68
V. Nawandar et al.
Table 10 Economic analysis
(Mode 1)
Total investment
Rs. 2,138,500
Electricity export rate
Rs. 7390/MWh
Yearly savings from electricity export
Rs. 407,963
Payback period
5.3 years
Table 11 Net savings of
money and GHG
IRR
18.3%
Project life
20 years
Net Present Value (NPV)
Rs. 6,106,067
Benefit-Cost (B-C) ratio
3.86
GHG savings per year
65 tCO 2
GHG savings over the life of the project
1309 tCO 2
The cost economy of this mode can be easily depicted in Table 10. The total
investment cost of the solar panels is expected to be around Rs. 2,138,500. The cost
of each unit is averaged at Rs. 7390/MWh. The annual maintenance cost, which
includes the cleaning of the panels, is projected at Rs. 3000. The end of project life
is assumed to be Rs. 100,000. The total electricity income to be generated by the
export of electricity can be predicted to be around Rs. 407,963/year.
Table 11 explains the net savings of money and GHG around the year. At the IRR
of 18.3%, the net savings along the year is calculated to be Rs. 305,303/year. The
net GHG reduction in one year is about 65 tCO 2 equivalent. Considering the life of
the project of about 20 years, the total GHG savings would be around 1309 tCO 2 . It
also suggests that the simple payback period of this investment is around 5.3 years,
as shown in Fig. 16.
5.3 years
Fig. 16 Payback period (Mode 1)