This has reference to my discussion with Sri Saroj Jain on Photo voltaic based

solar power plant at JSPL Patartu, I am attracting your attention towards the same

With worldwide consciousness towards pollution and emission of green house

gases generated out of fossil fuel, the non conventional sources of energy has
gained prominence for several reasons. Amongst various renewable energy
resources, solar energy is abundantly available all across the world and is the
primary source of all the energies. Owing to extensive research on enhancing solar
wafer efficiency, the solar PV generation cost has come closer to grid parity. The
government of India has also issued directive to establish renewable energy power
plant which accounts for approximately 3% generation through conventional
energy source. we would like to submit that the solar project cost with govt
subsidy is extremely lucrative and is competing with grid power cost specifically
generation of electricity through photo voltaic(PV) cells.

There is very attractive scheme for Jharkhand state by MNRE on mid size roof top
solar projects. Under this scheme solar panels are to be mounted on available roof
top or building shed only, It does not utilizes any of the land space. Power
generated during day time will be self consumed through existing power
distribution network. There will not be any battery bank to store power. Entire
power generated through PV cells will either be consumed by consumer or surplus
will be exported to grid. On financial side, the scheme provides 30% subsidy on
capital cost as well 80% depreciation benefit in the first year itself. The size of the
project could be maximum of 1 MW. The scheme is valid till January 2015 only,
which means the firm order on MNRE approved vendor must be placed before 1st
February 2015. The entire installation will be designed according to roof space or
direction of shed so that maximum sun energy can be recovered. The expected life
of solar panels are 25 years.

with reference to above scheme, we analysed that JSPL Patratu mill sheds , will be
a perfect location to install 1MW solar system. Jharkhand is blessed with good
amount of solar radiation throughout the year. Its total generation will be
consumed within the plant. The reduction in energy cost from grid will give a
maximum of 5.6 yrs payback period.

We propose to install solar panels on the building shed of wire rod mill and bar
mill. According to our preliminary estimate the overall shed area will be able to
generate 1MW of power through solar photo voltaic cells.

The details of plant will be as follows:

Capacity of solar plant 1 MWp

Annual Energy Generation
Average monthly Generation
Peak Generation Time
Peak Generation
Area Required on roof
1500000 Kwh(units) ( 1.5 Million units)
125000 units
11:00 A.M to 3:00 PM
900 Kw ( considering losses in system)
10000 sq mt
Area Required inside room 25 sq mt
Power Consumer 100% JSPL
Project gestation period 4 to 6 months
Annual Maintenance cost Practically nil. Except cleaning of panels weekly.
Life of the Plant 25 Years

Financial analysis

Investment by JSPL 650 Lacs

First year (9 months) recovery - June 15 to March 16
Cost of electricity generated 51.75 Lacs
9 months generation( 1125000 units@ Rs 4.60)

Tax Benefit on account of 80% depreciation 176.8 Lacks

Net Investment in First Year 421.45 Lacs
Electricity bill saving in subsequent years for balance 24 years 67.5 Lacks per
year

This clearly indicates that return every year on investment works out to be 16 %.
This annual saving will further improve with increase in electricity tariff of DVC.
With 5% increase every year the payback period will be nearly 5 Years.

Cost = 600 L, Depreciation= 600 X .33 X .8 = 158.4 L

electricity generation n 9 months= 15 L X .75 X 4.7 = 52.875 L

annual generation cost = 70.5

net cost after first year= 388.72 L

Pay back = 5.5 years