DETAILED PROJECT REPORT ON SOLAR WATER HEATING SYSTEM (1000 LPD) (SOLAPUR TEXTILE CLUSTER

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Bureau of Energy Efficiency
Prepared By Reviewed By

SOLAR WATER HEATING SYSTEM (1000 LPD)

SOLAPUR TEXTILE CLUSTER

BEE, 2010 Detailed Project Report on Solar Water Heating System (1000 LPD) Textile SME Cluster, Solapur, Maharashtra (India) New Delhi: Bureau of Energy Efficiency; Detail Project Report No. SLP/TXT/SWH/09

For more information Bureau of Energy Efficiency (BEE) (Ministry of Power, Government of India) 4 Floor, Sewa Bhawan R. K. Puram, New Delhi – 110066
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Telephone Fax Websites:

+91-11-26179699 +91-11-26178352 www.bee-india.nic.in

Email: jsood@beenet.in, pktiwari@beenet.in

Acknowledgement

We are sincerely thankful to the Bureau of Energy Efficiency, Ministry of Power, for giving us the opportunity to implement the ‘BEE SME project in “Solapur Textile Cluster, Solapur”. We express our sincere gratitude to all concerned officials for their support and guidance during the conduct of this exercise. Dr. Ajay Mathur, Director General, BEE Smt. Abha Shukla, Secretary, BEE Shri Jitendra Sood, Energy Economist, BEE Shri Pawan Kumar Tiwari, Advisor (SME), BEE Shri Rajeev Yadav, Project Economist, BEE Zenith Energy Services Pvt. Ltd.(ZESPL) is also thankful to “Shri Murlidhar Arkal, Chairman, Shri Srinivas Bura, Vice President, Shri Jayanth Aken, Secretary, Textile Deveopment Foundation, Solapur” for their valuable inputs, co-operation, support and identification of the units for energy use and technology audit studies and facilitating the implementation of BEE SME program in Solapur Textile Cluster. We take this opportunity to express our appreciation for the excellent support provided by Textile Unit Owners, Local Service Providers, and Equipment Suppliers for their active involvement and their valuable inputs in making the program successful and in completion of the Detailed Project Report (DPR). ZESPL is also thankful to all the SME owners, plant in charges and all workers of the SME units for their support during the energy use and technology audit studies and in implementation of the project objectives.

Zenith Energy Services Pvt. Ltd. Hyderabad

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......................................1 2.....................................................................................................................................2 1..............2.... 3 Specific energy consumption ........1 1........... 10 Description of technology/equipment ..............................4...........................................2 2......................................................................................v List of Abbreviation…………………………………………………………………………………….....3 1.................................................................................v Executive summary……………………………………………………………………………………vi About BEE’S SME program………………………………………………………………………….....1 1.............1 1.........................................1 2. 12 v ............................. 10 Solar water heating system (SWHS) ..................... 1 Energy performance in Solapur textile cluster ........1.... 4 Identification of technology/equipment ..5................................. 6 Energy audit methodology adopted ................Content List of Annexure……………………………………………………………………………………..........1 1.................. 10 Equipment specification .4............. 8 Financial Barrier .. 4 Role in process ........................................................................................ 1 About the SME cluster ............................iv List of Tables…………………………………………………………………………………………...........................................4 1.....2 1.............................................5 1................................................... 12 Suitability with existing process........3 INTRODUCTION ...…..... 9 Manpower skill .................................................................... 6 Operating efficiency ................................... 6 Establishing the baseline for the technology/equipment ......3...................................................................... 9 Other barrier (if any) .............iv List of Figures…………………………………………………………………………………………................ 4 Description of technology/equipment to be replaced .......... 9 TECHNOLOGY/EQUIPMENT FOR ENERGY EFFICIENCY IMPROVEMENTS.............................1...............................................................vii 1 1.................3 1...............5................................3.............................5...................................2 1.......1............2 1................. 8 Barriers in adoption of proposed technology / equipments .........................................................................................4 2 2.........................

......................................................................................1 4.........1........................1........................... 15 Environmental benefits ..........................................................................1............ 12 Terms and conditions in sales of SWHS ........................................................2 3.........2 3......................................2.............................................1 3....5 2..4 4 4...... 13 ECONOMIC BENEFIT OF SWHS ........3........................................................ 15 Impact on wages/emoluments ..7 2................................................................................... 14 Technical benefit . NOx ...... 14 Electricity saving ..............2 3......3 3 3...................3 3....3 3...........................3................... 15 Reduction in GHG emission such as CO2..................................................................4 3................... 13 Suitable unit for Implementation of proposed equipment . 14 Social benefits .................................... 15 Reduction in other emissions like SOx ..................................................................... 12 Source of equipment supplier ....... 15 Improvement in skill set of workers ..................... 14 Fuel saving ............... 14 Improvement in product quality ..........................................3..................................1 3...1 3..... 16 Cost of equipment. 14 Increase in production ..............2...........................5 3..............................................................................................1..................................................1.............................................1.....................2..........................4 2........................................................1.............. 16 vi .....................3....3 3................................................1... 15 Reduction in effluent generation ........... 15 Reduction of deforestation ........... 16 Cost of project ......... 13 Process down time during Implementation ...2 3...........1................................ 13 Life cycle of equipment ........................................ 15 Improvement in working environment in the plant ........................................................................................................................................................................................2 2...............................................................................................................................................1.1 Availability of equipment/technology .......................................2.............. 14 Monetary benefits .............................................1............................................1 3.........................3 3................ 15 INSTALLATION OF NEW ENERGY EFFICIENT EQUIPMENT .... 14 Reduction in raw material consumption ...................................................................8 2............................................................................... 12 Technical specifications of equipment.........................................2 3....................6 2..................

