROTEK Solar, EXIDE Solar,  BOSCH Solar, WAAREE Solar, VIKRAM Solar, JAKSON Solar, DELTA Inverter, ZEVER Solar, SMA Inverter, ABB Inverter, SOLAX Inverters, GROWATT Inverter, CONSUL-NEOWATT Hybrid Inverters. 

Author: Hari Sharan
Last Edited on 2018-03-27