PROJECT

Department of Business Administration

PROFESOR I. LINDE

Solar Photovoltaic Power plant in India [Roof Top System]

SAINATH BALASANI 11 APRIL 2016 PROJECT MANAGMENT

INTRODUCTION:

The basic idea is to initiate and develop this project is mainly based on the energy consumption of

India is now soaring and may face severe electricity shortages in the near future. India needs a

sustained growth rate of 9 to 10% over the next twenty years to meet its growth objectives. This

implies that it will need to increase its primary energy supply buy a factor of three to four and to the

electricity generation by a factor of five to six .India receives nearly 300-330 days of solar energy

and there is a large potential available for generating solar power using unutilized space on rooftops

of individual houses , industrial buildings ,commercial buildings, educational institutes or any other

type of buildings can be used to moderately fulfill the requirement of the building occupants and

excess , if any , can be fed into the grid . So the best suitable long term design solution for India

would be highly distributed set of individual rooftop power generation systems connected through

a local grid. In grid interactive rooftop solar PV power systems, the DC power generated from solar

panel is converted to AC power using power conditioning unit and is fed to the grid .The generated

power during the day time can be utilized fully by powering locked up many and excess can be fed

to the grid as long as grid is available .In case, were Solar Power is not sufficient due to cloud cover

or during the cloudy hours, the captive loads are served by drawing power from the grid. The grid

interactive rooftop solar system can work on net metering basis where in the beneficiary pays to

the utility on net meter reading basis only. The main objective of present paper is to present the

financial analysis of 100 KW rooftop solar PV power systems for both with and without battery

support. The sensitivity analysis of the various cost elements have been studied and identified to

look in for future reduction .The results were presented and the conclusions were drawn.

PROJECT SCOPE

The idea of the project describes the solar PV system. This project involves by means of the enclosed

specification, design, manufacture, supply, installation, commissioning of the solar PV systems with 5 years

warranty period.

From the business point of view the project is more useful for human kind in many ways .In developing

countries the power shortages are more. By using off-grid rooftop system the customer can have the

following advantages.

Have access to power continuously all the time.

Not having any scheduled or unscheduled power cuts.

No dependency on fossil fuels.

The quality of this power is superior to the regular grid power.

Investment against increasing fuel and grid charges.

Mankind has been crazy to have not bothered to harness the sun's energy until now. Think about

this. Going outside on a sunny day. The light falling on your face left the Sun just 8 minutes go. In

that 8 minutes it traveled 93 million miles. Those photons are hauling and when they strike your PV

module you can convert that motion to electricity. As technology, photovoltaic are not as glitzy as

that new sport utility vehicle the television tells us to crave. But in many ways PV is a much more

elegant and sophisticated technology.

SCOPE OF WORK & WARRANTY

The Scope of project shall include the following,

Design, manufacture, supply of Solar PV System.

Detailed planning of smooth execution of the project.

Testing, Installation & Commissioning of the complete system.

Warranty of the system for 1 year faultless operation.

After sales service, directly or through local contractual arrangement.

Risk liability of all personnel associated with implementation and realization of the project.

Assumption of the Proposal

The design is proposed on the basis of clear space on roof available at site as per design.

The power conditioning unit and distribution boards shall be housed inside the room or canopy

provided by customer.

Our scope shall be limited up to inverter and AC Distribution Board output on the rooftop canopy.

All AC cabling up to the load shall not be in our scope.

Customer to provide shadow free area @ 125 sqft / kWp of solar array.

Warranty

1 year faultless operation of the system

The Inverters offered come with a 3 year factory warranty.

All other parts (Electrical only) & Battery will come with a 1 year warranty

The warranty for modules will be as follows:

90% performance warranty for first 10 years and 80% after that upto 25 Years to 5 years mechanical

warranty

PROBLEM ANALYSIS

From an environmental perspective, solar power is the best thing going. A 1.5 kilowatt PV system

will keep more than 110,000 pounds of carbon dioxide, the chief greenhouse gas, out of the

atmosphere over the next 25 years. The same solar system will also prevent the need to burn

60,000 pounds of coal. With solar, there's no acid rain, no urban smog, no pollution of any kind.

