Assumptions and net effective CAPEX calculation

Sl # Item Amount Unit Remarks

A Cost of Grid Power per KWh INR 11.0 INR per KWh Cost payable to UP Government
B Inflation in Grid Power per year 2% Percentage Likely average increase in power tariff per year
C Cost of DG Power per KWh INR 15.0 INR per KWh Cost of diesel + amortized cost of DG (diesel generator) equipment
D Inflation in DG Power per year 2% Percentage Likely average increase in diesel cost per year
E Grid / DG assumed Power mix 70% Percentage On an average, 05% of power is provided by DG
F Solar PV installed 150.00 KWp Peak capacity of installed solar photovoltaic panels in KWp (kilo watt peak)
Power generated from Solar PV per KWh per year per KWp
219,000 Estimated power generated in a normal full year.
G year installed
H Grid Power saved per year 153,300 KWh per year H = E * G, Saved units of grid power which would otherwise have been consumed
I DG Power saved per year 65,700 KWh per year I = (1 - E) *G, Saved units of DG power which would otherwise have been consumed
J System Cost per KW installed INR 68,000.0 INR per KWp Competitive costing currently available for large projects
K Gross System Cost INR 10,200,000.0 INR K=F*J
L Maintenance Costs 1.0% of CapEx Conservatively high estimate
M Subsidy per KWp INR 0.0 INR per KWp M = J * 30%, i.e. Currently 70%, as per SECI Guidelines
N Cost after subsidy INR 10,200,000.0 INR N = K - F * M, effective capital cost of the Solar PV system
O Accelerated depreciation benefit 0% Percentage As per Institute AD Benefit is exempted
P Tax Rate 0% Percentage Not Applicable
Q Net Effective Investment INR 10,200,000.0 INR Q = N -(O * P * N), Net effective CAPEX

