Renewable Energy - Solar PV

Solar radiation excites electrons in photovoltaic cells thus causing electrons to flow and electricity to be generated. In recent years, solar panel prices have fallen and solar panel efficiencies have increased and solar PV could be effective option in cases where you are running diesel as a back-up to grid power. These systems are typically installed on the rooftop of a building.

What are the different components of a solar PV system?

The different components of a solar PV system are the PV panel itself, the inverter and the necessary structural members to hold the system together. Often, but not always, the system has a battery to store the solar energy to be consumed when there is no sunlight.

The solar PV cell technology used in rooftop applications is poly crystalline technology. Polycrystalline wafers of silicon have a multi-grained structure. The poly crystalline panels take up additional space as compared to mono crystalline panels but are more cost effective. Thin film cells are not applicable for rooftop applications as they take up vastly more area.

India has several manufacturers of solar cells and panels – Moser Baer, Solar Semiconductor, Kotak Urja, Titan Energy Solutions, Photon Energy Systems, PV Power Technologies, Vikram Solar. Your solution provider could be procuring solar panels from Indian manufacturers or could be importing panels as well.

The inverter converts the DC (Direct Current) produced from the Solar Panels to AC (Alternating Current). The major suppliers of solar inverters include international players: SMA Solar, Power-One, Kaco New Energy, Schneider Electric. There are several Chinese companies including Sungrow.

The batteries in solar systems are usually supplied by Exide Industries Limited or Amara Raja batteries. Typically, the batteries used are VRLA (valve regulated lead acid) batteries. In some cases, where high temperatures are prevalent tubular gel VRLA batteries are used.

How do I know how many units of electricity a solar panel will produce?

It will depend on the location of where your solar panel is located. One key resource is the NASA website.

You can follow the following steps:


  • Go to: http://eosweb.larc.nasa.gov/cgi-bin/sse/retscreen.cgi (you will need to register but the process is simple)
  • Enter the latitude and longitude of the location. For example, the latitude of Bangalore is 12.980N and 77.580E and the latitude of Chennai is 13.080N and 80.270E.
  • You will be taken to a page which has information on the average monthly temperature, wind speeds, and daily solar radiation – horizontal.
  • You will also see the yearly average of the daily solar radiation – horizontal.
  • The average daily solar radiation – horizontal for Chennai is 5.23 kWh/m2/d. we will use this data to calculate the potential of a 100 kW system.
  • Typically solar panels are put at a tilt equal to the latitude which increases their efficiency by 15%.
  • Total electricity units generated can be calculated for your project size can be calculated as shown below:

Parameter Value
Radiation at optimum tilt (kwh/m2/day) 6.015
Panel dimensions (1.632m x 0.989m – sample panel size) 1.61
Incident radiation per panel (kWh/day) 9.71
Panel conversion efficiency 14.29%
Generation per panel (kWh/day) 1.39
No. of panels for 100KW 434
Output per day (kWh/day) 602.05
System efficiency considering losses etc. 81%
Usable output per day (kWh/day) 487.66
Days in a month 31
Output (Kwh/month) 15,117.66
Number of months in a year 12
Output (Kwh/year) 1,81,412

You can work with your solution provider to understand the specific values of the parameters in your case. In general, in India, and in the cost benefit scenarios that we have shown, the solar production varies from 145,000 to 165,00 kWh/100kW of solar panel. This is considered a safe assumption as the number of electricity units produced depends on the month.

How much of roof area is required to install solar panels?

The thumb rule is that 12 sq. m of area (about 130 sq. feet) is required to install 1 kW of system.

This is a fairly significant area requirement. In terms of planning new buildings, one consideration should be to keep a large portion of the roof free for installing solar. In existing buildings often the roof area is already utilized with solar water heaters, recreational areas, water tanks and lift rooms. This makes solar rooftops often difficult to install in retro-fit buildings. Work-arounds include using solar sheds on roofs or in areas such as bike parking (in commercial building campuses). A solar shed is a construction on the roof allowing for the usage of the roof for solar panels or other purposes.

Can excess units from my consumption be sold to the grid?

At this point, excess units cannot be sold to the grid. Net metering regulations have to be introduced. Net metering enables monitoring and billing for a two way flow into the grid metering process. It records the import and export of electricity at a consumer level. Net metering enables customers to feed the excess electricity they generate back (typically from renewable sources) back to the grid. During this process, the electricity meter runs backwards, thus allowing customers to get the credit at retail prices for this excess generation. Net metering serves as an incentive for the consumer to install RE power and is particularly useful for promoting roof top solar.

In India net metering is not allowed so one type of system that is in vogue is net-tied (the capacity of the system is carefully calibrated so that all the power generated is consumed).

What are some of considerations when solar becomes a cost effective option?

The solar system becomes viable in the case of green building certification requirements and/or when the solar is replacing diesel power. The cost of the diesel power will vary depending on the efficiency of the DG set and the costs of transporting and storing diesel. For the purpose of the cost benefit calculations that we have below we assume that the cost of diesel power is Rs. 15 /unit, which we believe is reasonable.

What are some of considerations when solar becomes a cost effective option?

The solar system becomes viable in the case of green building certification requirements and/or when the solar is replacing diesel power. The cost of the diesel power will vary depending on the efficiency of the DG set and the costs of transporting and storing diesel. For the purpose of the cost benefit calculations that we have below we assume that the cost of diesel power is Rs. 15 /unit, which we believe is reasonable.

