Financial Analysis for Solar PV System

For VarodaraAssumption ValueCapacity (kWp) 250Capacity Utilisation Factor 17.5%Deration Factor 0.5%Power Plant Cost (Rs. Million per MWp) 126.21Cost of Battery (Rs. Million) .00Capital Subsidy 0%Project cost (Rs. Million) 31.55Project Cost post Subsidy (Rs. Million) 31.55

Battery Life (Years)Annual increase in battery cost 0.0%Battery Effeciency 0.0%Net PLF 17.5%Generation during 1st Year(Million units) .383

Results - For GeneratorLCoE (Rs./unit) 13.66AD Benefit (Levelized) (Rs./unit) 2.13LCoE (with AD Benefit) (Rs./unit) 11.53Investment IRR (without AD Benefit) 20.18%Investment IRR (with AD Benefit) 23.95%

Assumption ValueCost of Purchased Power from GridCurrent cost 5.80Frequency of cost escalation 1Escalation rate 5%Levelized cost 8.05% of energy mix 0%

Cost of DG PowerCurrent cost 14.00Annual Escalation 5%Levelized cost 19.43% of Energy Mix 100%

Assumption ValueEquity 100%Equity (Rs. Million) 31.55ROE 15%Debt 0%Debt (Million) .00Debt Interest 12.00%Discount Rate (WACC) 15.00%

Assumption Value Assumption ValueIncome Tax Rate 32.45% O&M (Annual) .10MAT 20.0% O&M Escalation 5.00%

Units Generation Unit Year 1 Year 2 Year 3 Year 4 Year 5Installed Capacity kWp 250 250 250 250 250Net Generation Million Units .38 .38 .38 .38 .38

Debt Repayment Column1 Year 1 Year 2 Year 3 Year 4 Year 5Opening Debt .00 .00 .00 .00 .00Debt Repayment .00 .00 .00 .00 .00Closing Debt .00 .00 .00 .00 .00Interest on Debt .00 .00 .00 .00 .00Total .00 .00 .00 .00 .00

Fixed Cost Unit Year 1 Year 2 Year 3 Year 4 Year 5O&M Expenses INR Million .25 .26 .28 .29 .30Term Loan Repayment INR Million .00 .00 .00 .00 .00Interest on term loan INR Million .00 .00 .00 .00 .00Battery Replacement Cost INR Million .00 .00 .00 .00 .00Return on equity INR Million 4.73 4.73 4.73 4.73 4.73Total Fixed Cost INR Million 4.98 5.00 5.01 5.02 5.04

Levellised COGPer Unit Cost of Generation Unit Year 1 Year 2 Year 3 Year 4 Year 5O&M Expenses INR/kWh 0.65 0.69 0.73 0.77 0.81Term Loan Repayment INR/kWh 0.00 0.00 0.00 0.00 0.00Interest on term loan INR/kWh 0.00 0.00 0.00 0.00 0.00Battery Replacement Cost INR/kWh 0.00 0.00 0.00 0.00 0.00Return on equity INR/kWh 12.35 12.41 12.47 12.54 12.60Total Fixed Cost INR/kWh 13.00 13.10 13.20 13.30 13.41

Discounting Factor 1 0.870 0.756 0.658 0.572

Levelised Tariff 13.66

Accelerated Depreciation Benefit Unit Year 1 Year 2 Year 3 Year 4 Year 5Book Depreciation 5.28% 1.67 1.67 1.67 1.67 1.67Accelerated Depreciation 25.24 5.05 1.01 .20 .04Opening 100.00% 20.00% 4.00% 0.80% 0.16%Allowed 80.00% 16.00% 3.20% 0.64% 0.13%Closing 20.00% 4.00% 0.80% 0.16% 0.03%Net Benefit 23.576 3.382 -.656 -1.464 -1.626Tax Benefit 7.649 1.097 -.213 -.475 -.527Per Unit Benefit 19.96 2.88 -0.56 -1.26 -1.40

