How to Create a Passive Income Stream by Investing in a Grid Tied Rooftop Solar Plant in Andhra Pradesh & Telangana

Earn up to 15% by investing in Grid-Tied Solar Rooftop Plants

  • Grid-Tied Solar Plants offer returns from 12% to 15% – 100% higher than fixed deposits, savings accounts and other comparable investments
  • You can invest as little as Rs 7 Lakhs (USD$11,100) to get started or go as high as Rs 7 Crores (USD $1.1 Million), it’s entirely up to you
  • We don’t charge any investment fees, when you invest in solar plants, you keep what you generate/earn
  • Watch your passive income flow for years to come

Invest in solar with zero risk

We provide high-quality, high-yield, investor-friendly solar investment opportunities.Backed by sophisticated generation estimates & guaranteed performance, grade-A design engineering, tier-1 choice of material and comprehensive maintenance services. We evaluate the financial, technological, operational and policy risks individually and provide an internal credit score to each of our PPAs before making an investment decision

Let us do the legwork, from project origination to project development to PPA signing, from operations & maintenance to revenue collection, we’ll handle it all. Enjoy true risk-free solar investment without any operational liabilities, our comprehensive insurance policy covers all potential risks so you don’t have to worry.

How Can You get Started?

Step 1- Get a free solar investment consultation

Every solar power project starts with a quick conversation to see if solar investment is right for you, we’ll discuss your investment options and expected returns

We’ll present you with a list of pre-screened PPAs with all necessary information including solar plant size, investment amount and expected returns for the next 20 years

Step 2 – Sign your PPA

Once PPA is selected, your personalized power purchase agreement secures your solar energy earnings for the next 20 years

Step 3 – Get your solar rooftop system designed and installed

Our expert engineers will design the solar plant based on PPA and expected returns, Once funds are transferred, we take care of all of the approvals, inspections and installation. All you have to do is watch it all come together

Step 4 – Commission the plant & Get paid

Here’s the best part, you get to flip the switch to start generating your clean solar energy and watch your earnings flow online from our monitoring portal

With Solar PPA, customers pay for your solar power by the month, just like their current electricity bill

What is a Solar PPA?

A Solar PPA(Power Purchase Agreement) is a contract to sell fixed number of solar power units produced from your solar plant to a third party customer. Power purchase agreements are the tried and true way to invest in solar and to earn passive income for years to come

As a Solar PPA customer, you only pay for solar equipment, installation and maintenance, we install and maintain your solar system for the entire length of the PPA

Solar PPA is the smart way to invest in solar because Solar + PPA = Smart Earnings

  • We install your solar plant and take care of it for the entire length of the PPA
  • We constantly monitor your system’s performance to ensure it’s running smoothly
  • If problems do arise, our service technicians will be notified and dispatched to get it back online
  • You own the equipment and we take care of all repairs at additional cost
  • Our all-inclusive coverage includes protection against damage and theft
  • We invoice & collect the monthly payments and transfer them to your bank account

Why Should Investors invest in Grid Tied Solar Plants?

Investor receives a monthly payment from the customer for the total number of units consumed from the rooftop plant, as investor owns the solar plant, investor is eligible for claiming depreciation on the capital cost of the system and 10 year tax holiday on income generated from the solar plant

For commercial consumers, the debate of whether solar is viable or not has already passed because commercial consumers are paying upwards of Rs10/unit (kWH) in Andhra Pradesh and Telangana whereas via third party solar PPA, they can save up to 10%-15% on the per unit cost of electricity without incurring the upfront CAPEX. That translates to significant savings over a long term

Commercial consumers have adequate space to go solar and third party solar PPA is not only viable but a very attractive proposition for them. For Commercial consumers in Andhra Pradesh and Telangana, third party solar PPA is a very affordable and the most cost effective way to opt for solar power.

For Investors investing in solar makes sense economically and environmentally, because the investment is risk-protected, and the returns are solid, Thanks to government tax credits and depreciation benefits, it’s now very profitable to invest in solar

Who is motivated to install a Solar Grid Solar Plant?

Residential and Commercial customers who are paying more than ₹10,000 in monthly electricity bills are willing installing a grid tied solar system to save on their electricity bills by 10% – 15%

See Grid-Tied Rooftop Solar Plants with Net-Metering for details

What is the Economics of 10 KW Grid Tied Solar Rooftop plant?