................................3 4.... 16 Loan amount.................. 18 vii ..........3 4..........3...............2......................... 16 Entrepreneur’s contribution ............................................................. 17 Return on investment (ROI) ..........3...........................................................2 4.................................................................................................................5 Other costs ............................ 17 Simple payback period ........ 17 Cash flow analysis ................................... 18 Procurement and implementation schedule ................................................................................................................... 17 Sensitivity analysis.................................................................................1.................3 4............................................................... 17 Internal rate of return (IRR).................1 4...3.. 17 Financial indicators ........................................2 4........................ 16 Arrangement of funds ...................................4....5 4......................................................................................................4 4.............................. 16 Terms & conditions of loan ........................................................ 17 Net Present Value (NPV) .........................3 4..........4 4.2 4....2. 16 Subsidy by Government...................2............................2.........3...........................................................................................................................3........................1 4....................2 4.......................................................

................. 8 Table 2.......................... 12 Table 2........................................................... 28 Annexure -7 Details of equipment service providers ....3 Detailed technology assessment report..........................1Energy consumption of a typical unit .... 29 Annexure .................................... 23 Annexure..........1 Comparison of chulhas with SWHS ......................... 18 viii ......Direct Method........1: Details of project cost ...... 13 Table 3............3: Sensitivity analysis in different scenario .........................................1: Energy and cost benefit analysis of energy efficient boiler ..................................... 14 Table 4..................2: Financial indicator of project ........................3 Operating efficiency of three different units ........................................ 19 Annexure – 2 Process flow diagrams ... 11 Table 2..............................................................................................................................5 Detailed financial calculations & analysis for financial indicators .........................8 Quotations or Techno-commercial bids for new technology/ equipment .......2 Specific energy consumption of typical units..............................................................................................................List of Annexure Annexure – 1 Efficiency of the existing chulhas .... 4 Table 1.. 1 Table 1................. 21 Annexure ............... 17 Table 4..................... 30 List of Table Table 1...................2: Technical specifications ................................................................................................................................................................. 22 Annexure – 4 Drawings for proposed electrical & civil works ..................... 16 Table 4.................................................................................... 24 Annexure -6 Details of procurement and implementation plan with schedule/timelines ........3 Terms & conditions of sale for energy efficient boiler .

....... 5 List of Abbreviation BEE DPR DSCR FD GHG HP IBR IRR ID NPV ROI MoMSME SIDBI Bureau of Energy Efficiency Detailed Project Report Debt Service Coverage Ratio Forced Draft Green House Gases Horse Power Indian Boiler Regulation Internal Rate of Return Induced Draft Net Present Value Return on Investment Ministry of Micro Small and Medium Enterprises Small Industries Development Bank of India ix ................1 Process flow chart of typical textile unit ..................List of Figures Figure 1....................................................2 Conventional chulhas operations at typical textile industry ......... 3 Figure 1.....

debt equity ratio.EXECUTIVE SUMMARY Zenith Energy Services Pvt.96 28. x .e. Wood and coal are used in boiler for generating hot water which is further used in dyeing of yarn. The main form of energy used in the cluster units are grid electricity.SME program in Solapur textile cluster. Solapur textile cluster is mainly famous for cotton towel and bed sheet products. This DPR highlighted the energy.No 1 2 3 4 5 6 7 8 9 Project cost Debit equity ratio Monetary benefit Simple payback period Net present value Internal rate of return Return on Investment Average debt service coverage ratio Procurement and implementation schedules Parameter Ratio ` in lakh Years ` in lakh % age % age Ratio Week Unit ` in lakh Value 1. economic and social benefits by replacing less efficient existing technology i.55 8-10 The projected profitability and financial indicators shows that the project will be able to earn profit from inception and replacement of conventional chulhas with SWHS project is financially viable and technically feasible.89 66.16 3. Small and Medium Enterprises” under “National Manufacturing and Competitiveness Programme”. conventional chulhas with 1000 LPD solar water heating system. The key indicators of the DPR including the Project cost. This bankable DPR also found eligible for subsidy scheme of MoMSME for “Technology and Quality Upgradation Support to Micro. The project activities reduce overall wood consumption by 60 tonnes per year and there is no saving in electricity consumption. Ltd is executing BEE . supported by Bureau of Energy Efficiency with an overall objective of improving the energy efficiency in cluster units. wood. and small quantity of coal. accordingly this cluster was chosen for energy efficiency improvements by implementing energy efficient technologies. monetary benefit and other necessary parameters are given in table S.06 3. Since Solapur cluster is one of the largest clusters in textile sector in India.74 3:1 1. environment. so as to facilitate maximum replication in other textile clusters in India.50 1.

BEE has proposed to prepare the technology based detailed project reports (DPRs) for a minimum of five technologies in three capacities for each technology. The local service providers will be trained in order to be able to provide the local services in setting of energy efficiency projects in the clusters Implementation of energy efficiency measures To implement the technology up gradation projects in clusters. etc for each of the sub sector in SMEs. For addressing the specific problems of these SMEs and enhancing energy efficiency in the clusters. BEE will be focusing on energy efficiency. Major activities in the BEE -SME program are furnished below: Energy use and technology studies The energy use technology studies would provide information on technology status. Capacity building of stakeholders in cluster on energy efficiency In most of the cases SME entrepreneurs are dependent on the locally available technologies. xi . best operating practices. Solapur Textile Cluster is one of them. To address this issue BEE has also undertaken capacity building of local service providers and entrepreneurs/ Managers of SMEs on energy efficiency improvement in their units as well as clusters. energy saving potential and new energy efficient technologies. Facilitation of innovative financing mechanisms for implementation of energy efficiency projects The objective of this activity is to facilitate the uptake of energy efficiency measures through innovative financing mechanisms without creating market distortion. gaps in skills and knowledge on energy conservation opportunities. The BEE’s SME Programme intends to enhance the energy efficiency awareness by funding/subsidizing need based studies in SME clusters and giving energy conservation recommendations.ABOUT BEE SME PROGRAMME Bureau of Energy Efficiency (BEE) is implementing a BEE-SME Programme to improve the energy performance in 25 selected SMEs clusters. service providers for various reasons. energy conservation and technology upgradation through studies and pilot projects in these SMEs clusters.

