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Benefits from Rooftop Solar at Home

How much will my electricity bill reduce?

Electricity bills across the country have 3 components - Fixed Charge, Variable Charge & Taxes & Surcharges. With solar, you can save below:

Plant Type Fixed Charge Variable Charge Taxes & Surcharges Total Bill
On-Grid Not Saved Saved upto 100% Saved Saved upto 80-90%
Off-Grid Saved upto 100% Saved upto 100% Saved Eliminated
Hybrid Not Saved Saved upto 50% Saved Saved upto 50-70%

What will be my financial return?

Net-metering (On Grid Plant) makes solar installation highly lucrative for customers in two ways:

- Continued electricity even on days with insufficient generation via panels
- Excess electricity generated is netted out of the total electricity consumed
- Generated electricity is setoff against the highest-paid slab tariff
- Save an extra 20% tax on electricity which is paid on top of slab tariffs
- Solar Plants become more and more lucrative as a long-term investment  for consumers in high tarriff
- This is driven mostly by the low cost of energy production with solar
- With subsidies, residential customers can achieve the lowest cost of energy consumption over a period of 25 years

Simple Mathematics of Solar Plants

- 1 kW generates **4-4.5 units a day**
- Generation in 365 days = 365 x 4 to 4.5 units ~ **1,460 to 1,642 units**
- Assuming 80% days with Sunlight = **1,168 to 1,314 units**
- Warranty of 25 years & 80% performance degradation
- For simplicity, assuming 85-90% efficiency throughout the life = **24,820 to 29,565 units** during lifetime
- Cost of 1kW ranges from **Rs. 50,000 to 75,000**
- Adding Rs. 1000 per year (total Rs. 25,000) for maintainance **Rs. 75,000 to 1,00,000**
- Net Cost of electricity = **Total Cost / Total Units** i.e. **~Rs. 2.54 to 3.38 per unit**

(savings on taxes paid for 25 years extra + benefits from government subsidy)




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