You do not need to be an industrialist to make a killing in renewable energy business. Yes, but you do need Rs 30-35 lakh as capital investment to debut in the most talked-about virgin investment avenue – wind energy.
V V Shanta Raman, secretary, Indian Wind Turbine Manufacturers Association, says to install the least capacity wind generator of 250 kw (the minimum capacity that can be installed), an individual will have to invest close to Rs 1 crore. Banks provide almost 70 per cent of the project cost as loans to install a wind generator as it comes under renewable energy.
If you think it is difficult to mobilise even Rs 30-35 lakh, 10 to 15 individuals can join together and form an association and jointly invest. It is also something that a co-operative housing society can develop if they live in a tall tower getting good wind! Its the same price you will pay for buying a house and each individual who pay for it will get income for years together.
You could even set up a smaller 3-5kw wind turbine on your building or farm at the price of an iPhone (Rs 50,000) by Avant Garde Innovations and enjoy free electricity for more than 25yrs!!! You can book at the “Booking” page here: http://www.avantgardeinnovations.com/
The advantage of investing in a wind turbine is that 80 per cent of the project cost is considered accelerated depreciation given as a tax benefit for renewable energy during the first year.
Through central- and state-level policy intervention wind energy is produced at any identified windy site in the state. The energy produced, which is supplied to the State Electricity Board’s grid, can be either sold to electricity boards or utilised against captive consumption and third-party sale on payment of wheeling charges.
About five-six lakh units of renewable energy can be generated from a 250 kw generator during the first year of installation. Tamil Nadu Electrcity Board pays about Rs 3.15 per unit, Karnataka Electricity Board pays about Rs 3.07 a unit, Gujrat pays 4.23 per unit while Maharashtra pays the highest at Rs5.81.
So if one considers even Rs3 x 5Lakh = 15,00,000 Per year income. The annual operation and maintenance cost, including insurance, works out to Rs 40,000-50,000. Wind turbine makers provide one-year warranty on the installation. This means you can surely pay off the 70 Lakh loan in 6 years and maintain a profit of at least Rs15 Lakh per year if not more!
The good news for those interested in investing in wind energy is that wind turbine manufacturers do provide assistance from ideas to installation. Suzlon and NEG Micon have a larger wind generator of 750-1,650 kw. Wind turbine makers also take care of spotting a suitable location to install and maintain wind turbines.
To set up a 250 kw wind generator all that a person has to do is approach any of the wind turbine manufacturers such as Suzlon, Shriram EPC, Pioneer Asia Wind Turbine, Vestas RRB and NEPC India or the link to the list given at the bottom of the page.
As wind is highly site-specific and may widely vary even at a distance of 1 km, on the spot, wind data is collected by ministry of non-conventional energy sources through installation of sophisticated computerized data loggers at more than 500 locations.
HIGH POINTS OF WIND ENERGY
- As wind energy comes under non-conventional energy it gets a tax break of 80 per cent as depreciation during the first year! All the other investments over Rs 1 lakh are taxed by the
- Banks provide 70 per cent of the project cost as loans at 9 per cent interest for installation of wind energy. The minimum cost of installation works out to Rs 1 crore for a 250 kw wind turbine. Thus, an individual will have to bring in Rs 30-35 lakh upfront, while the balance can be funded through bank loans.
- The energy produced can be sold to state electricity boards. In the first year of operations, almost half the amount that individuals invest – close to Rs 15 lakh –can be earned as revenues. The proceeds can be used to pay off part of the loan as well.
- Cost of operation, maintenance and insurance works out to Rs 40,000-50,000 a year. Wind turbine manufacturers give a one-year warranty on an installed turbine.
Wind energy is considered to be one of most environmental friendly way of producing energy compared with conventional energy.
A list of Wind Turbine manufacturers are available here: