Most Common Questions Asked on Solar Installation by Business Owners

CleanMax    August 30, 2020   |   Sunday

What is the cost of a 1 MW solar system?
100 kWp solar system would cost around INR 4-5 million, including all components, installation and commissioning, delivery and taxes.

What is the installation and commissioning period for a 100 kWp solar power plant?
100 kWp solar plant would require 30 to 60 months for installation and commissioning, and typically only 10-15 days of actual work at the site.

Do we need to take any precaution for wind loads?
Yes, wind load is considered. The wind load will depend upon the exact location. The installer should consider IS standards for the specific location. But solar power plants can be designed for any wind load.

What maintenance is required for a solar power plant?
Solar photovoltaic panels have no moving parts, and therefore require little maintenance, which will include module cleaning with water every 2-4 weeks and preventive electrical maintenance every 3 months.

How much electricity will be generated by a 100 kWp solar plant in one year?
A 100 kWp plant will generate around 0.15 million units in the first year. The exact power generated will be subject to location of the solar power plant.

Will the energy produced degrade every year?
Yes, the power produced will degrade at 0.5 -0.8 % each year. In the 25th year, the solar system will still produce 80-90% of the energy produced in the 1st year.

What is the difference between solar plant installation on a rooftop versus ground mounting?
A rooftop solar system requires 20% lesser area than ground mount systems. Rooftop solar helps to reduce ambient room temperature by around 2 degree Celsius. Otherwise, both systems are equivalent.

Does the cost vary for installations on rooftop versus ground mount?
The cost of both systems are approximately the same on a per Watt peak (Wp) basis.

Will a roof mounted system damage my roof's warranty?
It will not, as the roofs aren't tampered. Just as screws are used to fix the roof sheets, we use screws to fix the modules.

Will the cost/KWh reduce if the cost of solar panels fall?
Yes. Since 60-70% of cost depends on the solar panel, if there is a fall in the panel cost it, in turn, will reduce Capex requirement, and this benefit can be passed to the client. But if the cost of other components such as aluminum structures, copper wires which are steadily rising is considered, then the total project cost is more or less stable.

What do you mean by Corporate PPA?
Corporate PPA is a power purchase agreement between a private company and a power producer (developer, independent power producer, or investor) to purchase electricity at a mutually agreed tariff, tenor, and capacity.

What are the types of corporate PPAs in India?
There are three common types of corporate PPAs in India, as follows:

1. For the sale of power from a rooftop solar project
2. For the sale of power from a utility-scale renewable power project
3. For the sale of power from a utility-scale renewable power project structured as an open access project

The corporate buyer must evaluate the available procurement options based on the company’s sustainability and purchasing strategy, the characteristics and location of its electricity demand, local resource availability, and state-level regulations.

What do you mean by Open Access Power?
Open access power is a regulatory mechanism that allows a grid-connected bulk consumer with a contract demand of 1000 kVA or above to meet a part of or their entire electricity requirements via alternate energy sources. Read More.

Which power procurement models can be used in Open Access?
Typically, two procurement models are used: third-party PPAs and captive or group captive models.

Third-Party PPAs

- In this model, a third-party investor or Solar developer invests in an Open Access project and sells the power to corporates via a PPA, eliminating upfront investment and Operation & Maintenance (O&M) responsibilities is at the developers end. However, the corporate buyer is liable to pay the Open Access charges incurred from the wheeling of power from the generated site to the buyer’s location.

Captive / Group Captive Model

- In the captive model, the corporate buyer makes an upfront capital investment in the Open Access project. The buyer owns, operates, and maintains the power generating asset. Open access charges are also applicable but unpredictable charges, such as the cross-subsidy surcharge and additional surcharge, are waived off. In addition, the buyer (i.e., the owner of the power generating asset) is also eligible to claim tax benefits through accelerated depreciation. Another variant of the captive model is the group captive model, wherein the Open Access project is developed for collective usage by many corporate buyers. The model is considered group captive if at least one of the corporate buyers holds a minimum of 26% of equity in the project and consumes at least 51% of the power generated.

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