Introduction to Solar Panel Systems
A solar panel system (also referred to as a solar PV system or solar power system) converts solar energy directly into electricity using solar panels and other components.
Solar panel systems are typically installed at places where they have maximum exposure to sunlight like rooftops of houses, commercial buildings, or industries. The solar panels absorb the sun’s rays which are then converted to Direct Current (DC) electricity. The DC electricity is then converted into Alternating Current (AC) electricity with the help of an inverter. The AC electricity thus produced is then used to power various appliances and electrical equipment in homes, commercial buildings, and industries.
Benefits and advantages of Solar Panel Systems
In this section, we’ll discuss some of the benefits and advantages of installing a Solar panel system at your property.
1. Reduce your electricity bill
Homeowners, RWAs, businesses, non-profit, and industries are always searching for ways to reduce their electricity bills since energy costs make up a sizable portion of their monthly expenses. Your electricity bill primarily depends on two factors: your electricity consumption and your electricity tariff.
Most of the utilities in India use a tiered tariff structure where the tariff per kWh (unit of energy consumed) increases with increase in overall energy consumption. This has a multiplier effect on our electricity bills.
Having a solar panel system installed at your property means generating your own electricity, thus reducing the amount of electricity you purchase from the DISCOM, resulting in lower electricity bills and significant savings during the life of the solar panel system.
The savings that you can expect by installing a solar panel system will depend on a few factors, like the size of your solar panel system, how much energy your solar panel system generates, and how much you consume, but the biggest factor is the tariff you would otherwise pay to your DISCOM. If the electricity tariffs are high in your area, you can save more by installing a solar panel system. And, since electricity prices are expected to increase in the future, you’ll save more every year during the 25+ year lifespan of your solar panel system.
Let’s take an example of a residential household that has an average monthly electric bill of Rs 1,500 which becomes an annual expense Rs 18,000 paid to the utility. Over 20 years, that same Rs 1,500 monthly bill balloons to Rs 3,60,000 paid to your utility, and that’s before factoring in electricity rate increases over the 20 to 25 year period of the solar panel system. This increase in tariff during the 20-25 year period will likely make your electricity bills even higher. Installing a solar panel system at your home or business can not only lower your current electric bill but also protect you from any electricity tariff increase in the future.
2. Protect yourself from rising electricity price
Electricity prices have steadily increased and is expected to increase in the future also. Since the DISCOMs in India use a tiered tariff structure for electricity prices, any future increase in electricity prices will have a multiplier effect on our electricity bills. This means that we will be spending more and more of our monthly income to pay for our electricity bills.
By installing a solar panel system, you produce your own energy and reduce the amount of electricity you need to purchase from the grid. That is, you don’t have to buy that expensive power from the utility. Since your solar panel system reduces your dependence on the grid to meet your energy requirement, you are less affected by electricity tariff hikes in the future. So, a one time investment in installing a solar panel system can protect you from rising electricity prices in the future.
3. Safeguard the Environment
Our dependence on fossil fuels to meet our energy demand has led to rampant pollution and climate change. The continuous burning of fossil fuels releases harmful greenhouse gases like carbon dioxide (CO2) and other pollutants like sulphur dioxide (SO2), particulate matter (PM10) etc. Solar energy is a great alternative to conventional fossil fuels. Solar energy is produced by utilizing the free light energy provided by the sun and does not harm the environment.
When you use the energy produced by a solar panel system to fully or partially meet your energy needs, you reduce the demand for electricity from your utility. Since you’ve reduced your demand for electricity, your utility plant, which may still rely heavily on fossil fuels like coal to produce energy, can burn less coal to meet the electricity demand. Hence, your decision to go solar can reduce the carbon emissions and other pollutants associated with burning fossil fuels. When more homeowners, businesses, non-profits and industries adopt solar energy to meet their energy needs, the cumulative effect of this can lead to significant reduction in emission of greenhouse gases and other pollutants, thus safeguarding the environment for us and for future generations.
4. Protect Our Health and Livelihood
We have seen how adopting solar energy can reduce greenhouse gases and other pollutants in our atmosphere by reducing our dependence on burning fossil fuels to meet our energy requirements. These greenhouse gases and other pollutants lead to climate change.
“Climate change can be a driver of disease migration, as well as exacerbate health effects resulting from the release of toxic air pollutants in vulnerable populations such as children, the elderly, and those with asthma or cardiovascular disease.”
NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES
Climate change may lead to extreme weather events like extreme heat waves, sea-level increase, changes in weather pattern leading to severe floods and droughts. These extreme weather events negatively impact the livelihood of the majority of our population and may lead to volatility in the price of essential food items. These conditions coupled with the emission of pollutants adversely impact, directly or indirectly, our physical, social, and psychological health.
5. Good Investment
The electricity bill savings due to the installation of a solar panels system can give much better return on your investment than conventional financial products like fixed deposits (FDs), Mutual Funds (MFs) etc. Since the returns from a solar panel system are in the form of savings in electricity bills, they are more stable, reliable in the long-term than other traditional investment options. Due to the electricity bill savings, the property owner who has installed a solar panel system can recover their initial investment in a few years and earns an attractive ROI for the remainder of their solar panel system’s lifespan of 25+ years.
Let us know your reasons for going solar in the comments section below.
