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Mr.

Mrinal Roy
Director-Soleltherm Technik OPC Pvt Ltd

Solar PV Technical Consultant

solelthermtechnik@gmail.com

Mob: 9741909069

Bangalore

SOLAR PHOTOVOLTAICS
BUSINESS MODELS/OPPORTUNITIES
SOLAR PHOTOVOLTAICS BUSINESS MODELS &
OPPORTUNITIES

Business Roles Evolving


- EPC/System Integrator
- Leasing Partner
- Developer
- Equipment manufacturer
- O&M Contractors
- IPP
- Investor
- Liasoning
- Consultant
- Installation Contractor
- Market Lead Generators

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SOLAR PHOTOVOLTAICS STAKEHOLDERS

Tr Man
e r ad u
n e r fa c
w /D tu
e tO is
tri rer/
s s bu
A to
r
Solar PV Plants /
Projects /

er/
r
ncie
O&M

elop
Opportunities

Fina
Dev
System
Integrator/EPC/
Consultant

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SOLAR PHOTOVOLTAICS BUSINESS MODELS &
OPPORTUNITIES

CAPEX MODEL
CAPITAL INVESTMENT: BUIDLING OWNER
REVENUE OWNER: BUILDING OWNER
AVERAGE PAYBACK PERIOD: 7-8 YEARS
PLANT LIFE (THEORETICAL): 25 YEARS
RETURN ON INVESTMENT: 14%-15%

OPEX MODEL
CAPITAL INVESTMENT: THIRD PARTY
REVENUE OWNER: THIRD PARTY (TILL CONTRACT PERIOD)
BUILDING OWNER ADVANTAGE:
- NO UPFRONT COST
- CHEAPER ELECTRICITY THAN CURRENT TARIFF
- POST CONTRACT PERIOD OF 15/20 YEARS SOLAR PV PLANT OWNERSHIP IS
TRANSFERRED TO ROOF OWNER FREE OF COST

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SOLAR PHOTOVOLTAICS BUSINESS MODELS &
OPPORTUNITIES
FEED IN TARRIFF

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SOLAR PHOTOVOLTAICS BUSINESS MODELS &
OPPORTUNITIES

GROSS METERING

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SOLAR PHOTOVOLTAICS BUSINESS MODELS &
OPPORTUNITIES

NET METERING

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ROOFTOP SOLAR PV PLANT
- FINANCIAL BENEFIT EXAMPLES

PROJECT FINANCIAL MODELING


(for residential consumers)

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1kWp Rooftop Solar PV Plant
1kWp PV Plant
4.5 Units of Electricity/day
Area Required: 100sq.ft.
Monthly Units Produced = 135Units
Cost of PV Plant ~ 1.1Lacs
MNRE Subsidy (30%): 0.33lacs
Net Cost of Project: 0.77lacs
FIT: 6/Unit
Annual Units Sold/Offset: 1620
Annual Revenue Benefit: 6 x 1620 ~ 10000
Payback Period : 77000/10000 = 7.7 Years ~ 8 Years

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5kWp Rooftop Solar PV Plant
5kWp PV Plant
23 Units of Electricity/day
Area Required: 500sq.ft.
Monthly Units Produced = 700Units
Cost of PV Plant ~ 4.2Lacs
MNRE Subsidy (30%): 1.2lacs
Net Cost of Project: 3lacs
FIT: 6/Unit
Annual Units Sold/Offset: 8400
Annual Revenue Benefit: 6 x 8400 ~ 50000
Payback Period : 300000/50000 = 6 Years

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10kWp Rooftop Solar PV Plant
10kWp PV Plant
45 Units of Electricity/day
Area Required: 1000sq.ft.
Monthly Units Produced = 1400Units
Cost of PV Plant ~ 8Lacs
MNRE Subsidy (30%): 2.4lacs
Net Cost of Project: 5.6lacs
FIT: 6/Unit
Annual Units Sold/Offset: 16800
Annual Revenue Benefit: 6 x 16800 ~ 100000
Payback Period : 560000/100000 = 5.6 Years

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ROOFTOP SOLAR PV PLANT - PROJECT RETURNS

PROJECT FINANCIAL MODELING


(for commercial consumers)

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100KWP ROOFTOP PLANT - SUMMARY

