What are the points to consider in a Solar Business Plan?

If you are planning to start a solar power project, there are several aspects that you need to consider.  The equipment that needs to be used to make the plant viable, researching the cost per unit for generating the power and the selling cost per unit are points to be considered. Therefore when creating the solar energy business plan these factors need to be covered in details. What I have tried to do here is to give a bit of overview on the solar electricity generation process so that someone planning to start a similar project can use it as a starting point with their business plan writing services provider.

Photovoltaic (PV) devices generate electricity directly from sunlight via an electronic process that occurs naturally in certain types of material, called semiconductors. Electrons in these materials are freed by solar energy and can be induced to travel through an electrical circuit, powering electrical devices or sending electricity to the grid.

PV cell technologies are broadly categorized as either crystalline or thin film. Crystalline silicon (c-Si) cells provide high efficiency modules. They are sub-divided into mono-crystalline silicon or multi crystalline silicon. Mono-c-si cells are generally the most efficient. Thin film cells provide a cheaper alternative but are less efficient. There are three main types of thin film cells: Calcium Telluride, copper Indium Di-selanide and amorphous Silicon.

It is important to understand the process of solar generation in brief when writing the solar energy business plan. The process defined below can be a good starting point to define the solar power generation mechanism.

The key component of a solar power project are solar panels containing silicon made photovoltaic cells that transform incoming sunlight into electricity rather than heat. The primary component of the panel, the solar photovoltaic cells consist of a positive and a negative film of silicon placed under a thin slice of glass. Panel operations start as the photons of the sunlight beat down upon these cells, knocking the electrons off the silicon. The negatively-charged free electron preferentially gets attracted to one side of the silicon cell, creating an electric voltage that can be collected and channeled. Current gathers by wiring the individual solar panels together in series to form a solar photovoltaic array. The method proceeds as multiple strings of solar photovoltaic array cables terminate in one electrical box, called a fused array combiner depending on the size of the installation. The fuses of the combiner box designed to protect the individual module cables which generate connections that deliver power to the inverter.

The inverter component of the panel turns the DC electricity generated by the solar panels into 120-volt AC that is then put to immediate use by connecting the inverter directly to the circuit breaker in the electrical panel. Inverter, electricity production meter, and electricity net meter are connected so that power produced by the solar electric system firstly gets consumed by the electrical loads that remain in operation.

The step-up transformer takes the output from the inverters to the required grid voltage depending on the grid connection point. The balance of power produced by the solar electric system passes through the electrical panel and gets on the electric grid. The substation contains the required grid interface switchgear that is circuit breakers. The method has been successfully implemented in different countries worldwide and people are making use of the whole technology to reap higher level benefits.

The key benefits of a solar power plant can be summarized as follows. These points can be taken as a reference point for a Solar farm business plan.

·         Energy Reliability- Solar electricity is a renewable source which can be harnessed for an infinite period of time in a country like Iran which gets 300 sunny days a year over 2/3 of its total area.

·         Zero Raw Material Cost- Solar energy is the key raw material for solar power generation and cost of this raw material is zero for its generation. This proceeds to the fact that after initial investment of the solar panels, no other additional cost is essential for solar power creation.

·         Environment Sustainability- Electricity generation through solar energy saves fossil fuels which are non-renewable sources of energy. Solar PV panels provide a green way to produce electricity.

·         Zero Pollution to Environment- Solar energy used for electricity generation does not release any pollution in the air unlike other non renewable sources, thereby saving the environment.

There are several risks that can be an impediment to a solar project. Some of the key risks are identified below:

There are certain risks that we have identified as part of this project. The identified risks are as follows:

•         Economic Stability of the country- The economic stability of a country is important to ensure the success of any large scale project. The economic stability depends upon inflation, currency devaluation and budget deficits. It will also depend on any trade barriers and relationship with other countries.
•         Payment delays from subsidy institutions due to the possible lack of financing or bureaucratic delays.

•         Difficulties with the deployment of rules, e.g. potential difficulties in reducing local staff due to the employee-friendly laws.

  ·         Slow process of implementation- All tasks, even the simplest have to be regulated via complex procedures.

  ·         Conventional energy lobby especially Thermal power lobby can try to influence photo voltaic policies.

  ·         Insufficient national standards for grid connection and photovoltaic installation connections can cause a hindrance.