What is Photovoltaics Significance of Roof top PV Price Comparison Cost economics of Roof top PV Incentives and subsidies Variation in pricing and duration of project Warranties and certificates Roof top Example Projects
What is Photovoltaic Photovoltaics (PV) is a method of generating electrical power by converting solar radiation into direct current electricity using semiconductors that exhibit the photovoltaic effect. In this technology solar panels only use the radiations not the heat of the sun.
Significance of roof top PV
There are three main benefits of roof top solar project which are attracting the industrial, commercial and residential customers. on-site generation of power Utilising unused roof top space Reasonable cost
Likewise we have some constraints for Roof top PV also Solar power will be generated only during the day time Lack of sufficient roof top space will limit the size of project
Comparison with Diesel generator: noise and emissions from diesel Solar power is much cheaper than diesel as solar power rate is Rs. 7- 8/kWh while Rs. 16/kWh using diesel Advantage of fixing the cost for next 25years
Reasons to go for Roof top PV Unreliable supply of grid power (Frequent load shedding as well as power quality issues) Cost of Power 1. Increasing cost of Grid Power 2. Very High cost of Diesel power
India suffers from a power deficit of 9-10% of peak demand(poor power quality and productivity losses for businesses) Industries in Andhra Pradesh alone have suffered losses of Rs. 30,000 Cr between September 2012 and April 2013
Price Comparison Diesel price is increasing by 10% every year and so it is estimated in 2015 diesel price will be Rs. 68/litre so the cost of power from diesel would be Rs. 20/kWh Cost of power from solar is constant and right now its Rs. 7-8/kWh. The power price from grid in India varies from state to state.
States Domestic Tariff Rs./kWh Non-Domestic Tariff RS./kWh Maharashtra 8.80 10.90 West Bengal 8 8 Kerala 7.50 8.50 Andhra Pradesh 7.30 9 Cost economics of Solar Roof top A rooftop solar PV system costs approximately Rs. 1,00,000 per kWp (kilowatt peak) including installation charges but without batteries and without considering incentives (which are discussed further below). The cost breakup for a 1 kWp system is given below
Component Amount in RS % of total Cost PV modules (Crystalline) 52,000
52% Inverters 23,000 23% Balance of System (cables)
17,000 17% Installation
8,000 8% Total
100,000 Incentives and subsidies Several incentives are available for rooftop solar PV plants through the Jawaharlal Nehru National Solar Mission. Accelerated Depreciation (AD) Accelerated depreciation of 80% is available under the Income Tax act for rooftop solar PV systems
*Tax rate can vary for different assesses
*Tax rate can vary for different assesses
It is to be noted that depreciation can be claimed only on business assets and only against business income. Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset
Item Rs. Cost of a 1kW rooftop solar plant (A) 1,00,000.00 Accelerated depreciation @80% 80,000.00 Corporate tax rate* 35% Tax saved through depreciation (B) 28,000.00 Net cost of rooftop solar plant (A)-(B) 72,000.00
Subsidy from MNRE Two Types of subsidies from MNRE 1. Capital Subsidy (30% of the project cost) 2. Interest Subsidy (Soft loans @ 5% per annum) *for commercial/ industrial entities either of capital or interest subsidy will be available
Savings from capital subsidy
Items Rs. Cost of a 1 kW rooftop solar plant with battery backup 1,60,000.00
Benchmark cost 1,70,000.00 Subsidy @30% of actual cost 48,000.00 Net cost after subsidy benefit 1,12,000.00 Final Cost of Roof top PV The final cost to setup the PV plant, after factoring in Accelerated Depreciation and Subsidy benefit will be Final cost of 1 kW rooftop PV plant
It is to be noted that there are issues regarding the subsidy payments Items Rs. Cost of a 1 kW rooftop solar plant 100,000.00 Subsidy @ 30% 30,000.00 Net cost after subsidy 70,000.00 Accelerated depreciation @80% 56,000.00 Tax rate 35% Tax saved through depreciation 19,600.00 Net cost after both AD and Subsidy 50,400.00 Variations in Pricing Overstatement of capacity Compromised installations (quality) Brands (Tier 1 manufacturers) Certifications/Standards Warranties PV Panels Industry standard warranty is 5-year manufacturing defect 0-10 years for 90% of the rated output power 10-25 years for 80% of the rated output power Other systems Inverters, mounting structures, cables, junction boxes, etc. typically come with a 1 year manufacturer warranty which can be extended to 5 years
Duration of Roof top PV Three factors 1. Plant size 2. Site conditions 3. Permissions required * Typically rooftop plants can be installed within two weeks to 3 months of the project being confirmed *It should be noted here that processing of subsidies may take much longer.
Best regions for solar roof top in India Location Orientation of roof Ambient temperature * Generally in India Its 4-7kWh of solar insolation per square meter. Map for solar Insolation in India Warranties and certifications Warranties Certifications
Solar panels: 5 Years warranty for manufacturing defects IEC 61215/IS 14286 Design qualification and type approval 0-10 years for 90% rated output IEC 61730 Safety 10-25years for 80 % rated output IEC 61701/IS 61701 Salt mist corrosion testing Inverters Inverters are typically warranted for 1 year, with optional extension up to 5 years.
Batteries Batteries are typically warranted for 1 year, with optional extension up to 5 years.
Capacity-weigh :Capacity should correspond with the weight e.g., a 100 Ah battery should weigh about 32 Kgs. Batch number This should be embossed (and not provided through a sticker) on the body
Charge Controller/MPPT units Charge controllers and MPPT units are typically warranted for 1 year, with optional extension up to 5 years.
IEC 60068-2 (1,2,14,30) Environmental testing(Cold,Dry,heat, Change of temperature, Damp heat cyclic Cables Cables are typically warranted for 1 year, with optional extension up to 5 years.
IEC 60227/IS 694 General test and measurement of PVC cables IEC 60502/IS 1554 (Part I & II) Working voltage up to and including 1100 V and UV resistance for outdoor installation of PVC cables
Roof top Example projects Sri Vishnu Educational Society (West Godavari, Andhra Pradesh) The Sri Vishnu Educational Society commissioned a 200 kW rooftop solar plant at their Bhivaram Campus at the end of 2013. The plant is expected to supply 10% of the campuss power needs and break even in 5 years Thermax (Pune, Maharashtra) Thermax constructed a 100 kW solar PV plant on the roof of their Pune office to offset grid power consumption. The plant used both mono and polycrystalline panels, dual-axis tracking, and remote monitoring. Construction time was 8 weeks Alpine Knits (Tirupur, Tamil Nadu) Alpine Knits, a spinning mill in Tirupur, Tamil Nadu, commissioned a 1 MW rooftop, grid-connected, DG synchronised solar plant in March 2013. Construction time was 2 months