Solar Power industry in India is gaining more and more prominence with each passing day. The domestic/off-grid industry is picking up speed too. Owing to the queries we are receiving regarding the various issues pertaining to Solar Power Plant setup, we thought it would be a great idea to put together a bunch of questions and answer the same. We shall keeping adding to the list as we keep receiving more queries. So, here are the most Frequently Asked Questions and our answers for the same. Do let us know in case you would like us to answer any more questions. Also, kindly point out any inaccuracies/mistakes that you may find here so that we can correct the same for the benefit of everyone. We have tried our best to provide the best and most accurate information. However, inputs or responses to questions from other industry experts are encouraged and extremely appreciated.
[Update - 31-08-2014: The FAQs page has been updated. CERC Benchmark Cost and related details have been updated from 2013-14 figures to those of 2014-15.]
How much land is required to setup a 1MW solar power generation Unit?
The land required for a 1 MW power plant setup is around 4.5-5 acres for Crystalline technology and around 6.5-7.5 acres for Thin-Film technology. This is only a rough benchmark and may vary based on technology and efficiency of panels.
What is the life-time of a typical Solar Power plant?
The useful life of a typical Solar Power plant is considered to be 25 years. This is the duration for which long-term PPAs are signed and financial models are built. However, Solar Power plants can run beyond 25 years while producing a lower output. Many Solar Panel manufacturers guarantee an output of 90% at the end of 10 years and 80% at the end of 25 years.
What is the annual energy generated from a 1 MW Solar Power plant?
The usual benchmark for energy generated from a 1 MW Solar Power plant is considered as 1.5 Million units. This is only a benchmark and should not be considered as the actual output for a given location. The amount of actual energy generated from a Solar Power Plant in an year depends on both internal and external factors. External factors which are beyond the control of a Solar developer can include the following:
The output also depends on the following internal factors all of which are within the control of a Solar Developer:
What are the various modes under which we can setup a Solar Power plant?
The various modes under which a Solar Power plant can be setup depends on the specific requirement. All the following are valid modes and the costs for each kind of system varies based on various factors:
What is the cost of setting up a Rooftop Solar Power plant for domestic or commercial use?
Rooftop Solar Power plants can be broadly categorized into Battery-based and Non-Battery based systems. The benchmark cost set by MNRE for the year 2013-14 for these systems are Rs.90-100 per W for Non-Battery based systems and Rs.170-210 per W for Battery-based systems. More details can be accessed on the following MNRE webpage: http://mnre.gov.in/file-manager/UserFiles/amendmends-benchmarkcost-aa-jnnsm-2013-14.pdf
What size Solar Power plant is required for domestic or commercial use?
Identifying the Solar Power plant size for your domestic or commercial premises depends on the following factors:
Based on these factors, the power plant sizing can be accordingly done at your end.
What permissions/clearances are required to setup a Solar PV Plant?
A certain set of permissions need to be obtained and documents need to be submitted in order to setup a Solar PV plant. While these may vary from state-to-state, in order to get a Solar PV Project Accredited by AP State Load Dispatch Center (AP SLDC) for REC mechanism, the following are the statutory clearances and environmental clearances to be furnished:
Also, all necessary approvals/agreements before start of Solar PV project construction are to be furnished as and when necessary. These include the following:
While these are the documents that AP SLDC requires for REC project accreditation, these are typically the clearances/documents required in general for a Solar PV project.
Can Solar Power developers avail loans from banks for Solar Power plant setup? What is the loan % and what criteria does a bank/lending institution look for?
There are 2 kinds of Financing mechanisms that are usually discussed – Recourse Financing and Non-Recourse Financing. Recourse Financing requires collaterals and other extensive guarantees from the Solar developer who wishes to avail loan. Non-Recourse Financing, on the other hand, does not require any additional collateral as the Asset or Power Plant itself is the collateral in this case. Recourse Financing is the prevalent mechanism in India currently owing to lack of confidence of banks in the Power and Solar Power sector. The typical Debt-Equity Ratio (Loan to Investment Ratio) for Solar Power plants is 70:30. And the typical collaterals required for a 70% project cost loan could be in the range of 40-60% project cost. This, however, varies from bank to bank as each bank has its own risk perception/mitigation strategy, exposure targets to various sectors and Non-Performing Asset (NPA) limits.
