Homeowners who install solar power systems from the best solar panel producers in India can receive numerous benefits like –
- Lower electricity bills
- Lower carbon footprints
- Higher home values
But these benefits come after significant installation and maintenance costs and the magnitude of the gains can vary widely from one house to another.
This article is going to help the homeowners to make the financial calculations required to determine the viability of solar panels in their homes.
Understanding Solar Power
Working on the financial factor before getting a plan to install the solar panels from one of the best solar panel manufacturing companies is a good idea. First of all, you need to calculate:
- Costing of the system
- How much energy solar panels are going to produce?
- What is the cost if you get it from the grid electricity?
- How many years it will take for solar panels to recover their cost?
- Whether the system will for itself in upcoming years?
If you have an upfront capital to invest, getting solar panels is a great idea. But if you are considering a loan with a high-interest rate, then you will be at a big loss. Ultimately, you will need to think about your decision carefully.
Practically, getting a solar panel isn’t as easy as it seems. There is a huge difference in each of these factors, and it can radically differentiate the costs and benefits of installing solar power for two homes – even if they are neighbors.
How much you are going to save?
Once you know about the upfront cost of a solar power system, and how much energy it is going to produce, you can predict how much you can save in energy costs per year. This becomes a tricky calculation, however, because a lot depends on how you pay for the electricity at the moment. Utilities often charge residential consumers a flat rate for electricity, regardless of the consumption. This means that instead of offsetting the expensive cost of peak electricity production, homeowners’ solar panel systems just offset the price they are charged for electricity which is a closer comparison to the average cost.
Is Solar Power Worth it?
Once you have worked on all the calculations, you are likely to end up with a single number. The number of year solar panels is going to take to recover their cost and save energy bills. If you live in a sunny part of the country like most of North India, you are surely going to get the benefits of the solar power in the next five years, whereas if you live in the places where there is less sunlight, then you are going to recover the cost in the next 15-20 years.
In other words, most homeowners are going to get the benefit of solar panels sooner or later. Whether it is worth installing such a system therefore often comes down to a number of much less technical factors than those we have listed above, how long you run your electric appliances, what electrical equipment you are going to use, and simply, what you want to do for the environment by not burning the fossil fuels.
Practically, it is not possible for a home to run on solar power alone. This is because solar only works when the sun is shining, during the night time or in cloudy weather, they do not generate electricity. You can capture the electricity in the batteries, but they become an expensive affair.