Solar Grid Feeding & Net Metering

Premise:

Electricity MSEB bills form a large component of society maintenance expenses, including common areas. The wish is to reduce these bills by leveraging government approved rooftop solar power generation projects

Agencies sought quote from:

1. Waree / Prian Solar

2. Sara Solar energy

3. Datum energy (consulting with SavEn Power)

Avg. consumption as on Oct 2020:

1. SOJ 4 towers total consumption ~~ 220 units daily

2. SOJ common (WTP + flush pumps + common lights) ~~ 200 units daily

3. MSEDCL bills

   1. 1. ~~ Rs 35,000 per tower per month

      2. ~~ Rs 1,00,000 for SOJ common per month

      3. Total expense of SOJ on electricity bills : 2.4 lacs per month (Rs 1000 per SOJ flat)

Meters:

• A1 - 170055001203

• A2 - 170055001190

• A3 - 170051176882

• B1 - 170051176874

• Common - 170055001211

Plan

1. Install solar panels on terraces of all 4 SOJ towers which would feed the grid and discount the generated units against actual bills

2. Generate power close to 100% of total SOJ consumption in order to bring down bills to lowest rate slab possible

3. This would power all 4 SOJ meters + SOJ common meter ~~ 420 units per day electricity generation

4. This would reduce TOTAL bills to bare minimum of rental value TOTAL = Rs 10,000 for all 4 towers (reduced from 2.4 lacs per month today)

5. We would have 5 different systems with 5 different PV setups with 5 inverters

Operational expense

1. There are no moving parts to grid feeding power generation as such prempetive ongoing operational expense is zero

2. For electrical systems the only cost is equipment burnout expense; in this project that would be circuit breakers which retail at Rs 4000-5000 - very similar to our flat circuit breakers and wiring setups

3. Solar panels and Inverters come with full replacement warranty of 10 years which covers the full lifespan envisioned for the project

4. The panels have to be washed with a hose pipe twice a month, or on demand if dirty - existing HK labor will be used for this purpose

Life of solar project

1. The life of the solar project depends largely on the efficiency of solar panels and inverters which also form 80% of the project expense

2. As such we plan to envision the life of the project optimistically to be equal to warranty of the products provided i.e. 10 years

3. The claims however say that life of such a project can easily stretch to 15 years, which means from our perspective 5 years after first initial 10 years are entirely a bonus

4. The contract with MSEB is valid for 20 years during which we stay immune to all changes to DISCOM rates or plans, which means we HAVE an option to re-invest after 10 years to repair and revive inefficient components to then updated technology and leverage the next 10 year period

Can I implement this for my own flat?

1. For individual consumers, they would have to sign contract with MSEB independently, like how we are signing net metering contracts for 5 consumers - 4 SOJ buildings + 1 SOJ common

2. MSEB isnt heavy and rewarding on smaller consumers below 5kW power generation plants - there isnt enough volume for them to absorb - so the effort may not be not worth it - no flat may be consuming that much electricity in any housing society -/- if its an independent bungalow / row house kind of setup , its a different usecase

3. There is no more sun facing space for installing any more panels in SOJ, we would have exhausted all available terrace space

4. SOJ electrical wiring does not allow and space to affix member wise inverter setup , no practical arrangement can be done

Economics for society members

If the general body decides to implement the project by majority, your capital investment shall be welcome by 15 March 2021. Waiver of Rs 1000 per month shall be offered from April 2021, until March 2031. If you do NOT choose to invest now, you will continue to pay Rs 1000 per month towards electricity charges as it is today. If you do NOT choose to invest now, there will be a need for MC to collect the shortfall capital from other willing members. In such a case the member who invests more gets an additional waiver. You may NOT get the opportunity to invest again later in time, if the entire capital is raised within members who have made the positive choice today. If there is an opportunity to invest later and if you choose to do so, please note that end date of the waiver remains the same i.e. March 2031. Meaning to say, the earlier you invest, more will your returns on investment be.