With the trending increment of renewable energy hitting the market like a storm,
the Solar Sector is dominating the market by all means. Though, a strong question
that can come to a layman’s mind is “Whether I should purchase the Solar system
for my Home/Office or not? Day-to-day solar panel pricing is dwindling, and the
system is becoming cheaper. According to one survey, Solar panels prices have
drastically decreased in the last 20 years. So here is another scope of confusion,
as to what is the exact time for purchasing it?
There are so many myths about the solar system which come to a potential
customer’s mind, such as ‘the system doesn’t reduce my electricity bill as
compared to my investment. Also, on cloudy and rainy days, the solar system
doesn’t work. Maintenance of the solar system is complicated and has high costs”
and so on. So then, what is the answer to all of your questions above?
Don’t freak out, this blog will feed you with all the necessary information,
along with providing answers to all your confusion.
Here, we will be discussing the following things:
• Some common myths about solar and their facts
• Advantages of Solar system
• Disadvantages of Solar system
• Whether you should buy it or not?
• What is the right time for purchasing it?
Let’s burst some most common bubbles;
Myths vs. fact of the Solar system;
Myth: Solar system doesn’t work on cloudy and rainy days.
Fact: Solar energy works on the principle of photovoltaic effect, which means
photons particle from the sunlight is converted into the equivalent voltage and
current. So on rainy or cloudy days when sunlight is a little lower than usual, solar
panels produce less output compared to other days. So it is true that a rainy or
cloudy day affects solar production, but they reduce it and do not make it zero.
Myth: The cleaning and maintenance cost of the solar system is high.
Fact: Solar panels have a product warranty of 10 years and Inverter has a warranty
of 5 years. These 2 are the primary components of any solar system. With the
selection of quality products, maintenance of the Solar system is very less.
Cleaning of solar panels is essential for better output and longer life of the system.
Cleaning can be quickly done at home as well with minimum cost and is required
to be done twice a month.
Myth: Solar system takes a long time to return initial investment.
Fact: In India, the government is taking so much initiative to increase solar
systems and giving subsidies for their installation. With this subsidy and other
benefits, Return on your initial investment will take just 4-5 years.
Advantages of Solar systems;
• Long term Warranty in products that enhance the life span of the system
• Lower maintenance cost
• Reduced carbon emission due to an equal amount of power generation
through fossil fuel
• Help reduce your electricity bill to almost Zero and hence save the money
• Reduce climate change and its effects due to green energy
• Self reliability of energy also increases with another earning source
The disadvantages of Solar systems;
• Initial investment is comparatively high
• Power generation of the solar system is very much dependent on Weather
conditions.
• Some people do not have space for the installations. As buildings are still not
using solar energy in India.
• Solar market is very opaque. Proper customer services are still not in place.
• Knowledge about solar energy is still lacking in ordinary people and potential
customers.
Whether you should buy the solar system or not?
There are several things you should consider before going to the solar system.
- It’s there enough space on your rooftop for solar installation or not?
Generally, 1 kW of system requires 100 sq. ft of area. According to your electricity
bill analysis, the value and then find out your system requirement and from that,
you decide whether you have free space available or not. - Even if you have the space available, is it shadow-free?
For getting maximum output from the solar system, it is recommended that your
rooftop is shadow-free. You should do the shadow analysis of your rooftop from a
solar vendor to verify that. - The initial investment of the solar system is high.
Before planning for the installation of solar, you should have enough money to
purchase it. Many banks give solar loans at very affordable rates. So you have to
find that out in your region.
- There should be consumption of your electricity.
The solar system is not a good investment if you are not using the energy which it
generates. In India, the local distributor to whom you will sell your electricity will
give you less money on each unit generated. So, unless you are living in the home
and using energy by yourself, don’t install a solar system.
- Are you planning to move to your house at some time?
If yes, then it is not the right decision to purchase solar for this home. As you don’t
have any idea about the new buyer’s interest in the solar system, the new buyer
will take a house with a solar system or not. So it is better that you don’t purchase
too early.
What’s the right time to purchase the solar system?
So now comes the question that with these declining prices of solar panels, should
you buy it now or wait for some time?
In the last few years, residential solar system prices are nearly constant. Panels
and inverters used in residential rooftop solar are considerably cheap at this
moment.
Specifically in India, the government is aggressively promoting solar energy, and
they are giving considerable subsidies in its budget. For the past 2-3 years,
different state governments have been providing 20-40% subsidies on a solar
system.
So the final payable cost to the consumer is just 60% of the system. So with this
subsidy, I think this is the best time to purchase the solar system. From here the
prices won’t see many dips, and we might see the government reducing the
subsidy because of specific financial reasons, like an ongoing Corona pandemic
and low economy.
