The straight answer to the question – “do I save money with solar panel systems?” is yes. Solar panels aren’t just good for the environment but they can save users a lot of money as well. They may have expensive installation costs initially but they will provide many financial benefits and save a good amount on electricity costs in the long run. Solar rooftop system is a safe and worthwhile investment in the long term.
Solar panels meet the increasing demand for rising electricity bills by providing affordable electricity while ensuring environmental safety. All your electrical appliances will run using electricity produced through sunlight, so you don’t need to stress about accessing power from the main grid. Millions of people have installation of a solar system for commercial building and residential building to enjoy associated financial and environmental benefits.
Easier Installation
The rooftop solar panels do not need to purchase new land or vacate the existing property for their installation. Such systems can be installed on the rooftop of the building just after ensuring that there will be no shady areas and the rooftop receives enough sunlight. These technologies can be installed on all types of roofs. In addition, they also protect the roof area they’re installed in.
Reduced Electricity Bill
Installing rooftop solar panels can help you reduce your power bills. It not just cuts the cost of using fossil fuels but helps users save around 600 units of electricity each month. This results in lowering utility bills by approximately Rs.5,500. If your monthly electricity cost is around Rs.3,000, switching to a 5kW rooftop solar panel can drop your utility bill to 0. A rooftop solar panel with net metering may allow you to collect more rupees each month from the distribution company (DISCOM) instead of paying your monthly utility bill.
Government Assistance
To make more people realize the importance of solar systems, the Indian government is making many initiatives in terms of campaigns, policies, and schemes. The household installer receives a government subsidy of a certain percentage on the total cost of the panel installation. The percentage of subsidy will differ from one state to another. On top of that, the government provides tax credits for the installation of solar panels on residential or commercial buildings.
Maintenance Cost
Another area where solar panels can save you valuable money is rooftop solar system maintenance. The solar systems have no moving parts and are manufactured using best-in-class quality and components. They can work effectively producing sufficient solar power throughout their lifespan of 25+ years. The annual maintenance contract service from installers covers cleaning, testing, and maintenance to ensure optimal performance and save repair and replacement costs.
How Much Can You Save With Solar Systems?
The amount of money that you can save with solar solutions will depend on multiple parameters like the local electricity cost, the size of your solar system, and the amount of sunlight your residential or commercial building receives. The larger your system size and the more sunlight your location receives, the more electricity it will generate. This means that you can save more money on your utility bills. Transitioning to solar power will result in significant savings if the cost of electricity is high in your local area.
To better understand how much you can save on your electricity bills with solar solutions, let’s take an example.
You have a 5kW rooftop solar panel installed on your residential rooftop. Let’s assume that a 1kW solar panel generates 4 units of average electricity per day. So, a 5kW solar panel will generate 20 units in a day or about 600 units in a month. These 600 kWh units of power will produce directly from the sunlight free of cost.
Let’s assume that according to the current tariff in your area, the cost of one unit of power is approximately 5 rupees and 50 paise (Rs.5.50). So, 600 units of power will cost you Rs.3,300 as a monthly electricity bill. Switching to solar panels will save Rs.3,000 as you will just have to pay Rs.300 for your monthly solar power consumption. You can save more when using a panel with increased solar capacity.
What is Net Metering Concept?
This is a technique in which the power grid or a company tracks the power production and usage by a solar-powered building. The solar user can sell or feed the excess solar power into the main power system and acquire some credits on their electricity bill. It will help in earning money instead of paying the high utility bill. If you live in a state having a net metering policy, you will be credited for the excess power you sent back to the main grid at the same retail cost you pay for getting the electricity support from the grid.
Don’t assume that net metering will completely prevent your electricity bill. You will keep on receiving the utility bill as long as your residential or commercial building is grid-connected no matter whether you have installed sufficient solar system to balance the electricity consumption. According to net metering, the solar power that you don’t need immediately is remitted to the main grid to get credits on the utility bill. So, you can take power from the grid in case of a power outage and night without paying any extra amount.
All the net metering credits you have used in a specific month will be shown in the utility bill of that month and you’ll not be charged any amount even a single penny for the electricity you used. The electricity statement doesn’t need any payment and shows only how your monthly usage was counterbalanced by received net metering credits.
The Bottom Line
Concluding everything discussed above, installing solar systems can save you a good amount of money. Lots of financial and environmental benefits are resulting in the bright future of solar energy, making many residential and commercial buildings go solar. Get solar panel installation as soon as possible because the subsidies are more likely to drop in the coming years. So, go solar today to enjoy more financial savings.