1 MW PV Solar Power Project Brief Techno-Commercial Analysis

Enerco Energy Solutions LLP

Phone : 022 42643671 Mobile : 9890737447 Email : solar@econserve.in Website : www.econserve.in

Introduction
Solar Energy is the combined term used for Heat & Light Energy received from the Sun. Each energy type popularly known as Solar Thermal and Solar Photo Voltaic can be either utilized independently or together using upcoming hybrid technologies. In India the primary focus so far has been on Solar Thermal primarily for heating and drying purposes. However in the recent time Photo Voltaic Solar is evincing widespread interest especially because it is directly related to conversion of light energy of the Sun into Electrical Power. Being a Solar rich and power deficit Country Solar PV presents an excellent opportunity for Power generation. Geographically India is ideally located to utilize Solar Energy to the maximum. Two main factors that are required to justify the use of Solar Energy are : a. Good Solar radiation (as seen in Fig. 1 below). b. Good number of Sunny days in a year. Both the conditions are met for almost the entire Country making it one of the most sought after destinations by global Solar Power Developers.

Fig. 1 GHI Solar Radiation Map of India

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Enerco Energy Solutions LLP

Phone : 022 42643671 Mobile : 9890737447 Email : solar@econserve.in Website : www.econserve.in

A typical PV Solar project consists of a PV Panel or module which is the heart of the system. This module converts the light energy of the Sun into Electrical power as depicted in the figure (Fig. 2) below

Fig. 2 Photo Voltaic Effect It offers unprecedented benefits which cannot be offered by other technologies including other renewable technologies especially for Industrial Plants. PV Solar does offer several advantages that no other fossil fuel or renewable technology can offer. However due to misinformation about the Technology, Costs, Viability etc. it is yet to witness the potential that it possesses. Industrial Plants however should take a proactive step in adopting PV Solar as part of their Power Mix because it aptly fits into the Industrial environment.

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Enerco Energy Solutions LLP

Phone : 022 42643671 Mobile : 9890737447 Email : solar@econserve.in Website : www.econserve.in

Project Specifics
Project Size : 1 MWp (1000 kWp)

Technology : Poly-Si Photo Voltaic

Area Required : 4 Acres (Approximately for Ground Mounted Projects) 15,000 Sq.m. (Approximately for Rooftop Projects)

Tentative Output : 14 Lakh to 17 Lakh Units (kWh) per Annum. (May change depending on technology and project location for a Static System. No tracking system considered. Tracking system can improve the output further.)

Tentative Project Cost : INR 7.5 Crores using Poly-Si (Costing is subject to site conditions and time of order placement. Other lesser costing technologies are available but have their limitations.)

Expected Project Life : 25-30 years.

Salient Points : Project is cash-flow positive from 1st year of operations. Equity (25%) Payback can be in 2 to 2.5 years . Debt (75%) Repayment can be done over 10 year period and can be serviced from first day of operations. Overseas financing can reduce interest cost.

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Enerco Energy Solutions LLP

Phone : 022 42643671 Mobile : 9890737447 Email : solar@econserve.in Website : www.econserve.in

Equity IRR is in the range of 75-90% subject to conditions such as subsidy or incentive applied for, project type (captive or grid-feed), financing options etc. Project IRR is in the range of 17-20% subject to conditions such as subsidy or incentive applied for, project type (captive or grid-feed), financing options etc. Various Government subsidies and incentives at National as well as Statelevel makes the project a lucrative investment opportunity. 80% Accelerated Depreciation can be claimed for existing profit-making Companies. For grid-feed projects a long-term Power Purchase Agreement can be signed with State Electricity Boards at Preferential Tariff. For captive projects there are certain schemes for making the project viable. Moreover captive projects will also enjoy a sustained benefit of constant cost of production as against grid prices which have been rising and are expected to rise further. In case of 100% Equity Investment complete investment can be recovered in 5 years. FREE power is thus available for the remaining project life as there are NO operational costs and NO Fuel costs.

* We have considered the pricing and Government subsidies as is applicable in October 2012. The specifics may change based on market conditions or any change in the assumptions that have been made here.* Enerco Energy Solutions LLP (www.econserve.in) has offered its Services and Solutions to several Industrial Clients in going for PV Solar Power majority of them Industry leaders such as

AND MANY MORE. If you wish to know how you can use PV Solar at your Plant or Commercial Facility please contact us TODAY ! CONFIDENTIAL