1MWp Solar Power Labor Cost Estimation: Key to Success

Labor cost for installing 1MWp solar power usually accounts for about 10-15% of the total investment cost. This is equivalent to 1.2-2 billion VND based on a total cost of 12-13 billion VND.

Overall Investment Costs for Solar Power

The investment cost for 1MWp solar power system ranges from approximately 12-13 billion VND. The investment includes solar panels, inverter systems, framework, materials, wiring, and installation.

In the context of a rapidly developing energy market, investing in a solar power system has become an attractive option for businesses in Vietnam. When considering the overall investment costs, it is important to assess factors such as capacity, system type, and equipment used.

Below is a detailed look at the costs for different solar power systems:

• Grid-connected solar power system:

• With a capacity of 3 kWp, the cost ranges from 30 to 45 million VND, generating 360 kWh of electricity per month over an area of about 18 m².

• The 5 kWp system has costs from 55 to 65 million VND, producing 550 – 600 kWh/month and requiring 25 m² for installation.

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

• The average unit cost for a grid-connected system is from 10 to 11 million VND/kWp.

• Storage/hybrid systems:

• The investment for systems with storage is usually higher, with costs from 20 to 26 million VND/kWp.

• An example is a 5 kWp storage system with 10 kWh, costing around 100 to 130 million VND, producing 600 kWh of electricity/month.

Important installation note: 1 kWp requires an area of about 6-8 m² for solar panels. This can affect the decision on location and type of installation.

Besides installation costs, maintenance costs should also be considered. The average cost for system cleaning and inspection is about 1 million VND/year. The payback period for grid-connected systems is usually between 3-4 years, depending on power consumption and the current electricity price.

In conclusion, the investment cost for solar power systems is influenced by factors such as installed capacity, system type, and technological equipment. A careful investment in these factors ensures economic efficiency and optimizes finances for businesses.

Labor Cost Ratio in Solar Power Systems

The labor cost for 1MWp solar power accounts for about 10%-15% of the total investment, or 1.2-2 billion VND. This ratio varies depending on the technical requirements and geographical conditions of the project.

In the solar power system, the labor cost ratio usually takes up a small but indispensable part, about 5% of the total investment cost for rooftop solar projects. Specifically, for a solar power system with a capacity of 1MWp, these costs include critical stages such as actual installation deployment, system setup, testing, inspection, trial operation, grid connection, as well as operation and maintenance costs (O&M).

Installation costs for a complete solar power system can range from 10 to 18 million VND for each kWp, depending on the installation location, type of solar panels, and the complexity of the roof structure. For example, a 1MWp project has a total cost of about 12 to 13 billion VND, with labor costs accounting for 600 to 650 million VND.

Cost Structure in Solar Power Systems

• Framework and supports: 10% of the total cost, including steel frames and supports.
• Peripherals: 5%, including junction boxes, DC/AC cabinets, and accessories.
• Labor and installation: 5%, involving system installation and quality inspection.
• The remainder: 80%, focused on solar panels, inverters, cables, and main equipment.

Although the labor cost ratio is small, it is an indispensable part to ensure the system operates correctly technically. Rooftop solar projects for households ranging from 3 kWp to 15 kWp may cost about 40 to 250 million VND, including labor and materials. This highlights the important role of the labor cost ratio even though it does not take up a large portion of the budget.

When choosing equipment, solar panels and inverters are the main components affecting the overall cost and operating performance of the solar power system. Quality brands like ABB, Schneider, or Mitsubishi are often chosen to ensure reliability and high efficiency.

Factors Affecting Solar Power Labor Cost

Labor costs may be affected by technical requirements, installation terrain, project scale, and specific technical standards. This requires thorough surveying.

In the renewable energy industry, labor costs always play an important role in determining the overall cost of a solar power project. To better understand the impact of these factors, we will delve into the basic aspects.

• System scale and capacity: System scale is an indispensable factor when considering labor costs. With a large capacity, the number of panels and equipment needed increases, leading to a greater demand for manpower and construction time. This means labor costs will exponentially rise.
• Complexity and construction conditions: The construction conditions for solar power directly affect labor cost. Projects located in hard-to-access terrains or with high complexity will require more resources and support equipment, thus increasing costs.
• Quality of materials and accompanying equipment: When using components like uniquely designed solar panels or supporting systems, skilled workers are required, leading to higher labor costs.
• Technical standards and installation procedures: Adhering to strict technical standards increases construction time and adds more stages to the installation process, impacting labor costs.
• Expertise level of the workforce: Skilled workers provide better project quality, although labor costs will be higher to ensure effective construction and minimize errors.
• Workload and construction time: A large workload requires more workers and completion time, directly impacting labor costs during project execution.
• Local policies and regulations: Policies on minimum wage and labor safety also affect the labor cost structure in different areas.

These factors not only affect labor costs but also impact the material and equipment costs of the solar power project, requiring careful analysis and planning for each specific project.

Components of Solar Power Cost

Total costs for solar power include panels, inverters, frameworks, and materials. Installation and labor are smaller factors in this cost composition.

Investment in solar power has become more common, and to achieve optimal efficiency, managing related costs is crucial. The main factors that constitute the cost of a solar power system include:

1. Main equipment costs: This is the largest portion of costs and includes critical equipment such as:
   – Solar panels: The type and capacity of panels, like mono or poly panels, directly affect pricing. With common capacities like 3 kWp, 5 kWp, 8 kWp, 10 kWp, users must choose according to their needs.
   – Inverter (transformer): Converts DC from solar panels into AC for domestic use, playing an important role in grid connection or independent use.
   – Supporting framework and installation accessories: Includes metal frames, wire coupling kits, and a switch ensuring operational safety.
2. Construction and installation costs: Include labor costs for assembling, connecting panels, and inverters to the existing power system, while ensuring power output efficiency.
3. Design, survey, and permit costs: Before installation, it is necessary to survey the current house/workshop status and design a suitable system. Additionally, obtaining permits and grid connection can add extra costs, depending on the installation area.
4. Operation and maintenance costs: Including periodic maintenance activities, operation inspections, and equipment repair if needed. Solar power systems have a long-term durability from 20-25 years, making maintenance costs relatively low.

Some important reference figures on investment costs:
– Small family systems cost from about 13 to 17 million VND/kWp, depending on the scale.
– For larger systems, the unit price often decreases due to scale efficiency. For instance, a 1 MWp system has a unit price of around 12-13 million VND/kWp.

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

Accurate assessment of labor cost for installing 1MWp solar power is a crucial factor in optimizing costs and enhancing investment efficiency. With the increasing demand for renewable energy, optimizing resources is a long-term development strategy for investors.

Contact QuangAnhcons via hotline +84 9 1975 8191 for consultations and optimal cost solutions for your solar power system.

QuangAnhcons provides complete solar power system installation services from consultation to construction. We are committed to delivering high-quality service, cost optimization for every project.