3 things you need to know about solar financing in India.

Solar financing is easier way of getting started with solar energy without delay, let's discuss key aspects -

Switching to solar energy can be a big step for Indian homeowners, but the initial cost often holds many back. According to a survey, the main reason people hesitate to go solar is because it can be expensive upfront. But there's good news! There are ways to finance solar panels that can make it easier for you to make the switch and start saving money on your energy bills.

First, let's talk about buying solar panels with cash. This means you pay for the panels all at once, without taking out a loan. It's great because you don't have to worry about paying interest, and you can take advantage of tax credits and other benefits. But for many people, coming up with the money to buy solar panels outright is tough.

That's where solar loans come in. These work like any other loan—you borrow money from a lender to pay for the panels, then pay it back over time. There are different kinds of solar loans, some where your home is used as collateral and others where it's not. The downside is that you'll have to pay interest, but the good part is you'll own the panels and can get tax credits.

Another option is a cash-out refinance or a Home Equity Line of Credit (HELOC). With these, you borrow against the equity in your home to pay for the solar panels. They can have lower interest rates than other loans, but if you can't pay them back, you could lose your home.

Lastly, there are solar leases and Power Purchase Agreements (PPAs). These are like renting solar panels instead of buying them. You pay a monthly fee to use the panels, and the company that owns them takes care of maintenance. The downside is you don't get tax credits, and you might have to pay fees if you want to end the lease early.

So, which option is best for you? It depends on your budget and how long you plan to stay in your home. If you can afford it, buying solar panels with cash is usually the best choice. But if you need to finance, look at all your options carefully and choose the one that works best for you.

Switching to solar energy is a great way to save money and help the environment. With the right financing option, it's easier than ever to make the switch and start enjoying the benefits of solar power!

You can also switch to solar with solar loan, contact us for consultation and we will guide you through the entire process. 

SPVRT Capacity Chart

How to determine capacity of Rooftop Solar Installation required for my house/ business?

What capacity of rooftop solar you need to completely offset your daily electricity consumption?

We have tried to explain in simple terms, how the output of Solar Installation is calculated and produces a general guide to help consumers determine required capacity of rooftop solar for their home -

Centrally located Madhya Pradesh (MP) is the second largest (308.25 km2) and the sixth most populated Indian state (72 million as per Census, 2011). The average annual per capita power consumption of MP is 739 units against the Indian average of 1010 units (both 2015 values). The average annual per capita income was Rupees 56,182 against the Indian average of Rupees 103,219 in 2016–17. MP has high solar potential of 300 days of sunshine along with high solar insolation of 5.5 kWh/m2/day.

If you are an average middle class household in Madhya Pradesh then potentially your monthly electricity consumption is not more than 739 units i.e. 739kWh per month. 

Assuming your monthly electricity consumption is 750 kWh then you need to install about the same capacity of a solar power plant so that it completely offsets your entire energy consumption for the year. Now, as per statistical data, Madhya Pradesh receives about 300 days of sunshine in a year along with high solar insolation of 5.5kWh/m2/day. 

Let’s calculate the yearly consumption of your household i.e. 750 kWh per month X 12 month per year = 9000 kWh per year or 9000 units per year.

Assuming you have done your fair share of research and know about different types of solar PV Modules available in the market, you know that Monocrystalline PV Modules are high efficient modules used for domestic rooftop or small commercial rooftop systems. These modules have efficiency of 18-21 %. 

Let’s be conservative here and assume that the solar PV Modules are giving you an efficiency of 18% (which is a considerable underestimation for Monocrystalline PV Modules). 

Total energy that can be generated in a 

year per m2 of Solar Power Plant = 5.5 kWh/m2/day *300 clear days per year * efficiency

= 5.5 x 300 x 0.18

= 297 kWh/m2/year

Hence, total area that will be required to completely offset your energy consumption will be = 9000/297

= 30.30 m2

Hence, capacity of Rooftop Solar Plant = 1 kW/m2 x 30.30 m2 x 0.18 

= 5.45 kW

Conclusion: 

 If you are a middle class household with average electricity consumption, all you need to do is install a rooftop solar plant of 5.45 kW capacity to completely offset your energy consumption and boast of not contributing to global warming. 

To make your task easier, we have produced below a chart for determining the suitable capacity of a rooftop solar power plant/ installation for your home. Just read the value corresponding to your average monthly units of electricity consumption. It is advisable to determine the average electricity consumption by average last 12 month's electricity bills.

 

Solar in Gwalior - solarmeter a solar panel installation service

Note - Values produced below are reached after some reasonable assumptions and are derived for Madhya Pradesh, actual output may vary depending upon several factors such as location, efficiency of PV Modules, time of the year etc. It is always better to receive consultation from installation professionals.

To get free consultation from Solarmeter.in click here