What Is a Solar Power Purchase Agreement (PPA)? A Simple Guide for Indian Businesses
Aug 24
We’re here to help from site visit to commissioning – GSE renewables handles it all.
| Model | 100kW Solar Price |
| 100kW On-grid solar system | Rs. 35,00,000 |
| 100kW Off-grid solar system | Rs. 40,00,000 |
| 100kW Hybrid solar system | Rs. 50,00,000 |
| Key Components | Details |
| Key components | Solar panels, solar mounting structure, solar inverter, solar batteries (optional), the balance of system (cables, fuses, MCBs, and Distribution boxes) |
| Energy output | 430 to 480 kWh of electricity per day | 14,400 kWh per month | 1,72,800 kWh per year |
| Area required | A shade-free space of approximately 600 Sq. Mtr. is needed to install a 100kW solar system. |
| Sr.No. | Solar System Details | Price (in Rs.) |
| 1 | Solar Panels (Shark 540 x 200) | Rs. 50,00,000 |
| 2 | Inverter (50kW x 2) | Rs. 4,40,000 |
| 3 | Panel Stand (High Rise Panel Stand) | Rs. 4,00,000 |
| 4 | Wire (DC & AC Wire) | Rs. 90,000 |
| 5 | DCDB & ACDB | Rs. 50,000 |
| 6 | Lighting Arrester & Earthing Kit (3) | Rs. 40,000 |
| 7 | Installation Cost (Rs. 3 per watt) | Rs. 3,00,000 |
| 8 | Net Metering | Rs. 50,000 |
| 9 | Annual Maintenance Cost (1% to 2%) | Rs. 11,25,000 |
| Rooftop Solar System Capacity | Applicable Subsidy (Rs.) |
| Up to 3 kW | 14,588/kW |
| Above 3 kW and up to 10 kW | 7,294/kW* |
| Above 10 kW | 94,822** |
| * Rs.14,588/kW for the first 3 kW and Rs.7,294/kW for the rest of the capacity up to 10 kW. ** The subsidy amount is fixed for rooftop solar systems above 10 kW capacity. | |
| System | Benchmark Cost (Rs./W) |
| 1 kW | Rs. 51.10 |
| Above 1 kW to 2 kW | Rs. 46.98 |
| Above 2 kW to 3 kW | Rs. 45.76 |
| Above 3 kW to 10 kW | Rs. 44.64 |
| Above 10 kW and up to 100 kW | Rs. 41.64 |
| Above 100 kW and up to 500 kW | Rs. 39.08 |
Get a free quote from GSE Renewables. Connect with our solar experts or reach out directly to get started.
| Parameter | CAPEX (Own the System) | OPEX / RESCO (Buy Solar Power) |
| Upfront Investment | Rs. 35 lakhs to Rs. 55 lakhs | Zero (developer funds the plant) |
| Ownership | Yours from Day 1 | Developer owns the plant for PPA tenure (typically 10 to 25 years) |
| Estimated Monthly Generation | 12,000 to 15,000 kWh | 12,000 to 15,000 kWh |
| Monthly Savings vs Grid | Rs. 96,000 to Rs. 1,20,000 | Rs. 40,000 to Rs. 80,000 (savings = grid tariff minus PPA rate) |
| Payback Period | 4 to 7 years | Not applicable (no investment to recover) |
| Rooftop Area Required | 600 to 700 sq. mt. | 600 to 700 sq. mt. |
| Tax Benefit (Accelerated Depreciation) | Yes, 40% AD benefit available | Not applicable |
| Who It Suits Best | Factories, hospitals, institutions with capital and a long-term ownership mindset | Businesses looking for immediate savings without capital expenditure commitment |
For a 100kW commercial solar system in India, the following approvals are typically required:
GSE Renewables manages the entire approval process on behalf of clients. Visit our Industrial Rooftop Solar page to understand what our end-to-end project execution covers.
A 100kW rooftop solar installation requires a minimum of 600 sq. mt. of unshaded, structurally sound rooftop or open land. Key factors that determine suitability include:
If you are unsure about your rooftop, request a free site visit from GSE Renewables. Our engineers will assess shadow patterns using solar path software and deliver a detailed generation report before any commitment.
The payback period for a 100kW solar system cost in India depends on several factors: your current electricity tariff, the quality of solar components selected, shadow-free rooftop availability, and local irradiation levels. As a broad reference:
Post payback, the system continues to generate free electricity for 20 to 25 years, translating into a significant long-term return.
Whether a 100kW solar for factory can meet 100% of energy needs depends on the factory’s operating hours and load profile. For factories that operate primarily between 8 AM and 6 PM, a well-positioned 100kW on-grid system can offset 50% to 80% of the total electricity bill. Factories running night shifts or heavy loads above 200 kVA would benefit from a larger capacity or a hybrid approach combining solar with grid and battery backup.
GSE Renewables has deployed over 30 MW of commercial and industrial solar projects across India. Whether you are evaluating a 100kW solar system for your factory, hospital, institution, or rice mill, our team provides site visit, system design, and end-to-end project commissioning at no obligation.
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