Solar Electricity Generation

What is the concept behind Solar Photo Voltaic Systems?

Electricity Generation –The main components of a solar pv system which generate the electricity are the solar pv panels. These panels consist of various quality solar cells made up of semiconductor diodes which convert sunlight, infrared or ultraviolet radiation into direct current. This component is kept on the rooftops or in open spaces to be able to capture as much light as possible and produce its maximum capacity of electricity generation as per the number of cells it consists. These solar photo voltaic modules start producing electricity as soon as they receive any form of light.

Storage and Usage – The produced electricity is then stored in the batteries linked to it. The power stored in these batteries is then utilized with the help of an inverter. The only recurring cost of a solar photo voltaic system is its battery backup. Batteries die after 3-4 years, making it compulsory for the user to replace them. This causes a major slowdown in the return on investment through savings on electricity bills. But, with the new programs implemented under the MNRE, the need to keep a battery backup in the first place has been reduced, making it an even more affordable form of investment.

What are the different types of Solar Photo Voltaic System Compositions?

Grid Connected Solar Rooftop PV: In this model, the solar panels installed on the rooftop of a household can supply electricity to the capacity required by the household in the day, as well as procure credits from the state governed electricity supply body for the usage of electricity required in the night. So, the user ends up substituting the complete energy bill of his household for any given period. This type of composition makes it possible to reduce the need for a battery back-up. This has resulted in reduction in the total cost of the solar pv system as well as the recurring cost for the battery backup.
1.Can be installed by any household, hotel, building and bungalow.
2.Has very high return on investment as complete MSEB bill is substituted.
3.Requires less amount of investment for the returns it gives.
4.Government Subsidy is also provided at 30% of the project cost.
5.Save on Property Tax.
6.Tax Holiday for 10 Years under section 80 IA.
7.Benefit of Accelerated Depreciation.

Solar Photo Voltaic Plant:This model creates a solar photo voltaic system park, which keeps generating electricity in the day and supplies it to the state electricity generation body, namely MSEB for Maharashtra. The MSEB then pays the owner of this plant at a fixed rate for every unit supplied and signs a Power Purchase Agreement which is for a period of say 10 Years given that the plant keeps generating a certain amount of units as agreed upon. This model is good if anybody has barren land and wants to utilize it to create a steady source of income for the future.
1.Requires big investment and land for the project to be commissioned.
2.Provides steady return on investment at a higher rate for a long period of time.
3.Can be done on agricultural and non-agricultural lands.
4.Government subsidy is also provided at a very higher rate.

Case Study:
Solar Rooftop Grid Connected System ROI Calculation Example: Consider a family of 4-6 people staying together in a Bungalow/apartment. Their monthly consumption is averaged at around 280-300 units costing around Rs. 2,500/-.
  • Required System: 3 KW (Average electricity produced: 405 units).
  • Approx cost: Rs 150,000/-
  • Scope for extra electrical equipment: 100 units p.m.
  • ROI: 4-5 years = 150,000 divided by 2,500 = 60 months = 5 Years.
  • Life of system: 25 years
  • Free electricity for 20 years.
  • Area required for 3KW: 300 sq. ft. approx..
SunBrio Energy Private Limited

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Apte Road, Opposite Shahaji Paratha House,
Shivaji Nagar, Pune – 411004, INDIA.
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