Distributed photovoltaic power generation can generate profits through the difference in electricity bills.
For example, if you invest in a 5MW photovoltaic power plant on the roof of your own company in Beijing, the construction investment is about 35 million yuan, which can produce 6 million kilowatt hours of electricity each year. You sell 50% of the electricity to yourself. For businesses (self-use), electricity is 0.8 yuan per kilowatt hour. The rest of the electricity is sold to the national grid (the remaining electricity is connected to the grid). 0.39 yuan per kilowatt hour. The state will grant you a subsidy of 0.42 per kilowatt hour (20 years). Beijing will give you 0.42 yuan per kilowatt hour. You will subsidize 0.3 (5 years). Then you are equivalent to 3 million kilowatt hours of electricity, sold for 5 years for 1.52 yuan, sold for 15 years for 1.22 yuan, and you havealways 3 million kilowatt hours of electricity, sold for 5 years for 1.11 yuan, sold for 20 years for 0.81 yuan.
Translation In Mandarin, in the first five years, your income annual electricity sales income is 7.89 million yuan/year, and in the next 15 years, your annual electricity sales income is 6.09 million. yuan/year.
Of course, we must also consider the annual attenuation of 0.05% of the solar panels, the linear depreciation over 10 years of the equipment, the annual inflation of 3%, the tax on income from the 10th year, and replacement of the inverter in about 10 years, various insurance investments, money for window cleaning and value added tax halved and much more other factors.
In summary, the IRR of any equity investment in a PV plant mentioned in the example above for 20 years is approximately 16% to 18 %.
If you rent someone else's roof, you usually have to pay an additional fee of around 250,000 to 500,000 per year for a 5 MW roof, your IRR so will probably drop to 14%-15%
Considering some people will I use the EPC price I gave to embarrass my peers, so I reserved some space (it should there be applause for my peers. At the same time, I also ask the owners to note that the scale of the photovoltaic project will directly affect). the cost, i.e. a 500k project and a 5MW project The cost of this project is completely different from that of a 20MW project!
Link: https://www.zhihu.com/question/46411593/answer/101193418
Source: Zhihu