Cost Assessment of Labor for 1MWp Solar Power: Key Success Factors

Labor costs for installing 1MWp solar power typically account for about 10-15% of the total investment, equating to 1.2-2 billion VND out of a total cost of 12-13 billion VND.

Overall Investment Costs for Solar Power

The investment for a 1MWp solar power system ranges between 12-13 billion VND. This investment encompasses solar panel systems, inverter, frames, materials, cabling, and labor.

Amidst a rapidly growing energy market, investing in solar power systems is becoming an attractive choice for businesses. When considering total investment, various factors such as capacity, system type, and equipment used need to be assessed.

Here’s a detailed look at the costs for different solar power systems:

• Grid-tie solar systems:

• With a capacity of 3 kWp, costs range from 30 to 45 million VND, producing 360 kWh monthly over an 18 m² area.

• A 5 kWp system costs between 55 and 65 million VND, yielding 550 – 600 kWh/month requiring about 25 m².

• A 10 kWp system requires approximately 90 to 100 million VND, generating 1,200 kWh/month over 50 m².

• The average cost for grid-tie systems is from 10 to 11 million VND/kWp.

• Storage/hybrid systems:

• These systems typically require higher investment, costing between 20 to 26 million VND/kWp.

• A 5 kWp system with 10 kWh storage can cost from 100 to 130 million VND, producing 600 kWh/month.

Important Installation Note: Each 1 kWp demands 6-8 m² of solar panel space, influencing site selection and type of installation.

Beyond installation costs, maintenance expenses should also be considered. The average cost for cleaning and inspecting the system is about 1 million VND annually. Payback periods for grid-tie systems usually range between 3-4 years, depending on electricity consumption and current electricity prices.

To conclude, investment costs for solar power systems are influenced by factors such as installed capacity, system type, and technology utilized. A careful investment in these factors ensures economic efficiency and financial optimization for businesses.

Proportion of Labor Costs in Solar Systems

Labor costs for a 1MWp solar power system constitute about 10%-15% of the total investment, ranging from 1.2 to 2 billion VND. This percentage varies based on technical requirements and the project’s geographical conditions.

Within solar power systems, labor costs, though a smaller component, are essential. They typically account for around 5% of total investment in rooftop solar projects. Specifically, for a 1MWp capacity solar system, these costs cover crucial stages such as installation implementation, system setup, testing, trial operation, grid connectivity, and operation & maintenance (O&M) costs.

The full installation package cost for solar systems can range from 10 to 18 million VND per every 1 kWp, depending on location, panel type, and roof structure complexity. For instance, a 1MWp project might have a total cost around 12 to 13 billion VND, with labor costs ranging from 600 to 650 million VND.

Composition of Costs in Solar Power Systems

• Support frames and mounts: 10% of total costs, including steel frames and mounts.
• Peripheral equipment: 5%, including junction boxes, DC/AC cabinets, and accessories.
• Labor and installation: 5%, covering system installation and quality checks.
• Remaining costs: 80%, concentrated on solar panels, inverters, cables, and key equipment.

Although labor costs constitute a small fraction, they are indispensable for ensuring the system functions technically well. Residential rooftop solar projects ranging from 3 kWp to 15 kWp may incur costs from 40 to 250 million VND, encompassing labor and materials. This highlights the importance of labor cost proportions despite not occupying the major budget share.

For equipment selection, panels and inverters are the main elements affecting overall costs and performance of the solar system. Quality brands like ABB, Schneider, or Mitsubishi are preferred for their reliability and high efficiency.

Factors Affecting Solar Power Labor Costs

Labor costs may be influenced by technical requirements, installation terrain, project scale, and specific technical standards. Thorough surveying is crucial.

In the renewable energy industry, labor costs are pivotal in determining overall project costs for solar power installations. To better understand the impact of these factors, let’s delve into the core aspects.

• System scale and capacity: The system’s scale is crucial when assessing labor costs. With higher capacity, the number of panels and equipment increases, heightening labor demand and construction time. This causes labor costs to increase exponentially.
• Complexity and construction conditions: Solar installation conditions directly affect labor costs. Projects at hard-to-reach or complex terrains require more resources and supporting equipment, increasing costs.
• Material and equipment quality: Using components like specially designed solar panels or frames demands skilled workers, leading to higher labor costs.
• Technical standards and installation processes: Adhering to strict technical standards prolongs construction time and adds procedural steps, influencing labor costs.
• Labor expertise level: Skilled labor ensures better project quality, yet higher labor fees ensure effective construction with minimal errors.
• Work volume and construction time: Large volumes demand more labor and completion time, impacting labor costs directly during project execution.
• Local policies and regulations: Minimum wage policies and occupational safety regulations affect labor cost structures in each area.

These factors not only affect labor expenses but also impact material and equipment costs for solar projects, requiring thorough analysis and planning for each specific project.

Composition of Solar Power Costs

Total solar power costs include panels, inverters, frames, and materials, with installation and labor as smaller cost components.

Investing in solar power today has become more popular, and to achieve optimal efficiency, managing related expenses is crucial. The main components that make up the cost of a solar power system include:

1. Main equipment costs: These constitute the largest cost portion and include key devices such as:
   – Solar panels: The type and capacity of panels, like mono or poly, directly impact cost. Popular capacities like 3 kWp, 5 kWp, 8 kWp, 10 kWp should align with user needs.
   – Inverter: Converts DC from solar panels to AC for home use, crucial for grid connection or standalone use.
   – Frames and installation accessories: Comprise metal frames, wiring connectors, and safety ensuring breakers.
2. Construction and installation costs: Cover labor costs for assembling, connecting panels, and inverters to existing electrical systems, ensuring efficient power output.
3. Design, survey, and permitting costs: Pre-installation surveys and system design suitable for homes/factories. Additionally, permitting and connection may incur additional costs depending on location.
4. Operation and maintenance costs: Include regular maintenance activities, operational checks, and possible equipment repairs. Solar systems have a long-term durability of 20-25 years, resulting in relatively low maintenance costs.

Some important investment cost references:
– Small family systems cost approximately 13 to 17 million VND/kWp, depending on the scale.
– Larger systems benefit from scale efficiency, with a 1 MWp system having a unit cost of about 12-13 million VND/kWp.

Popular cost calculations focus on the desired solar power capacity or based on average monthly consumption. Accurate cost planning helps optimize investment and leverage this energy source efficiently.

Understanding accurate labor costs for installing 1MWp solar power is crucial for cost optimization and enhancing investment efficiency. With the growing demand for renewable energy, optimizing resources is a long-term strategy for investors.

Contact QuangAnhCons through hotline +84 9 1975 8191 for consultancy and cost-effective solar power solutions.

QuangAnhCons offers comprehensive solar power system installation services from consultation to construction, committed to delivering quality service and optimizing costs for every project.