Industrial

Salem Steel Plant

Salem Steel Manufacturing Ltd.

Salem, Tamil Nadu

Completed: June 2021

Capacity

2.5 MW

Annual Generation

3,650,000 kWh

Cost Savings

₹2.92 Crores annually

CO₂ Reduction

3,175 tonnes annually

Challenge

The steel manufacturing facility was facing escalating energy costs that were impacting operational profitability. With 24/7 operations and high-energy machinery, the plant consumed approximately 9.5 million kWh annually. Additionally, they were experiencing significant peak demand charges and power quality issues that affected production. The company was also under pressure to reduce its carbon footprint to meet sustainability targets.

Solution

SquareGrids designed and implemented a comprehensive 2.5 MW solar power system using a hybrid approach of rooftop and ground-mounted installations. The system included 6,250 high-efficiency 400W monocrystalline panels, 25 string inverters, and an advanced energy management system integrated with the plant's existing infrastructure. The solution also incorporated peak load management capabilities and power quality improvement.

Implementation Approach

1Conducted comprehensive energy audit and load analysis
2Designed custom solution with phased implementation to avoid production disruption
3Installed 1.8 MW of rooftop solar across multiple buildings
4Deployed 0.7 MW ground-mounted system on available land
5Integrated with existing power systems and industrial controls
6Implemented advanced monitoring and analytics platform
7Provided operator training and maintenance protocols

Results & Benefits

Energy Generation

The system generates approximately 3,650,000 kWh of clean energy annually, offsetting 38% of the facility's total energy consumption.

Cost Savings

Annual energy cost savings of ₹2.92 Crores annually, with a 40% reduction in peak demand charges through strategic load management.

Return on Investment

Return on investment achieved in less than 4 years with continued benefits for the 25+ year lifespan of the system.

Environmental Impact

Reduction of 3,175 tonnes annually of CO₂ emissions, equivalent to planting approximately 52,000 trees each year.

"The SquareGrids team delivered a solution that exceeded our expectations. Not only have we significantly reduced our energy costs, but the improvement in power quality has led to fewer production disruptions. The detailed analytics has helped us identify additional efficiency opportunities we hadn't considered before."

Rajesh Kumar

Operations Director, Salem Steel Manufacturing Ltd.