Solar Power Plants in Uttarakhand - A great investment opportunity

Solar power plant in Uttarakhand

As the world becomes serious about carbon neutrality and transitioning to a green energy economy, solar power plants have seen a surge in finanicing and investment over the past decade. This wave of 'Green Investment Funds' now crashing across the shores of India is an opportunity of a lifetime. Every indian now has a chance to make money as the sun shines over his land.

In this article we explore the current investment landscape for four different segments based on project size and use.

1 - Residential Solar Rooftop Power Plant - Investment required Rs.1 lakh up to Rs.10 lakh.

20KW Solar Power Plant in Dehradun

The govt. of India via a combination of central and state government schemes offers subsidies on grid connected solar rooftop power plants of capacity ranging from 3KW to 25KW. These solar power plants help you to save Rs.30,000 to Rs.2.6 lakhs per year in energy costs. That offers a whopping 25% + return on capital invested per year. The best feature of this investment is as future electricity prices go up the savings you make per year also goes up every year protecting you from high future prices.

We offer residential grid connected solar power plants across Uttarakhand. Our systems come with a 5 years comprehensive warranty, 10 years on the inverter and a 25 yr performance warranty on the solar pv panels. Download our residential pricelist under the 'Pradhan mantri har ghar muft bijli yojana' below:

Ongrid_Solar_Domectic_Pricelist_July_2024.pdf

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2 - Chief Minister's Solar Entrepreneur Scheme of Uttarakhand 2023 - Investment required Rs.10 lakh up to Rs.1 crore.

50KW Solar power plant in Uttarakhand

The Uttarakhand Mukhyamantri Saur Swarojgar Yojana 2023 (MSSY) is an opportunity of a lifetime for every citizen of Uttarakhand. Solar power generation has emerged as one of the most rapidly growing investment opportunities in Uttarakhand and the current policies offer low cost financing, single window clearance and one of the highest power purchase tariffs available any where in India currently. As per the illustration published in the government notification the MSSY scheme is open for applicants who wish to setup solar power plants of capacity ranging from 25KW to 200KW. The key features of the scheme are 70% project financing offered, 30% capital subsidy offered which together mean capital investments in this scheme would earn a staggering 30% plus average annual return over the duration of the 25 year power purchase agreement with Uttarakhand Power Corporation Limited.

MSSY Financial Illustration

In order to apply for a solar power plant under this scheme the documents required are:

1. Government Identity Card ( Adhaar/PAN)

2. Proof of land ownership / Lease deed for 30 yrs.

3. Geographical location coordinates on map.

4. Application money based on capacity as mentioned above.

Once you have these documents ready you can begin your project application here: https://msy.uk.gov.in/frontend/web/signup

MSSY Project Proccess Flowchart

3 - Commercial Solar Power Plant - Investment required Rs.3.65 lakh up to Rs.1 crore.

The Indian government provides an indirect subsidy on grid-connected solar power plants for commercial establishments through a tax incentive known as "Accelerated Depreciation." The maximum capacity allowed for installing a system on your premises is determined by the sanctioned load of your electricity connection provided by Uttarakhand Power Corporation Limited (UPCL). Our range of plants varies from 3KW to 200KW, offering significant energy cost savings ranging from Rs. 39,000 to Rs. 26.4 lakhs annually. Commercial solar power plants yield an impressive annual return on investment of over 30%, resulting in a payback period of just three years. With current commercial power tariffs standing between Rs. 7 to Rs. 8.50 per unit (kWh), the substantial cost advantage of solar power is evident, with generation costs as low as Rs. 1.80 per unit. This translates to solar power being approximately 80% more cost-effective than grid power. One of the key benefits of investing in a solar power plant is the protection it offers against rising electricity prices, ensuring that your savings increase each year as future prices escalate. Download our commercial solar power plant pricelist below:

Ongrid_Solar_Commercial_Pricelist_Sept_2024.pdf

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4- Industrial Scale Solar Power Plant - Investment required Rs.1.25 crore up to Rs.6.25 crore.

The state government of Uttarakhand is actively inviting applications from investors who wish to setup 1MW to 5MW Solar Power Plants to enhance the grid stability in the state. The government offers incentives in terms of land allotment, capital subsidy and single window clearance for such projects in order to accelerate investment in this space.

With the Uttarakhand Investor Summit 2023 around the corner there is a buzz that most of the incentives being offered under the MSSY will be expanded to include projects of larger sizes and will also open up to investors not residing within the state.

The key benefits on offer for investors are 70% project financing, 30% capital subsidy which together mean capital investments in this scheme would earn a staggering 30% plus average annual return over the duration of the 25 year power purchase agreement with Uttarakhand Power Corporation Limited.

Please contact us on +91 89540 23000 to know more.

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