Table of Contents
Can I produce electricity and sell it?
Install and sell If you want to make money by selling electricity back to the grid, you’ll have to generate more than you use. That’s why it’s called “net metering.” A special meter measures net electricity generated and the utility company pays you for it.
Is it legal to produce electricity?
The generation of electricity (except hydro) is an activity that does not require a licence. Distribution, transmission and trading of electricity are licensed activities under the Electricity Act. Before the Electricity Act entered into force, the activities of generation and distribution were state-owned.
Can we sell electricity to govt?
A farmer having a 10 kV solar power facility can earn up to Rs 50,000 a year by selling excess power to the government. It is after using power for her/his own use. About Rs one lakh needs to be invested to instal one kV of solar power. A dedicated feeder will be installed for this purpose.
Can I build my own electric grid?
DIY Microgrid If you have more modest power needs, you rent your home/apartment, or you don’t want the cost of a professional microgrid, a DIY option may be the best bet. Most DIY microgrids are totally separate from the main grid — they don’t use net metering, and in many cases are not even attached to your home.
Is electricity in India private or government?
Power Ministry proposes Electricity Act Amendment Bill Indian distribution utilities are largely state-owned and subsidy-driven. Regional governments provide direct subsidy payments to make-up utilities’ loss and industrial consumers pay higher tariffs to subsidise agricultural loads.
Who should I Sell my solar power plant to in India?
There are different policies stated by different states in India. If it is a roof top solar project for your own usage, it is highly recommended to sell it to government/current discom.
How to earn money by selling excess solar power back to grid?
Ravi then approached a solar dealer and after a detailed discussion, the dealer advised him to install grid-tie inverter in his home. Grid-tie inverter would not only reduce his monthly electricity bill by running his home load on solar but would also help him earn money by selling the excess solar power produced by solar panels back to the grid.
Why should you invest in direct sale of solar energy projects?
Direct sale to state-owned discom is recommended owing to stable returns, assured payments and better appreciation by lenders. As per the prevailing trend & recent development in solar energy sector in India, investment percentage has gone down as the deciding factors for viability of projects got severely changed.
How can I earn 15\% internal rate of return on electricity?
Add land cost , transmission line and liasoning charges. You will get Internal Rate of Return of >15\% if you can sell power upwards of Rs. 6 net. For Debt: Equity of 75:25,11\% interest & 10 year tunure, you can pay EMIs from generation revenue at Debt service coverage ratio (DSCR) of 1.1 to 1.2!