Karnataka Solar Scheme for Farmers – Opportunities for Developers to Set up 1 MW – 3 MW

KRED(Karnataka Renewable Energy Development, LTD) recently invited applications for 300 MW to setup solar plants with 1MW to 3 MW capacity, only farmers who own agricultural lands in state of Karnataka were eligible to participate in the process, this has created a new gold rush in Karnataka to setup solar plants for two reasons

  1. PPA tariff is ₹8.00 to ₹8.40 per kwh
  2. PPAs are assignable to 3rd party developers

KRED had received around 300 applications and entire application process was completed under 7 minutes

This initiative from KRED has led to new and innovative business models which are win-win for both the farmers who have obtained PPAs and developers who are willing to partner with the farmers

KRED has started assigning PPAs for farmers who have been selected in the online application process, We are working with several farmers who have obtained PPAs and are looking for investors

Are you a developer interested in setting up 1 MW Solar Plant? This is a golden opportunity for developers who are able to capitalize on this scheme

Call us today at +91 9550004871 to discuss the details

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How to Obtain Cheap International Financing for 1 MW – 5 MW Solar Projects In India?

Most solar projects today face delays due to the financial closure and bankability of solar projects is a major issue that developers are facing today.

National banks like SBI and other banks are providing debt at interest rates around 13% to 14%, Higher cost of capital is making solar projects unviable as high interest rates combined with inferior terms in domestic financing is increasing the cost of solar projects by 24-30%

While big players who set up solar projects with 100s of MW capacity are able to obtain cheap international financing as they are able to leverage export credit finance options from international sources with low interest rates. It does not make financial sense for International funding sources to consider any projects with capacity less than 10MW as their cost of due diligence is high and appetite for risk is very low

Combined with low interest rates and advantages with economies of scale with larger projects, big players are able to outbid smaller developers in most recent reverse bidding process in both in Andhra Pradesh, Madhya Pradesh and Telangana

Small developers who are willing to setup solar plants(1MW to 3MW) are at a disadvantage as they are not able to compete with larger players, as it is almost impossible to obtain international financing for any project less than 5MW capacity

For the first time in India, We are able to offer international financing option for small developers who are willing to set up solar plants of capacity 1 MW or more with favorable terms, the interest rate depends on the PPA and financial strength of the developer

There are several opportunities available for small developers and recent Karnataka Solar Scheme for Farmers and Unemployed Youth is one such example, this model is such a big hit it has created a new gold rush in Karnataka to set up solar plants under this scheme, According to media reports MNRE is recommending other states to follow a similar model, Telangana and Andhra Pradesh are working on a similar scheme

Interested in Setting up 1 MW Solar Plant? We’ll present you with current investment models  under various schemes offered by different states, We will walk you through the each step of the process from providing required documentation to the state agencies, banks and getting necessary approvals to obtain PPA and Financing

We offer end to end solution for seting-up a solar plant, from initial feasibility to obtaining a PPA, financial closure with internal national financing option, engineering, procurement, construction of the plant including operations and maintenance of the plant

Call us today at +91 9550004871 or email us at info@macsolartech.com for a free consultation to get the process started!

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

4KW Rooftop Installation at Vaatsalya Hospital Ongole, Andhra Pradesh

We have recently completed 4KW Rooftop Installation at Vaatsalya Hospital Ongole, Andhra Pradesh, entire installation process was completed under 6 hours

We had to design a custom structure to function as a sunshade to penthouse, Please check out the installation video

Are you currently using a diesel generator as a backup power source?

Do you know that you are paying ₹ 21.00 for each KWH(Unit) generated from a diesel generator?

Do you know that it only costs ₹ 9.5 to generate electricity using solar including battery backup?

Do you know that MNRE offers 30% subsidy to all off-grid rooftop systems as part of their diesel abatement scheme?

Do you know that you can claim accelerated depreciation upto 80% of the cost of the system in first year of businesses, even if you finance 80% of the system cost

What are you waiting for?

Click here to calculate your solar plant size and savings, We have helped thousands of customers achieve grid independence

Call us today at +91 9550004871 or email us at info@macsolartech.com for a free consultation

Save up-to 80% on your electricity bills, enjoy 24 hours of uninterrupted power and become grid independent today!