Project Report on Installation of Solar Panels for 20KWh Electricity Consumption

PROJECT REPORT

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
It is essential for business entities to choose a project in an effective manner so that
higher return can be gained. There are a range of techniques to select a project among various
kinds of projects (Franková, Drahosová and Balco, 2016). The project report is based on a
company that is APIC Project Development & Optimization Pty Ltd. There are different kinds
of projects and company wants to choose a project. For this purpose, proper analysis has been
done in the report such as sensitivity analysis, cash flow analysis and stakeholder engagement.
The selected project for this report is Installation of new solar panels for 20KWh electricity
consumption per day. This project’s viability and sustainability has been analyzed under the
report.
MAIN BODY
Project- The project for Project Development & Optimization Pty Ltd is of Installation new
solar panels for 20KWh electricity consumption per day. This is so because it can be helpful for
above company in order to minimize consumption of electricity. Herein, below viability of this
project has been analyzed in such manner that is as follows:
 Explanation in term of conducing analysis, making decisions and assumptions
As above stated that above mentioned project is related to installation of new solar panels
which can be helpful for reducing electricity charges. As well as project seems to be suitable for
Australian government policy. Herein, below possible advantages for installing this project are
as follows:
Less costly- The installation of solar system will be useful for above company in order to reduce
cost of electricity. This is so because by help of it, above company will be able to save cost of
maintenance.
Technology development- Solar energy technology is continually evolving and developments in
the future should be stepped up. Quantum physics and nanotechnology advances will

theoretically improve the efficiency of solar panels and the electrical performance of solar
energy devices may be double or triple (Ewin, Luck, Chugh and Jarvis, 2017).
So these are some common benefits which can be helpful for above company if they will install
this project than it can lead to lower cost with higher efficiency.
 Cash flow analysis-
Cash Flow Analysis is an evaluation of the revenue inflows and outflows of a business from
sales, financing transactions and expenditure transactions. In other terms, it explores how the
organization produces the revenue, where it comes from, and what the meaning of the business
as a whole entails.
Particulars Amount (in $ million)
Total expenses:
Loan amount @75% of project cost 50
Annual EMI (Including principle + interest @
10% per annum)
6
Annual staff and admin cost 10
Total expenses for year 66
Total revenues:
Net energy produced in KWH (365*20 KWH) 7300
Plant load factor (PLF) per year (1*24*365)=
8760 KWH
83.33%
Power purchase agreement (PPA) @ 83.33%
KWH cost (83.33*700)
0.68
Revenues due to sale 70
Net cash flow (0.68 MILLION + 50
MILLION)
70.68
Net balance amount (70.68-66) 4.68