Below are the assumptions for economics of a 10 KW grid-tied solar rooftop plant

Cost of setting up a 10 KW Grid Tied Solar Plant = ₹ 7.0 Lakhs
PPA Sale Price to Consumer = ₹ 8.00/Unit
O&M Costs = ₹ 15,000/Year

10 KW plant produces around 15,000 units per year, this number is arrived based on the fact that in AP conditions 1KW generates on average 5 units per day multiplied by 300 sunny days in a year

Total Revenue (15000 * ₹ 8.00 (PPA Price)) = ₹ 1.20 Lakhs
Total Expenses = ₹ 15,000.00 (O&M Costs)
PBIDT (Profit Before Depreciation and Taxes) = ₹ 1.05 Lakhs
Income Tax (Income Tax Holiday for 10 Years) = ₹ 0.00
Profit After Tax (PAT) = ₹ 1.05 Lakhs

Project IRR (ROI) = 15%
Payback Period = 6.5 Years

Above financial analysis gives you a good idea on profitability of a grid tied solar plant, Solar plant provides an 15% for the first 10 years and 10% for the next 15 years, which is decent, considering the absence of risk as in other businesses and this model is immune to market conditions

What are steps involved in setting up a Rooftop Solar Plant?

Below are the steps involved in setting up a grid-tied solar rooftop plant

  1. MAC Solar offers initial consultation to discuss investor’s investment options and expected returns
  2. MAC Solar presents investor with a list of pre-screened PPAs with all necessary information including solar plant size, investment amount and expected returns
  3. MAC Solar prepares the initial offer and terms sheet and presents it to both customer and investor
  4. PPA is drafted, finalized and signed between customer and investor
  5. EPC and O&M contract is signed between investor and MAC Solar
  6. MAC Solar gets necessary approvals from state agencies
  7. Investor releases required funds to MAC Solar for commissioning the Solar Plant
  8. MAC Solar designs and Installs the Roof-top Solar Plant as per timelines specified in the EPC Contract
  9. Once project is commercially operational, MAC Solar performs the daily energy monitoring and other O&M Activities
  10. At the end of each billing month, MAC Solar prepares an invoice on behalf of the investor and presents it to the customer based on the number of units consumed
  11. Customer transfers monthly invoice payment to investor’s bank account

Can NRIs, PIOs and Foreign Investors Invest in Solar Plants?

Yes, NRI, PIOs and Foreign Investors can invest in Solar Plants; Foreign Direct Investment (FDI) up to 100% is permitted under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act, 2003

See http://www.makeinindia.com/policy/foreign-direct-investment and http://www.makeinindia.com/sector/renewable-energy for details

What are the incentives offered?

  • A 10-year tax holiday for solar power projects
  • Wheeling, banking and third party sales, buyback facility by states
  • Exemption from excise duties and concession on import duties on components and equipment required to set up a solar plant

What are the steps involved for Foreign Investors?

  1. Form a Private Limited Company or a Private Limited Partnership
  2. Apply for PAN (Permanent Account Number) and TIN(Tax Identification Number)
  3. Open a Bank Account
  4.  Work with MAC Solar to complete steps 1,2 ,3 and select a third party customer to invest in a solar plant based on your investment and expected returns

Can Foreign Investors Repatriate Funds?

  • Dividends and interest is freely repatriable without any restrictions (net after tax deduction at source or Dividend Distribution Tax
  • Repatriation of Capital is allowed provided the investment has been held on repatriation basis

Get paid by the Sun. It’s as simple as that, Thanks to government tax credits and depreciation benefits, it’s now very profitable to invest in solar, Investing in solar makes sense economically and environmentally, because the investment is risk protected, and the returns are solid. Low-Risk, High-Return investment opportunities like this don’t come around every day

Previously, investing in solar was reserved entirely for large institutions and wealthy individuals. Not Anymore, You can invest as little as Rs 7 Lakhs (USD $11,100) to get started or go as high as Rs 7 Crores (USD $1.1 Million), it’s entirely up to you

Your investment in Solar helps MAC Solar harness cleaner, abundant solar power, and helps us create more jobs every day!

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 getting necessary approvals to obtaining PPA

We offer end-to-end solution for setting-up a solar plant. Call us today at +91 9550004871 or email us at info@macsolartech.com to discuss the details

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6 thoughts on “How to Create a Passive Income Stream by Investing in a Grid Tied Rooftop Solar Plant in Andhra Pradesh & Telangana

  1. Investment Model for 1 MW Solar Power Plant – MAC Solar Tech's Blog

  2. How to Setup a 1 MW Solar Plant in India? – MAC Solar Tech's Blog

  3. How to Create a Passive Income Stream by Investing in a 1 MW Solar Plant in Andhra Pradesh – MAC Solar Tech's Blog

  4. Cost of setting up a 1MW Solar Plant in Andhra Pradesh – MAC Solar Tech's Blog

  5. 1 MW Solar Power Plant EPC Cost with Multi Crystalline Modules – MAC Solar Tech's Blog

  6. Grid Tied Rooftop Solar Net-Metering Awareness Workshop @ Ongole, Andhra Pradesh – MAC Solar Tech's Blog

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