Here the below picture shows the consumption of the electricity in ages and in future how the

renewable and non-renewable resources are used in India. The project initiate is a new

entrepreneurial idea that requires additional care each and every step of the project development.

Therefore, there are few factors need to be looked out on the development and implementation.

In this project I designed the solar power panel roof module for two alternatives one is for the

residential and the commercial with battery and without battery. Today’s solar panels are

bombproof and often come with a 25 year warranty or more. The solar panels may outlive you.

They are also modular—one can start with a small system and expand it over time. Solar panels

are light (weighing about 20 pounds), so if one move one can take the system with you.

SOLAR POWER AS A SUSTAINABLE SOLUTION

Solar panels collect sunlight and convert it into electricity. Solar power is a green energy resource

which means that it has no harmful impact on the environment, and the potential to generate

energy is unlimited. Solar power is sustainable, renewable and it does not release carbon dioxide or

any other toxics into the air, which means that solar power does not contribute to global warming.

Other benefits of using solar power include the fact that solar power supports local employment

and creates wealth in the region. Solar power does not have any major ongoing costs - once it has

been installed almost no recurring costs exist.

In the table below, one can see the differences between solar power and fossil fuels. Based on the

comparison it is obvious that solar power offers a great alternative as an energy source compared

to fossil fuels.

Solar Power and Fossil Fuels differences.

Solar power Fossil fuels

Accessibility Can be used any where Limited accessibility

Costs Cost efficient High costs

Environment No harmful impacts on the

environment

Harms the environment

Renewable Non-renewable

Business opportunities Market growing Limited opportunities in

business

Incentives when investing Offered by government No incentives

Health aspect Safe for people Cause health problems

In today's business, the word 'sustainability' has grown big. Businesses understand, that in order to

run a successful business the issues revolving around sustainability have to be taken into account.

For some companies, it is a strategy to gain good reputation, however sustainability is also

increasingly seen as a necessity - an issue that has to be considered to preserve the environment

and not destroy it.

In fact, pollution was considered as one of the greatest dangers in the world by 44 different nations

together with inequality, nuclear weapons, AIDS and other diseases, as well as religious hatred.

ANALYSIS OF THE PROJECT

A Customers are referred roof top system in their own residential and individual building area up

to 100kw which can be used for the daily purposes and mainly with battery backup.

B Customers are referred to roof top system for Interconnection scheme for institutional Building

/set of buildings up to 100kw without battery backup.

C Customer are referred to roof top system for the industries and commercial complexes more

than 100kw which is grid system.

SWOT ANALYSIS

Strengths

• Patents.

• Strong brand names.

• Good reputation among customers.

• Cost advantages from proprietary know-how.

• Exclusive access to high grade natural resources.

• Favorable access to distribution networks.

Weaknesses

• Lack of patent protection.

• A weak brand name.

• Poor reputation among customers.

• High cost structure.

• Lack of access to the best natural resources.

• Lack of access to key distribution channels.

In some cases, a weakness may be the flip side of strength. Take the case in which a firm has a large

amount of manufacturing capacity. While this capacity may be considered a strength that

competitors do not share, it also may be a considered a weakness if the large investment in

manufacturing capacity prevents the firm from reacting quickly to changes in the strategic

environment.

Opportunities

• An unfulfilled customer need.

• Arrival of new technologies.

• Loosening of regulations.

• Removal of international trade barriers.

Threats

• Shifts in consumer tastes away from the firm's products.

• Emergence of substitute products.

• New regulations.

• increased trade barriers.

ALTERNATIVES SUMMARY

BEST ALTERNATIVES

The best way to consider the alternative is B which can be used to generate the power with battery

backup, by keeping in mind the real scenario of India with high power cuts the costumer can store

the power for even in nights and rainy days.

