Introduction
India’s effort in switching to renewable sources has made it a leader in solar power on the world stage. So far, the installed solar capacity in the country stands at around 107.94 GW_AC with the help of both large-scale and rooftop projects. Its growth is the result of good government actions, new technologies and more concern about the environment.
If you think about using solar energy, learning to how to set up a solar power plant is very important. This guide will explain what to do, what expenses to expect and what other important factors to think about the how to set up solar power plant in India.
Conducting a Feasibility Study and Site Selection
Assessing Solar Potential
There is a lot of solar radiation in India and states like Rajasthan, Gujarat and Andhra Pradesh receive the most of it. Expert opinions and solar mapping software can help you find the best places for your solar project.
Land Requirements
For ground mounted solar panels, approximately 4-5 acres of land are required per megawatt (MW) of installed capacity. Ensure the land is non-agricultural, has easy access to roads, and is in proximity to grid infrastructure.
Grid Connectivity
Nearness to substations plays a key role in effective evacuation of electricity. Work together with nearby DISCOMs to find out if the grid can support the system. The expense of extending the grid may go between Rs. 10-15 lakh per kilometer depending on the chosen voltage.
Legal and Regulatory Compliance
Business Registration
Register your entity as a Private Limited Company, LLP, or Partnership Firm. Obtain a PAN and GST number for tax purposes.
Approvals and Permits
Ensure that the authorities from the state and the electricity boards approve the project. Land clearance, assessing the environmental consequences and obtaining rights for connection to the power grid have to take place first. Having the ISO certification is important for quality control.
Financial Planning and Investment
Capital Expenditure (CAPEX) Model
The capex model solar involves upfront investment by the developer, with returns generated over time through power sales. This model offers higher returns but requires significant initial capital.
Funding Sources
You can apply for a loan at a bank, appeal for investment by venture capitalists or try applying for government grants. It is very important to know about financial aid when researching how to set up solar power plant. It helps solar energy projects by providing different incentives. After the money gets into the DBT account, it is then disbursed to those selected by the government.
Design and Engineering
System Design
Engage with a reputable rooftop solar installation company or EPC contractor to design the system. Consider factors like panel orientation, shading analysis, and inverter selection.
Mounting Structures
Choose appropriate types of mounting structures for solar panels based on site conditions. Options include fixed tilt, seasonal tilt, and tracking systems. For instance, using trackers can add approximately Rs. 2 crores (Rs. 40 lakh/MW) to the project cost.
Procurement and Installation
Equipment Procurement
Source high-quality solar panels, inverters, and balance-of-system components. Ensure compliance with BIS standards and certifications.
Installation Process
Follow a structured installation process:
- Site preparation and civil works
- Mounting structure installation
- Panel and inverter installation
- Electrical wiring and connections
- System testing and commissioning
Operation and Maintenance
Maintenance Practices
Regular maintenance ensures optimal performance. Understand the solar panel maintenance cost, which includes cleaning, inspection, and component replacements. Typically, annual maintenance costs range between 1-2% of the total project cost.
Performance Monitoring
Financial Returns and Tax Benefits
Implement monitoring systems to track energy production and detect issues promptly. Learn how to read a solar meter to analyze system performance effectively.
Revenue Generation
Revenue streams include power purchase agreements (PPAs), net metering, and renewable energy certificates (RECs). Evaluate the best option based on your project’s scale and location.
Tax Incentives
Benefit from depreciation on solar panels, allowing accelerated depreciation under the Income Tax Act. This reduces taxable income and improves project viability.
Advanced Considerations
Solar Cutting
Understand solar cutting, which involves customizing panels to fit specific site dimensions. This technique maximizes space utilization and energy output.
Government Initiatives and Support
PM Surya Ghar Muft Bijli Yojana
In 2024, this new plan was started so people could get free electricity by having solar panels installed on their roofs. People who are interested in putting up how to set up solar power plant at home will find this initiative very helpful. Rs. 75,021 crore will be given to one crore households funded by the government.
PM-KUSUM Scheme
Under this scheme, the government gives funding for solar pumps and plants that connect to the grid to aid farmers in using clean energy. For those interested in learning how to set up solar power plant systems in agricultural areas, this scheme offers a practical starting point. By 2024, there were 6.1 lakh pumps installed that brought benefits to more than 4 lakh farmers.
Case Study: Bhadla Solar Park
Rajasthan’s Bhadla Solar Park is India’s top solar park, with a generated capacity of 2,245 MW. The area encompassing 56 square kilometers serves as a superb case of accomplishment in designing large parks. For anyone researching how to set up solar power plant, Bhadla stands as a successful example of large-scale solar implementation, contributing significantly to India’s renewable energy goals.
Conclusion
How to set up solar power plant in India is not just a smart investment—it’s a step toward sustainable development and long-term energy security. As we’ve outlined throughout this guide on how to set up a solar power plant, the journey involves careful planning, financial clarity, regulatory compliance, and a strong commitment to quality and maintenance. Whether you opt for ground mounted solar panels or partner with a rooftop solar installation company, the returns, both environmental and economic, are substantial.
Since India is strongly investing in solar energy thanks to the PM Surya Ghar Muft Bijli Yojana and PM-KUSUM Scheme, now is the right time to think about solar investment. Understanding how to set up solar power plant is crucial to making the most of this opportunity. Many financial models, including the solar capex model, can give you excellent returns, while the government offers help through depreciation on solar panels.
Solar energy success over the long run depends on regular maintenance. You should get to know how much it will cost to maintain your solar panels, pick the best mounts for them and find out how to interpret your solar meter. Precision solar cutting allows you to make the most out of the space and make your system more efficient.Whether you’re setting up a utility-scale plant or a rooftop system, your contribution will help reduce carbon emissions, lower energy costs, and support India’s goal of achieving 500 GW of non-fossil energy capacity by 2030. Now that you know how to set up a solar power plant, the future is bright. Let your investment power not just your success, but the planet’s too.
FAQ’s
How many kW of solar do I need?
To determine how many kilowatt solar panels you need, consider energy consumption and other factors. A general thumb rule is that a 3kW solar system may be suitable for an average house with medium energy consumption, while people with large homes or high energy use may require 5- 7kW or more.
How to calculate solar panel size?
To calculate the size of a solar panel system, you need to consider your energy needs and determine the amount of sunlight your place. First, calculate the average daily energy consumption in kWh. Then you can detect the top of your region (sunlight per day when the sun is at its highest). Finally, share daily energy consumption at the top solar times to determine the required kW output for your solar panel system.
How many AC can run in 3kW?
A 3kW power system can usually run a 2-ton AC with two 1.5-ton air conditioning systems, or other important equipment. It assumes that both are AC inverter models, or a non-inverter AC start-up is accounting.
Is 4 kW solar enough for home?
Depending on these factors, the average solar panel system for a house in India will usually include around 10-15 solar panels. This is enough to generate between 3-5 kW of power, which is sufficient to meet the energy needs of a specific home.
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