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Understanding CPP: Exploring the Functions of Captive Solar Power Plants in Industries | Australian Premium Solar

Australian Premium Solar For Businesses
August 29, 2024

A few years from now, most industries are expected to transition to solar energy because of the rising electricity costs and the environmental issues associated with fossil fuels. However, many traditional businesses are situated in areas with space limitations, making it difficult to install solar power systems. Additionally, these businesses typically have higher energy consumption rates, making rooftop solar installation impractical. As a solution to these challenges, the Captive Power Plant (CPP) is seen as a viable option.

A Captive Solar Power Plant is an energy generation plant created for private industries and commercial use. It involves the installation of solar power panels on designated empty land by a specific organization. Typically, industries requiring 4 MW or more of energy opt for CPP. The significant advantage of this method is that the company has full ownership of the solar power plants and can maximize savings on their production costs.

Where to purchase land?
Organizations usually should seek advice from experts before purchasing land. Regardless of the location of your industry, your captive power plant should be situated within 5-7 kilometers of the DISCOM from which you receive your electricity.

How does this work?
The energy generated by your solar power plant will be sent to the nearby (registered) DISCOM. In simple terms, you will sell your solar power to DISCOM. Then the DISCOM will provide you the electricity as usual. However, the difference will be that now you will be using almost free energy*. How? Let’s understand this with an example.

For instance, your production center requires 16 lakh units/year to continue operations. Experts like APS recommend installing 1 megawatt (MW) captive power plant. With this solar plant, you can generate 1.6 million units for free. This means you won’t have to pay for electricity if your energy consumption stays below 1.6 million units. If you use more than that, you’ll only have to pay for the excess units.

Sounds beneficial, right? It is. With captive power plants, the company will not only save on energy bills but also reduce the CO2 and emission gases in the environment.

If you want to receive a FREE QUOTATION for a captive power plant (CPP), click here – Fill out the form and we will provide you with the best deal.

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