Besides, the decision of considering the option C is not executable which may cause the following

High maintenance cost

Highly technical and qualified labor for the maintenance

Generated power is stored in power grids.

High cost structure.

WORK BREAK DOWN STRUCTURE

Alternative A

Alternative A

Task name Duration

Initial meeting 3 Days

Resource Calculation Planning 5 days

Budget Planning 6 Days

Cost of Project 5 Days

Data collection 50 Days

Data Structure Design 16 Days

Plan Architecture 17 Days

Site surveying 2 Days

Mounting 6 Days

Installation 10 Days

Technician Support 50 Days

Wiring and Cables fitting 10 Days

Testing 4 Days

Delivery 2 Days

solar panel project

project management

intiation

planning

pre construction

site survey and assenment

contract

permits

design packaeges

processed data sheets

procurnment

construction

Racking

solar pannel

electrical system

emphase monitor

solar planing system testing

mounting equipment

inspection

city of hyderabad inspection

SDGE inspection

post construction

close out documentation

final inspection documentation

monitoring website

micro inverter

Alternative B

Alternative B

Task name Duration

Initial meeting 3 Days

Resource Calculation Planning 5 days

Budget Planning 6 Days

Cost of Project 5 Days

Data collection 50 Days

Data Structure Design 16 Days

Plan Architecture 17 Days

Site surveying 2 Days

Mounting 6 Days

Installation 10 Days

Technician Support 50 Days

Wiring and Cables fitting 10 Days

Testing 4 Days

Inverter Installation 5days

Delivery 2 Days

solar panel project

project management

intiation

planning

pre construction

site survey and assenment

contract

permits

design packaeges

processed data sheets

procurnment

construction

Racking

solar pannel

micro inverter

electrical system

emphase monitor

solar planing system testing

mounting equipment

inspection

city of hyderabad inspection

SDGE inspection

post construction

close out documentation

final inspection documentation

monitoring website

CRITICAL PATH ANALYSIS

Terms of Alternatives

Alternat

ive

Orientation Administr

ation

Data

Syncronization

Design Technology Implementation Hosting

A 1 5 35 12 18 11 12

B 1 8 60 15 19 15 10

PROJECT PLAN DURATION ALTERNATIVES

DURATION DURATION

TASK NAME START DATE

FINISH DATE

ALT

ERN

ATE

B

START DATE

FINISH DATE

Project Administration

04.01.2016 10.01.2016 04.01.2016 15.01.2016

Data Manipulation

11.01.2016 17.02.2016 16.01.2016 04.04.2016

Design 18.02.2016 29.02.2016 05.04.2016 22.04.2016

Technical Run/Debugging

01.03.2016 03.03.2016 23.04.2016 25.04.2016

Hosting & Testing

04.03.2016 11.03.2016 26.04.2016 03.05.2016

Publish & Delivery

12.03.2016 14.03.2016 04.05.2016 06.05.2016

Solar PV Pannel Junction box DC IsolatorInnverter

Assembley

Transformers

ABCD Breakers

Meter

connection to battery

Connecting to home

applices

Connection to home

Applinces Breakers

CAPITAL BUDGET FRAME WORK

BILL OF MATERIAL

ALTERNATIVE A ALTERNATIVE B

COSTS WITHOUT BATTERY

WITH BATTERY

MATERIAL COSTS ALTERNATIVE A ALTERNATIVE B

Solar panels $2 475.00 $2 475.00 Mounting structure $606.00 $606.00 Inverter $1 515.00 $1 515.00 Cables $775.00 $775.00 Battery $0.00 $909.00 Combiner box $303.00 $303.00 Main Junction $121.12 $121.12 Switches $330.00 $330.00 Meter $27.75 $27.75 Fuses $12.12 $12.12 Remote control $303.33 $303.33

