The demand of solar power plant solution for industries these days
In India, the industrial solar power plant has grown in popularity, with major industries turning to solar power to avoid grid outages. Most of the major industries such as Textile, cement, paper, steel, chemical, dairy, and ceramic industries are rapidly using industrial solar power plants to reduce their energy costs, thanks to the availability of open access in most states. Rooftop solar power accounts for 2.1 GW, according to Wikipedia, with 70% of it being industrial or commercial. India is developing off-grid solar power for local energy needs in addition to its large-scale grid-connected solar photovoltaic (PV).
How India’s Solar Energy Demand Has Rapidly Increased
The government of the country recognised this as early as 2010 and has taken steps to ensure steady growth in the segment. As a result, the solar industry has been able to achieve economies of scale in a short period of time, rendering India the cheapest solar power producer. In 2010, the total installed solar capacity was 10 MW, and in 2016, it was 6000 MW, representing a 600 times increase in just six years. The total installed solar capacity in March 2019 was 30 GW, a rise of 5 times in just three years. Solar has now hit 30% of the goal of 100 GW by 2022, accounting for 38% of the renewable energy mix. The figures demonstrate the government’s focused approach and the encouraging response from solar developers, which has resulted in rapid growth. solar power for industries users in India can now enjoy greater energy protection by locking in the cost of solar energy for a period of 25 years, thus diversifying against changes in grid electricity prices, which are linked to fossil fuel prices. Data Source: economictimes.indiatimes.com
State Government’s new framework on solar energy for the development of industry
The rapid development of the solar industry is supported by the State Governments. Since electricity is a state issue, stable policies of the state government are necessary for rapid adoption. Karnataka and Tamil Nadu are examples that encourage open access to solar by providing discounted wheeling and banking services. As a result, both states now have the highest solar power generation capacity in the world. Many states have recently adopted the same policy framework to accelerate the adoption in commercial and industrial sectors. RPOs were placed on state discoms and large power users, requiring them to purchase power produced from “green” sources or “renewable energy certificates (RECs)” to replace it. While these RPO obligations helped to increase the demand for solar energy, their poor implementation, especially by state discoms, did not have the desired effect as expected.
What are the advantages of the Solar system for industries in India?
When power consumption is high, it is more likely to get higher bills from the discoms. Solar energy is a very efficient solution to reduce electricity bill. As industries have the option to select the solar business model. Which is the CAPEX and OPEX model solar power plants. Since the demand for solar power is high in industries, these models fit perfectly in the solar business. A consumer can go for a CAPEX model solar power plant where the consumer invests upfront. Second, they can go for an OPEX model solar power plant where the consumer is not required to invest in advance. The OPEX model is also called the RESCO model or zero investment solar model. However, consumers can also opt for the EMI option in the CAPEX model, where they are required to invest only 30% equity, with the rest being arranged by banks or NBFCs. Apart from these business models, there are a number of advantages that can entice businesses to invest in solar power plants. We have solar power plant solution for industries and you will get a number of benefits to install solar power plants.
- The cost of electricity would be dropdown
- Renewable energy would be a new power source.
- Boost the importance of energy efficiency
- CO2 emissions are minimal.
- Easy to monitor ROI and low maintenance costs
- Electricity self-consumption
- The brand reputation would improve if there are few service interruptions.
Do you want to set up a solar power plant for your company or factory?
Why the industrial sector is switching to solar power in 2021?
In India, electricity users are divided into three categories: commercial, industrial, and residential consumers. Industrial consumption accounts for 48.6 percent approx. of total electricity generated in India, making it one of the most important sectors in terms of electricity demand. Industrial grid tariffs can be as high as INR 8 per unit during non-peak hours and even higher during peak hours. The main variable cost for the power industries is related to heavy usage, particularly during peak times. As a result, commercial and industrial solar power is one way to drop down the grid’s maximum load and avoid paying high tariff rates during peak hours. Solar is an ideal energy solution for industries because of its high peak usage and large available area. Solar is a viable option for industries due to the high load demand. And wide usable rooftop area compared to commercial and domestic users. The ability to demonstrate an increased share of renewables in their energy mix and achieve their RPOs((Renewable Purchase Obligations) is also another motivator for many large companies to use “industrial solar power”. Industrial companies with captive “industrial solar power systems” may also take advantage of tax breaks, capital subsidies, and other incentives.
As mentioned earlier, there are two options for industries to install solar power plants: CAPEX or OPEX.
Due to large scale consumption, many investors are willing to invest their money in companies that have a clear track record to install under zero investment solar power plant models. Loofal Protech Solution works with both types of solar business models. If your business electricity Load consumption is above 500KW, then you are eligible for zero investment solar power plant. If it is less than 500KW, you can save a lot by setting up a CAPEX model solar power plant. Please contact us for more information about setting up a solar power plant.
Cost of industrial solar power plant In India in 2021
Setting up a solar power plant costs a decent amount of money. It is, however, an extremely successful solution for any industry. If a 1MW solar power plant is built, the total investment will be about Rs. 4 crores. This is the net cost of your solar power plant installation. Solar panels, inverters, wire, cable, earthing, lightning arrestors, switchyards, and other components are also included.
If you are looking for a solar power plant solution for industries then we have the best solution for you which can maximize the revenue.