Discounting Factor 1.00 0.870 0.756 0.658 0.572

Levelised Benefit 2.13

Levelized cost of grid power Unit Year 1 Year 2 Year 3 Year 4 Year 5Cost of Grid power 5.80 6.09 6.39 6.71 7.05


Levelized Cost 8.05

Levelized cost of DG power Unit Year 1 Year 2 Year 3 Year 4 Year 5Cost of pooled power 14.00 14.70 15.44 16.21 17.02


Levelized Cost 19.43

Levelized cost of Pooled power to Unit Year 1 Year 2 Year 3 Year 4 Year 5Weighted average cost of power 14.00 14.70 15.44 16.21 17.02


Levelized Cost 19.43

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13250 250 250 250 250 250 250 250.37 .37 .37 .37 .37 .36 .36 .36

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12.00 .00 .00 .00 .00 .00 .00.00 .00 .00 .00 .00 .00 .00.00 .00 .00 .00 .00 .00 .00.00 .00 .00 .00 .00 .00 .00.00 .00 .00 .00 .00 .00 .00

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13.32 .34 .35 .37 .39 .41 .43 .45.00 .00 .00 .00 .00 .00 .00 .00.00 .00 .00 .00 .00 .00 .00 .00.00 .00 .00 .00 .00 .00 .00 .00

4.73 4.73 4.73 4.73 4.73 4.73 4.73 4.735.05 5.07 5.08 5.10 5.12 5.14 5.16 5.18

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 130.85 0.90 0.95 1.00 1.06 1.12 1.18 1.240.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

12.66 12.73 12.79 12.85 12.92 12.98 13.05 13.1113.52 13.63 13.74 13.86 13.98 14.10 14.23 14.36

0.497 0.432 0.376 0.327 0.284 0.247 0.215 0.187

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 131.67 1.67 1.67 1.67 1.67 1.67 1.67 1.67

.01 .00 .00 .00 .00 .00 .00 .000.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%-1.658 -1.664 -1.666 -1.666 -1.666 -1.666 -1.666 -1.666

-.538 -.540 -.540 -.540 -.541 -.541 -.541 -.541-1.44 -1.45 -1.46 -1.47 -1.48 -1.48 -1.49 -1.50

0.497 0.432 0.376 0.327 0.284 0.247 0.215 0.187


0.50 0.43 0.38 0.33 0.28 0.25 0.21 0.19


0.50 0.43 0.38 0.33 0.28 0.25 0.21 0.19


0.50 0.43 0.38 0.33 0.28 0.25 0.21 0.19


Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21.47 .49 .52 .55 .57 .60 .63 .66.00 .00 .00 .00 .00 .00 .00 .00.00 .00 .00 .00 .00 .00 .00 .00.00 .00 .00 .00 .00 .00 .00 .00

4.73 4.73 4.73 4.73 4.73 4.73 4.73 4.735.20 5.23 5.25 5.28 5.31 5.33 5.36 5.40

Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 211.31 1.39 1.46 1.54 1.63 1.72 1.81 1.910.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

13.18 13.25 13.31 13.38 13.45 13.52 13.58 13.6514.49 14.63 14.78 14.92 15.08 15.23 15.40 15.56

0.163 0.141 0.123 0.107 0.093 0.081 0.070 0.061

Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 211.67 1.67 1.67 1.67 .08 .00 .00 .00

.00 .00 .00 .00 .00 .00 .00 .000.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%-1.666 -1.666 -1.666 -1.666 -.076 .000 .000 .000

-.541 -.541 -.541 -.541 -.025 .000 .000 .000-1.51 -1.51 -1.52 -1.53 -0.07 0.00 0.00 0.00

0.163 0.141 0.123 0.107 0.093 0.081 0.070 0.061


0.16 0.14 0.12 0.11 0.09 0.08 0.07 0.06


0.16 0.14 0.12 0.11 0.09 0.08 0.07 0.06


0.16 0.14 0.12 0.11 0.09 0.08 0.07 0.06

Year 22 Year 23 Year 24 Year 25250 250 250 250.34 .34 .34 .34

Year 22 Year 23 Year 24 Year 25.70 .73 .77 .81.00 .00 .00 .00.00 .00 .00 .00.00 .00 .00 .00

