Project Report: Analysis of Solar Panel Installation for APIC Project

This project report analyzes the viability of installing new solar panels for APIC Project Development & Optimization Pty Ltd, focusing on a 20KWh electricity consumption per day. The report details the project's benefits, including reduced electricity costs and alignment with government policies. It includes a cash flow analysis projecting revenues and expenses, as well as a sensitivity analysis assessing the impact of interest rate changes and economic factors. A work breakdown structure (WBS) outlines the project's tasks, durations, and dependencies. The report recommends the project based on its cost-effectiveness and alignment with government regulations, and also includes a Gantt chart for project scheduling and a stakeholder engagement analysis to ensure project success. The conclusion reinforces the importance of thorough project analysis and recommends the solar panel installation for APIC.

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

 A sensitivity analysis with respect to interest rate and economic analysis
A sensitivity analysis describes how different values of an independent variable
under a series of conditions influence a given variable. In other terms, critical research
examines how multiple causes of vulnerability lead to total instability in a mathematical
model. This strategy is used under such constraints which are based on one or more input
parameters. For industry and finance, specificity analyzes are used. It is widely used by
economic and financial experts and is often called a whatever-if analysis.
Interest rate sensitivity analysis- The sensitivity of the interest rate is a indicator of the degree to
which the price of a fixed-income commodity is affected by adjustments in the interest rate
setting (Pollack, and Adler, 2016). Very volatile securities see greater volatility in rates than less
responsive securities. In regards to above company’s project this analysis has been done below in
such manner that is as follows:
In above company’ the project is being adopted on the behalf of loan of 75% of total cost
of project. The interest rate is of 10% which can be increase and due to which they may
face below situation:
Interest rate at 10% Interest rate at 12%
Total payable amount 50 million 60 million
Impact on EMI 6 7
Sensitivity analysis with respect to economic analysis- Due to changes in economic
factors may lead to positive and adverse impact on above company’s project. Such as in
Australian economy if there will higher changes than like change in policies, regulation
regards to installation of solar panel can affect project. Thus, this is essential for
company to consider these economical factors so that their project can produce expected
outcome which they want.
 Development of the total project cost as well as providing clear work breakdown
structures (WBS)

Total cost of project- Total project costs imply the estimated overall project costs for operating
and repair costs and the costs of mobilization during the development process, even for the
purposes of preventing concerns (Chawla, Chanda, Angra and Chawla, 2018). In regards to
above company’s project, cost is estimated below in such manner that is as follows:
Serial
number
Details Cost in $ million % of cost
1 Solar PV modules 10 15.38%
2 Solar invertors 15 23.07%
3 Transformers 5 7.69%
4 Proactive devices 1 1.54%
5 Wire and cables 1 1.54%
6 SCADA/RMS 10 15.38%
7 Project execution 3 4.61%
8 Construction cost 5 7.69%
9 Grid evacuation 10 15.38%
10 Other official works 5 7.69%
Total cost 65 100%
Work break down structure- A work breakdown (WBS) framework is a deliverable-
oriented breakdown of a project into smaller parts in project management and in network
engineering. A framework for work breakup is a crucial activity that arranges the function of the
team in manageable parts. "Hierarchical breakdown of the overall scope of work worked out by
the project team to achieve project goals and to produce the necessary deliverables" is described
in the Project Managements Body of Knowledge. In regards to above company’s project, WBS
has been produced below that is as follows:
Serial
number
Task name Duration Start Finish
1.Design and purchase 7 days 25/11/19 2/12/19
1.1 Components design 2 days 25/11/19 27/11/19

1.2 Labor requirement
design
1 days 27/11/19 28/11/19
1.3 Procurement of labor 3 days 28/11/19 1/12/19
1.4 Purchase of
components
1 days 1/12/19 2/12/19
2. Civil work 5 days 2/12/19 7/12/19
2.1 Erection of poles 5 days 2/12/19 7/12/19
3. Installation works 15 days 7/12/19 22/12/19
3.1 Installation of solar
panel
7 days 7/12/19 14/12/20
3.2 Installation of battery 2 days 14/12/20 16/12/20
3.3 Installation of charge
control
2 days 16/12/20 18/12/20
3.4 Installation of lamps 2 days 18/12/20 20/12/20
3.5 Installation of sensors 2 days 20/12/20 22/12/20
4. Inspection and
Commissioning
4 days 22/12/20 26/12/20
4.1 Commissioning 3 days 22/12/20 25/12/20
4.2 Inspection 1 days 25/12/20 26/12/20

 Reason for recommending project- The key reason for recommending project is its
viability. As the cost of project is lower and expected revenue is also higher. This is
showing that if above company will make invest in the project than it will be beneficial
for them. In addition, this project is linked to regulation and policies of government. So
due to these reasons, above company should make invest in their project.
 Gantt chart- A Gantt diagram is a visual illustration of a business schedule. This is a bar
chart that displays the start and finish dates of a variety of project components, including
funding, deadlines, progress and commitments. The Gantt map was designed by Henry
Gantt, an American mechanical designer.

 Stakeholder engagement- The involvement of stakeholders is the mechanism by which
businesses connect and learn about their teams (Frijns, Van Leeuwen and Bierwolf,
2017). Through understanding them, businesses will consider more what clients desire,
how dedicated clients are and how the strategies and behavior of organizations impact
their goals while they want it. They may also enhance coordination and revisit their
tactics and activities for long-term benefits such as brand credibility or first mover value.
Herein, below stakeholder analysis is done below:
Stakeholder Power Interest
Renewable energy project
developers
They have power to make
huge modification in solar
project.
To get monthly wages from
company.
Non government
organization
Power to make changes in
policies and regulation.
To get monthly taxation
charge from company.

Land use authority They have power to change
location of plant.
To get monthly rent on
equipped location.
Owner Power to make huge
changes in project.
To gain higher revenues.
CONCLUSION
On the basis of above project report, this can be concluded that companies need to make
proper analysis of available alternatives of project. This is so because in error in project may lead
to huge financial loss. The report is based on a company‘s project which is related to installation
of solar panel. This has been evaluated by various techniques such as cash flow analysis, WBS
and cost analysis. The report concludes that above company should consider that project.

REFERENCES
Books and journal:
Frijns, P., Van Leeuwen, F. and Bierwolf, R., 2017, June. Project management-A more balanced
approach. In 2017 IEEE Technology & Engineering Management Conference
(TEMSCON) (pp. 234-238). IEEE.
Chawla, V., Chanda, A., Angra, S. and Chawla, G., 2018. The sustainable project management:
A review and future possibilities. Journal of Project Management, 3(3), pp.157-170.
Franková, P., Drahosová, M. and Balco, P., 2016, January. Agile Project Management Approach
and its Use in Big Data Management. In ANT/SEIT (pp. 576-583).
Ewin, N., Luck, J., Chugh, R. and Jarvis, J., 2017. Rethinking project management education: a
humanistic approach based on design thinking. Procedia Computer Science, 121, pp.503-
510.
Pollack, J. and Adler, D., 2016. Skills that improve profitability: The relationship between
project management, IT skills, and small to medium enterprise profitability. International
Journal of Project Management, 34(5), pp.831-838.