1. 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
2. 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.
4. TYPICAL SOLAR PV SYSTEM
•SOLAR PV MODULE
•CHARGE CONTROLLER
CUM INVERTER (PCU)CUM INVERTER (PCU)
•BATTERY
•OTHERS
5. 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)
6. 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
7. 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
8. 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.
9. 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)
10. 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.
13. 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.
14. 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.
15. 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)
16.
17. 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
