Solar Loans

• A brief summary of my business idea.

By Ayush Bisht

MNRE provides 30% capital subsidy on capital expenditures for rooftop solar systems for both commercial and residential entities for systems up to 100 kW. The government also provides loans at 5% per annum for 50% of the capital expenditure for 5 years tenure for both commercial and residential entities. Commercial entities can claim either capital or interest subsidies.

Jawarharlal Nehru National Solar Mission Under First Phase of

Jawaharlal Nehru National Solar Mission (JNNSM) to be implemented between 2010-2013 200MW capacity equivalent off grid solar PV systems and 70 lakh square meter solar thermal collector area to be installed in the country.The achievements figures are 38.5 MW for off grid PV

systems and 1.2 Lakh square meter solar thermal collector area.

So how can this be made into a business idea ? An average government house requires 2.5Kw –

4Kw solar panels with inverter and batteries. (100% off-grid) which costs around 3-5 lakh rupees.

There is a price variation as there are different prices quoted by different manufacturers, there are different time periods of warranty and also, depending on the size of the house the requirements may be 2.5Kw or 4Kw with 1hours to 8hours of battery backups.The quality of power packs can be further increased as the government may be willing to provide a minimum of 30% subsidy.We can tie-up with the government to fund in the project.

As a new startup we will not be producing solar equipment's but purchasing them. If the business turns profitable we can even setup production facilities to further decrease costs.

Acting as intermediaries, we would be providing the solar panels, installing them, and will be available for after sales services for the customers.

Our customers are therefore both the government and the consumers.

Finances

Us

Government Consumer

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An average household in Delhi pays 3000 rupees every month for electricity charges. That makes the yearly cost around 36,000.

If the consumer is charged the same amount he was paying to the electric companies and is being provided a reliable source of energy, he would not object to the idea of solar panels.

In 5 years, when almost 180,000 is realized by the consumers, we wont be charging any more fees. The rest of the amount must be predefined in an agreement with the government, suppose 40%-50%.

The solar panels have an average life of 25 years.

As a tie-up with the government, the project could also be started in many government housing societies.

"If you want to grow, find a good opportunity. Today, if you want to be a great company, think about what social problem you could solve."

Thank you