No business can be as assuring as this. Solar costs you Rs 6 crore to Rs 7 crore per MW that includes the cost of the land (5 acres per MW). The central government is giving you almost 10 per cent as equity, and if the state government also gives a similar kind of grant / equity, then you do not have to put any money from your pocket. The rest will come on lower interest rates and easy installments from the banks as debt (80:20 as debt to equity ratio is allowed). You can become a young entrepreneur owning a solar power generation firm. You don’t have to worry about selling the power. There will be an assured arrangement with a distributing company at a fixed tariff for 25 years.
With average solar power generation of about 155,000 units per MW per month and tariff of about Rs 6 per unit, your turnover will be about 1.12 crore per year. Even if you have a 10 per cent margin over it, you can earn about Rs 11 lakh per year. The size of project can vary from 0.5 MW to 5 MW in multiples of 100 KW.
