synchronized for ease of operation and use of Solar Power along with grid power during daytime.
|One of our PV Solar rooftop projects under commissioning|
Larger projects such as Solar farms can opt for Preferential Tariff or Feed-in-Tariff which improves revenues through sale of power to DISCOMs. The tariff realization could be as high as INR 7 per kWh.
Alternatively MW-level offsite Solar projects could also be used to power Industrial plants. Direct benefit in terms of saving on grid power is attractive.
For existing businesses investment in PV Solar makes commercial sense due to the 80% accelerated depreciation benefit. The RoE for such projects is very quick as these projects are financed by leading banks.
Additionally 10 year tax holiday on revenue through sale of Solar power is also available. Some States have also relaxed the cross-subsidy and electricity duty on Solar power both for captive projects as well as open access projects.
While Central Government has reduced import duty on certain equipment, some States are offering waivers (around 50%) on Stamp Duty for setting up ground-mounted Solar Projects.
In case of captive consumption, it is important to note that the grid power prices are rising and will continue to rise for a long time to come. As compared to this Solar project has an upfront cost and no running cost. In fact if a 100 kWp project cost is amortized over a period of 10 years simple cost of power generation works out to be INR 5 per kWh. This simply means that in its useful life of 25 years a PV Solar project will payback itself several times as cost of generation is nearly zero after the initial investment is recovered.
For a grid-feed project of multi-MW level Power Purchase Agreement could be signed for 25 years. In fact this is the only business wherein a buyer agreement is available for a very long tenure. The multi-fold appreciation in land value (where the project has been installed) is a definite advantage over and above the usual benefits.
Enerco Energy Solutions LLP has set up several PV Solar projects across India and also worked with leading Cos. on matters of Energy Conservation and Solar Power.
In Solar our present focus is on
- Setting up Solar Projects for Industrial Clients
- Development of multi-MW level Solar Park