The electricity is used in power looms.500 42 86. where the raw material yarn is processed in-house to the final product. thin single yarn is converted to double yarn for strengthening the yarn by using doubling machine.1below: Table 1. and small quantity of coal. The towels and bed sheets manufactured in the Solapur cluster are renowned in the country and have good market in India.400 Production process The main operational process for production of towels and bed sheets in cluster units are: Doubling In the Doubling process. warping machines and lighting.1Energy consumption of a typical unit S. The main raw material for the units is cotton yarn. winding machines. The main energy forms used in the cluster units are grid electricity.Solar Water Heating System (1000 LPD) 1 1. the yarn is soaked in soap water for 24 hours to remove the dirt and other foreign *Details of Mayuri Textiles. The cost of energy (electrical and thermal energy) as percentage of manufacturing cost varies between 8 and 10%. boilers and chulhas for hot water generation. Yarn dyeing Initially. The energy cost is second to the raw materials cost. hydro extractors.03. which is procured from local spinning mils and agents. The details of annual energy consumption of a typical unit having a production capacity of approximately 86. Wood is used as fuel for thermic fluid heaters. Majority of the units in the cluster are dependent on local / run of the mill technologies of low end and with little investment initiatives and technology up-gradation.No 1 2 3 Particular Electricity consumption Wood consumption Production kWh tonnes kg Unit Value 1.1 INTRODUCTION About the SME cluster The products manufactured in Solapur Textile Cluster are cotton terry towels and bed sheets.400 kg are furnished in the Table 1. doubling machines. wood. Majority of the cluster units are of integrated type. Solapur 1 .

and the yarn is taken for soaping for colour fixation in hot water for about 20 minutes in hank dyeing machines.Solar Water Heating System (1000 LPD) materials and thereafter yarn is taken for bleaching. Fire wood is used as fuel. In power looms. 2 . The temperature of the water is raised by oil circulation or direct steam injection. Bleaching is carried out by soaking the yarn in tanks mixed with bleaching agents and after completion of the process. the yarn is converted to final product (towel or bed sheets) by weaving machine.1 below. Weaving The beams. the winded yarn is wound to beams according to designed pattern (customized designs). The product obtained from weaving is taken for stitching and packing. The water is drained to the waste drainage lines. Then the beams are taken for Weaving. the yarn is washed with normal water. The winded yarn is taken for further process. The general process flow diagram of a typical unit for production of towels and bed sheets is furnished in Figure 1. Warping In warping. The required colors are added to the yarn and the dyeing process takes about 90 to 120 minutes per batch. the yarn is washed with normal water. After dyeing. which are wound with yarn are taken and placed in power looms where the designed pattern is already set. The hank dyeing machine tanks are filled with required quantity of normal water and required chemicals and dyeing agents are added. Winding The yarn after drying is taken for winding in which the yarn is wounded to bobbins and cones. Drying The wet yarn is taken to hydro extractors for removing the water in the yarn and taken for natural drying in the sunlight.

The wood and GN husk briquettes are used as fuel for thermic fluid 3 .Solar Water Heating System (1000 LPD) Yarn (Raw material) Doubling (Double yarn) Electrical Energy Reeling Electrical Energy Dyeing Energy consuming process Thermal Energy Electrical Energy Drying Natural (or) Electrical Energy Winding Electrical Energy Warping Electrical Energy Looms Electrical Energy Stitching & packing Figure 1. depending on type of product and product quality. However.2 Energy performance in Solapur textile cluster The main energy sources for Solapur cluster units are electricity and fuels such as Wood & GN Husk briquettes. 1.1 Process flow chart of typical textile unit The production process as depicted above is similar for all textile units in Solapur textile cluster. the above stated process flow varies as per the requirement.

it has been observed that about 250 to 300 conventional chulhas having poor energy efficiency are being used in entire cluster. Majority of the units in the Solapur textile cluster are using wood for thermal energy generation due to their easy availability and cost competitiveness.No. pumps.37 1.500 kWh and 42 tonnes respectively. etc. ID fans.400 kg per annum.2.1 Specific energy consumption Specific electrical and thermal energy consumption in textile units depends on the final product manufactured in that unit. 03.3 1. 1. out of which the cost of thermal energy works out to 42 percent of the total energy cost and remaining accounts for electrical energy. the annual electricity and wood consumption is 1.44 0. The average specific fuel consumption per kg of the yarn (dyeing process only) for 3 typical units having chulhas for hot water generation is furnished below in Table 1. The performance of various existing chulhas are evaluated and furnished in Annexure 1. boilers and chulhas for hot water generation and electricity is used for operation of prime movers of doubling machine motors.3. In a typical textile manufacturing unit of the cluster. Average production capacity of typical textile manufacturing unit is around 86.2 Specific energy consumption of typical units S. Table 1. 1 2 3 Yemul Textiles SRL Towel Industry Burgul Textiles Name of unit Specific fuel consumption kg of wood/kg of yarn 0. power loom drives.48 0. 4 . hank dyeing machine drives.Solar Water Heating System (1000 LPD) heaters.1 Identification of technology/equipment Description of technology/equipment to be replaced During energy use and technology audit studies in various textile industries in Solapur textile cluster. Energy cost is around 8 to 10 percent of manufacturing cost in typical manufacturing unit. winding machine motors.2.

2 Conventional chulhas operations at typical textile industry From energy use and technology gap audit studies in various textile industries in Solapur textile cluster. environment and social aspects. 5 . Based on above facts.Solar Water Heating System (1000 LPD) Figure 1. the present inefficient chulhas is to be replaced with solar hot water system (SHWS). the following were identified: • Energy efficiency improvement opportunities • Environment and working conditions improvement • Design flaws in the conventional chulhas Technical gap analysis in wood fired boiler The following technology gaps in wood fired inefficient chulhas are identified in a typical unit: • The conventional local chulha has no mechanism for air circulation and smoke removal • • • • Heat losses through the grate openings from the front and back end sides No control on air supply for combustion Radiation losses from all sides of the chulha Lack of monitoring of wood feeding From the above mentioned analysis it is clear that the performance of the existing conventional chulhas is poor in terms of energy.

