Insolergy Helped Nanded Bazaar Mall Save Rs. 76 Lakhs Per Year In Power Bills Using Solar
A shopping mall in Nanded in the state of Maharashtra invests in solar energy, and now enjoys a saving of Rs. 76 lakh per year in electricity bill.
Key features of this solar project for mall
Capacity of system installed: 316.58 kWp (Grid connected with net-metering)
Annual Production: 5,10,000 kWh per year
Annual Saving: Rs. 76.50 Lakhs per year
Recovery Period: 2.2 years
Income Tax Benefit: In form of Accelerated Depreciation
Special feature: Premium European-make PV Modules (Tier-1) and Inverter, with Galvanized Steel Mounting Structure
Online System Monitoring of Production Performance
5 Year Workmanship Warranty
Nanded Bazaar Mall Solar Project by Insolergy – Key Considerations, Challenges
As energy consuming units, malls and shopping centers have a huge demand for a reliable and consistent power supply. They’re open for almost 16 hours a day with utilities such as air-conditioning, lighting, elevators, escalators, CCTV and computers, food court facilities such as fridges, ovens and stoves are running all day. As a result, shopping malls are vulnerable towards increasing grid electricity prices, intermittent grid power and are over dependent on expensive diesel backup power. In fact, for commercial setups such as shopping malls, electricity bills are one of the major components of their total operating cost. That makes a very good case for such setups to meet their energy demands with sustainable, green energy such as solar power.
Recently, Insolergy Technologies was approached by the Nanded Bazaar Mall management to help them reduce their electricity bills and subsequently, their operating costs. Insolergy is one of the leading solar companies for installing solar panels for commercial use in Maharashtra, India.
- Insolergy’s technical team assessed the power consumption pattern of the mall and surveyed the place to check for the available space and determine how to install the solar panel system. We designed and installed a 316.58 kWp grid-tied solar power system with net metering, which is helping them save an estimated amount of R.s 76 lakhs per year in power bills.
- We installed the solar system keeping minimum noise footprint. Major equipment shifting, for example, was done at the time when shoppers were not around.
- Our team completed the project within the stipulated time frame without any delays.
- At Insolergy, we always use quality equipment for solar installations. For this mall, we used premium European equipment including a steel mounting structure along with a workmanship warranty.
- Our team carefully installed the system to avoid harming the structure of the mall or the roof
- Throughout the installation process, we maintained safety of crew, store owners and visitors.
Benefits of solar power for the mall
Malls are the perfect candidates for solar power as their heavy-duty consumption. In addition to contributing towards environment, malls can derive derive following benefits from solar power:
Faster recovery period
Commercial setups such as malls have some of the highest tariffs amongst consumers in the state of Maharashtra, ranging from Rs. 14-15 per unit of power. This allows the recovery period of the cost of solar PV system to be much shorter, especially when it comes to malls. The recovery period of this project is 2.2 years due to the higher tariffs, i.e., for the same production they are saving more money and without any depreciation.
Access to low-cost power due to net metering
With a grid-tied solar system and net metering connection, the mall can reap many benefits.
Net metering policy in Maharashtra allows consumers to take maximum advantage of the solar energy produced during daytime and effectively removes the requirement for batteries completely. This lowers the initial capital cost and operating cost of the system. In short, net metering allows consumers to take credit of the excess production and use that when their system isn’t actively generating solar power, for e.g. night-time or monsoon. Due to net metering, the time of the production of energy doesn’t have to meet the consumption of energy.
And because of solar power, the consumer does not have to worry about the fluctuating grid electricity rate hikes for a long time due to consistent solar electricity rate.
Accelerated depreciation income tax benefit
For projects such as solar power plant, commercial (industries, malls) entities can depreciate the project fully in 3 years thus significantly reducing the tax burden.
The benefit for commercial solar plant is accelerated depreciation as this project can be fully depreciated within 3 years.
For solar projects, commercial entities (malls and industries) can claim accelerated depreciation. In the term of this project, the mall owners will be able to fully depreciate the project within 3 years, thus significantly reducing the tax burden. Although commercial entities are not eligible for subsidy, they can claim accelerated depreciation for solar which help them recover the cost of the system even faster.
Effective Operations and Maintenance
The solar power system does not require any maintenance except cleaning of panels and has been designed with ease of access to each panel in mind, for future cleaning and maintenance.
As part of the maintenance contract, Insolergy will provide half yearly inspections and quarterly production reports. It also includes five year workmanship warranty support to cover any unlikely event of downtime due to equipment fault or malfunction. Considering that a solar panel is guaranteed to produce free electricity for 25 years and the premium equipment used in this project, our client can enjoy constant solar electricity rate for at least next 23 years.
Solar power for commercial buildings with Insolergy
Insolergy is a solar EPC solutions provider in India. The company provides Turnkey Solar Solutions, Project Management Consultancy, Engineering Consultancy, Operations & Management and Solar finance facilitation for solar power plants in India. The company has offices in Pune and Mumbai.
Insolergy client portfolio for project management consulting includes both State Operated and Private Infrastructure Developers in field of Transport and Hydro Power, large Trusts, etc.