Illustrative example of how rooftop solar can save you money in the long run in India.

Let's consider an illustrative example of how rooftop solar can save you money in the long run in India:

Scenario: Mr. Patel, a homeowner in Mumbai, decides to install a rooftop solar system on his house to reduce his electricity bills and contribute to environmental sustainability. His electricity consumption averages around 800 units per month, and he is currently paying Rs. 8 per unit for electricity from the grid.

Initial Investment: Mr. Patel's rooftop solar system installation costs Rs. 2,85,000 after accounting for subsidies and incentives provided by the government. The system has a capacity of 5 kilowatts (kW) and is expected to generate approximately 750 units of electricity per month, accounting for variations in sunlight throughout the year.

Monthly Savings: After installing the rooftop solar system, Mr. Patel's monthly electricity bill decreases significantly. Let's break down the savings:

  • Previously, Mr. Patel was paying Rs. 8 per unit for 800 units, totaling Rs. 6,400 per month.
  • With the rooftop solar system generating approximately 750 units per month, Mr. Patel now only needs to purchase 50 units from the grid.
  • At Rs. 8 per unit, Mr. Patel's monthly expenditure on grid electricity is reduced to Rs. 400 (50 units * Rs. 8 per unit).

Annual Savings: Mr. Patel's annual savings can be calculated as follows:

  • Monthly savings on grid electricity: Rs. 6,000 (Rs. 6,400 - Rs. 400)
  • Annual savings: Rs. 6,000 * 12 months = Rs. 72,000

Return on Investment (ROI): Considering Mr. Patel's initial investment of Rs. 2,85,000, he can calculate the payback period and ROI of his rooftop solar system.

  • Payback period = Initial investment / Annual savings = Rs. 2,85,000 / Rs. 72,000 ≈ 3.96 years
  • ROI = (Annual savings / Initial investment) * 100 = (Rs. 72,000 / Rs. 2,85,000) * 100 ≈ 25.26%

Long-Term Savings: After the payback period, Mr. Patel continues to enjoy substantial savings on his electricity bills for the lifespan of the solar panels, typically 25 years or more. As electricity prices from the grid are expected to rise over time, Mr. Patel's savings from the rooftop solar system will also increase, providing even greater long-term financial benefits.

In this adjusted example, with an installation cost of Rs. 2,85,000, rooftop solar still provides Mr. Patel with significant cost savings in the long run, making it a sound investment for homeowners in India

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