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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.