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How to Setup a 1 MW Solar Plant in India?

We have been getting lot of enquiries from interested customers who would like
to know the process and procedure to setup a 1 MW Solar Plant

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We have decided to create a 1MW 10 MW blog series to address most com


monly asked questions and step by step process to set up a 1 MW Solar Plant

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Process to Setup 1 MW Solar Plant

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Process to setup solar plant varies by State based on the requirement of the
State Nodal Agency, EB and DISCOM, Below is the step by step process for
Andhra Pradesh and Telangana
Land Selection
It is recommended to select the project site with in 2 km of a Power Substation to
reduce the power excavation charges
State Nodal Agency (NREDCAP) Process
1. Submit Solar Application Form
2. Submit Solar Connectivity Application Form
3. Get the Sanction Letter
DISCOM Department Process For <= 10 MW
1. DISCOM evaluates the Solar project application form and provides feasibil
ity report to the developer for projects less than 10 MW capacity after the
application is approved by State Nodal Agency
2. Developer provide Bank guarantees, signed MOU and other docu
ments, Please see document checklist for list of required documents
3. DISCOM provides evacuation estimation report to Developer
TRANSCO(EB) Department Process For > 10 MW
1. EB (TRANSCO) evaluates the Solar project application form and provides
feasibility report to the developers for projects greater than 10 MW capaci
ty after the application is approved by State Nodal Agency
2. Developer provide Bank guarantees, signed MOU and other documents,
Please see document checklist for list of required documents
3. TRANSCO provides evacuation estimation report to Developer
Document Checklist(Required Documents)
Developer Registration Documents

Andhra Pradesh
How to Create a Passive
Income Stream by Investing
in a Grid Tied Rooftop Solar
Plant in Andhra Pradesh
& Telangana
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Rooftop Net-metering in
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Karnataka Solar Scheme
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for Developers to Set up 1
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Subsidy

1.
2.
3.
4.
5.
6.
7.

Copy of Permanent Account Number (PAN) (Mandatory).


Copy of Director Identification Number (DIN).
Copy of Tax Information Number (TIN).
Copy of Central Sales Tax (CST).
Copy of Service Tax .
Copy of Value Added Tax (VAT).
In case of New Entrepreneur, a Copy of Fulfillment Certificate Obtained
From Chartered Accountant.
8. Court Cases(if any).
Solar Power Application Documents
Solar Power Project Registration
1. A Certified Copy of the Memorandum & Article Association of the Compa
ny .
2. Certified Copy of Registration Certificate.
3. Certified Copy of the Authority Confirming Powers on the Person(s) Who
are Competent to Execute the MOU/the Agreement with NREDC/DISCOM
.
4. Certificate from the Chartered Accountant Showing the Net Worth of the
Company.
5. Copy of Possessed Certificate of Land.
6. Hard Copy of Filled Solar Registration Form.
Solar Connectivity Documents
Solar Connectivity Form
1.
2.
3.
4.
5.
6.
7.
8.

Certified Copy of the Memorandum & Article Association of the Company.


Certified Copy of Registration Certificate.
Certified Copy of Partnership Deed.
Certified Copy of Authority Confirming Powers on the Person(s) Who are
Competent to Execute the MOU/the Agreement with NREDCAP/DISCOM.
Certificate From the Chartered Accountant Showing the Net Worth of
the Company.
Copy of Certificate for SPV Panels as per the MNRE Guidelines.
Copy of Transmission of Power & Evacuation Plan/ Interconnection Facility
for the Proposed Plan.
Hard Copy of Filled Solar Connectivity Form.

Developer Evacuation Documents


Developer Evacuation
1.
2.
3.
4.
5.

Consent Form.
Under Taking for Acceptance Terms and Conditions Form.
Bank Guarantee Form.
Memorandum of Understanding Form (MOU).
Bank Challan (DD)

Below is the process workflow for setting up 1 MW Solar Project in

Telangana

Andhra Pradesh and Telangana

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Here are the Actual expenses to setup up 1 MW Solar Plant in India

SL.NO

AMOUNT

TOTAL

Land 5 Acres (Per acre)

3,00,000.00

15,00,000.00

Stamp Duty

60,000.00

60,000.00

Registration Fee

15,000.00

15,000.00

Facilitation fees

10,00,000.00 10,00,000.00

Land levelling

Extra

Extra

Compound walls

Extra

Extra

Site facility expenses

Extra

Extra

Transmission cost after 2 KM


Per KM 5,00,000

Extra

Extra

DESCRIPTION

PROPOSED PROJECT LAND

REGISTRATION CHARGES (NON-REFUNDABLE)

EB Fee

1,12,360.00

1,12,360.00

DISCOM Fee

11,236.00

11,236.00

PPA-Documentation(Site Survey, Project Techno- 10,00,000.00 10,00,000.00


Economic Pre-Feasibility Studies, PV analysis re
posrt & Detailed Project Report )
Other un-official expenses

15,00,000.00 15,00,000.00

SUB-TOTAL (1+2)

51,98,596.00

EPC COST PER MW

6,00,00,000.00

PERFORMANCE BANK GUARANTEES

The Performance Bank Guarantee is furnished to 1,56,00,000.001,95,00,000.00


DISCOM in the form of three bank guarantees in
favor of Managing Director of the DISCOM to en
ter in to PPA.(For Project Bankability of 30% equi
ty and 70% collateral Security are required)
6

TOTAL

1,95,00,000.00

Interested in Setting up 1 MW Solar Plant? Dont be overwhelmed by the


process and procedures, We will walk you through the each step of the process
from providing required documentation to the state agencies and banks and get
ting necessary approvals to obtaining PPA and Financing
Our previous posts cover the investment models, financial modeling including
ROI calculator for 1 MW solar plant and EPC price split, below are the links
Investment Model for 1 MW Solar Plant
Financial Model for 1 MW Solar Plant with ROI Calculator
EPC Price Split for 1 MW Solart Plant
Also, see how you can earn up-to 15% by investing in Rooftop Solar Plants
We offer end to end solution for seting-up a solar plant, from initial feasibility to
obtaining a PPA, obtaining financing, engineering, procurement, erecting the
plant and operations and maintenance of the plant
Visit our solar plant services for details

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Investment Model for 1


MW Solar Power Plant
We see a huge demand
for information for invest
ment models for setting
up a 1 MW Solar Plant,
We have decided to cre
ate"EPC"
In
a 1MW - 10 MW blog

How to Obtain Cheap In


ternational Financing for
1 MW - 5 MW Solar
Projects In India?
Most solar projects today
face delays due to the fi
nancial closure and bank
ability of solar projects is a
major issue that develop
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In
are facing today. Na

How to Create a Passive


Income Stream by In
vesting in a 1 MW Solar
Plant in Andhra Pradesh
Our article Why invest in
Solar in India discusses in
detail about the current
opportunity in Solar sector
in India and in leading so
lar"Andhra
In
states such
Pradesh"
as Andhra

Posted on 25/07/2015 by MAC Solar. This entry was posted in EPC, Projects and tagged 1 MW
Solar Plant Budget, 1 MW Solar Plant Cost, 1 MW Solar Plant Invesment, 1 MW Solar Plant Project
Report, 1 MW Solar Plant Setup Process, 1MW Solar Plant, Andhra Pradesh, Andhra Pradesh 1MW
Solar Plant, How to Setup 1 MW Solar Plant In India, Karnataka 1MW Solar Plant, TamilNadu 1MW
Solar Plant. Bookmark the permalink.

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