What would be the total project cost excluding the cost of land?
Total project cost per MW would be in the range of Rs.6.5 Crores-Rs.8 Crores depending on the kind of technology you are using, whether or not you are using tracking systems, the kind of EPC Contractor you choose for power plant system etc. CERC recently announced the benchmark tariff for setup of Solar PV and Thermal Plants in India. Here are the links to the documents containing more details: http://www.cercind.gov.in/2014/orders/SO353.pdf and http://www.cercind.gov.in/2014/orders/SO354.pdf
The table below indicates CERC determined benchmark cost for Financial Year 2014-15.
What would be the O & M cost?
Central Electricity Regulatory Commission (CERC) benchmark costs for O&M is Rs.12.3 lakhs/year/MW for 2014-15 with a 5.72% increase every year. This varies from project to project based on the number of people you employ for maintenance, frequency of cleaning of panels, onsite-engineer availability etc.
What would be the per unit expected sale price?
This depends on the mode of sale of power and the consumer of power.
It is to be kept in mind that several additional charges such as Wheeling Charges, Distribution Charges, Open-Access Charges, Cross-Subsidy Charges are applicable in the case of sale of power to 3rd party. These charges vary from State-to-State and DISCOM-to-DISCOM and even based on voltage levels.
Which kinds of Solar Power plants are eligible for REC benefits?
Solar Power Plants need to be Grid-Connected on order to avail REC benefits. Though there have been recommendations on multiple occasions that Off-Grid Solar Power plants be made eligible for RECs, the proposal is still under discussion. Solar Power plants setup under the following 3 modes are eligible for REC benefits:
Captive Power Plants are eligible for RECs subject to the condition that Concessional/Promotional Transmission or Wheeling Tariffs and/or banking facility benefit are not availed. Also, Solar Power plants setup under Preferential Tariff schemes are not eligible for RECs. Check out more information on RECs on our REC page here – http://efficientcarbon.com/services/energy/renewable-energy-certificates
Is there a minimum size for Solar Power plants to be eligible for RECs?
As per the Second Amendment of REC Principal Regulations – 2013, there is no lower limit for Solar Power plants to be eligible for RECs. Though it previously stated that 250 KW is the minimum size for Solar Power plants to be eligible for RECs, the same has been removed as part of the above stated amendment.
Can CDM benefits (Carbon Credits) be availed for a Solar Power plant?
Yes. REC Mechanism and CDM are mutually exclusive and hence a power developer can claim CDM benefits (Carbon Credits) also. However, it is to be noted that the current trading prices of Carbon Credits or Certified Emission Reductions (CERs) at the European ETS system is less than 0.7 Euro which are pretty low compared to the 15-20 Euro trading prices a few years back. At these prices, getting a Solar project registered under CDM mechanism does not make any sense as the payback for the expenses in the process itself takes several years. Unless the Solar Power Plant is of size 10 MW or more it does not make financial sense to go for Carbon Credits (CERs).
What kind of Central/State benefits are available for Solar Power plant setup?
Solar plants can be categorized into 2 broad categories – Grid Connected and Off-Grid plants. The usual Govt. support available for an Off-Grid plant is a Capital Subsidy of 30% on the project cost upto a maximum size of 500 KW. This can be claimed by the Manufacturer/Supplier/EPC Contractor (should be an MNRE accredited supplier) on behalf of the customer. The list of MNRE accredited suppliers (all across India) can be downloaded from http://mnre.gov.in/file-manager/UserFiles/list_channelpartners_sp_jnnsm.pdf
Subsidy is not available for Grid Connected plants that engage in sale of power either to the local DISCOM or a 3rd party. Following are the benefits a Solar Power Developer involved in Sale of Power Generated can avail:
Can Accelerated Depreciation benefits be claimed by Solar Power Developers?