25 Year Projection table showing break-even and payback

Year Non RE Power Costs Solar Power Costs Net Cost
Cumm Solar PV - Cumm
Year Grid Power DG Total Cumm Non RE CapEx Maintenance Total Cumm Solar PV Non RE
Yr 1 INR 1,686,300 INR 985,500 INR 2,671,800 INR 2,671,800 INR 10,200,000 INR 0 INR 10,200,000 INR 10,200,000 INR 7,528,200
Yr 2 INR 1,720,026 INR 1,005,210 INR 2,725,236 INR 5,397,036 INR 0 INR 0 INR 0 INR 10,200,000 INR 4,802,964
Yr 3 INR 1,754,427 INR 1,025,314 INR 2,779,741 INR 8,176,777 INR 0 INR 0 INR 0 INR 10,200,000 INR 2,023,223
Yr 4 INR 1,789,515 INR 1,045,820 INR 2,835,336 INR 11,012,112 INR 0 INR 0 INR 0 INR 10,200,000 (INR 812,112)
Yr 5 INR 1,825,305 INR 1,066,737 INR 2,892,042 INR 13,904,154 INR 0 INR 0 INR 0 INR 10,200,000 (INR 3,704,154)
Yr 6 INR 1,861,811 INR 1,088,072 INR 2,949,883 INR 16,854,038 INR 0 INR 102,000 INR 102,000 INR 10,302,000 (INR 6,552,038)
Yr 7 INR 1,899,048 INR 1,109,833 INR 3,008,881 INR 19,862,918 INR 0 INR 102,000 INR 102,000 INR 10,404,000 (INR 9,458,918)
Yr 8 INR 1,937,029 INR 1,132,030 INR 3,069,058 INR 22,931,977 INR 0 INR 102,000 INR 102,000 INR 10,506,000 (INR 12,425,977)
Yr 9 INR 1,975,769 INR 1,154,670 INR 3,130,440 INR 26,062,416 INR 0 INR 102,000 INR 102,000 INR 10,608,000 (INR 15,454,416)
Yr 10 INR 2,015,285 INR 1,177,764 INR 3,193,048 INR 29,255,465 INR 0 INR 102,000 INR 102,000 INR 10,710,000 (INR 18,545,465)
Yr 11 INR 2,055,590 INR 1,201,319 INR 3,256,909 INR 32,512,374 INR 0 INR 102,000 INR 102,000 INR 10,812,000 (INR 21,700,374)
Yr 12 INR 2,096,702 INR 1,225,345 INR 3,322,047 INR 35,834,421 INR 0 INR 102,000 INR 102,000 INR 10,914,000 (INR 24,920,421)
Yr 13 INR 2,138,636 INR 1,249,852 INR 3,388,488 INR 39,222,910 INR 0 INR 102,000 INR 102,000 INR 11,016,000 (INR 28,206,910)
Yr 14 INR 2,181,409 INR 1,274,849 INR 3,456,258 INR 42,679,168 INR 0 INR 102,000 INR 102,000 INR 11,118,000 (INR 31,561,168)
Yr 15 INR 2,225,037 INR 1,300,346 INR 3,525,383 INR 46,204,551 INR 0 INR 102,000 INR 102,000 INR 11,220,000 (INR 34,984,551)
Yr 16 INR 2,269,538 INR 1,326,353 INR 3,595,891 INR 49,800,442 INR 0 INR 102,000 INR 102,000 INR 11,322,000 (INR 38,478,442)
Yr 17 INR 2,314,929 INR 1,352,880 INR 3,667,809 INR 53,468,251 INR 0 INR 102,000 INR 102,000 INR 11,424,000 (INR 42,044,251)
Yr 18 INR 2,361,227 INR 1,379,938 INR 3,741,165 INR 57,209,416 INR 0 INR 102,000 INR 102,000 INR 11,526,000 (INR 45,683,416)
Yr 19 INR 2,408,452 INR 1,407,537 INR 3,815,988 INR 61,025,405 INR 0 INR 102,000 INR 102,000 INR 11,628,000 (INR 49,397,405)
Yr 20 INR 2,456,621 INR 1,435,687 INR 3,892,308 INR 64,917,713 INR 0 INR 102,000 INR 102,000 INR 11,730,000 (INR 53,187,713)
Yr 21 INR 2,505,753 INR 1,464,401 INR 3,970,154 INR 68,887,867 INR 0 INR 102,000 INR 102,000 INR 11,832,000 (INR 57,055,867)
Yr 22 INR 2,555,868 INR 1,493,689 INR 4,049,557 INR 72,937,424 INR 0 INR 102,000 INR 102,000 INR 11,934,000 (INR 61,003,424)
Yr 23 INR 2,606,986 INR 1,523,563 INR 4,130,548 INR 77,067,973 INR 0 INR 102,000 INR 102,000 INR 12,036,000 (INR 65,031,973)
Yr 24 INR 2,659,125 INR 1,554,034 INR 4,213,159 INR 81,281,132 INR 0 INR 102,000 INR 102,000 INR 12,138,000 (INR 69,143,132)
Yr 25 INR 2,712,308 INR 1,585,115 INR 4,297,423 INR 85,578,555 INR 0 INR 102,000 INR 102,000 INR 12,240,000 (INR 73,338,555)
25 year Projection Graph showing break-even and payback

Cumm Non RE Cumm Solar PV

INR 90,000,000

INR 80,000,000

INR 70,000,000

INR 60,000,000

INR 50,000,000

INR 40,000,000

INR 30,000,000

INR 20,000,000

INR 10,000,000

INR 0
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20 Yr 21 Yr 22 Yr 23 Yr 24 Yr 25

IRR (Internal Rate of Return) calculated over a 25 year period

Yr 1 (INR 7,528,200)
Yr 2 INR 2,725,236
Yr 3 INR 2,779,741
Yr 4 INR 2,835,336
Yr 5 INR 2,892,042
Yr 6 INR 2,847,883
Yr 7 INR 2,906,881
Yr 8 INR 2,967,058
Yr 9 INR 3,028,440
Yr 10 INR 3,091,048
Yr 11 INR 3,154,909
Yr 12 INR 3,220,047
Yr 13 INR 3,286,488
Yr 14 INR 3,354,258
Yr 15 INR 3,423,383
Yr 16 INR 3,493,891
Yr 17 INR 3,565,809
Yr 18 INR 3,639,165
Yr 19 INR 3,713,988
Yr 20 INR 3,790,308
Yr 21 INR 3,868,154
Yr 22 INR 3,947,557
Yr 23 INR 4,028,548
Yr 24 INR 4,111,159
Yr 25 INR 4,195,423
IRR 38%