4.73 4.73 4.73 4.735.43 5.46 5.50 5.54

Year 22 Year 23 Year 24 Year 252.02 2.13 2.25 2.370.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.00

13.72 13.79 13.86 13.9315.74 15.92 16.11 16.30

0.053 0.046 0.040 0.035

Year 22 Year 23 Year 24 Year 25.00 .00 .00 .00.00 .00 .00 .00

0.00% 0.00% 0.00% 0.00%0.00% 0.00% 0.00% 0.00%0.00% 0.00% 0.00% 0.00%

.000 .000 .000 .000

.000 .000 .000 .0000.00 0.00 0.00 0.00

0.053 0.046 0.040 0.035

Year 22 Year 23 Year 24 Year 2516.16 16.97 17.81 18.71

0.05 0.05 0.04 0.03


0.05 0.05 0.04 0.03


0.05 0.05 0.04 0.03

Units GenerationInstalled CapacityNet Generation

Savings from avoidance of power purchase from existing sourcesSavings

O&MGrand Profit

InvestmentCapital SubsidyAD Benefits

Cash flow

Outstanding investmentInvestmentInvestment with Capital SubsidyInvestment with Capital Subsidy & AD Beneift

Investment payback (Years)Investment payback with Capital Subsidy (Years)Investment payback with Capital Subsidy & AD Benefit (Years)

Cash flowIRR

Cash flow with AD BenefitIRR

Term loanRepaymentInterest

Cash to EquityNPVIRR

AD Benefit

Cash to Equity after AD BenefitNPVIRR

Equity OutstandingWith Capital SubsidyWith Capital Subsidy & AD Benefit

Equity payback with Capital Subsidy (Years)Investment payback with Capital Subsidy & AD Benefit (Years)

Unit Year 0kWpMillion Units

Rs./unitRs. Million

Rs. MillionRs. Million

Rs. Million -31.55Rs. Million .00Rs. Million

Rs. Million

Rs. MillionRs. MillionRs. Million

665

-31.5520.18%

-31.5523.95%


Rs. Million -31.55Rs. Million 44.11

20.18%

Rs. Million

Rs. Million -31.55Rs. Million 49.46

23.95%


65

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7250 250 250 250 250 250 250.38 .38 .38 .38 .38 .37 .37

14.0 14.7 15.4 16.2 17.0 17.9 18.85.37 5.61 5.86 6.12 6.39 6.68 6.98

.25 .26 .28 .29 .30 .32 .345.12 5.34 5.58 5.83 6.09 6.36 6.64

.00 .00 .00 .00 .00 .00 .00

7.65 1.10 -.21 -.47 -.53 -.54 -.54

12.76 6.44 5.37 5.35 5.56 5.82 6.10

-26.44 -21.09 -15.51 -9.68 -3.60 2.76 9.41-26.44 -21.09 -15.51 -9.68 -3.60 2.76 9.41-18.79 -12.35 -6.98 -1.62 3.94 9.76 15.86

5.12 5.34 5.58 5.83 6.09 6.36 6.64

12.76 6.44 5.37 5.35 5.56 5.82 6.10

.00 .00 .00 .00 .00 .00 .00

.00 .00 .00 .00 .00 .00 .00

5.12 5.34 5.58 5.83 6.09 6.36 6.64

7.65 1.10 -.21 -.47 -.53 -.54 -.54

12.76 6.44 5.37 5.35 5.56 5.82 6.10

-26.44 -21.09 -15.51 -9.68 -3.60 2.76 9.41-18.79 -12.35 -6.98 -1.62 3.94 9.76 15.86


