How to build a solar power plant

As the global demand of electricity is on the rise, the reason to establish solar power plants is also increasing. Besides establishing conventional energy sources like oil, gas and coal based power plants, other energy sources like solar-based power plants are also being established. Ground mounted solar power plants require environmental assessment, feasibility, grid connection, siting etc., which is typical for a large industrial project. Installing a solar power plant requires comparatively more time than a rooftop residential solar installation.

Countries having subsidy program like tax rebates implement solar farms on different locations to provide electricity to masses. Due to availability of solar panel, solar inverters and installation expertise, building a solar power plant is quite easy and affordable. On the other hand, the permits and regulations for building a solar power plant or a solar farm vary from country to country. Before building a large-scale solar power plant, some major steps are required move ahead. These requirements are comparatively less for building a small size solar power plant in the range of 5 MW.

Basic steps required to build a Solar Power Plant are below:

• Choosing the site: Selecting a feasible site for building the solar power plant is important. The site should be free from shadow and trees. The area must have easy access to the roads, transportation and the power grid. 

• Financial Analysis: Initial financial analysis with information like the solar insolation, land costs, interconnection possibility with the power grid operator.

• Land Acquisition: Land acquisition starts with the transfer of ownership and leasing from government.

• Engineering Design/Selection of the Technology: An engineering layout is prepared along with the selection of the technology and vendors for solar equipment.

• Permitting: Various permitting steps are followed. This is specific to an area and can be quite cumbersome. Permitting involves heavy costs forming almost 15-20% of the cost of a Solar Power Plant Project.

• Power Purchase Agreement: A Power Purchase Agreement (PPA) is signed with the Power Utility who will buy the Electricity.

• Financing: Financing of the Solar Power Plant Project is prepared. Initial investment for Solar Power Plants is high with very low operation and maintenance costs. Typically, 60-80% of the Project is Debt Financed.

• Testing and Connection to Grid: When the Solar Power Plants are established, testing of the plant must be done before connecting to the Power Grid.

• Operation & Maintenance: A solar power plant has a life span of 25-30 years and requires less maintenance and monitoring. Solar Inverters is replaced after 10-15 years. In case a Solar Module fails, it is replaced as it degrades the performance of other Solar Panels.

Building a solar power plant needs project management and technical skills distinctive of an industrial project with some unique features.

The above steps are a simplistic approach for building a solar power plant. The process in fact requires in depth and concrete execution skills. A solar power plant is built within a span of 3 months to 2 years depending on the permitting and the expertise required.