Five reasons to go Solar NOW!
- Greenassets.in
- Jun 11, 2015
- 6 min read
Updated: Apr 9
While a majority of India’s current electricity supply is generated from fossil fuels such as coal, oil and natural gas, these traditional energy sources face a number of challenges including rising prices, security concerns over dependence on imports from a limited number of countries which have significant fossil fuel supplies, and growing environmental concerns over the climate change risks associated with power generation using fossil fuels.
Solar power generation has emerged as one of the most rapidly growing renewable sources of electricity. Solar power generation has several advantages over other forms of electricity generation.
But then we don’t take solar products so seriously do we ? We have a mindset against solar products which simply doesn’t let us buy them. Here are some reasons this mindset is up for a nice thrashing -
1 – Going solar will help you in eliminating or significantly reducing your energy bill
Understanding the Impact of Electric Costs
Whether you are a homeowner or a business owner, electric costs can significantly affect your overall budget. For instance, an average monthly electric bill of INR 1,000 totals INR 12,000 annually and reaches INR 2,40,000 over 20 years. Electric rates are not only steadily increasing but can also be volatile and unpredictable, especially when local electricity production relies on gas or coal prices. In reality, many households and businesses experience electric bills that exceed INR 1,000. Therefore, it’s essential to consider your options.
The Advantages of Installing Solar Panels
Installing a solar panel system at your home or business can help you break free from this cycle of rising costs. Solar energy can either eliminate your electric bill entirely or reduce it to a level where electricity expenses no longer strain your budget. Your potential savings depend on several factors, including:
Energy production of your solar system
Your energy consumption
Utility rates in your area
The primary determinant of your savings is the rates you would have otherwise paid to your utility provider. By going solar, your savings equate to the costs you avoid. Therefore, if electricity rates are high in your area, your savings will be even greater. Additionally, as electricity prices are expected to rise periodically, your savings will continue to grow over the 25 to 30-year lifespan of your solar panel or wind-solar hybrid system.
Beyond Financial Savings: The Predictability of Solar Energy
Reducing one of your largest expenses makes perfect sense, but the benefits of solar energy extend beyond just economic savings. The unpredictable nature of electricity prices can complicate budget management, particularly for businesses or homeowners with fluctuating cash flow. By installing a solar photovoltaic (PV) system, you can stabilize these costs, making them more predictable. This predictability is especially advantageous for retirees or individuals on fixed incomes, as well as businesses that benefit from reduced or eliminated electricity expenses. By enhancing expense management capabilities, solar power systems contribute to greater financial stability for both homeowners and business owners.
2 - Solar panel systems are a great investment
In many ways, your solar power system functions as a financial product capable of generating annual returns ranging from 10% to over 30%. While some may view solar panel systems as an expense, this perspective overlooks the significant value these systems can generate over their 25-30 year lifespan. Investing in a solar photovoltaic (PV) system is one of the most effective ways to allocate your money. Even a return at the lower end of the spectrum (around 10%) is impressive, especially considering the unique benefits of solar power compared to traditional investments like stocks and bonds.
What Determines Your Returns?
The primary factors influencing your financial benefits from a solar power system include your current electric rates, the incentives for which you may qualify, and securing the best possible deal when purchasing your solar PV system.
Annual returns are calculated by dividing the financial benefits you receive each year by your initial investment in your solar power system. The magnitude of your returns depends on several factors:
1. Electricity Rates
Your current electricity bills play a significant role in determining your savings over the lifespan of your system. Higher rates translate to greater savings.
2. Incentives
Are there local or state tax programs in your area promoting solar adoption? If you are a business or organization, can you utilize depreciation tax benefits, including accelerated depreciation?
3. Cost
Did you secure the best deal on your solar PV system? Were you able to take advantage of rebates and tax incentives to offset installation costs?
4. Technology
How efficient is your solar system? Is it producing electricity at optimal levels?
Tip: Consider investing in wind-solar hybrid systems if your location experiences average wind speeds above 3 m/s.
5. Property Characteristics
How sunny is your location? What direction does your roof face? What is the pitch of your roof? Are there any shading issues? All these factors can influence your system's production levels.
6. Property Value Increases
How much will the value of your property increase when you sell your home or commercial property?
7. Business Benefits
How much will your profits rise due to lower operational costs? What is the value of the goodwill generated by your solar power system? How much revenue can be attributed to your green credentials?
3 - Solar panel systems increases your property value
Studies show that homes with solar panel systems have property values 3-4% above similar homes in the same area. They also sell twice as fast as the competition.
Early studies focused on established solar markets such as California. As solar takes hold across the world, new studies are showing increases in value in some communities that exceed 4%. Recognizing that solar power systems add value to a property, the real estate industry is working to create more sophisticated methods for accurately determining the market value as well as the financial value of properties equipped with solar power systems. Some of the same factors that drive your overall financial returns also drive increases in property values. Not surprisingly, areas where the cost of electricity is high or states where there are strong solar incentive programs are seeing the largest increases. All of this is great news for property owners with solar PV systems who not only recoup the initial cost of their systems when they sell, but also receive a premium that will increase the returns on their investment.
4 - Ecofriendly and safe way of producing electricity
Sustainability is a driving force behind installing solar photovoltaic and wind-solar hybrid systems.. We can Protect the environment through harnessing wind and solar energy. Support a safe, renewable, and cost-effective form of energy production.
Many homeowners, businesses, and non-profits choose to go solar to address environmental issues such as climate change and health problems associated with carbon emissions. Estimates of India's per capita greenhouse gas (GHG) emissions for 2030-31 range from 2.77 tonnes to 5.00 tonnes. Adopting solar power can significantly reduce these emissions. While each home, business, or non-profit that switches to solar contributes to lowering pollution levels, it is the cumulative effect that truly makes a difference.
Another important benefit of installing solar panels is often overlooked. By using solar power to meet your energy needs, you reduce the carbon emissions produced by utility plants when generating electricity. As more homes and businesses rely on clean energy sources like solar, the demand on utility plants decreases. Depending on the energy sources used by your utility—many still rely on polluting sources like coal—your decision to go solar can have a substantial impact.
Why rely on a nuclear reactor, which poses the risk of catastrophic destruction within a 10 km radius, when we have a natural reactor—the sun—continuously providing us with energy?
5 - New-generation solar panels far cheaper, more efficient
A new generation of solar panels made from a mineral called Perovskite has the potential to convert solar energy into household electricity more cheaply than ever before, according to a study from Britain's Exeter University.
Super-thin, custom-colored panels attached to a building's windows may become a "holy grail" for India and African countries.
With a thickness measured in billionths of a meter, solar panels made of Perovskite will be more than 40 percent cheaper and 50 percent more efficient than those commercially produced today.
Unlike other solar panels, those made of Perovskite can absorb most of the solar spectrum and work in various atmospheric conditions, rather than only in direct sunlight.
"This type of material for solar cells works in diffused conditions much, much better than the other types of solar cells. It won't be 100 percent, but it will be much more than what we have now."
Researchers have already tested the material in the Americas, Asia, Europe and the Middle East.
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