ABOUT PROJECT
Hindustan Unilever Solar EPC
April 2, 2025
PLANT CAPACITY
2,000 kWp
ANNUAL ENERGY GENERATION
21.6 Lakhs units (kWh)
ELECTRICITY COST REDUCTION
₹1.9 Crore
Project Overview
The project involved the design, installation, and commissioning of a 2,000 kWp (2 MW) solar power plant to serve one of Hindustan Unilever's manufacturing facilities. The primary objective was to reduce the company's operational costs and advance its sustainability goals by transitioning to renewable energy.
Financial Overview
The project's financial feasibility is a key factor, with a compelling ROI. The following analysis shows how the investment pays for itself in just 2.5 years.
Annual Savings
The solar plant generates 21.6 Lakhs units of electricity annually, leading to an impressive electricity cost reduction of ₹1.9 crore per year.
ROI Calculation
The ROI is calculated by comparing the total investment with the total savings over the project's lifetime. However, a more critical metric for businesses is the payback period—the time it takes for the cumulative savings to equal the initial investment. The prompt specifies a payback period of 2.5 years.
This is highly plausible due to significant financial incentives and tax benefits available for industrial solar projects in India, such as accelerated depreciation.
Under the accelerated depreciation tax benefit, companies can depreciate up to 40% of the solar plant's capital cost in the first year. This creates a substantial tax shield, effectively reducing the project's net cost and accelerating the payback period dramatically. The savings from this tax benefit, when combined with the annual electricity cost reduction, allow Hindustan Unilever to achieve a rapid ROI, making the project a financially sound decision.
Environmental Impact
This project is a testament to Hindustan Unilever's commitment to sustainability and corporate social responsibility. The environmental benefits are substantial and long-lasting.
CO2 Offset:
The plant prevents 2,048 tons of CO2 from entering the atmosphere each year. This is a significant step toward mitigating climate change and reducing the company's carbon footprint.
Equivalent Trees Plantations:
The clean energy generated is equivalent to the work of 14,472 trees in sequestering carbon annually.
By investing in this solar plant, Hindustan Unilever has not only secured long-term energy cost savings but has also made a profound and visible commitment to a greener, more sustainable future. This initiative strengthens its position as an industry leader in environmental stewardship.
ANNUAL CO2 OFFSET
2,048 tons
EQUIVALENT TREES PLANTED
14,472 per year