Yes. Accelerated Depreciation benefits can be claimed by Off-Grid and Grid-Connected Solar Power Developers in order to offset taxes on profits from their connected businesses. Typically, 90% depreciation is allowed with 80% allowed in the first year.
Can Capital Subsidy be claimed for a 1 MW Solar Power plant (or greater size)?
No. Capital Subsidy cannot be claimed for plants beyond 500 KW size. Also, capital subsidy is made available only to Off-Grid and Decentralized Solar Power applications and not Grid Connected Plants that are in the business of selling the generated power.
Is there any subsidy available for Solar Power plant setup?
Capital Subsidy of 30% is applicable only for captive power plants up to 100 KW. Subsidy will not be applicable in case of sale of power.
We would like to setup a Solar power plant in Andhra Pradesh but we have not participated in AP solar bidding. What are the other options?
Since you have not participated in AP Solar Bidding, one other way would be the REC route. You can sell the generated power to APTRANSCO or third party consumer. Through this route, you sell power to APTRANSCO/third party and also claim RECs for the same. This way, you will be able to get a base tariff (APPC) from APTRANSCO and then additional revenue can be generated through sale of Solar RECs. However, it is to be kept in mind that the following additional benefits may be availed for a Solar PV Project commissioned before June 2014 subject to the condition that REC benefits are not availed (in case of Captive Generating Plants and Plants setup under Preferential Tariff basis):
However, it has to be kept in mind that REC revenue is market driven and can fluctuate as both demand and supply are pretty low on Solar front right now. Kindly refer to our monthly newsletter – REChronicles (http://efficientcarbon.com/services/energy/renewable-energy-certificates) – for more and up-to-date information on the REC market.
Download documents relevant to Andhra Pradesh Solar Policy here –http://nedcap.gov.in/PDFs/2012ENY_MS39.pdf
http://nedcap.gov.in/PDFs/Amendment_to_AP_Solar_power_policy.pdf
I have land and some company posted that they are looking for people having land and ready to invest about Rs.10 lakhs. Can I go ahead with this investment?
It is difficult to comment much without more information about the company. However, it is advised to check the company’s track record to understand the company’s previous projects and the revenues/returns from such projects. A couple of things that you might have already understood from the info on this FAQs page is that a typical good quality Solar PV Power plant required Rs.6.5-8 Crores for setup. In line with this, the investment of Rs.10 lakhs you have been asked to make comes to around 1.5% of total project cost which is not much. If your land also has certain value, that can be factored into your equity contribution to the project. While we am not sure about the promise made by the company to you in terms of returns, kindly make sure that your investment has been duly considered in project equity and the associated returns. Also, it is possible that there are several other investors such as you who might be investing in the project. You might ask the company details regarding the same. Following are a few more things you can ask the company to provide:
As an investor, you have every right to know the answers to these questions. Kindly evaluate all scenarios and clarify all you queries before making such an investment.
3,139 thoughts on “Frequently Asked Questions on Solar Power”
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Sir I want to know about subsidy policies to set up solar power plant briefly so where I get the information.
There is no subsidy to setup solar power plant to sell electricity.
Dear Consultants,
Does any one asist us for open access liasioning and infrastructure updation like ct pt , metering in Karnataka.
Please contact.
Regards
Anshuman
TOPTIER
anshuman@t-esco.in
For solar power plant and land liasioning and net metering approvals contact us at 9915882578.
We have Agriculture Land in Mp And Rajasthan for Solar plant project under 4 to 5km for the power grid of 220 kv and 440 kv. 1000 to 2000 Acres complete belt in very low price
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I wanted to do this project so I wanted to know what is the process rlp what are the step
we are EPC contractors based in ap/telangana , we are ready to invest on rooftops(100kw to 900kw) and open access (1mw to 10mw) in ap/telangana,PPA prices base on tariff unit price ,we can invest govt projects also any body intrested pls contact me 8885777163
I want to set up 10mw solar plant,jharkhand.
