How Much Can You Save with Solar Power in Your Home?
As the world shifts towards renewable energy sources, solar power has emerged as a viable option for homeowners looking to reduce their electricity bills. With the government offering subsidies and incentives, the cost of installing a solar power system has become more affordable than ever. But how much can you actually save with solar power in your home?
In this post, we’ll explore the costs and benefits of solar power, including the savings you can expect and the payback period of your investment.
Cost of a Solar System
A 5kW solar system, which is a common size for residential installations, costs around ₹2,22,000. However, this cost can be significantly reduced with the help of government subsidies. In India, the Central Government offers a subsidy of up to ₹78,000 for residential solar installations, bringing the cost down to ₹1,44,000.
Savings with Solar Power
A 5kW solar system can generate up to 600 units of electricity per month, depending on your location and the amount of sunlight your roof receives. At a cost of ₹5.50 per unit, this translates to a monthly savings of ₹39,600.
Over the course of a year, you can expect to save ₹47,200, which is a significant reduction in your electricity bills. But the savings don’t stop there. With net metering, you can export any excess energy generated by your solar system to the grid and receive credits for it. These credits can be redeemed during periods of low energy generation, such as during the night or on cloudy days.
Net Metering and Credits
Net metering is a system where the electricity generated by your solar system is measured and credited against your consumption from the grid. This means that if you generate more electricity than you consume, the excess energy is credited to your account, which can be redeemed later.
In our example, the 5kW solar system generates 600 units of electricity per month, but the average household consumption is around 200 units per month. This means that the solar system generates an excess of 400 units, which can be credited against your consumption.
Assuming an average credit of ₹6,600 per year, this can significantly reduce your electricity bills and provide additional savings.
Payback Period
So, how long does it take for your solar system to pay for itself? The payback period of a solar system is the time it takes for the system to generate enough savings to cover its initial cost.
In our example, the 5kW solar system costs ₹1,44,000 after the subsidy, and generates a monthly savings of ₹39,600. Over 25 years, the system can generate a total savings of ₹9.9 lakh.
With an average credit of ₹6,600 per year, the system can also generate additional credits worth ₹6,600 per year. This means that the system can pay for itself in just 5.6 years, providing 19+ years of free electricity thereafter.
Conclusion
Solar power is a viable option for homeowners looking to reduce their electricity bills and contribute to a more sustainable future. With the government offering subsidies and incentives, the cost of installing a solar power system has become more affordable than ever.
In this post, we’ve explored the costs and benefits of solar power, including the savings you can expect and the payback period of your investment. With a payback period of just 5.6 years, solar power can be a smart investment for homeowners looking to save money and reduce their carbon footprint.
Source:
https://ascendants.in/my-money/solar-power-savings-cost-subsidy/
