Switching to solar power offers a multitude of benefits for residential buildings. For homeowners, it’s like hitting two targets with one bullet – reducing your carbon footprint and saving on energy expenses in the long run.
The government of India is also proactively promoting renewable energy, particularly solar. The grid-connected rooftop solar scheme of the Ministry of New & Renewable Energy (MNRE) is a testament to this. This scheme aims to achieve a cumulative installed capacity of 40,000 MW by 31 March 2026, highlighting the country’s commitment to harnessing the sun’s power.
In this blog, we will delve into the various advantages of transitioning to solar power for residential buildings. From financial savings to environmental benefits and increased property value, we will explore why more and more homeowners are opting for solar energy solutions.
I. Environmental Benefits
As individuals, we all have a role to play in protecting our planet and mitigating the effects of climate change. By switching to solar power, residential homeowners can make a significant positive impact on the environment.
Here are some key environmental benefits of embracing solar energy:
- Solar energy generation produces electricity without any direct emissions of carbon dioxide (CO2) or other harmful greenhouse gases. It helps to mitigate climate change by minimizing the contribution to global warming and reducing air pollution.
As per estimations by the Indian Institute of Science (IISc), installing a 4kW capacity solar rooftop panel in Madhya Pradesh is equivalent to planting 197 Teak trees over the lifetime.
2. Solar power relies on abundant and freely available sunlight. It reduces the dependence on non-renewable fossil fuels, such as coal, oil, and natural gas. By embracing solar energy, residential buildings conserve these valuable resources for future generations.
II. Financial Benefits
Installing solar can look like quite an investment; however, you can save a lot of money in the long run. Here are some of the monetary benefits of installing residential solar rooftop PV panels at your residence:
A. Reduced Electricity Bills
Solar panels generate electricity from sunlight, allowing homeowners to tap into a technically free and renewable energy source. By harnessing solar energy, homeowners can decrease their reliance on grid-supplied electricity, resulting in substantial savings on monthly electricity bills.
B. Long-term Cost-effectiveness
Rooftop Solar power systems have a long lifespan, often lasting 25 years or more with proper maintenance. During this time, homeowners can enjoy significant savings on electricity bills, which can offset the initial investment over the system’s lifetime. As electricity tariffs continue to rise, the cost-effectiveness of solar power becomes even more apparent.
C. Net Metering and Utility Credits
Net metering helps homeowners make the most of their solar PV panels and achieve even more savings. Using net metering, homeowners can earn utility credits for excess solar energy fed back into the grid. These credits offset future electricity bills, further reducing costs and maximizing the financial benefits of solar power.
III. Energy Independence
Solar power offers homeowners the potential for energy independence. By generating their own electricity, homeowners become less dependent on utility companies and the fluctuating prices of conventional electricity.
With a solar power system, homeowners have greater control over their energy production and consumption. This independence provides stability and protects against rising electricity costs in the future. Additionally, during power outages or emergencies, solar-powered homes can continue to operate independently, ensuring a constant power supply.
IV. Higher Resale Value of Property
Solar power systems significantly increase the resale value of residential properties. Numerous studies have shown that homes equipped with solar panels tend to sell at higher prices compared to similar homes without solar installations.
Buyers perceive solar-powered homes as cost-effective, environmentally friendly, and energy-efficient, making them more willing to invest in such properties. The increased resale value allows homeowners to recoup a significant portion of their initial investment in solar power systems.
Residential Solar Rooftop Installation Cost in India
When considering the switch to rooftop solar PV systems, there are two important factors to take into account: paying EMIs and subsidies.
Paying EMIs for a Few Years, Enjoying Free Electricity for 25+ Years
By investing in a rooftop solar PV system, homeowners can pay EMIs (Equated Monthly Installments) for a few years, equivalent to their current electricity bills. However, the key difference lies in the long-term benefits.
Once the EMIs are paid off, homeowners can enjoy the advantage of virtually free electricity for more than 25 years. This presents a significant financial advantage and a considerable reduction in monthly expenses over the system’s lifespan.
Note: Our solar calculator will help you know the right value for your desired solar rooftop installation.
For instance, if you calculate the cost of installing a 4kW capacity residential rooftop solar PV panels installation, here is what you will get:
|1. Size of Power Plant|
|Feasible Plant size as per your Capacity:||4kW|
|2. Cost of the Plant:|
|MNRE current Benchmark Cost (without GST):||Rs. 40991 / kW|
|a) Tariff @ Rs.6.6/ kWh (for the top slab of traffic) – No increase assumed over 25 years:||Rs. 163964|
|With subsidy 40% up to 3kW & 20% above 3kW up to 10kW (Based on current MNRE benchmark without GST):||Rs. 106577|
|3. Total Electricity Generation from Solar Plant:|
|Lifetime (25 years):||150000kWh|
|4) Financial Savings:|
|a) Tariff @ Rs.6.6/ kWh (for top slab) – No increase assumed over 25 years:|
|Lifetime (25 years):||Rs. 990000|
You can take a loan of Rs. 1,06,577 for subsidized amounts. The interest rates will vary depending on the bank. If we calculate the equated monthly installment (EMI) for this loan amount over 10 years, with an interest rate of 8.45%, it will be Rs. 1319/month. This is equivalent to the electricity bill for an average home that requires a 4kW solar capacity to meet its energy needs.
Solar Subsidies: Maximizing Financial Incentives
The government of India provides subsidies to incentivize the adoption of rooftop solar PV systems. The applicable subsidy rates vary based on the capacity of the solar plant and the category of the state. Here’s an overview of the subsidies:
|Solar Plant Capacity||Applicable Subsidy for General Category States||Applicable Subsidy for Special Category States|
|Up to 3 kW||Rs. 14588/- per kW||Rs. 17662/- per kW|
|Above 3 kW and up to 10 |
|Rs. 14588/- per kW for the first 3 kW and |
thereafter Rs. 7294/- per kW
|Rs. 17662/- per kW for the first 3 kW and |
thereafter Rs. 8831/- per kW
|Above 10 kW||Rs. 94822/- fixed||114803/- fixed|
Special category states – Northeastern States including Sikkim, Uttarakhand, Himachal Pradesh, UTs of Jammu & Kashmir, Ladakh, Lakshadweep, and Andaman & Nicobar Islands.
By leveraging these subsidies, homeowners can maximize their financial benefits and accelerate the return on investment for their rooftop solar PV systems.
In conclusion, transitioning to solar power is a win-win scenario for residential homeowners. By reducing their carbon footprint, saving on energy expenses, and increasing the value of their properties, homeowners can contribute to a sustainable future while enjoying the immediate and long-term financial benefits of solar energy.
Ready to make the switch to solar power? Take the first step towards a greener and more cost-effective future by contacting our solar energy experts today. Contact us now to schedule a consultation.