Dear sir
Greetings to you,
We kindly request you to contact us for your Solar Power Plant Project ( MW / KW ) in all over India at +91 9833872117 ( ALI).
im from chennai, Tamil Nadu. im very much interested to know about solar power system.Also i like to start commercial and domestic power system in tamil nadu with minimum investment. can anybody know the details. plz anybody help me out. My whatsup no.9094726992
Hello everyone,
We have 2532 bigha land available in Rajasthan for the purpose of solar power plant with a sub-station just 1km from the land available at additional cost.
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I want to start 10MW plant
anyone want to join with me…
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sir
any budy who interested to setup a solar power plant contact me no any one can give you that rate which i am delivering @ 40 rs ./wtt
so if any one interested contact me in my mail
s.raven
my mail zakglobalindia@gmail.com
Hi
I am from MP and I have 10 acres land where I want to setup solar power plant. One invested from Mumbai is ready to invest in our village and asked us to complete paper work.
We are ready to do but have doubt of monthly return from invester if he will pay every month or not because our land will be engaged for 25 years. Can you please help.
i want to set up a 250 kw and 1 mw plant for two hotel in rajasthan in capative use.
if any one have complete idea and experience for the same please contact with me.
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Hello Mr. Ankit,
Greetings.
I am interested to Solar Power Plant Establishment as per your requirements.
Kindly let me know about your suitable time for meeting with me.
Thanking you.
Regards,
ASHISH SHARMA
India.
Mob@ 00 91-89 79 157013
Email@ ashish@tccgreen.com
Dear Mr. Ashish
I am from gujarat, i want to establish 50 MW solar power plant. Do you have any experiance about it?
If you have so please give me guide line.
If you are interested in my projects so please let me know.
Contact me for best Quality Solar Systems for Industries,Domestic,Colleges,Schools and Hospitals to Save Monthly Power Tariffs.we are MNRE Approved Organisation.we have done Govt Projects also.we are completed 5 Years in solar Power Projects.we are Most Trusted organisation in Telangana,Andhra Pradesh and Karnataka.We are Providing SBI Loans Also.
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I have 10 acres of land in ongole District AP , anybody wants to install solar power plant is welcome.
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why goverment
doesn’t give a permission to set up for
below 1 kw on grid system?
What’s about 10kw
Why? man
I want ‘s to put 10 mw solar power plant how much Acer land is required and how much expenses
And what will be profit in 1 year
it cost upto 70 to 80 crore
u’ll cover within 10 years and remaining 15 years worth full upto 1crore
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i want to set up a 250 kw and 1 mw plant for two hotel in rajasthan in capative use.
if any one have complete idea and experience for the same please contact with me.
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for solar solutions contact
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contact us for instattling solar project in punjab himachal mob 7986080037
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What’s up mates, fastidious post and nice urging commented
here, I am really enjoying by these.
I have one doubt how to design DC & AC Power in solar power plant? For example we want 10MW AC power that mean how much DC power we will connected?we want formula and Proof.If any website that mension please share that website link.thanks you
15kva inverter required to convert DC to AC for 10kw.
Mobile phone 9915882578
Sir i am interested in 1mw solar & i have place where all 300 days are sunny, but i have issue with how contact govt. Power purchase agreement & other capital investment. can any one help.
