What will be the investment and actual ROI considering the efficiency of 20% of solar panels for a 1 MW solar plant?

    Oct 22, 2019 07:06 PM 1 Answers Solar Energy & PV Plants
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    I am planning to setup a solar power plant of 1 MW. I need to understand what will be the investment and actual ROI considering the efficiency of 20% of solar panels?
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    Oct 22, 2019

    ROI = Profit over a period of time/Investment over that period of time
    Now, the cost of setting up a 1 MW solar plant consists of the cost of approximate 5 acres of land, and cost of plant setup.
    Now according to the 2017 government of India estimation cost for setting up a 1 MW project is roughly 5.06 Crore,w which includes the cost of solar panels, support structures, transformer, inverter and cables for connecting inverters to transformer.
    Now add 10% to the cost if you re considering single axis tracking and 20% if you are going for double axis tracking.
    One thing you have to consider here is how you are intending to use it.
    i.e whether you will sell the energy generated to the grid or use it for your own requirement.
    Depending on that you may need extra cabling, HT structures, step up or step down transformer etc and other costs.
    Again you have to take yearly maintenance cost, cost for employing operators, guards etc.
    After completing the costing part now you have to calculate your earnings from the sell of energy.
    This depends on the PPA or power purchase agreement between you and the grid or any other buyer. The unit rate at which you are able to sell the solar power will decide your margin of profit.
    Efficiency of the solar panels will not affect much as your installation/generation capacity is fixed. You will be producing around 800–900 MVA of power at peak points.
    See if you are planning to set up a MW scale solar plants first make sure to decide who will buy electricity from you. You can not just assume that state will buy from you. You will need a complete detailed project report(DPR) to submit to state board and get it approved.
    So there is much information required from your side to correctly calculate the ROI of your project.
    Hope this helps.
    You can hire my consultancy if you want a detailed costing and bill of materials for your project and detailed ROI and viability of your project.

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