The chulhas is used for hot water generation and also to maintain the constant temperature during the dyeing and soaping process.3.4 Establishing the baseline for the technology/equipment Energy consumption in chulhas would depend on the followings: • • • • • Cold water temperature Dyeing temperature which depends on the color of the yarn Quantity of hot water required Climate conditions Type of wood and its calorific value Energy use and technology audit studies were conducted in various units of Solapur textile cluster.Solar Water Heating System (1000 LPD) 1. the baseline fuel consumption of present inefficient chulhas for generating 1000 liter hot water per day is 250 kg wood per day.1 Energy audit methodology adopted The following methodology was adopted to evaluate the performance of boilers: 6 . the dyeing of cotton yarn is vital and dyeing process requires hot water.4. 1.2 Role in process For production of towels and bed sheets of different colours. 1. Performance data is attached in Annexure 1.

Solar Water Heating System (1000 LPD) Monitoring of wood consumption for a specific period of time Monitoring of quantity of hot water generated Initial and Final temperatures of hot water in Chulhas Regular monitoring of operating parameters Regular monitoring of fuel consumption rate Collection of all standard data including technical details of equipment and energy consumption Compiling the measurements and the data and calculation of efficiency by direct method Performance evaluation of the systems 7 .

• The availability of solar radiation is intermittent in nature and hence. the production process may disrupt and need to depend on auxiliary heating system.25 5.Solar Water Heating System (1000 LPD) 1.No 1 2 3 Yemul Textiles Burgul Textiles Chatla Textiles Name of the unit %age %age %age Unit Value 6. 8 .2 1. which requires additional investment and maintenance of the equipments.3 Operating efficiency of three different units S.2 Operating efficiency The operating efficiency of the chulhas installed in various units of the cluster used for hot water generation for 3 units is furnished in Table 1.04 6. Table 1.5.4.1 Technological Barrier The major technical barriers that prevented the implementation of SWHS in typical unit: • Lack of awareness and information about the new and emerging technologies available in the market. • A lack of awareness about the favorable lifecycle economics of SWHS technology vis à vis present system of hot water generation • • Dependence on local equipment suppliers for uninterrupted after sales service The lack of technical know-how made it impossible for the textile unit owners to identify the most effective technical measures.5 Barriers in adoption of proposed technology / equipments Major barriers in the up-gradation of technology in the cluster are: • • • Non availability of desired technology in the local market Distrust on technology supplier Lack of information about energy efficiency The other barriers identified for implementation of energy efficiency in Solapur textile cluster are as under: 1.3 below and also details of efficiency calculation are shown in Annexure 1.

5. However.74 lakh. the high initial cost of the solar hot water system due to dependence on expensive imported systems makes the SWH technology costly leading to reluctance in its adoption by cluster units.2 Financial Barrier The Financial barriers for adoption of SWHS are most common.Solar Water Heating System (1000 LPD) 1. 1.3 Manpower skill Skilled manpower is not required for adoption / operation of SWHS. . • Low cost of conventional fuel is the main reason for low demand or low penetration of SWHS technology. Further. • The unit owners in the cluster are wary of approaching banks for financial assistance due to their old perception that getting loan sanctioned from Banks involves lot of paper work / documentation and needs collateral security. which is a significant investment and not commonly seen in the cluster for energy efficiency.4 Other barrier (if any) Some of the SME unit owners are willing to adopt SWHS technology however they often encounter difficulty in finding credible local suppliers of SWHS who can provide system design and further assist them in installation and maintenance of SWHS. 9 .5. Some major financial barriers which prevent the implementation of proposed technology are: • Implementation of the proposed project activity requires investment of ` 1. • Relative high investment and comparative low returns is also one of the major financial barriers for the adoption of SWHS. 1. the financial attractiveness of the project activity and the other benefits such as subsidy & depreciation for the equipments may motivate the unit owners to move forward in adopting SWHS. • The majority of the unit owners are of the view that it makes business sense for them to invest in enhancing production capacity rather than making investment in energy efficiency.5.

it becomes lighter and rises naturally into the storage tank above. Heated water is then stored in the storage tank for use in the process. the present DPR is prepared for passive solar water system which is most commonly used. However. However.1 TECHNOLOGY/EQUIPMENT FOR ENERGY EFFICIENCY IMPROVEMENTS Solar water heating system (SWHS) Description of technology/equipment The Solar Hot Water Systems consists of two main parts: • • Solar collector Storage tank The collector used in such SWHS is of flat-plate type.1. These systems rely on the natural convection of water. Such systems are economical and reliable choice. Passive solar water heaters Passive solar water heating system works on Thermosyphon principal. the cooler water flows down the pipes to the bottom of the collector. enhancing the circulation. The solar radiation directly falls on the collector surface and the solar energy is converted into thermal energy. Water is circulated in tube and gets heated by solar energy.1: Solar hot water system Solar water heating systems can be either active or passive. Figure 2.Solar Water Heating System (1000 LPD) 2 2. Meanwhile.1 2. 10 . the existing conventional system is sometimes also maintained to provide the thermal heat required during inclement weather conditions. As water in the solar collector heats.