For your complete solar requirements call us at 9915882578
please confirm basic requirements of 1MW Solar Power Plant. please also confirm loss or profits for the same project
please confirm your contact no.
regards
nareshyadav
Mobil no. 8607000642
pls confirm 1MW solar power plant cost in haryana
Naresh Yadav
Mob No 8607000642
respected shashidhar ji
for your 1mw solar plant , here are i am giving you a person no . 8889999663 , name jeetendra singh who can guide you or he do for you thease things like power purchase agreement, capital investment ,loan arrangements, power plant costing, and every thing whatever you neeed regarding solar power plant
so you can contact this person and get all appropriate help
regards
s.raven
respected shashidhar ji
for your 1mw solar plant , here are i am giving you a person no . 8889999663 , name jeetendra singh who can guide you or he do for you thease things like power purchase agreement, capital investment ,loan arrangements, power plant costing, and every thing whatever you neeed regarding solar power plant
so you can contact this person and get all appropriate help
regards
s.raven
want to set up solar plant in jalore dist (rajsathan), what steps or rules to be followed.cost & profit in chat if u can give in detail.
Costing of Solar power plant of 100 KW,non grid,for domestic purpose is required
give me your contact details
Dear Sir,
For complete turnkey solution in solar kindly mail us at info@pjenterprises.in or call me in between 10am to 5pm Monday to Friday to this number +91-98942-82030.
Regards
PJ Solar Pvt Ltd,
Padmanaban.
Dear sir
Greetings to you,
We kindly request you to contact us for your Solar Power Plant Project ( MW / KW ) in all over India at +91 9833872117 ( ALI).
Kindly contact us for solar requirements.
We specialise in off grid and on grid solar power systems.
We provide A grade material and service with lowest price.
Mobile : 9915882578
could you give ur mobile if you required in tamilnadu onlly.
Call us for on grid solar power plant and off grid battery operated solar power plant setup.
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respected sarathy sir
we are tyme systems pvt ltd. delhi,bhopal,kolkata,banglore base co.
As per your requirements of 100 kw non grid solar power plant for domestic purpose cost is 55 to 65 lac only with. all warranties
now if you interested to proceed further you can call me on
mob. 7987132728
Sir our price for 100 kw non grid Rs.54 lac plus tax.
Mobile : 9915882578
Anybody can kindly Contact me for Setting up of Solar projects any where in India for Any Watts ! My Number is 9037963690. Watsap Also same !Thanks.
I have 20 acres of land in Seoni District MP , anybody wants to install solar power plant is welcome.
7869160198
I have a registered company under solar energy generation. I am extensively trying to set up Solar Power Plant of 1 MW in Bihar. For this i need step by step guidance to set up my plant, such as which documents and certificate I would be needing to set up my plant. And which kind of business model would be preferable in Bihar. Please share some guidance to my issue.
Contact mnre website.
You will get all the help from mnre.
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Our company is looking to buy Solar Projects with land and approvals in place for self consumption for self use only in karnataka ? around 40 MW are there direct sellers ?
Can some one guide us?
yassar shariff
+919844653113
Kindly contact us for solar power plants and solar power systems.
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Facebook page : http://www.facebook.com/infrasolartech
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Kindly contact us for solar power plant and rooftop solar systems.
1 kw upto 50 mw.
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sir is it possible to installed a solar plant for commercial use (home) in distt. jind haryana and also i want to know the full procedure about solar pannel installation can you plz send me the the nearest company no.
Kindly contact us for your solar requirements.
Mobile : 9915882578
Facebook page : http://www.facebook.com/infrasolartech
Hello sir ,
I want to setup a 1 MW solar power plant in Jabalpur , Madhyapradesh under JNNSM scheme .could you please help me out from where to start.?
Please call us at 9915500493 if you are interested in setting up solar plant under JNNSM scheme of the central government. Thanks.
Dear Sir,
We have installed .75 Megavat Solar Plant at Post Karajgi, Tal-Akkalkot , Dist-Solapur and 1 Megavat plant at Jawajibuwachi Wadi, Tal Daund, Dist-Pune, Maharashtra state. The both plants in grampanchayat area.
Now the both Grampanchayat are asking for tax on Solar Panal. Is this legal?
Thanking You,
Your’s Faithfully,
Ratilal Bora
Mob. 9860500777,
9822011992
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please share me the information about how to check each serise connected solar pannel .i want to a idea that give me each solar panel working or not.please help me as fast as possible