What are the benefits of installing this technology?

Like in all our cost benefit examples, the data shown is collected from vendor sources or customer case studies. The results are indicative and will depend on specific equipment and operating conditions.


Scenario One

Customers who are planning a marginal increase in electricity consumption and have to go in for a 11 kv dedicated feeder line or a 33 kV feeder line. In that case, the capital expenditure that will need to be put up for the feeder line from the substation can be utilized towards the solar panel.


Office Building

In this case the solar panel is assumed to meet 30% of the organizations energy needs. The company installs solar panels of 225 kW even though it can avail of subsidy benefit only to the extent of the capital expenditure of 100 kW. The company is profit making and claims depreciation on the solar panels to set off against its tax liability.

Data Field Data Assumption
Number Of Working Days 300
Total building roof size (sq. m) 2700 The entire roof is used for the solar panel
Capacity & Capex
Solar Panel capacity (kW) 225
Area required to install solar panel (sq. m) 2700 12 sq. m required to install 1 kW of solar
Capex Rs. 270,00,000 Rs. 120/Wp without battery
Subsidy Rs. 36,00,000 33% available only for 100 Kw
Tax Benefit on Accelerated Depreciation Rs. 71,99,280 80% depreciation and company is at 33% tax bracket
Generation
Solar Power Generated from 225 kW solar panel capacity (kWhr/year) 3,33,019 kWhr/year The example is from Kolkata where the solar radiation is 4.94 kWh/m2/day
Solar Power Generated during working days ((kWhr/year) 2,73,714 kWhr/year Number of Working days = 300
Costs & Benefits
Number of Units of Grid Power substituted 2,73,714 kWhr
Cost of Grid Power Rs. 8/unit
Power saving for the first year Rs. 21,89,715
Payback period Approx 7 years Savings per year remain constant
Payback period Less than 6 years Assuming power tariff increase10% per year and panel degradation at 5% after year 5

Scenario Two

Customers in states which are undergoing a power crisis situation where there are restrictions on peak on the maximum connected load and/or also on the maximum number of units consumed in a month.


Industrial Organization

The company has installed a 100kW solar panel. This is a “net tied” (that is the capacity of the system is carefully calibrated so that all the power generated is consumed) system in the sense that there is no battery in the implementation. The solar power system is sized correctly and the circuitry adjusted so that all the power produced is consumed instantaneously. In these cases, the payback period is often around 5 years without taking into consideration depreciation or subsidy. While this company can claim subsidy and can avail of tax benefit, in cases of power shortage solar makes fairly simple economic sense.

Data Field Data Assumption
Capacity of Solar Panel 100 kW
Rooftop Area required 1,200 sq. m
Number of Solar Units produced per year KWhr/year 1,45,000 This is the safe assumption
Capex Rs. 100,00,000 (Rs. 10 million) Rs. 100/wp without battery
Savings
Number of Diesel Units saved KWhr/year 1,45,000
Unit Price of Power from diesel generator Rs. 15
Savings from avoiding usage of diesel 21,75,000
Savings in first year 21,75,000
Payback 5 Without subsidy & depreciation

Residential Building

This is a small stand alone building with 23 flats (small flats of average area at 1000 sq. feet). In this case, the capital cost increase is about 4%. The rooftop space is utilized as a solar shed. The building does not have a DG set. The solar panels charge a solar UPS and the residents have the advantage of no power cuts and reduction in their electricity bills.

Data Field Data Assumption
Rooftop area 7,450 sq. feet/671 sq. m
Number of Floors 4
Number of Apartments 23
Total Sellable Area in apartment 23,000 sq. feet/2070 sq. m
Capacity of Solar Panel 21 kW
Area for Solar Power Plant 252 sq. m
Capital Cost 49,00,000 The capital cost at Rs. 233/Wp is high as there is a relatively large backup is envisaged.
Capital Cost after subsidy 34,30,000
Capital Cost Increase /per sellable area 149.13
Cost that needs to be borne by builder /seller 4% Rate assumed at Rs. 4,000 per sq feet
Number of Solar Units produced per year (kWhr/year) 27,800 kwhr The solar production is assumed at lower rates that 1,45,000/100 kW as this is a coastal location
Average number of Units consumed by an apartment (kWhr/day) 6.5
Average number of Units consumed by an apartment (kWhr/year) 2,373 per year
Total consumption by building 5,4568
% Contributed by Solar to electricity consumption) 51%

Bank Branches

Bank branches in fringe urban and rural areas are a good example where solar can be applied as the number of units required per day are not that high and the grid power situation requires DG sets to be run. Typically bank branches in these areas have about 2-3 computers, a few fans and lights. They do not have ACs.

Data Field Data Assumption
Capacity of Solar Panel 2kW
Rooftop Area requred 24 sq. m/267 sq. feet
Number of Solar Units produced per year KWhr/year 3000 This is the safe assumption
Capex Rs. 4,50,000 (Rs. 0.45 million) Rs. 220/wp without battery
Subsidy Rs.1,50,000 33% available
Tax Benefit on Accelerated Depreciation Rs. 1,20,000 80% depreciation and company is at 33% tax bracket
Savings
Number of Diesel Units saved kWhr/year 2,400 Number of Working Days = 300
Unit Price of Power from diesel generator Rs. 15
Savings from avoiding usage of diesel Rs. 36,000
Savings from avoiding usage of diesel Rs. 36,000
Payback 5 After taking into subsidy and tax benefit on account of accelerated depreciation

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