Delhi SME Industry are paying ₹18.37/ unit of electricity consumed !- Better opt Solar Power

If you are an SME in Delhi into small scale manufacturing, you may be paying ₹18.37/ unit of electricity consumed !

Delhi SME Industry are paying ₹18.37/ unit of electricity consumed !- Better opt Solar Power

 Aditya Goel

We received the electricity Bill for our Lithium-ion batteries production facility which we have set up at Okhla in Delhi

This is as against the notified industrial Tariff of ₹8.50/ unit

This is the Break-up

Billing Period : 7-Feb to 15-Mar
Consumption : 5,734 units = 160 units /day

Sanctioned Load : 96 KVA
Fixed Charges @250/ KVA = ₹30,470

Energy Charges @8.50/ unit = ₹48,739

PPAC on Fixed Charges = ₹4,921
FPA / PPA charges = ₹7,882
Surcharge @8% = ₹6,337
Electricity Tax @5% = ₹3,026
Pension Surcharge @5% = ₹3,960

Taxes per Unit = ₹4.55 / unit

Total Bill Payable = ₹1,05,330

Effective Per unit cost = ₹18.37/ kWh

While none of these taxes / surcharges are hidden, it definitely is a shock when you do the math & realise how expensive electricity is for small industries in India

And when you put the consumption in perspective - just 32 kW of Solar can offset all 5,734 units and bring the effective tariff down from ₹18.37 to ₹6/ unit

32 kW requires ~2,500 sq ft of Roof Space, which I would imagine is available at most factories?

This would be a great business model to get a loan for the capex of solar setup and payback using the OPEX savings. The Capex for setting up a 2500 sq ft facility is around 12-15 Lacs.

Going off-grid will save fixed costs paid for reliability. However you will have to shell out more to achieve same level of reliability as that of grid power. Understanding the technical part of grid power consumption and role of consumption optimisation to avoid exorbitant fixed charges is critical. Battery plus storage is attractive solution. However, mostly suitable for predictable load pattern with nearly constant or moderate variation.