ECONOMICS OF 100 KWP SOLAR POWER PLANT

SPECIFICATION: 100 Kwp SPV plant

AWARD VALUE AS PER PO(including taxes): Rs 82,50,000.00
VALUE OF AMC FOR 5 YEARS: Rs 2,50,000.00
COST OF CAPITALISATION: Rs 56,00,000.00 (30% subsidy by MNRE)
GUARANTEED OUTPUT FOR 1
ST
5 YEARS: 100%
GUARANTEED OUTPUT AT THE END OF 25
TH
YEAR: 80%
CONSIDER A LIFE OF 25 YEARS.
CAPACITY FACTOR:
Generation during the two months of June-14 and July 14 is 16168 Kw Hr
Capacity factor= Annual Kwhr generation for each kw AC peak capacity/total hours in a year
= [(916168 x 6)/100]/8760
= 0.1107 = 11.07%
LEVELIZED COST OF ENERGY:

LCOE= Total Life Cycle Cost/ Total Lifetime Energy Production

Total Life Cycle Cost= Investment cost + O&M cost
Investment cost = Rs 5600000.00 + 10% simple interest for 25 years
= Rs 1,96,00000.00
O&M cost= AMC cost for 5 years x [(1.5)
0
+ (1.5)
1
+(1.5)
2
+(1.5)
3
+(1.5)
4
]
= Rs 250000.00 (1 + 1.5 + 2.25 + 3.375 + 5.0625)
(assuming 50 % increase in AMC after each 5 years)
= Rs 250000.00 (13.1875)
= Rs 3296875.00
Total cost = Rs 22896875.00

Total Energy Production= 16168 Kwhr x 6 x [5 + 20 x 90%)]
( averaging out 80% for the next 20 years)
= 16168 x 6 x 23 Kwhr
= 2231194 Kwhr
LCOE= Rs 22896875 / 2231194
= Rs 10.26 per kwhr.

NB: During winter and summer months the energy production will increase. Hence actual CF and
LCOE can be calculated more reasonably based on the data of complete one year.