Things to Know About Home Solar Electricity in 2020
SICHUAN TELOS NEW MATERIAL TECHNOLOGY CO., LTD , https://www.kenlarcutters.com
By 2020, investing in a home solar electricity system had become a no-brainer for several compelling reasons. The primary driver was the steep decline in the cost of solar equipment, including panels, which significantly reduced the initial capital outlay. Additionally, government incentives played a crucial role. The Government of India provides subsidies, and state-level agencies often offer additional support. In special category states such as those in the Northeast, Jammu & Kashmir, Uttarakhand, Himachal Pradesh, Sikkim, and Lakshadweep, subsidies can reach up to 70%. For grid-connected systems where excess power is fed back into the grid, the subsidy from the Ministry of New and Renewable Energy (MNRE) exceeds the standard 30%.
Beyond subsidies, there are other advantages, such as generation-based incentives. To encourage households to switch to solar, banks have been encouraged to treat solar installations as home improvements, offering loans at rates similar to traditional home loans. Many public sector banks have issued directives to their branches to promote this initiative.
While the process may seem straightforward, receiving the subsidy can take time due to bureaucratic delays. The MNRE only provides subsidies for solar panels manufactured in India. Vendors typically assess your location and handle the installation within a few days. Leading companies like Genus guide customers through the entire process, ensuring the use of authentic equipment. As a rule of thumb, a shadow-free area of around 10 square meters is required per kilowatt of installation, depending on factors such as equipment efficiency, local weather, solar radiation, and roof angle. Once you calculate your appliance load, you’ll know the appropriate capacity to aim for.
If you lack sufficient roof space or face shading issues, ground-mounted options are available. Before choosing a vendor, you might wonder about the payback period. Compared to the 25-year lifespan of the system, the return on investment is relatively quick. Even if you move before the system's lifespan ends, the property value will increase due to the installation. According to studies in Madhya Pradesh, under typical weather conditions and with the 30% central government subsidy, a 5 kW system reaches its break-even point in 4-5 years (7 years for a 3 kW system). Without subsidies, the break-even period extends to 6 years for 5 kW (7 years for 3 kW).
When deciding between an off-grid and grid-connected system, consider the pros and cons. An off-grid system is ideal for areas with frequent and prolonged power outages, providing uninterrupted power but requiring a battery storage system, which increases costs and necessitates regular replacements. A grid-connected system eliminates the need for batteries, using the utility grid as backup during non-generation periods. With net metering, you can earn credits for supplying excess power to the grid. However, this option is less suitable for areas prone to load shedding.
For those unwilling to commit upfront capital despite the short payback period, a Renewable Energy Service Company (RESCO) could be an alternative. RESCOs cover installation and maintenance costs, and you pay a fixed rate per unit based on a Power Purchase Agreement. The RESCO benefits from selling surplus power to the utility.
To learn more, visit Genus or explore other reputable vendors in the market.