Industrial and Commercial Distributed Photovoltaic Power Station| Stable Return of Investment

In any industrial and commercial PV project, the most concerning factor, in addition to the investment model, is the calculation of returns.

2. Energy management:

Electricity discount: a certain discount to the owner's electricity price(usually 5%-15% discounts). The common mode is only the excess mount of power generated after the owner’s consumption will be exported to the grid.

Roof rent: rent the owner's roof and affiliated places. In principle, the rent shall not exceed the market price (market price is 3-6 yuan / square meter / year)

Joint venture: convert the owner's roof rent to shares, or the owner invests part of the funds for shares of the project company to construct together and share revenues as well as risks.

All kinds of cooperation methods have their own pros and cons, and require a friendly negotiation based on actual conditions and demands.  

It is based on free use of factory roof resources to build 2MW distributed photovoltaic projects. The total investment of the project is about 8 million yuan (the investment price is set at 4 yuan / watt), purely funded by the photovoltaic investor who will be responsible for its maintenance and operation for 25 years. When the plant is in operation, the power generated will be supplied to the factory as priority at a 20% off its current 0.79 yuan / kWh electricity price, say 0.63 yuan / kWh.

If this case isn’t clear enough, let’s take a look at another example of the distributed photovoltaic project in Fujian.

In this case, it is of independent investment by enterprises. The factory in Fujian is constructing a 2MW distributed photovoltaic project. The total investment of the project is about 8 million yuan (the investment price is set at 4 yuan / watt), which is 100% invested by the enterprise owner. After putting into operation, 90% of the power generated is consumed by the factory (at about 0.8 yuan per kWh) , and the rest is sold to the power company (the desulfurization coal price in Fujian Province is 0.3932 yuan / kWh).

In the absence of subsidies:

The first year of power generation 2000 kW * 1100 hours / year = 2.2 million kWh / year.

90% of the electricity generated by photovoltaics is used by the factory, and 10% of the electricity is sold to the grid. The annual income is 2.2 million degrees* [90%*0.8 yuan/degree+10%*0.3932 yuan/degree]=1.7705 million yuan.

Then calculate the annual income giving the power attenuation, and will get the investment return period is about 4~5 years.