INDIRECT COSTS PRODUCT A PRODUCT B

Shipping $100.00 $100.00 insurance $500.00 $500.00 Licensing $200.00 $200.00

Column2 Column1

SUMMARY

MATERIALS A & B COST PER UNIT $7 268.32 $8 177.32

Capital Budgeting

Net present value

USED

DEMARCATED

Pay back peroid IRRDicount cash

flowProfitability

IndexDebt -Service

Coverage Ratio

$7 268.32$8 177.32

MATERIAL COST PER UNIT

ALTERNATIVE A

ALTERNATIVE B

Alternative A

PR

OJE

CT

TEA

M

PROJECT TASKS

HOUR of

Work/ Month

Salary Covered

Total Social

Tax VAT

Total (Tax+VAT)

Project Manager 0.78 $900.00 $702.00

Assistant Project Manager

0.45 $650.00 $292.50

Project Designer 0.24 $80.00 $19.20

Architecture 0.10 $200.00 $20.00

Concept Narrator 0.48 $200.00 $96.00

Subtotal $1 129.70 $272.14 $857.56

DEV

ELO

PM

ENT

ELEC

TRIC

ALT

EAM

Maintenance Electrical Engineer

0.96 $800.00 $768.00

Supervisor 0.82 $650.00 $533.00

Technicians 1[Electrical] 0.48 $450.00 $216.00

Technicians 2[Electrical] 0.65 $450.00 $292.50

Skilled labor 1 0.86 $200.00 $172.00

Skilled labor 2 0.62 $200.00 $124.00

Subtotal $2 105.50 $507.21 $1 598.29

DEV

E M

ECH

AN

ICA

L TE

AM

Maintenance Mechanical Engineer

0.48 $800.00 $384.00

Supervisor 0.78 $650.00 $507.00

Technicians 1[Mechanical]

0.58 $450.00 $261.00

Skilled labor 1 0.86 $450.00 $387.00

Skilled labor 2 0.62 $200.00 $124.00

Subtotal $1 663.00 $400.62 $1 262.38

0.21

PR

OJE

CT

INST

ALA

TIO

N

Testing team 0.16 $300.00 $48.00 $10.08 $37.92 End User 0.14 $250.00 $35.00 $7.35 $27.65 Management 0.46 $800.00 $368.00 $77.28 $290.72 Compatibility Test 0.28 $450.00 $126.00 $26.46 $99.54

Subtotal $577.00 $121.17 $455.83

UTI

LITI

ES

Office Rent 0.99 $300.00 $297.00 $62.37 $234.63 Telecom Charges 0.99 $100.00 $99.00 $20.79 $78.21 Electricity 0.99 $120.00 $118.80 $24.95 $93.85 Transport 0.99 $350.00 $346.50 $72.77 $273.74 Stationery 0.99 $80.00 $79.20 $16.63 $62.57 Subtotal $940.50 $197.51 $743.00

TOTA

L

Total Salary $4 898.20 Incl. VAT $3 718.22

Management Implementation $577.00 $455.83

Total office Cost $940.50 $743.00

TOTAL EXPENDITURE $4 917.05

COMPARISION OF PROFITABILITY - IRR

NP V r1

IRR = r1 + (r2 -r1)

NPVr1 - NPVr2

R1 = 0.1; R2 = 0.2

IRR = 105%

-40000

-20000

0

20000

40000

60000

80000

0% 20% 40% 60% 80% 100%

A

Alternative B

PR

OJE

CT

TEA

M

PROJECT TASKS HOUR of Work/ Month

Salary Covered

Total Social

Tax VAT

Total (Tax+VAT)

Project Manager 0.78 $900.00 $702.00

Assistant Project Manager

0.45 $650.00 $292.50

Project Designer 0.24 $80.00 $19.20

Architecture 0.10 $200.00 $20.00

Concept Narrator 0.48 $200.00 $96.00

Subtotal $1 129.70 $272.14 $857.56

DEV

E EL

ECTR

ICA

L TE

AM

Maintenance Electr

Engineer 0.96 $900.00 $864.00

Supervisor 1.00 $650.00 $650.00

Technicians 1[Electrical]

0.48 $450.00 $216.00

Technicians 2[Electrical]

