IMPLEMENTATION OF SOLAR POWERPLANT IN SAFE PACKAGES (Small & Medium Enterprise)

Abstract

Safe Packages Pvt Ltd is a Small and Medium Enterprise (SME) that manufactures plastic sheets and films. The company is located in Karachi, situated in Sindh Industrial and Trading Estate (SITE). Safe Packages is interested in installing photovoltaic solar panels on its roof. The reason for installing photovoltaic solar panels on its roof is that the company wants to switch from K-Electric electricity supply to efficient renewable energy. The company incurs costly electricity bills which impact heavily on the financial health ofthe company. Safe Packages is facing a problem where it has to pay high electricity prices, not only this the unreliable electricity supply is also a major problem which is forcing Safe Packages Pvt Ltd towards installing photovoltaic solar panels. In Pakistan major concern the industrialists are facing is the high energy and power tariffs. This increases the industry's cost of production which negatively impacts the country's global export competitiveness. The factory's annual consumption of electricity and production of electricity through solar power will be producing more electricity than their annual consumption and there will be a surplus of 1,459 units (or Kwh) annually according to our calculation that we have done in this report. This surplus electricity will be exported to K-Electric at the specified rate which is Rs.l6/kWh at the moment. So in this way, the expected the net metering benefit will of 22,615 rupees atfirst year but inflation effectis also incorporated so this figure mightincrease due to inflation over the years. The payback period will be during Year 3 which means that during Year 3, the cost ofthe investment will be recovered or we can also say thatthe break point is at 3rd Year. According to our calculations, the average cash flow stream thatthe company will get the benefit or the company will save around Rs. 3.5 million approximate for the next 25 years ofthe project. even The primary focus ofthis report is to create a feasibility model that gives us a clear picture of installing a photovoltaic solar panel on the roof of Safe Packages Pvt Ltd and to give us a better understanding ofthe installation cost and the cost-benefit Safe Packages Pvt Ltd will have by shifting towards solar energy. The report will also give us a clear picture that ifthe Small and Enterprise (SME) shifts towards solar energy what impact this will have on the Medium financial health ofthe company, the cost savings company can do, and also increase its market We also want to know the cost-benefit analysis renewable energy have on the industrial sector especially on the Small and Medium Enterprise (SME) ofthe country. In preparing this report we have also taken technical advice from Sky Electric. Given the cost of the solar power system, it was pertinent for Safe Packages Pvt Ltd to determine whether the installation is an effective investment or not. Solar panels technically have a life span of around 20-30 years depending upon the material used.