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Investment Model For 1 MW Solar Plant

This document summarizes the financial model for a proposed 1 MW solar power plant with battery storage. Key details include: - The plant will generate 1.75 million kWh per year initially, degrading 1% annually, and sell electricity for $12.50 per unit. - Total project cost is $65 million, including $45 million for the solar array and $20 million for batteries. Annual operating costs are $1.2 million and depreciation is spread over the lifespans of the components. - Initial annual revenue would be $16.4 million, yielding a 22.3% return on investment. Profits are projected over the 10-year period, showing steady returns

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143 views5 pages

Investment Model For 1 MW Solar Plant

This document summarizes the financial model for a proposed 1 MW solar power plant with battery storage. Key details include: - The plant will generate 1.75 million kWh per year initially, degrading 1% annually, and sell electricity for $12.50 per unit. - Total project cost is $65 million, including $45 million for the solar array and $20 million for batteries. Annual operating costs are $1.2 million and depreciation is spread over the lifespans of the components. - Initial annual revenue would be $16.4 million, yielding a 22.3% return on investment. Profits are projected over the 10-year period, showing steady returns

Uploaded by

RAVi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Investment Model for 1 MW Solar Plant

Capacity of Power Plant 1 MW


Generation per Year 1,750,000.00
Loss in Conversion and supply 437,500.00
Units Supplies 1,312,500.00

Degradation per year 1%

Sale of Electricity 12.50


Cost of Project per MW 45,000,000.00
Cost of batteries per MW 20,000,000.00

O&M Cost per MW 1,200,000.00

Depreciation 0.05
Project Cost 65,000,000.00

Revenue Generation Per Year 16,406,250.00

Expenditure 2,400,000.00
Depreciation for batteries in 7 years 2,857,142.86
Depreciation for solar panel & PV cells 4,500,000.00

9,757,142.86

6,649,107.14
Batteries come with 5 years warranty and have life of 7 years
Years 2019 2020 2021

Unit Generated (KWH) 1,750,000 1,750,000 1,732,500

Per Unit Charge 12.50 12.50 12.50

Revenue (assuming 80% usage) 17,500,000 17,500,000 17,325,000

Operational Expenses 3,000,000 3,000,000 3,000,000

Depreciation - - -

Total Expense 3,000,000 3,000,000 3,000,000

Profit Before Tax 14,500,000 14,500,000 14,325,000

ROI 0.223076923077 0.223076923077 0.220384615385

Promoters money cost

Investment 65,000,000 65,000,000 65,000,000

Interest income 15,600,000 15,600,000 15,600,000


2022 2023 2024 2025 2026

1,715,175 1,698,023 1,681,043 1,664,233 1,647,590

12.50 12.50 12.50 12.50 12.50

17,151,750 16,980,233 16,810,430 16,642,326 16,475,903

3,000,000 3,000,000 3,000,000 3,000,000 3,000,000

- - - - -

3,000,000 3,000,000 3,000,000 3,000,000 3,000,000

14,151,750 13,980,233 13,810,430 13,642,326 13,475,903

0.217719230769 0.2150805 0.212468156538 0.209881936512 0.207321578685

65,000,000 65,000,000 65,000,000 65,000,000 65,000,000

15,600,000 15,600,000 15,600,000 15,600,000 15,600,000


2027 2028 Total

1,631,114 1,614,803

12.50 12.50

16,311,144 16,148,032

3,000,000 3,000,000

- -

3,000,000 3,000,000

13,311,144 13,148,032

0.204786824436 0.202277417731

65,000,000 65,000,000

15,600,000 15,600,000

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