SAVINGS WITH SOLAR

Understanding Savings on Solar Energy: In-depth analysis.

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Figure here is a graphical representation of comparison between expenditure/earning on electricity consumption with or without Solar Installation.

SAVINGS WITH SOLAR

We have compared a case of one consumer spending money on installation of solar rooftop power plant on his roof and generated solar energy offsets some of his electricity bill and the rest of the bill he pay from his pocket and another consumer who invests equal amount of money at interest rate of 8% per annum and pays his bills out of this corpus monthly instead of spending money on installation of solar energy. Example shown above is for installation of 3kW Solar Rooftop Plant without considering subsidies. Comparison is drawn of financial journey for a period of 300 months (or 25 years -accepted lifespan of solar panels) duly accounting for drop in efficiency of generation with time.

Explaining the Financial Journey

Case-A (without switching to solar energy)

Cost of installation in above example for a 3kW solar power rooftop plant is take as 1.80 L. Hence consumer A starts his journey with positive corpus of 1.8L in his hand and invests this money for an annual return of 8% and continues to pay his monthly bill of 350 units per month from his pocket. His journey is represented by Green Line in the graph where his corpus continues to fall for 25 years. His total spent on this journey is about 14L in addition to his initial corpus of the  1.8L. 

Case-B (After switching to solar energy)

Consumer-B utilizes that same initial corpus of 1.8L for installation of Solar Power System on his roof. Assuming that person is living in Gwalior, Madhya Pradesh average energy generation is 4 units of power per day per 1kW of solar capacity installation. Hence his daily power generation is 12 units resulting in monthly power generation of 360 units. This is about the same capacity as his average monthly electricity bill. Consumer-B has to pay electricity charges after some years due to drop in efficiency of solar panels which has been taken into account. He has to pay overall about 4L including his initial cost of solar installation His financial journey is represented by Yellow Line in the graph.

Conclusion

As it is apparent from the comparison above, consumer-B had to spend a lol less to meet his electricity requirement throughout the period of 25 years. His Savings are represented by Orange Line on the graph leading to a total savings of more than 10L during this period. He managed to save a huge amount of money in terms of energy consumption in addition to doing something for the environment. He manages to offset 4kg of CO2 emission on every 1 unit of electricity generated by solar panels. Become a wiser consumer with installation of solar installation on your rooftop and save huge amounts of money.

 

NOTE – Above analysis is representative actual numbers may vary depending upon several factors 

What is PM – Surya Ghar: Muft Bijli Yojana? What are the benefits, subsidy structure and how you can avail it.

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PM – Surya Ghar: Muft Bijli Yojana

PM Surya Ghar: Muft Bijli Yojana is a government scheme that aims to provide free electricity to households in India. The scheme was launched by Prime Minister Narendra Modi on February 15, 2024. Under the scheme, households will be provided with a subsidy to install solar panels on their roofs. The subsidy will cover up to 40% of the cost of the solar panels. The scheme is expected to benefit 1 crore households across India. It is estimated that the scheme will save the government Rs. 75,000 crore per year in electricity costs.

The benefits of the scheme include:
  1. Free electricity for households.
  2. Reduced electricity costs for the government.
  3. Increased use of renewable energy.
  4. Reduced carbon emissions.

What is the subsidy structure for residential households? 

Suitable Rooftop Solar Plant Capacity for households   

Average Monthly Electricity Consumption (units) Suitable Rooftop Solar Plant CapacitySubsidy Support
0-1501 – 2 kW Rs 30,000 to Rs 60,000/-
150-3002 – 3 kWRs 60,000 to Rs 78,000/-
>300 Above 3 kW Rs 78,000/-

How can i avail subsidy? 

Online Applications may be submitted on the National Portal at https://pmsuryaghar.gov.in

Register in the portal with the following stepwise procedure

Step 1

  • Select your State & Electricity Distribution Company
  • Enter your Electricity Consumer Number, Mobile Number & Email

Step 2

  • Login with Consumer Number & Mobile Number
  • Apply for the Rooftop Solar as per the form

Step 3

  • Once you get the feasibility approval, get the plant installed by any of the registered vendors in your DISCOM

Step 4

  • Once installation is completed , submit the plant details and apply for net meter

Step 5

  • Commissioning certificate will be generated from the portal, after installation of net meter and inspection by DISCOM

Step 6

  • Once you get the commissioning report. Submit the bank account details and a cancelled cheque through the portal. You will receive your subsidy in your bank account within 30 days.

Eligibility

    1. The household must be an Indian citizen.
    2. The household must own a house with a roof that is suitable for installing solar panels.
    3. The household must have a valid electricity connection.
    4. The household must not have availed any other subsidy for solar panels.

Documents required 

    1. Proof of identity.
    2. Proof of address.
    3. Electricity bill.
    4. Roof ownership certificate.