There are several types of solar collectors viz flat-plate collector.Solar Water Heating System (1000 LPD) Solar collectors Solar collectors are the key component of SWHS. transform its radiation into heat. However. A typical flat-plate collector is an insulated metal box with a glass or plastic cover (called the glazing) and a darkcolored absorber plate. No 1 2 3 4 5 6 7 8 9 10 Details Wood consumption Environment pollution Safety of workers Maintenance Operational cost Availability of local service providers Hot water generation Fuel cost Man power GHG emission Chulhas High High Poor High High Yes Continuous High Required High SWHS No fuel required Pollution free Good Low (only cleaning of collector surface) Low Yes / limited Intermittent Nil No required No GHG emission 11 .1below: Table 2. heat liquid or air at temperatures less than 80° C. These Collectors. which is heated as it passes directly through the collector and then flows to the process line. Comparison of conventional chulhas with SWHS is shown in Table 2. Flat-plate collectors Flat-plate collectors are the most common solar collector for SWHS. Liquid flat-plate collector’s heat liquid as it flows through tubes in or adjacent to the absorber plate. evacuated-tube collector and integer collectorstorage system. flat –plate collectors are generally used. Solar collectors gather the sun's energy. and then transfer that heat to water.1 Comparison of chulhas with SWHS S. The simplest liquid systems use potable water.

1. the other benefits of solar hot water systems such as relatively nil operational and maintenance cost.1.4 Availability of equipment / technology Based on the detailed energy use and technology audits conducted in various textile industries in Solapur textile cluster. performance guarantee and after sales services details are furnished in Annexure 8.2: Technical specifications Details Name of equipment Model Capacity Temperature of hot water Ambient temperature Transmitivity NA NA LPD oC oC Units Value Solar water heating system VIJRA 1000 60 25 85 %age 12 .Solar Water Heating System (1000 LPD) Though. The company representatives of various solar equipment suppliers are locally available in Solapur and these companies will also provide necessary guidance for documentation required for getting loan and financial incentives available for installing SWHS.3 Suitability with existing process The proposed new equipment is used for hot water generation which was earlier generated by conventional chulhas.2 Equipment specification Equipment specification of SWHS along with terms of sales.1.6 Technical specifications of equipment Technical and design specifications of proposed SWHS are given in Table 2. the availability of hot water is intermittent and requirement of hot water is partially met.1.1. 2.5 Source of equipment supplier Details of other service providers are given in Annexure 7. 2. clean and free form of energy and other economic benefits such as availability of capital subsidy and accelerated depreciation etc makes it attractive proposition for the cluster units to install solar hot water system. 2. it is suggested to install solar hot water system of 1000 LPD capacity for dyeing and soaping process. Hence proposed equipment is suitable with existing process. 2.2 below: Table 2. 2.

2.3 below: Table 2.1. Non.2 uses. insulated SS304 hot water storage tanks. Life cycle of equipment The life expectancy of SWHS is 8-12 year depending upon its maintenance.Solar Water Heating System (1000 LPD) VAJRA 1000 LPD Non-Press. which replaces about 1000 LPD hot water generation in conventional chulha systems . 8 nos. which ever is less 2.45% CST 4% and exempted from excise duty 7 weeks from the date of order with advance Inspection of equipment prior dispatch. of TBP make solar flat plate collectors. cleaning and 13 .3 Suitable unit for Implementation of proposed equipment Large quantities of hot water is required in the dyeing process and the proposed system will give an output of 1000 LPD. as the proposed equipment is additional equipment. at your own cost Included in total cost At our works prior to dispatch 18 months from the date of Performa invoice or 12 months from the date of completion of installation.7 Terms and conditions in sales of SWHS The terms and conditions of the company for supply of solar hot water system are shown in Table 2. C consisting of: • • • 1 nos.1. Loading .3 Terms & conditions of sale for energy efficient boiler Particular Price Insurance Taxes Delivery Inspection Commissioning Inspection Guarantee Condition Transportation.8 Process down time during Implementation There is no process down time.Unloading & Handling Charges at actual 0. 2. Mounting stand for tanks & collectors. x 1000 lit. 2. Detail technical specifications of SWHS are shown in Annexure 8.HHC. Thermosyphon type Solar Water Heating system @ 60 deg.

3.2 Monetary benefits Annual monetary savings due to implementation of SWHS in place of the conventional chulhas is ` 1.No 1 2 3 4 5 6 7 Operational hours Operational days per annum Wood consumption in proposed equipment Wood saving Cost of wood Total monetary benefit Parameter Wood consumption in existing chulhas hours Days Tonnes/annum Tonnes/annum `/Tonne ` in lakh Unit Tonnes/annum Value 60 8 240 Nil 60 2500 1.1. It does not have any impact in improving the quality of the product.50 lakh per annum.3 Improvement in product quality Product quality achieved would be same as the present quality.50 14 .2 Electricity saving Project implementation will not save electricity consumption directly and indirectly.1 3.1 ECONOMIC BENEFIT OF SWHS Technical benefit Fuel saving The wood savings due to installation of SWHS in a typical unit having 1000 LPD hot water generation capacity is estimated at 60 tonnes per annum.1 below: Table 3.1.1.5 Reduction in raw material consumption Raw material consumption is same even after the implementation of proposed technology. 3. 3.1: Energy and cost benefit analysis of energy efficient boiler S.25 %. 3. Energy & monetary benefit analysis of energy efficient boiler is presented in Table 3.4 Increase in production The proposed equipment does not contribute to any increase in production.1.1. 3. The wood savings is estimated based on the present Chulhas efficiency of 6.Solar Water Heating System (1000 LPD) 3 3.

3.2 Social benefits 3. Similarly.4 tCO2 per tonnes of wood consumption 3.3.3. 3.1 Improvement in working environment in the plant The replacement of inefficient chulhas with SWHS will reduce the wood consumption and will improve the work condition and environment.2. 3.3 Environmental benefits 3. Taking CO2 emission factor as 1.2 Reduction in GHG emission such as CO2.3.2. Implementation of this project will result in saving of 60 tonnes of wood per year thereby.2 Improvement in skill set of workers The technology implemented will create awareness among the workforce towards clean and renewable energy systems. 3.2. there are many similar type of unit in Solapur. reducing 84 tonnes of CO2 emissions per year from one unit.Solar Water Heating System (1000 LPD) 3.3 Reduction in other emissions like SOx As wood doesn’t contain sulphur and hence there is no impact on SOx emissions.3.1 Reduction in effluent generation There is no major impact in effluent generation due to implementation of the project 3. 15 .3 Impact on wages/emoluments No significant impact on wages and emoluments of the workers. and if all units will implement this project then significant amount of CO2 emission reduction possible per year. NOx Implementation of this project will lead to reduction in CO2 emissions due to reduction in overall fuel consumption.4 Reduction of deforestation Proposed SWHS will reduce wood consumption in unit thus automatically reduce the deforestation. This will also help in getting the carbon credit benefit through Clean Development Mechanism (CDM) project.

