Have you ever wondered why so many businesses in India are setting up solar power plants these days?
Well, it’s because solar plant in India isn’t just a trend; they are becoming a key solution for businesses looking to save money and reduce their environmental footprint. And if you’re a business owner or an investor, you’ve probably noticed the growing buzz around solar park in India, and for good reasons.
One of the biggest reasons India is experiencing rapid growth in the solar sector is because the government is supporting the solar power plant cost with favorable policies and subsidies. This has pushed the growth of solar parks in India. So, if you are planning to invest in solar projects lately, now is the right time to explore opportunities in PV power plants.
In this blog, we have covered everything you need to know about solar plants in India. So, let’s first begin by exploring the types of solar power plants.
What Are the Types of Solar Power Plants in India?
When you think of setting up a solar power plant in India, you might picture massive fields of solar panels, but there are actually a few different types of installations depending on your needs and available space.
Let’s break down the main types of solar power plant setup in India.
1. Commercial Solar Power Plants
For businesses, a commercial solar power plant is one of the most effective ways to save money and go green. These systems are often ground-mounted, installed on open land or rooftops of industrial facilities. This allows you to either use this electricity for your industrial setup or sell it back to the grid – helping you in two ways, save electricity bills and get a faster return on investment (ROI).
So, for example, if you have a huge industrial area and want to set up a PV power plant (solar plant) to generate electricity for your factories and offices, a commercial solar power plant is the best option for you.
2. Utility-Scale Solar Farms
Moving next, when we talk about large-scale solar power projects in India, we’re mostly referring to utility-scale solar farms. These massive installations are typically located in areas where the sunlight is abundant. These utility-scale solar farms generally generate electricity of a region by installing solar systems in hundred acres lands located in rural open area.
The main difference between commercial and utility-scale solar farms is that commercial solar farms are smaller, localized systems designed to meet the energy needs of individual buildings or businesses, while utility-scale solar farms are large, centralized installations that generate significant amounts of electricity to supply the national grid.
If you have a large number of open and unutilized lands with you and want to contribute to India’s sustainability goals, you can tie up with companies like KP Group to invest in solar projects.
3. Rooftop Solar Power Plants
Other than commercial and utility-scale solar power plants, there’s also rooftop solar power plants.
So, if you’re a homeowner, or run a factory or business, setting up a rooftop solar system can be a smart way to lower your electricity bills. However, this option works best if you have enough roof space.
With solar rooftop system, you can generate energy for your own needs. It’s a great choice for those looking to save on energy costs and go green!
What Are the Key Factors to Consider Before Setting Up a Solar Plant in India?
Before you jump into the installation of your solar power plant, there are a few important factors to keep in mind to make sure you make the right choices.
- Understanding Location and Land Requirements
The first thing to think about when lease land for solar farms in India is if you have enough land space and a location that has good sunlight.
There’s no doubt that India has plenty of sunshine, but some regions receive more consistent sunlight than others. So, if you fall in a location where sunlight is inconsistent, you need to choose a spot where there’s enough sunlight almost throughout the year.
Moreover, for large solar power farms, you’ll need a huge amount of land. On average, a utility-scale solar power plant requires anywhere between 2 to 5 acres of land for each megawatt (MW) of power capacity.
- Electrical Consumption and Minimum Requirement
Another thing you need to keep in mind while installing solar plants is to know how much electricity you would need for your business or factory.
To give you a rough idea, we can say that you can generate around 1MW or more electricity for your business. By setting up a solar power plant, you can cover a significant portion of your energy needs and even sell back extra energy to the grid.
- Solar Panel Technology and Efficiency
Moving further, you also need to consider solar panel technology and its efficiency as it directly impacts the long-term performance.
As India’s climate is unique, with high temperatures and dust in many areas, it’s crucial to choose solar panels that can handle the heat and are efficient in local conditions while minimizing the effects of environmental factors like dust buildup.
One such technology we highly recommend is N-type solar panel technology. It has been launched recently for commercial use, and they are more efficient and durable than traditional solar panels.
Plus, they are made with a different type of silicon than traditional solar panels, which allows them to absorb more sunlight and generate more electricity.
At KP Group, we use this latest technology as they have 25 years of lifespan and include a bifacial option to ensure optimal performance and long-term reliability, providing you with high-quality energy solutions.
By using the most advanced solar technology, you can make sure your investment in solar power offers reliable, efficient, and cost-effective performance for years to come.
- Substation and Switchyard Requirements
If you are planning to set up a huge solar power plant, you also need to have the right infrastructure. And that’s where the substation and switchyard come in. They help convert the DC power generated by your panels into AC power, which further can be fed into the grid.
- Maintenance of Solar Power Plant
Besides dust accumulation, other factors such as high humidity, heavy rainfall, and extreme temperatures can also affect the performance of solar panels.
If you are setting up your plant in desert regions like Rajasthan, it can result in huge dust accumulation on your solar panels, and this can drastically reduce the efficiency of your solar power plants. Similarly, areas like Gujarat, Maharashtra, and Tamil Nadu may experience other challenges like coastal salt accumulation or seasonal rainfall, which can also impact the efficiency of solar panels.
