HOW TO SET UP A 1 MW SOLAR PLANT.....
We have been getting lot of enquiries from interested customers who would like to know the process and procedure to setup a 1 MW Solar Plant
We have decided to create a 1MW – 10 MW blog series to address most commonly asked questions and step by step process to set up a 1 MW Solar Plant
Land Selection
It is recommended to select the project site with in 2 km of a Power Substation to reduce the power excavation charges
State Nodal Agency (NREDCAP) Process
- Submit Solar Application Form
- Submit Solar Connectivity Application Form
- Get the Sanction Letter
DISCOM Department Process For <= 10 MW
- DISCOM evaluates the Solar project application form and provides feasibility report to the developer for projects less than 10 MW capacity after the application is approved by State Nodal Agency
- Developer provide Bank guarantees, signed MOU and other documents, Please see document checklist for list of required documents
- DISCOM provides evacuation estimation report to Developer
TRANSCO(EB) Department Process For > 10 MW
- EB (TRANSCO) evaluates the Solar project application form and provides feasibility report to the developers for projects greater than 10 MW capacity after the application is approved by State Nodal Agency
- Developer provide Bank guarantees, signed MOU and other documents, Please see document checklist for list of required documents
- TRANSCO provides evacuation estimation report to Developer
Document Checklist(Required Documents)
Developer Registration Documents
|
| SL NO | 1 MW PROJECT SPECS | 1MW | 1MW | REMARKS |
| 1 | Module mounting Structure | Fixed | Tracker | |
| 2 | 5 Acre/MW land | 0.00 | 0.00 | Customer scope (6.5 acres for single/double axis tracker ) |
| 3 | Land levelling | 0.00 | 0.00 | Customer scope |
| 4 | Solar Modules | 350.00 | 350.00 | Globally ( Tier 1 ) reputed make with 25 year Power warranty |
| 5 | Module mounting Structure | 40.00 | 80.00 | Reputed make with 25 year warranty |
| 6 | Cables | 17.00 | 17.00 | Reputed make with 25 year warranty |
| 7 | Inverters with SCBs & SCADA | 45.00 | 45.00 | Vacon/Bonfiglioli/Hitachi/Santerno |
| 8 | Switch yard 132/33/11KV | 80.00 | 80.00 | PETE/ESENNAR Transformers with reputed make of switch gears |
| 9 | Evacuation line 132/ 33/11KV | 0.00 | 0.00 | Customer scope can be done 11kv @ 5 lakhs/km & 33KV @ 8 lakhs/km) |
| 10 | Buildings | 10.00 | 10.00 | PEB structure |
| 11 | Internal Roads | 0.00 | 0.00 | Customer scope |
| 12 | Civil for foundation | 17.00 | 17.00 | As per the soil report |
| 13 | Earthing,and lightning arrestor | 6.00 | 6.00 | Standard |
| 14 | Installation without material | 8.00 | 8.00 | The best by the professionals |
| 15 | Transportation | 6.00 | 6.00 | From ICD Hyderabad or from Chennai/NHAVA Yard |
| 16 | Compound wall | 0.00 | 0.00 | Customer scope |
| 17 | System design | 6.00 | 6.00 | The best by the professionals |
| 18 | Project management | 6.00 | 6.00 | The best by the professionals |
| Total EPC Price in lakhs | 591.00 | 631.00 | This price is only applicable when procurement is solely done by us | |
| Per MW EPC Price in lakhs | 591.00 | 631.00 | All prices are exclusive of taxes or Taxes extra as per |
Financial Facts
| Cost of setting up a 1 MW Solar plant in AP | ₹6.5 Crores |
| Equity Investment: | 25% – ₹1.625 Crores |
| Term Loan: | 75% – ₹4.875 Crores |
| Loan Tenure: | 12 years |
| Interest Rate: | 10% – From SBI |
| Yearly Interest and Financial Charges | ₹48.75 Lakhs |
| Operations & Maintenance Cost | ₹38.75 Lakhs |
| Insurance Charges | 0.10% – ₹6.5 Lakhs |
Source: CREC Tariff Regulations 2014 Adjusted for 1MW plant in AP
1 MW plant produces around 17.13 Lakh units per year, this number is arrived based on the fact that in AP conditions 1KW generates 5.71 units per day multiplied by 300 sunny days in an year
Total Revenue = 17.13 * ₹ 6.49 (FIT Rate) = ₹1.11 Crore
Total Expenses = ₹45.25 Lakhs (O&M + Insurance Cost)
Total Expenses = ₹45.25 Lakhs (O&M + Insurance Cost)
PBIDT(Profit Before Interest, Depreciation and Taxes) = ₹65.75 Lakhs
Financial Charges = ₹48.75 Lakhs
PBIDT(Profit Before Depreciation and Taxes) = ₹17 Lakhs
Book Depreciation(3.6%) = ₹23.4 Lakhs
PBT(Profit Before Taxes) = (₹ 6.4 Lakhs)
Alternate Minimum Tax(20%) = ₹3.4 Lakhs
PBT(Profit Before Taxes) = (₹ 6.4 Lakhs)
Alternate Minimum Tax(20%) = ₹3.4 Lakhs
PAT(Profit after Tax) = ₹13.6 Lakhs*
Project IRR(Return on Investment) = 8.4%
Payback Period = 12 Years
Project IRR(Return on Investment) = 8.4%
Payback Period = 12 Years
*We haven’t added Accelerated depreciation benefits(80%), O&M escalation (5.72%) and Solar PV Output degradation of 0.8% per annum
Above financial analysis gives you a good idea on profitability of a solar plant, It is very lucrative if you have a large cash flow business and you can get a one time benefit of AD by setting up a solar plant
Solar plant provides an 8.5% guaranteed annual return for first 12 years, which is decent, considering the absence of risk as in other businesses and this model is immune to market conditions
From Year 12 – Year 20 cash flow increases by 400%
Are you planning on setting up a solar plant in AP? We offer end-to-end solar plant services with Project management and EPC services for solar projects from KW to MW scale
we set up power plant within a period of processing one year.
No comments:
Post a Comment