which is ` 1. The total cost of implementation of the SWHS is estimated at ` 1.74 lakh and furnished in Table 4.1.43 lakh. the total cost includes for solar collectors.2. The entrepreneur’s contribution is 25% of total project cost.1 below: Table 4. . 4.43 lakh.2.3 Subsidy by Government As the overall energy efficiency in the project is more than 15% it qualifies for subsidy of 25 % of the project cost as per the NMCP scheme of Ministry of MSME. and Construction cost which is ` 0.03 lakh.2 4.1 Arrangement of funds Entrepreneur’s contribution The total cost of the proposed technology is estimated at ` 1. 25 % of the project cost in this case works out to ` 0.16 lakh.03 0. 4.30 lakh. No.55 0.1 INSTALLATION OF NEW ENERGY EFFICIENT EQUIPMENT Cost of project Cost of equipment The total cost of equipment and machinery is estimated ` 1. mounting stands for hot water tank & collectors besides the installation & commissioning cost.Solar Water Heating System (1000 LPD) 4 4. 1 2 3 3 Equipment and machinery Erection & Commissioning Contingency cost Total Details Cost (` in lakh) 1.16 1. which is ` 0. GoI through the nodal agency the 16 .74 4.2 Other costs Other cost includes erection & commissioning cost which is ` 0. GoI.1: Details of project cost Sr.1. On receipt of subsidy from Ministry of MSME.2 Loan amount The term loan is 75% of the total project cost.1 4.74 lakh. insulated hot water tanks of SS make.2. As the subsidy is normally available after implementation of the project the same has not been taken in the project cost and means of finance. 4.55 lakh.

16 years. 4.3.50 lakh hence the simple payback period works out to be 1.44 lakh at the end of eighth year. 4. 4.96 3.3. 1 2 3 4 5 Simple Pay Back period IRR NPV ROI DSCR Particulars Unit Month % lakh %age Ratio Value 14 66.1 Financial indicators Cash flow analysis Considering the above mentioned assumptions.25 lakh in the first year operation and gradually increases to ` 6.3. Availability of this subsidy will make the project economically more attractive. 4.89 lakh.5 Return on investment (ROI) The average return on investment of the project activity works out at 28.2 Simple payback period The total project cost of the proposed technology is ` 1. 4. The loan tenure is 5 years excluding initial moratorium period is 6 months from the date of first disbursement of loan.3. Details of financial indicator are shown in Table 4.96%.3 Terms & conditions of loan The interest rate is considered at 10% which is SIDBI’s rate of interest for energy efficient projects.3 4.4 Internal rate of return (IRR) The after tax internal rate of return of the project works out to be 66.3 Net Present Value (NPV) The net present value of the investment at 10 % works out to be ` 3.55 17 . No.89 28.2: Financial indicator of project S. 4.74 lakh and monetary savings due to reduction in wood consumption is ` 1.Solar Water Heating System (1000 LPD) amount of subsidy is generally set off [reduced] from the loan outstanding by the lender bank.2 below: Table 4.06 3. the net cash accruals starting with ` 1.2.06%.3.

94% 62.4 Sensitivity analysis A sensitivity analysis has been carried out to ascertain how the project financials would behave in different situations like when there is an increase in fuel savings or decrease in fuel savings.18 3.73 3.17% 27.5 Procurement and implementation schedule The project is expected to be completed in 8 to 10 weeks from the date of financial closure. The financial indicators in each of the above situation are indicated along with standard indicators in Table 4. Following two scenarios has been considered • • Increase in fuel savings by 5% Decrease in fuel savings by 5% In each scenario.Solar Water Heating System (1000 LPD) 4.3: Sensitivity analysis in different scenario Particulars Normal 5% increase in fuel savings 5% decrease in fuel savings IRR 66. The detailed schedule of project implementation is furnished in Annexure 6 18 .55 3.37 4.98% NPV 3.06% 28.96% 70.61 ROI 28.3 below: Table 4. other inputs are assumed as constant.93% DSCR 3.89 4.

No 1 2 3 4 5 6 7 8 Particular Quantity of hot water generated Initial temperature of water Final temperature of water Wood consumption Calorific value of wood Heat input Heat output Efficiency litre 0C 0C Unit value 600 30 80 150 3200 4.000 6.Direct Method Case1: Yemul Textiles: S.Solar Water Heating System (1000 LPD) Annexure Annexure – 1 Efficiency of the existing chulhas . 80.000 30.04 kg/day kCal/kg kCal/day kCal/day %age 19 .25 kg/day kCal/kg kCal/day kCal/day %age Case2: Burgul Textiles: S.000 5.No 1 2 3 4 5 6 7 8 Particular Quantity of hot water generated Initial temperature of water Final temperature of water Wood consumption Calorific value of wood Heat input Heat output Efficiency litre 0C 0C Unit value 350 30 90 130 3200 4.000 21. 16.

25 kg/day kCal/kg kCal/day kCal/day %age 20 .00.000 50.Solar Water Heating System (1000 LPD) Case3: Chatla Textiles: S.No 1 2 3 4 5 6 7 8 Particular Quantity of hot water generated Initial temperature of water Final temperature of water Wood consumption Calorific value of wood Heat input Heat output Efficiency litre 0C 0C Unit value 1000 30 80 250 3200 8.000 6.

Solar Water Heating System (1000 LPD) Annexure – 2 Process flow diagrams Yarn Doubling Yarn Dyeing & Washing (Hang dyeing machine) (60 0C) (Hydro extractor) Drying Winding Warping Power looms Stitching Finished Product 21 .