0.65 $450.00 $292.50

Skilled labor 1 1.00 $200.00 $200.00

Skilled Labor 2 1.00 $200.00 $200.00

Subtotal $2 422.50 $583.58 $1 838.92

DEV

ELO

PM

ENT

MEC

H T

EAM

Maintenance Mechanical Engineer 0.82 $900.00 $738.00

Supervisor 0.78 $650.00 $507.00

Technicians 1[Mechanical]

0.58 $650.00 $377.00

Skilled labor 1 1.00 $850.00 $850.00

Skilled labor 2 1.00 $460.00 $460.00

Subtotal $2 932.00 $706.32 $2 225.68

0.21

PR

OJE

CT

INST

ALL

ATI

ON

Testing Team 0.18 $300.00 $54.00 $11.34 $42.66 End User 0.22 $250.00 $55.00 $11.55 $43.45 Management 0.46 $800.00 $368.00 $77.28 $290.72 Compatibility Test 0.28 $450.00 $126.00 $26.46 $99.54 Inverter Fitter 0.20 $200.00 $40.00

Subtotal $643.00 $126.63 $476.37

UTI

LITI

ES

Office Rent 0.98 $300.00 $294.00 $61.74 $232.26 Telecom Charges 0.98 $100.00 $98.00 $20.58 $77.42 Electricity 0.98 $120.00 $117.60 $24.70 $92.90 Transport 0.98 $350.00 $343.00 $72.03 $270.97 Stationery 0.98 $80.00 $78.40 $16.46 $61.94 Subtotal $931.00 $195.51 $735.49

TOTA

L

Total Salary $7 415.20 $4 922.16

Client Implementation $643.00 $476.37

Total Cost $931.00 $735.49

TOTAL EXPENDITURE $6 134.02

COMPARISION OF PROFITABILITY - IRR

r1

IRR = r1 + (r2 -r1)

NPVr1 - NPVr2

R1 = 0.1; R2 = 0.2

IRR = 20%

-25000

-20000

-15000

-10000

-5000

0

5000

10000

15000

0% 10% 20% 30% 40% 50%

B

B Linear (B)

RISK ANAYSIS FRAME WORK

RISK ANALYSIS OF A

ALTERNATIVE A

RISK RATING VALUE

FANACIAL RISK 3.5

TECHNICAL RISK 3

SOCIAL RISK 1

Risk

Finacial risk

(3.5)

credit risk

market risk pricicng risk

insurance risk

equity & debit risk

tax & audit risk

Technical risk

(3)

operation maintence and servicing risk

reliability risk

performnce risk

construction risk

site feasibility

transparency risk

procurment risk

humman resource risk

Social risk

(1)

environmental risk

pollution risk

OHS risk

RISK ANALYSIS OF B

ALTERNATIVE B

RISK RATING VALUE

FANACIAL RISK 6

TECHNICAL RISK 6

SOCIAL RISK 3

Risk

Finacial risk

(4.5)

credit risk

market risk pricicng risk

insurance risk

equity & debit risk

tax & audit risk

Technical risk

(4)

operation maintence and servicing risk

reliability risk

performnce risk

construction risk

site feasibility

transparency risk

procurment risk

humman resource risk

Social risk

(1)

environmental risk

pollution risk

OHS risk

SCALE OF MEASURING RISK ANALYSIS

SCALE LOW

0-5

MODERATE

6-10

SIGNIFICANT

11-15

HIGH

16-20

FANACIAL RISK TECHINICAL RISK SOCIAL RISK MEASURE OF RISK

ALTERNATIVE A 3.5 3 1 7.5

ALTERNATIVE B 4.5 4 1 9.5

DEGREE OF RISK Alternative B Comparatively is economically riskier than Alternative A however, the concept is likely

agreeable from the partner which has a huge hope and guarantee on return. However, the possibility of

rejection of the Alternative A as the degree of risk is similar but the scope doesn’t defend the investor.