19.7 20.7 21.7 22.8 23.9 25.1 26.4 27.77.29 7.62 7.96 8.31 8.68 9.07 9.48 9.90

.35 .37 .39 .41 .43 .45 .47 .496.94 7.25 7.57 7.91 8.26 8.62 9.01 9.41

.00 .00 .00 .00 .00 .00 .00 .00

-.54 -.54 -.54 -.54 -.54 -.54 -.54 -.54

6.40 6.71 7.03 7.36 7.72 8.08 8.47 8.87

16.34 23.59 31.16 39.06 47.32 55.95 64.95 74.3616.34 23.59 31.16 39.06 47.32 55.95 64.95 74.3622.26 28.96 35.99 43.36 51.07 59.16 67.62 76.49

6.94 7.25 7.57 7.91 8.26 8.62 9.01 9.41

6.40 6.71 7.03 7.36 7.72 8.08 8.47 8.87

.00 .00 .00 .00 .00 .00 .00 .00

.00 .00 .00 .00 .00 .00 .00 .00

6.94 7.25 7.57 7.91 8.26 8.62 9.01 9.41

-.54 -.54 -.54 -.54 -.54 -.54 -.54 -.54

6.40 6.71 7.03 7.36 7.72 8.08 8.47 8.87

16.34 23.59 31.16 39.06 47.32 55.95 64.95 74.3622.26 28.96 35.99 43.36 51.07 59.16 67.62 76.49


29.1 30.6 32.1 33.7 35.4 37.1 39.0 41.010.35 10.81 11.29 11.80 12.33 12.88 13.45 14.06

.52 .55 .57 .60 .63 .66 .70 .739.83 10.26 10.72 11.20 11.69 12.21 12.76 13.33

.00 .00 .00 .00 .00 .00 .00 .00

-.54 -.54 -.02 .00 .00 .00 .00 .00

9.29 9.72 10.70 11.20 11.69 12.21 12.76 13.33

84.19 94.45 105.17 116.37 128.06 140.28 153.04 166.3684.19 94.45 105.17 116.37 128.06 140.28 153.04 166.3685.78 95.50 106.20 117.39 129.09 141.30 154.06 167.39

9.83 10.26 10.72 11.20 11.69 12.21 12.76 13.33

9.29 9.72 10.70 11.20 11.69 12.21 12.76 13.33

.00 .00 .00 .00 .00 .00 .00 .00

.00 .00 .00 .00 .00 .00 .00 .00

9.83 10.26 10.72 11.20 11.69 12.21 12.76 13.33

-.54 -.54 -.02 .00 .00 .00 .00 .00

9.29 9.72 10.70 11.20 11.69 12.21 12.76 13.33

84.19 94.45 105.17 116.37 128.06 140.28 153.04 166.3685.78 95.50 106.20 117.39 129.09 141.30 154.06 167.39

Year 24 Year 25250 250.34 .34

43.0 45.214.69 15.34

.77 .8113.92 14.54

.00 .00

.00 .00

13.92 14.54

180.28 194.82180.28 194.82181.30 195.84

13.92 14.54

13.92 14.54

.00 .00

.00 .00

13.92 14.54

.00 .00

13.92 14.54

180.28 194.82181.30 195.84

Item

Solar ModulesPCUBattery Bank with replacement for 25 yearsMouting StructuresElectrical & Mechanical AccessoriesTransportationTotalOverheadsInstallation & Commissioning Commercial + Misc + Other expensesTotalPer Wp costPrice Per MWp system

Qty Unit Price(INR) %

1000 12,500 12,500,000 12,500,000 39.6170615 252,000 3,780,000 3,780,000 11.9802

1 0 0 01 2,750,000 2,750,000 2,750,000

3,000,000 3,000,0001,211,650 1,211,650

23,241,650 23,241,6502324165

1 1 25000001 1 3486248

31,552,063126.20825

126208250

Total (with battery replacement)INR

Total (without battery replacement

Assupmtions & ReturnsLCoEPaybackProject Costing

Documents

Financial Analysis for Solar PV System