PV PLANT RATING: 100kWp


Units Produced/Day: 475kWh
Units Produced/year: 142540 (assuming 300 sunny days)
Feed-In-Tarriff: 6/kWh
Area required: 10000 sq.ft. (net shadow-free)
No. of PV Modules: 350-400
Weight of Mounting Structure: 700-800kg
Inverter Room Size: 20ft x 10ft

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Yearly Revenue (Time Value of Future Earnings) - Yield Analysis Basis
Annual Energy Yield Present Value of Annual Cumulative Net Cash
Years Annual Earnings
(kWh) Earnings Payback Flow
1 142540.05 8,55,240.28 7,91,889.15 17,51,889.15 (62,48,110.85)
2 141114.65 8,46,687.88 7,25,898.39 34,37,787.54 (45,62,212.46)
3 139703.50 8,38,221.00 6,65,406.86 45,83,194.39 (34,16,805.61)
4 138306.47 8,29,838.79 6,09,956.28 56,73,150.68 (23,26,849.32)
5 136923.40 8,21,540.40 5,59,126.59 62,32,277.27 (17,67,722.73)
6 135964.94 8,15,789.62 5,14,085.84 67,46,363.11 (12,53,636.89)
7 135013.18 8,10,079.09 4,72,673.37 72,19,036.48 (7,80,963.52)
8 134068.09 8,04,408.54 4,34,596.90 76,53,633.38 (3,46,366.62)
9 133129.61 7,98,777.68 3,99,587.71 80,53,221.09 53,221.09
10 132197.71 7,93,186.23 3,67,398.70 84,20,619.79 4,20,619.79
11 131272.32 7,87,633.93 3,37,802.69 87,58,422.48 7,58,422.48
12 130353.42 7,82,120.49 3,10,590.81 90,69,013.29 10,69,013.29
13 129258.45 7,75,550.68 2,85,168.38 93,54,181.67 13,54,181.67
14 128172.68 7,69,036.06 2,61,826.82 96,16,008.48 16,16,008.48
15 127096.03 7,62,576.15 2,40,395.81 98,56,404.29 18,56,404.29
16 126028.42 7,56,170.51 2,20,718.96 1,00,77,123.2620,77,123.26
17 124969.78 7,49,818.68 2,02,652.71 1,02,79,775.9722,79,775.97
18 123920.03 7,43,520.20 1,86,065.21 1,04,65,841.1724,65,841.17
19 123052.59 7,38,315.56 1,71,076.62 1,06,36,917.8026,36,917.80
20 122191.23 7,33,147.35 1,57,295.45 1,07,94,213.2527,94,213.25
21 121335.89 7,28,015.32 1,44,624.43 1,09,38,837.6829,38,837.68
22 120486.54 7,22,919.22 1,32,974.13 1,10,71,811.8030,71,811.80
23 119643.13 7,17,858.78 1,22,262.32 1,11,94,074.1331,94,074.13
24 118805.63 7,12,833.77 1,12,413.41 1,13,06,487.5433,06,487.54
25 117973.99 7,07,843.93 1,03,357.89 1,14,09,845.4334,09,845.43
CAPITAL BUDGETING & REVENUE MODEL SUMMARY
PV Plant Capacity: 100kWp
PV Plant Investment: 80,00,000
Depreciation 1st year: 3,200,000 (40%)
Depreciation 2nd year: 3,200,000 (40%)
Depreciation 3rd year: 1,60,000 (10%)
Depreciation 4th year: 1,60,000 (10%)
Opportunity Cost of Investment: 8%
PV Plant Life: 25Years
FIT rate: 6 / Unit of Electricity
Savings in Tax due to depreciation: 24,45,788
Present Value of Future Earnings: 85,29,845
Net Present Value (NPV): 21,75,633 > 0 => PROJECT FEASIBLE
Rate of Return: 12% > 8% => PROJECT FINANCIALLY PROFITABLE
Payback Period: 8Years 7Months

BEYOND 8YRS THIS PV PLANT YIELDS ONLY EARNING FOR NEXT


17YEARS

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CASH FLOW FOR SALE OF ELECTRICITY FROM PV PLANT

90,00,000.00

48,75,000.00
Net Cash Flow

7,50,000.00

(33,75,000.00)

(75,00,000.00)
Year 1

Year 3

Year 5

Year 7

Year 9

Year 11

Year 13

Year 15

Year 17

Year 19

Year 21

Year 23

Year 25
Year

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Your trainer:
Mr. Mrinal Roy
solelthermtechnik@gmail.com

THANK YOU