What is the profit of photovoltaic power generation?

For example, if you invest in the construction of a 5MW photovoltaic power plant on the roof of your own company in Beijing, the construction investment is about 35 million yuan, and you can generate 6 million kilowatt-hours of electricity every year. You sell 50% of your electricity to your own company (spontaneous use). 0.8 yuan per kilowatt-hour, the remaining electricity sold to the State Grid (remaining electricity on the grid) 0.39 yuan per kilowatt-hour, the state subsidizes you 0.42 (20 years) per kilowatt-hour, Beijing 0.3 yuan per kilowatt-hour (5 years) . Then you are equivalent to 3 million kilowatt-hours, and sold 1.52 yuan for 5 years, 1.22 yuan for 15 years, and 3 million kilowatt-hours, 1.11 for 5 years, and 0.81 for 20 years.

In Putonghua, your income from electricity sales for the first 5 years is 7.89 million yuan / year, and for the next 15 years is 6.09 million yuan per year. Of course, you also have to consider the solar panel attenuation of 0.05% per year, the linear depreciation of the equipment for 10 years, the annual inflation of 3%, the income tax from the 10th year, the inverter replacement in about 10 years, various insurance inputs, and friction. Money for glass and half the value added tax.

To sum up, the IRR of a 20-year total self-funded investment of a photovoltaic power plant mentioned in the above example is about 16% to 18%. If you are renting someone else ’s roof, you generally have to pay another 5MW roof each year Expenses ranging from 250,000 to 500,000, so your IRR will drop to 14% -15%.