ABSTRACT
The evaluation specialist should be considering the total capital cost per kW and be comparing the same with the market trends and benchmark costs of similar size systems. The size of the solar rooftop PV system has a great effect on the capital cost per kWp. Smaller the systems, higher the capital cost. Solar rooftop systems are eligible for incentives provided by Central and State Governments which have direct impact on the project cost, short to medium term benefits and long term on continuous basis. Solar projects are capital-intensive in nature where most of the project life cycle costs are incurred during project construction stage. Ongoing expenses like O&M are low. The tariff can either be kept fixed over the agreed contract period, or applied with an escalation at an interval of a few years, to account for the CPI, inflation, external variables and reduction in output from the system.
