When there are increasing numbers of people going solar nowadays, one question comes to everyone’s mind: Whether I should purchase the Solar system for my Home/Office or not? Day to day solar panels pricing are decreasing, and the system becomes cheaper. According to one survey, Solar panels pricing are more than 90% less expensive than it was in 20 years ago. So one more question arises that what is the correct time for purchasing it?
There are so many myths about solar system which comes into your mind as well that it doesn’t reduce my electricity bill as compared to my investment. Also on cloudy and rainy days, solar system doesn’t work. Maintenance of the solar system is complicated and involve high cost also comes in people’s mind. So then what’s the answer to all of your questions?
In this blog, we will discuss 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 talk about some Myth vs. Fact of Solar system.
Myth: Solar system doesn’t work on cloudy and rainy days.
Fact: Solar energy works on the principle of photovoltaic effect, which mean photons particle from the sunlight is converted into the equivalent voltage and current. So on rainy or cloudy days when sunlight is little lower than usual, solar panels produce less output compared to other days. So it is true that a rainy or cloudy day affect solar production, but they reduce it and not make it zero.
Myth: 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 primary components of any solar system. With the selection of quality products maintenance of 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 do twice a month.
Myth: Solar system takes a long time to return our initial investment.
Fact: In India, the government are taking so much initiative to increase solar systems and giving subsidy for its 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 which 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 thus saves money
• Reduce climate change and its effects due to green energy
• Self reliability of energy increases as well as 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 still lacks in ordinary people and potential customers.
Whether you should buy the solar system or not?
There are several things you should consider before going solar.
1. Whether you have space at your rooftop for solar installation or not?
Generally, 1 kW of system requires 100 sq.ft of area. According to your electricity bill analysis find out your system requirement and from that decide you have that much free space available or not.
2. 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.
3. The initial investment of 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.
4. 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 that home and using energy by yourself, don’t install a solar system.
5. 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 that in what way your buyer will take a house with a solar system. 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 this declining prices of solar panels should you buy it now or wait?
From last few years, residential solar system prices are nearly constant. Panels and Inverter 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. From the past 2-3 years, different state governments are 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 that government reduce the subsidy because of specific financial reason like currently Corona pandemic.