Solar Water Heating System (1000 LPD) Annexure .No Particular Unit Value Existing technology Proposed technology SWHS 8 240 Nil 60 1.74 1.3 Detailed technology assessment report S.25 - 22 .50 1 2 2 Name Operating hour Operating days NA hr days Chulhas 8 240 4 5 Wood consumption Wood saving tonne/year tonnes/year 60 0 6 8 9 10 Cost of wood Efficiency Cost of project Monetary saving `/tonne %age ` in lakh ` in lakh 2500 6.

Solar Water Heating System (1000 LPD) Annexure – 4 Drawings for proposed electrical & civil works 23 .

24 1.12 0.05 0.20 0.92 0.32 1.08 0.68 0.36 0.00 (` in lakh) Interest 0.30 5 6 66 10 4.00 60 2500 5.06 0.30 1.Solar Water Heating System (1000 LPD) Annexure.55 0.12 0.28 Unit LPD Days Shifts `(in lakh) % on Plant & Equip ` (in lakh) ` (in lakh) ` (in lakh) ` (in lakh) ` (in lakh) Years Months Months % % Plant & Equip % Tonnes/year `/Tonne % Feasibility Study Feasibility Study Feasibility Study Feasibility Study Feasibility Study Feasibility Study Feasibility Study Feasibility Study Feasibility Study Feasibility Study Assumed Assumed Assumed SIDBI’s rate of interest Feasibility Study Feasibility Study Indian Companies Act Estimation of Interest on Term Loan Years 1 2 3 4 5 6 Opening Balance 1.74 0. Solar Hot Water System 1000 LPD Value 1000 240 1 1.01 24 .03 1.24 0.10 0.68 0.43 1.58 0.30 Closing Balance 1.32 Repayment 0.12 0.32 0. line Depn.12 0.12 0.00 5.24 1.92 0.16 1.5 Detailed financial calculations & analysis for financial indicators Assumptions Name of the Technology Rated Capacity Detail Installed Capacity No of working days No of Shifts per day Proposed Investment Plant & Machinery Erection & Commissioning (5%) Investment without IDC Interest During Implementation Total Investment Financing pattern Own Funds (Internal Accruals) Loan Funds (Term Loan) Loan Tenure Moratorium Period Repayment Period Interest Rate Estimation of Costs O & M Costs Annual Escalation Estimation of Revenue Wood savings Cost St.

46 5 1.09 1.35 3 1.78 4 1.43 3.22 1.08 1.48 8 1.09 1.08 0.39 0.07 Projected Profitability Particulars / Years Revenue through Savings Fuel savings Total Revenue (A) Expenses O & M Expenses Total Expenses (B) PBDIT (A)-(B) Interest PBDT Depreciation PBT Income tax Profit after tax (PAT) 1 1.46 0.79 5 1.09 0.25 0.00 5.48 (` in lakh) 7 1.07 0.09 1.35 0.50 0.75 7 (` in lakh) 8 0.50 0.92 4.12 1.41 0.90 2 0.09 1.50 0.22 0.08 0.25 0.10 1.50 1.74 1.09 1.43 1.34 0.35 0.08 1.39 (0.48 0.16 0.24 2.48 0.85 Computation of Tax Particulars / Years Profit before tax Add: Book depreciation Less: WDV depreciation Taxable profit Income Tax 1 1.50 0.01 0.84 7 1.43 0.42 0.09 1.07 1.48 Projected Balance Sheet Particulars / Years LIABILITIES Share Capital (D) Reserves & Surplus (E) Term Loans (F) Total Liabilities D)+(E)+(F) Assets 1 0.32 0.41 0.28 1.31 0.28 0.09 1.12 1.32 5.08 0.00 7.42 0.22 4 0.43 4.43 2.33 0.05 1.45 0.08 1.09 1.50 0.64 3 0.09 1.43 6.08 1.87 0.50 1.08 1.07 1.08 0.42 1.09 1.31 0.42 0.47 0.23 0.08 0.48 0.03 0.22 0.66 0.42 0.46 6 1.22 1.42 0.33 0.08) 2 1.09 1.Solar Water Heating System (1000 LPD) WDV Depreciation: Particulars / years Plant and Machinery Cost Depreciation WDV 1 1.09 1.31 0.37 0.08 1.09 1.78 5 0.32 0.50 1.37 0.35 2 0.09 1.42 0.22 2 1.33 0.22 0.28 0.07 0.43 5.50 1.32 0.85 8 1.12 3.50 1.50 0.50 1.60 25 .00 6.08 1.01 1.50 0.34 0.42 0.28 0.43 2.50 0.43 7.44 0.45 4 1.46 0.42 0.33 0.50 1.50 1.87 3 1.09 1.42 1.09 1.68 4.32 0.08 0.81 6 1.23 0.43 0.23 6 0.

