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

We have decided to create a 1MW – 10 MW blog series to address most commonly asked questions and step by step process to set up a 1 MW Solar Plant

Process to Setup 1 MW Solar Plant

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 feasibility 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 documents, 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 capacity 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

  1. Copy of Permanent Account Number (PAN) (Mandatory).
  2. Copy of Director Identification Number (DIN).
  3. Copy of Tax Information Number (TIN).
  4. Copy of Central Sales Tax (CST).
  5. Copy of Service Tax .
  6. Copy of Value Added Tax (VAT).
  7. 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 Company .
  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.  Certified Copy of the Memorandum & Article Association of the Company.
  2.  Certified Copy of Registration Certificate.
  3. Certified Copy of Partnership Deed.
  4. Certified Copy of Authority Confirming Powers on the Person(s) Who are Competent to Execute the MOU/the Agreement with NREDCAP/DISCOM.
  5. Certificate From the Chartered Accountant Showing the “Net Worth” of the Company.
  6. Copy of Certificate for SPV Panels as per the MNRE Guidelines.
  7. Copy of Transmission of Power & Evacuation Plan/ Interconnection Facility for the Proposed Plan.
  8. Hard Copy of Filled Solar Connectivity Form.

Developer Evacuation Documents

Developer Evacuation

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

Below is the process workflow for setting up 1 MW Solar Project in Andhra Pradesh and Telangana

1MW Solar Plant Process WorkFlow

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

SL.NO        DESCRIPTION AMOUNT TOTAL
1     PROPOSED PROJECT LAND
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
2      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-Economic Pre-Feasibility Studies, PV analysis reposrt & Detailed Project Report ) 10,00,000.00 10,00,000.00
Other un-official expenses 15,00,000.00 15,00,000.00
3      SUB-TOTAL (1+2) 51,98,596.00
4      EPC COST PER MW 6,00,00,000.00
5      PERFORMANCE BANK GUARANTEES
The Performance Bank Guarantee is furnished to DISCOM in the form of three bank guarantees in favor of Managing Director of the DISCOM to enter in to PPA.(For Project Bankability of 30% equity and 70% collateral Security are required) 1,56,00,000.00 1,95,00,000.00
6      TOTAL 1,95,00,000.00

Interested in Setting up 1 MW Solar Plant?  Don’t 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 getting 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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2 thoughts on “How to Setup a 1 MW Solar Plant in India?

  1. Investment Model for 1 MW Solar Power Plant – Maharshi Solar Powertech's Blog

  2. Financial Model for 1 MW Solar Plant All over India – Maharshi Solar Powertech's Blog

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