PROJECT DESCRIPTION

Title

SOLAR PHOTOVOLTAIC POWER PALNT [ROOF TOP SYSTEM]

Project

B

Main problem

As electricity demand escalated, with supply depending largely on fossil fuels plus some hydro power and

then nuclear energy, concerns arose about carbon dioxide emissions contributing to possible global warming.

Attention again turned to the huge sources of energy surging around us in nature – sun, wind, and seas in

particular. There was never any doubt about the magnitude of these, the challenge was always in harnessing

them.

Today we are well advanced in meeting that challenge. Wind turbines have developed greatly in recent

decades, solar photovoltaic technology is much more efficient, and there are improved prospects of

harnessing tides and waves. Solar thermal technologies in particular (with some heat storage) have great

potential in sunny climates. With government encouragement to utilize wind and solar technologies, their

costs have come down and are now in the same league as the increased costs of fossil fuel technologies due

to likely carbon emission charges on electricity generation from them.

The goal of solving the problem

Utilizing electricity from solar and wind in a grid requires some back-up generating capacity due to their intermittent nature. Policy settings to support renewables are also generally required to confer priority in grid systems and also subsidies them, and some 50 countries have these.

1. Utilizing solar and wind-generated electricity in a stand-alone system requires corresponding battery or other storage capacity.

2. The possibility of large-scale use of hydrogen in the future as a transport fuel increases the potential for both renewables and base-load electricity supply.

Realization

In this project I designed the solar power panel roof module for two alternatives for the residential

and the commercial with one is with battery and another without battery. By keeping in mind the

real scenario of India with high power cuts the costumer can store the power for even for nights

and for use on rainy days.

Project duration 4 Months (120 Days)

Start Date 04-01-2016

End Date 06-05-2016

Project budget: $ 20000

Project Management Cost $12600.23

Project Investment $10,000

CONCLUSION

Sustainability is the most precious gift that we can give to our future generations. Solar power,

especially as it reaches more competitive levels with other renewable energy sources, may serve to

sustain the lives and families of millions of underprivileged peoples in developing countries. Solar

energy can be directed both actively (by solar PV panels) and passively (by green building design) in

order to shed the warm, bright light of opportunity upon the many dark recesses of the globe.

Through engineering, this technology can also be applied to the transportation industry. So much

has already been accomplished by countless international, governmental, and nongovernmental

organizations in the funding and development of projects involving renewable energy systems for

these nations. It is incredibly uplifting to view the pictures and read about the amazing work being

done to transform uninhabitable conditions into cozy living spaces. The ability to simply cook

indoors without gathering a dwindling supply of firewood is a luxury awaiting many more deserving

families.

Ecosystems, developing societies, and the solar energy market will only benefit from an increase

solar PV system installations. Funding for these systems, however, is a challenging aspect when

there is so much need. Fortunately, as more and more people give donations and volunteer their

professional and technical services, solar energy will become cheaper. The initial installation is

basically the only cost, so the investment will simply pay for itself for the rest of its life and for the

lives shared beneath its comforting glow.

REFERENCES

1. [Source: Boundless. “Environmental Problems Associated with Fossil Fuel Use.” Boundless

Chemistry. Boundless, 21 Jul. 2015. Retrieved 01 Apr. 2016 from

https://www.boundless.com/chemistry/textbooks/boundless-chemistry-

textbook/thermochemistry-6/energy-use-and-the-environment-62/environmental-

problems-associated-with-fossil-fuel-use-291-1025/]

2. Project Management tenth Edition , A System Approach to Planning, Scheduling and

controlling, Herald Kerzner .

3. www.slideshare.net

4. www.electronicsb2b.com

5. “India Solar Compass-January 2014”, journal published on India Solar Market by Bridge to

India-www.bridgetoindia.com.

6. “Development of Financial Model of Bankable Feasibility Analysis of a 1MW Rooftop Solar

PV Project in India”- a project report by Abhishek Chaudary-under NPTI (National Power

Training Institute)-for LAHMEYER INTERNATIONAL.