Solar Energy Investment Opportunity in the Indian Market

Opportunity Snapshot

Investment Opportunity

1 MW Solar Power Plant requiring a fund of 10 Crore Indian Rupees. Government Support ensured. Payback period of 25 years.

Energy is the most important driver for any economy. Currently we are mainly dependent on Conventional Sources like Coal & Oil for energy. Long term availability of these non-renewable resources is a big concern. Burning these conventional sources results in environment pollution , global warming & climatic changes.

(a) 1 MW Solar Power Plant:

Solar Power Project – 1 MW
Funds Required - 10 Crore
Land Required – 6 Acre
Completion month – 7 months

(b) 5 MW Solar Power Plant:

Solar Power Project – 5 MW
Funds Required - 48 Crore
Land Required – 25 Acre
Completion month – 7 months

Competitive Advantage

• Benefit through selling REC’s.
• Cash flows by Selling electricity.
• Cash flows by Selling Carbon Credits.
• Accelarated Depreciation benefit (80% + 20% first year)
• Tax holiday under Section 80 ( I ) ( A ) for 10 Years.

Rationale for the deal

Why Now?

• REC benefit available up to 2017 then extended upto 2022 at a lower rate.
• Friendly state policy.
• Lots of incentives available given by the Government.
• Cost of setting up plants at all time lows, which is likely to go up in near future .
• First mover advantage & a sense of pride.

Use of financing

• Excellent destination.
• Regular returns for 25 Years.
• Low maintenance.
• Sun’s energy is freely available and in abundance.

Funding can be done in one round or we can make it flexible as well.

Opportunity for the investor

We are looking for people who want to have solar power plant.

It is a good opportunity as the sector enjoys a good growth in the Indian market and the goverment is supporting projects of this kind.

Investment instalments can be discussed as we proceed with the negotiations.

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