09 0.84 0.97 0.84 1.74 1.09 0.96 3 0.09 0.94 0.60 6.64 1.37 3.09 0.09 0.09 5.24 0.50 6.00 1.31 2 0.36 0.09 0.09 0.96% 3.43 1.94 4.09 0.79 0.78 0.09 0.94 0.05 6 0.81 0.00 1.41 4.73 1.87 0.32 0.96 0.27 1.12 3 0.91 0.01 (` in lakh) 7 0.74 0.74) 66.19 4.44 0.52 0.08 5 0.87 4 0.90 1.30 0.50 6.09 0.74 0.74) (1. Depreciation Net Fixed Assets Cash & Bank Balance TOTAL ASSETS Net Worth Debt Equity Ratio 1.28 1.09 8 0.44 1.76 4.74 1.67 2.22 0.25 2.81 0.65 0.32 0.85 0.06 0.22 0.08 0.74 0.85 0.94 0.22 3.09 1.12 2 0.09 0.75 1.61 3.09 3.25 2.76 3.09 0.00 Projected Cash Flow: Particulars / Years Sources Share Capital Term Loan Profit After tax Depreciation Total Sources Application Capital Expenditure Repayment of Loan Total Application Net Surplus Add: Opening Balance Closing Balance 1.46 2.24 0.41 3.44 7.09 0.56 5.Solar Water Heating System (1000 LPD) Gross Fixed Assets Less: Accm.95 0.37 1.98 0.06 1.25 1.84 0.76 0.28 3.74 0.74 0.64 1.30 1 1.07 1.00 6.85 0.94 8 0.09 0.50 0.56 5.54 3.09 2.44 Calculation of Internal Rate of Return Particulars / months Profit after Tax Depreciation Interest on Term Loan Salvage/Realizable value Cash outflow Net Cash flow IRR NPV 0 1 1.10 4 0.46 1.44 7.74 0.09 0.74 0.78 0.75 5.85 0.93 (` in lakh) 7 0.59 0.64 2.87 0.95 5.20 0.90 6 0.20 0.94 5.12 0.79 0.78 4.09 1.88 5 0.09 - (1.36 0.55 1.17 1.56 0 0.25 0.55 2.94 26 .89 1.64 2.74 0.12 0.74 0.18 1.75 0.43 1.41 0.23 4.95 4.

50 Contribution (K) 1.05 0.22 0.02 0.00 0.09 0.12 1.32 5.00 0.00 0.44 8.30 1.02 0.35% 11.06 0.50 1.45 15.87 0.09 0.09 0.99% 5.08 0.44 13.09 0.71% 1.02 0.44 7.23 1.08 3 0.06 0.94 0.52% 6.16% 0.65 2 1.45 Break Even Point (L= G/I) 15.13 0.30 0.05 3 0.18 3.44 7.50 1.30 4 1.88% 8.25 4.05 2 0.12 0.24 0.33 6.06 0.52 3 1.84 0.24 0.02 0.70% Cash Break Even {(I)-(H)} 9.10 0.06 0.35% 0.44 1.02 0.50 1.06 0.22 0.08 0.17 36. & Maintenance Exp (75%) Sub Total (G) Fixed Expenses Oper.37% BREAK EVEN SALES (J)*(L) 0.06 0.09 0.05 0.19 0.32 0.85 0.00% 0.09 0.22 1.05 0.00 0.36 0.06 0.35% 0.79 27 .02 0.50 1.24 0.12 1.12 0.20 0.26 28.17 1.01 0.00 0.32 0.09 0.11 1.23 Sales (J) 1.06 0.05 0.50 1.00 0.10 0.01 0.41 0.08 0.06 7 (` in lakh) 8 0.12 1.06% 1.09 Sub Total (I) 0.09 0.12 Depreciation (H) 0.75 7 1.00 0.44 14.33 7.02 0.09 0.09 0.22 2.98 4 0.00 0.44 Debt Service Coverage Ratio Particulars / Years Cash Inflow Profit after Tax Depreciation Interest on Term Loan TOTAL (M) DEBT Interest on Term Loan Repayment of Term Loan TOTAL (N) Average DSCR (M/N) 1 1.50 1.09 5 1.17 Return on Investment Particulars / Years Net Profit Before Taxes Net Worth 1 1.59 8 (` in lakh) Total 10.49 1.43 2 0.97 5 0.05 0.96 6 (` in lakh) Total 0.06 0.12 0.24 0.46% 0.09 0.79 0.33 0.12 0.94 0.01 0.28 4.81 0.23 3.71% 1.21 1.09 0.02 0.Solar Water Heating System (1000 LPD) Break Even Point Particulars / Years Variable Expenses Oper.06 4 0.09 0.11 1.12 0.20 0.& Maintenance Exp (25%) Interest on Term Loan 1 0.80% 9.91 6 1.06 6 0.12 0.78 0.55 0.00 0.06 5 0.36% 2.53% 0.50 1.10 0.09 0.

Solar Water Heating System (1000 LPD) Annexure -6 Details of procurement and implementation plan with schedule/timelines Period Step Placement of Orders for Equipment and material procurement Receipt of equipments and machinery 2 weeks Step 6 weeks Step Commissioning of the equipments TOTAL 2 weeks 10 weeks 28 .

Maharashtra . Rambaug Colony. North Main Road.in 29 . Koregaon Park. G. Engineer (Sales & Mktg) – Thermal 103. D.com.com Urmi Solar Systems Limited Plot No. C. Gujarat . A-2/10.co. Phase . urmisolarheater@yahoo.382 445.Gera Sterling. 2113. Vatva Ahmedabad. I.Solar Water Heating System (1000 LPD) Annexure -7 Details of equipment service providers Equipment details Solar water heating system Service/technology providers TATA BP SOLAR INDIA LTD. Pune – 411 001 Solar Product Company No.411 030.3. India +(91)-(20)-24334494/ +(91)-9371007016 Email: aquahot@rediffmail. India +(91)-9371007016 / 9373307815 Email:dipal@urmisolar. Navi Peth Pune. Ujwal V Dusane Sr.

Solar Water Heating System (1000 LPD) Annexure .8 Quotations or Techno-commercial bids for new technology/ equipment 30 .

Solar Water Heating System (1000 LPD) 31 .

techsmall. Pankha Road. New Delhi – 110066 Ph.040 23322517 Website: www. K. Ltd 10-5-6/B.37-38.energymanagertraining. New Delhi-110058 Tel: +91-11-28525534. D-Block. Janakpuri.bee-india. Government of India) 4th Floor. Institutional Area. AP 500 028 Phone: 040 23376630.com India SME Technology Services Ltd DFC Building.zenithenergy.in. R. www. Plot No.Bureau of Energy Efficiency (BEE) (Ministry of Power. Sewa Bhawan. Fax No.nic. Masab Tank HYDERABAD. 31. Fax: +91-11-28525535 Website: www.: +91 – 11 – 26179699 (5 Lines).com Zenith Energy Services Pvt. Puram. My Home Plaza.com . Fax: +91 – 11 – 26178352 Websites: www.