If you wish to setup solar power plant and sell the electricity to discom or third party, you may do so. You can setup Solar Plant as your business. You become Independent Power Producer Company. Produced power may be sold through a contract or through power exchange. However, it is common to sell generated power through a contract either to Discom or third party consumer.
Why should you become Independent Power Producing Company ?
Answer is simple. You get almost stable, consistent and predictable revenue for long time. You setup it once and generate predictable revenue for 25-years.
How much money is required to setup a Solar Power Plant ?
Well it depends upon Plant capacity, technology, site conditions and legal requirements. However, just to have a fair idea, it cost around 4.5-Crore for 1-MegaWatt Solar Plant in May-2026. Also, if plant is to be installed on ground, it will require around 3-Acres of land area. Please note that the project cost stated earlier do not include cost of land.
Stated cost of plant is based on Non-DCR solar panels. If DCR solar panels are used, plant cost will be around 6-Crore. Under Kusum Scheme, one has to use DCR solar panels.
What kind of land is required for Solar Power Plant ?
Usually, barren land is preferred, however, plant can be setup anywhere except high flood zone. Second determining factor is the distance of sub-station fom the plant site. It is preferred to have nearest substation as close as possible, preferably, within 5Km.
Whether bank loan is available to setup the Solar Plant ?
Yes, bank loan is possible. Bank may fund you about 70% of project cost. You have to invest your equity of 30% into the project.
How long does it take to setup the power plant?
Well, exact time line can not be stated since there are multiple government agencies are involved. However, to have a fair idea, it may take somewhere 3 to 6-months.
How much money can I make from the plant ?
We expect around 1.20-Lakh Units of electricity, on average, every month. If you could secure a PPA (Power Purchase Agreement) at rate of Rs3.00 per unit, your revenue becomes 3.60-Lakh per month. Considering your EMI against loan and operational expenditure of plant, you may be able to take away around 1-Lakh per month from the plant. Moreover, your Loan will get repaid in about 10-years. It means, your take away amount will be more than twice of this stated amount.
How may I start this business ?
It is pretty simple. First you shall be financially strong enough to make your equity investment (around 1.5-Crore) for 1-MegaWatt Solar Plant. Second, You shall identify land parcel of about 3-Acre for 1-MegaWatt Plant, preferably within 5Km from the nearest sub-station. Hire Khushilal Power Generation LLP (or any one else of your choice) to help you conduct site survey, prepare Detailed Project Report, Liasoning with Discom or third party for PPA, Liasoning with financial institution for financing of your project and finally get your plant installed, commissioned and handed over to you.
Who will take care of Operation & Maintenance of Solar Plant ?
Khushilal Power Generation LLP can take care of your plant under seperate Operation & Maintenance Contract for you.
How can I contact Khushilal Power Generation LLP ?
You may call +91-773 995 6653 (Monday to Saturday) from 10AM to 8PM.
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