Solar power in India cost
You could make a lot of cash out of it :) if Rs 6.50/unit can be obtained.
We seen a serious development when you look at the green power sector in 10 years as well as the financial investment amount which Asia is pulling is remarkable. Among most of the renewable energy sources solar energy's potential is immense and lots of FDI's, huge company houses, merchants every person wants to foray into solar projects and large amount of financial investment is being pumped in. The collective set up capability of solar power in Asia features entered the 5 Gigawatt (GW) and near to 2GW solar power capability is being added that is a phenomenal growth. PM Modi's worldwide solar alliance launch is a again a big boost to the sector.
Now what's the biggest threat to the business is its dropping tariff's as per the consequence of reverse putting in a bid and target to attain grid parity. Minimal solar tariff's are increasingly being quoted by the FDI's and several various other established business ventures while they have actually pool of inexpensive resources (lower interest rates) for project implementation which is somewhere extremely serious issue for Indian developers and people for who loan providers tend to be skeptical as task viability is skeptical.
For almost any company a return of 15-17per cent is decent and in solar specifically it once was 20-22% only couple of years back. The dropping costs is a big issue so any provide which will be more than 5.5Rs/unit and in which assembling your shed price is around 5.5cr0re/MW is certainly a project to bet on. Even though the comes back are becoming squeezed and scarcely people are capable recognize 15per cent task IRR according to present scenario.
As per my view if tariff is 6.5rs/unit for 1MW project you need to look ahead to just do it because of the project. Only explore these next points :
1. Energy Purchase contract t&c (in case it is a govt PPA after that repayment standard is an uncommon possibility but delay in payment is almost prevailing in most state so while projecting your returns hold these exact things within the task business economics )
2. If its a personal PPA then credibility of the power customer a large question.
3. Quality of gear s as its a wedding of 25 years so do not compromise on tier 1 solar power modules & inverters .
4. Hire a project consultant maintain a check on technical feasibility associated with the task.
5. When your company has depreciation appetite (according to IT act) you've got a great deal at 6.5rs/unit.
Presuming 16lakh device generation from 1MW task your revenue understanding is going to be : Rs 10400000 as well as if your costs turn into 80lakhs including interest repayment, procedure & upkeep and miscellaneous charges your investment is fruitful.