KP Group is the leading company in the renewable energy sector by embracing cutting-edge technology, innovation, and forward-thinking investments. Moreover, we also have an innovative solar cleaning robot, which efficiently cleans solar panels, especially in regions prone to dust accumulation.
This helps you maintain panel efficiency and minimizes the need for manual cleaning, ensuring that your solar plant runs at peak performance with minimal downtime.
We make sure that not only your plant is set up successfully but also maintained well so that you can get the maximum ROI on your investments.
How to Choose the Right Technology and Equipment for Your Solar Power Plant?
If we just look around, we can see that India’s climate has a unique challenge for solar energy systems. Think of high temperatures, dust, and humidity. Based on the given climate condition of India, here are the three most suitable solar panels.
1. Monocrystalline Solar Panels:
Monocrystalline solar panels are ideal for Indian climate because they are more efficient in high temperatures and have a higher power output, making them suitable for large installations where space is limited.
Additionally, they also tend to last longer, which is important given the environmental conditions in India. Monocrystalline is best suited for large residential, commercial, or industrial setups where long-term performance is critical.
2. Polycrystalline Solar Panels:
On the other hand, Polycrystalline panels are more affordable and can still offer decent performance, especially in smaller or budget-conscious solar setups.
As they cost less per watt, they are suitable for solar power plant setup for small businesses. Moreover, they are more viable in areas with less harsh conditions or where space is not a limiting factor.
3. Bifacial Solar Panels:
Bifacial panels are designed to capture sunlight on both sides which increases energy production.
While they cost more upfront, they offer better efficiency and higher energy yields, especially in areas with good reflectivity like snow or sand. So, if you are looking for a long-term performance and maximum energy output, Bifacial solar panels can be great choice for you!
How Much Does It Cost to Set Up a Solar Power Plant in India?
The cost of setting up a solar power plant depends on the size and capacity you opt for, but let’s say if you are setting up a 1MW solar power plant in India, it would typically cost you between INR 4.5 to 5 crore. This includes the cost of solar panels, inverters, mounting structures, installation, labor cost, battery storage, tracking system, maintenance cost and many more. And of course, the final cost also depends on the technology you choose and the location of your project.
So, when do you get return on investment (ROI) from solar power projects?
To give you an idea, we can say that you can expect returns on your investment within 3 to 4 years. After that, it’s essentially free energy for the next 20 to 25 years. This makes solar energy a wise long-term investment for any business looking to reduce their energy costs and improve sustainability.
With KP Group, you can take advantage of a 25-year Power Purchase Agreement (PPA) with the Government of Gujarat under the DREBP scheme. Choose from two investment options 38% or 100% equity and join India’s green energy revolution.
If you go for the 38% equity option then you need to Invest ₹1.31 Cr. with a ₹2.14 Cr. bank loan per 1 MWp and If you go for the 100% Equity Option then you need to Invest ₹3.45 Cr. per 1 MWp (including GST, up to 5 MWp).
Learn more about the Investment opportunities by downloading the PDFS.
How to Select the Right Substation and Switchyard for Your Solar Plant?
Other than solar panels, when setting up a large-scale solar power plant, the substation and switchyard also play an important role. Here is the list of aspects you need to consider selecting the right substation and switchyard.
First, you’ll want to figure out how much power you need now and, in the future, so you can choose the right size. The range of substations usually ranges from 33 kV to 400 kV, depending on how big your setup is.
Moreover, voltage levels are equally important: low voltage (11 kV-33 kV) works for smaller plants, medium (66 kV-132 kV) for mid-sized ones, and high voltage (220 kV-400 kV) for big plants connecting to the national grid.
For the switchyard, make sure you have enough feeders for power distribution and backups in case something goes wrong. Additionally, also make sure to use quality circuit breakers and protection systems to have solid safety standards. And last thing You need to consider is that every equipment you use meets local and global standards – i.e., Indian (IS 3156) and international (IEC) standards.
Thinking about setting up a solar power plant in India? Get in touch for expert advice on costs, equipment, and the right technology!
Conclusion: The Future of Solar Power in India
There’s no doubt that India’s solar energy sector is growing fast, and the future looks bright. As solar technology improves and the cost of installation continues to drop, more businesses and investors are diving into solar power projects.
With government support and an increasing demand for renewable energy, solar power plants will play a critical role in India’s energy future. If you’re thinking about investing in solar energy, now is the time to act. Whether it’s a commercial solar power plant or a solar farm, the potential for growth in India’s solar energy sector is huge.
Frequently asked questions :
Ans: Solar power plants in India are typically divided into three main types: grid-connected, off-grid, and hybrid systems. Grid-connected systems are the most common, allowing you to sell surplus power back to the grid.
Ans: Key factors include site selection, land availability, access to the electricity grid, local climate conditions, and government regulations. It’s also important to evaluate financing options and potential incentives.
Ans: Solar power is a clean, renewable energy source that helps reduce carbon emissions, minimize air pollution, and decrease dependence on fossil fuels, contributing to a greener, more sustainable environment.
