Dear Sir,

Given below please find an evaluation of the cost alternative impact to meet the RPO mandate. The technical
parameters have been taken from a recent study conducted by us for an industrial bulk consumer. The aim of the
study was to evaluate and establish an alternative to REC units, by setting up of a Solar PV Power unit.
In the current scenario of enhanced deployment of Solar Units the alternative of setting up of a Solar PV Power
Unit comes out as an eminent alternation.
Study Report:
Solar System Sizing
S. No.
1
2
3
4

Particulars
IEX Consumption
Solar REC Certificates
Solar REC Units
Tentative Solar System Sizing
@ 4.5 kWH/KW/Day)

Details ( Monthly Basis )

8.55 Million Units
171 Nos
0.171 Million Units
1.225 MW

DISCOM Consumption

0.45 Million Units

Cost Comparison
CASE-I
Sl.
No.
1
2
3
4
5

Description
DISCOM Consumption

450000

REC Equivalent units

DISCOM Cost (@Rs.6.9 per unit)
REC Certificate cost
(@ Rs.3.5 per unit)
Total Cost

171000
3105000

Unit
Unit
s
Unit
s
INR

598500
3703500

INR
INR

CASE-II
Sl.
No.

Value

Description

Value

Unit

DISCOM Consumption

279000

units

Solar Power Consumption

DISCOM Cost(@Rs.6.9 per unit)

171000
192510
0

Remarks

Remarks
DISCOM consumption reduced
due to solar power generation

Unit
s
INR

CIA-GLOCAL VENTURE LLP. 418, Vipul Trade Centre, Sector-48, Sohna Road, Gurgaon122018,
Ph: 0124-, Email: assistance@cia-glocal.com
1 | Page

Solar Cost(@Rs.4.63 per unit)

Total Cost

791730
271683
0

INR
INR

Assessment.
1
2
3
4

Solar Power Plant Generation will not only contribute to meet the RPO, but also reduce the DISCOM
consumption
Installation of Solar Plant will also contribute to Generation at the Load End as compared to Virtual
Realization through SOLAR REC Purchase to meet RPO.
Therefore a direct saving of approx. INR one million is achievable on a monthly basis for the case in
consideration.
Financial numbers emanating indicate a very favourable Business Case for Client to invest in Solar
Power Plant and realize excellent returns by way of Accelerated Depreciation benefits (Section 32 of
Income Tax Act) and Savings in DISCOM consumption.

CIA-GLOCAL VENTURE LLP. 418, Vipul Trade Centre, Sector-48, Sohna Road, Gurgaon122018,
Ph: 0124-, Email: assistance@cia-glocal.com
2 | Page