ECONOMICS OF SOLAR PHOTO-

VOLTAIC POWER

TRAINING ON SOLAR PV SYSTEM

Sudhanwa Sahoo

Manager, Marketing & Business Development

Email:sudhanwa.sahoo@gmail.com

Agni Power And Electronics Pvt. Ltd.

114, Raj Danga Gold Park, Kolkata-700107

TRAINING ON SOLAR PV SYSTEM

JULY-2015

INTRODUCTION

• Sunshine is free, But Capturing the sun’s rays

to generate electricity is a Capital-Intensive

undertaking.

• High Up-Front / Capital Cost & Low Operating • High Up-Front / Capital Cost & Low Operating

Cost

• Project Development Time is Minimum as

compared to Other Power.

SOLAR PV POTENTIAL

TYPICAL SOLAR PV SYSTEM

•SOLAR PV MODULE

•CHARGE CONTROLLER

CUM INVERTER (PCU)CUM INVERTER (PCU)

•BATTERY

•OTHERS

Solar PV Technologies Efficiency

(%)

Price

(Rs./Wp)

Remarks

Mono Crystalline

Silicon

15-18 45-50 Effi: High

Cost: High

Reliability: High

Risk: Low

SOLAR PV TECHNOLOGIES

Risk: Low

Poly Crystalline

Silicon

13-16 38-40 Effi: Medium

Cost: Medium

Reliability: High

Risk: Low

Thin Film 6-9 30-35 Effi: Low

Cost: Low

Reliability: Low

Risk: High (More Space Req)

COST OF TYPICAL 100kWp Grid-Tied

SOLAR PV POWER PLANT (Rs.)Particulars Figures

(in Lakhs)

1. SOLAR PV Module: 50

2. PCU/Inverter: 12

3. Module Mounting Structure: 7

4. Cables: 54. Cables: 5

5. Junction Box: 2

6. I&C and Others: 4

7. Total: 80

1

2

3

4

5

6

COST OF TYPICAL 100kWp HYBRID SOLAR

PV POWER PLANT (Rs.)Particulars Figures

(in Lakhs)

1. SOLAR PV Module: 50

2. PCU/Inverter: 30

3. Battery: (40kW for 4-6 Hrs) 30

4. Module Mounting Structure: 54. Module Mounting Structure: 5

5. Cables: 5

6. Junction Box: 2

7. I&C and Others: 8

8. Total: 130

1

2

3

4

5

6

7

INPUT DATA FOR ECONOMIC ANALYSIS OF

SOLAR PV POWER PLANT

TECHNICAL INPUTS UNIT COMMERCIAL INPUTS UNIT

CAPACITY OF SOLAR

POWER PLANT

kWp CAPITAL COST OF SOLAR POWER

PLANT

Rs.

YEARLY SOLAR DAYS DAYS OPERATING COST OF SOLAR Rs.YEARLY SOLAR DAYS

AVAILABLE

DAYS OPERATING COST OF SOLAR

POWER PLANT

Rs.

UNIT GENERATION PER

kWp INSTALLED CAPACITY

kWh/kWp OTHER FINANCIAL BENEFITS

(SUBSIDY, DEPRICIATION ETC.)

Rs.

TOTAL YEARLY

GENERATION OF SOLAR

POWER PLANT

kWh PRICE OF ELECTRICITY

(GRID/DIESEL)

Rs.

CONCEPT OF ECONOMIC ANALYSIS

• ALL DATA TO BE CONVERTED TO FINANCIAL FIGURES.

• COMPARISON SHOULD BE LOGICAL & PRACTICAL.

• COMPARISON BETWEEN CASH OUTFLOW & • COMPARISON BETWEEN CASH OUTFLOW & CASH INFLOW (EXPENSES vs REVENUE)

• YEARLY CASH INFLOW SHOULD OUT NUMBER ONE TIME CASH OUT FLOW (PAY BACK).

• INCORPORATE TIME VALUE OF MONEY (DISCOUNTING METHOD)

CONTINUED…

BENEFITS OF

• GRID TIED SYSTEM SHALL BE COMPARED TO

GRID POWER.

• HYBRID SYSTEM SHALL BE COMPARED TO • HYBRID SYSTEM SHALL BE COMPARED TO

DG/OTHER BACK UP POWER SOURCE.

• ESCALATION COST IN ELECTRICITY/FUEL &

PLANT ENERGY DEGRADATION SHOULD BE

ACCOUNTED.

Economic Analysis of 100kWp Grid Tied Solar PV Power Plant

CONCLUSION

• Current Average Pay Back of solar plant is on

5th to 6th Year.

• Further scope of improvement in pay back

with decrease in cost and improvement of

technologies.technologies.

• Larger Power Plants are with more economies

of scale.

• Scope for Grid Parity with Other Power

Sources in near future with favorable policies.

Some facts About Solar Power Purchase & Trading

• PPA: Power Purchase Agreement

(Private/Public)

• RPO: Renewable Purchase Obligation

• REC: Renewable Energy Certificates

(1REC=1MWh)(1REC=1MWh)

• Trading at Indian Energy Exchange

(www.iexindia.com).

• NTPC Vidyut Vyapar Nigam Ltd.

NET-METERING

• Concept: Recording the net energy between

export of generated energy and import of

energy from distribution licensee for a given

period of time.

• Grid Export Meter and Solar Import Meter.• Grid Export Meter and Solar Import Meter.

• Other safety and quality standards as

prescribed in the Electricity Rules, 2005.

• Energy Export Revenue Accounting (As per

State Policy)

Solar PV Power Market Scenario

• Solar Project are Capital Intensive (Govt. Investment)

• Subsidy and/or other Financial Benefits are desirable.

• Favorable Policy to boost solar PV demand. (Net-Metering, RPO & REC)Metering, RPO & REC)

• Innovative Product/Process to tap newer markets.

• Major Thrust on R&D to improve Efficiency of solar PV system.

• Low cost finance for large size solar Project. (Bank/Other Inst. Investor)

Thank You