People all over the globe are worried about the irreversible environmental hazards of using fossil fuels for power generation. The monetary and environmental costs of reliance on mainstream conventional electricity are not encouraging anymore. Amid the worrying situation, people are considering alternative ways of electricity generation, such as installing a rooftop solar system by a reputed solar installation company in India.
Various global and domestic organizations, private and public alike, have promoted the use of low-carbon technology to generate electricity. Low-carbon technology, like solar PV technology, causes no pollution, and hence it is safer for the environment and the health of the population in general. Due to these facts, the rooftop solar power plant has gained huge popularity among the masses, and their installation is supported by the government by significant subsidies.
But due to lack of information or should we say too much incorrect information on the web, people are not certain about the benefits they can have with solar plant installation. People are not aware of the economics of the system and rely on the information on the web for decision-making instead of going to a reputed solar installation company. It is time to clear the confusion and shed some light on the facts about solar for homes to generate awareness.
Understanding the Monetary Game Involved in Rooftop Solar Power Plant
How much Power is Required?
The first and foremost question that is to be answered regarding the energy requirement. An average Indian household requires 10kWh (units) of power each day. A 1kW solar panel in 5.5 hours of sunlight can generate 4.6kW of electricity. So, an average Indian household needs at least 2kW solar panel installed for optimal power supply. This is just for a small house with a few electrical appliances. For a house with many ACs and other electrical appliances, a larger capacity rooftop solar system for home will be required.
Read More About: 5kW Solar System in India
How much does it cost?
Continuing with the calculation, the cost of a 2kW solar plant is in the range Rs 1,40,000 to Rs 2,60,000 without GST. The actual price will depend on the type of structure a customer go for. Over this, the govt. gives a subsidy to the customer depending on the capacity of structure. The subsidy is 40% for up to 3kW plant capacity and 20% for above 3kW up to 10kW. There is no subsidy above 10kW capacity. Also, there is the provision of a 20% subsidy for GHS/RWA capacity up to 500kWp (limited to 10kWp per house).
What is the EMI on Loans?
Generally, banks extend loans for 4-5 years or more at an interest rate of around 8%. The interest rate matches with the housing loan as a rooftop solar plants in India are being considered under housing renovation category. Considering the numbers, the EMI for Rs 51768 for six years at 8% interest is Rs 908/month.
How much Money is Saved?
The conventional electricity bill (@ Rs 8/ unit) for one month(10kWh/day) is around Rs 2400. For six years(assuming no rate revision), it would cost you Rs 1,72,000. The total investment for a 2kW system is Rs 1,46,000. Therefore, the payback period is 6 years. For a lifetime (which is around 25 years), the money saved is Rs 24,000 x 19 = Rs 4,56,000. To save this much money, you need to ensure you do not use the grid electricity, although you are connected to it.
To Sum Up:
Rooftop solar power plants provide many benefits at a personal and societal level. It benefits the customer economically and society environmentally. If everyone adopts solar power, the health of nature and humans will be uplifted. A customer needs high-quality devices to make the best use of rooftop solar systems. HomeScape, a residential solar company, is from the house of a globally renowned solar installation company, Amplus Solar. HomeScape Solar is offering the customers, rooftop solar plants engineered by the expert team and diligent hassle-free services provided by trained personnel. To connect with them, drop an email to hi@homescape.solar.