In almost every region of the country, India is blessed with abundant solar radiation. The cost of producing energy from solar power plants is currently lower than that of non-RE resources because of the falling cost of solar PV panels and improvements in solar architecture. According to a recent CERC directive, the average price of power purchased from non-RE sources is Rs 3.60 per unit, which is significantly higher than the price of solar electricity recently determined through a bidding process in the case of a large utility-sized solar power plant, which is Rs 2.53 per unit.
Since it is available during the day, solar energy is most suited for daytime loads, especially agricultural loads. DISCOMs provide energy for agricultural loads for free or at significantly discounted costs. With an average T&D loss for a rural feeder of about 30%, the average cost of electricity purchased by a DISCOM to supply one unit of power to an agriculture consumer is more than Rs. 6/-per unit.
Locally produced solar energy that is fed into the 33/11 kV sub-station will increase energy efficiency while also saving DISCOMs money. This is because it will enhance power quality at the tail end of the rural feeder, enhancing the functionality of electrical devices and appliances connected to the rural feeders. A few states have approved and effectively implemented such a plan.
About 40.000 33/11 kV sub-stations are located in rural areas. If just 1 MW of solar energy is linked to each of these substations, a total of 40 GW of solar energy will be added, saving DISCOMs approximately 26 BU annually in T&D losses, or approximately Rs. 9000 crores. Additionally, some substations are 66/11 kV and 110/11 kV that can act as anchor points for linking small solar power plants.
For all DISCOMs in the country to follow the same facilitative guidelines for the construction of decentralized solar power plants, a need for such policies has been identified.
How Can A Commercial Solar Power Plant Be Started?
Research and planning:
Making a business strategy and conducting research are the initial steps in beginning any firm. The lack of a good business plan or any phase is a significant factor in the failure of many companies. Studying and planning will help you avoid these hiccups and ensure that your solar power plant business is successful when you’re looking for ways to start one in India. Here are some considerations to keep in mind if you’re wondering what you should check into:
- Determine the market
- Examine the Area
- Identify your niche
The planning comes after that. Based on your research, develop a business plan. A corporate strategy should be developed following extensive research and consultation.
A business plan has to include:
- Name of the Company
- Name of the Director
- Vision and Mission
- Partners (if any)
- Revenue Model
- Income Source
- Expense Estimate
- SWOT Analysis of the Company
Registration of business
It is time to execute your sound business plan now that you have one in place. Thus, register your business online to make it legally binding.
You must have the following documents for company registration
- Certificate of Incorporation
- AoA (Article of Association)
- MoA (Memorandum of Association)
- GST Certificate
- PAN and TAN
Acquire permission and license
Before installing solar panels, customers must get permission from DISCOM. Because of this, they are required to submit an application and the associated fees.
It’s also advised to obtain ISO certification to guarantee the caliber of your service.
Open a bank account
Make a separate bank account for your business once it has been registered. Don’t forget to use it for any business dealings. Your accounting records will be easier to maintain with its help. A precise estimate of profits will also be available to you. By setting up a second bank account, you may effortlessly maintain the separation of your personal and business assets.
Documents for business bank account
- Incorporation Certificate
- MoA and AoA
- GST Certificate
- Identity and Address Proof
Hire your team
A team can be compared to the actual parts of an organization. Without dedicated, creative, and dynamic individuals, no business can run. As a result, look over the job openings in your solar power plant company and make the appropriate hires.
Make sure the people you hire have the ability and expertise in the fields in which they will be working. On several job boards, you can look for resumes. You can then make a shortlist and organize interviews accordingly after that.
Make an online website
All businesses need to have an online presence in the modern world. Above all, having a website helps a business appear trustworthy. You can also target a wider range of potential customers.
On websites like Facebook, Instagram, and Twitter, you must also be active on the social media scene. It will help you build up your business’ credibility and dependability.
Sales and marketing
If you want to increase the revenue of your business, having a strong marketing strategy is essential. As a result, while building your team, be sure to include a great marketer. Then, you can increase sales by advertising your business in newspapers, pamphlets, and social media.
Commercial Solar Power Plant Setup Cost In India
5 lakh rupees are spent on one acre of land (1 MW plant requires a minimum of 5 acres of land).
The estimated price per acre of land is Rs. 5 lakh. In this country, a minimum of 5 acres of land are needed for a 1 MW facility, hence a 5 MW solar power plant will cost Rs. 1 crore and 25 lakh.
Depending on the capacity of the extension lines, grid extension could cost up to Rs. 15 lakh per kilometer (range-11kV to 123kV). Since the distance between a place and the closest substation is directly proportional to the cost of grid extension, this leads to the logical conclusion that it is.
If trackers are used in the power plant, the project’s cost rises by Rs. 2 crores (or Rs. 40 lakh/MW).
A 1 MW solar power plant is expected to cost Rs. 4 crores to build, whereas a 5 MW solar power plant would cost Rs. 20 crores to build, taking all of these factors into account.
Investment For Solar Panel Business In India
The size and kind of the company dictate the investment. A few assets, such as the Rs. 10,000 required for business registration, the Rs. 20,000 monthly costs of office space, and the Rs. 50,000 required for general costs, are universal for everyone.
Due to a large amount of rooftop space and more than 300 sunny days per year, people are turning more and more to solar power plants. It also implies that India would experience a solar revolution within the next five years.
So, in five years, India will see a solar revolution. In terms of the market for renewable energy, it comes in at number four. To learn how to launch a solar power plant business in India and watch your business expand in a matter of years.
Profit Margin of the Indian Solar Industry
A 5 MW plant in India is anticipated to cost between 34.5 and 35 crore. As a result, using 20k–20.5k units of power each day, Rs. 45,000–60,000 may be produced. A total of approximately Rs 1.75 crores might be made after a year after little O & M expenses have been subtracted.
A 5 MW solar power plant would produce 6000 MWh annually due to the four peak sun hours per day which are the national average. As a result, a 5 MW solar power plant might earn between Rs. 1.5 and 1.75 crores annually.
1 GW commercial Solar Power Plant Cost
Solar panels for homes cost $2.50 per watt ($2 per watt with tax credits). In light of this, the price of a 1 GW commercial solar farm would range between $2 and $2.5 billion. The farm now generates between 2.5 and 6 MWH per day, depending on the location.
That equates to 900-1400-2100 GWh each year, depending on where you live in the United States. The cost of power at wholesale in the US is about 10 cents per KWH. This suggests that the value of your 1 GW solar facility is $90, $140, or $210 billion. As a result, in Arizona, it will take 9–11 years to pay off, whereas in New York it will take 22–28 years.
Everywhere in the world, solar energy is gaining popularity. It was once considered to be an expensive investment. Solar energy is currently viewed as a good and practical source of investment, albeit the situation has altered. Taking into account the advantages, India is developing an increasing number of solar energy facilities, all of which will be of significant assistance to the populace.
Vareyn solar is one of the best solar EPC turnkey company in India for commercial solar plants. Installing solar panels have excellent financial returns over a relatively short period by reducing electricity bills when it comes to business along with business tax credit. For more details check out their website.