Exploring Solar Rooftop Plant as an Investment Avenue In the past few years, there has been a significant focus on environmentally friendly and sustainable energy solutions. Governments are actively promoting sources like solar, wind, and hydro energy for their sustainable attributes.
Solar energy has seen widespread adoption with a large number of households and commercial establishments installing solar panels on the rooftops for fulfilling their energy needs. This transition has led to not only reduced electricity expenses but also offers a promising long-term investment opportunity.
Lets understand this.
Assessing Investment Potential of a Solar Rooftop Plant
In a strictly Indian context, let’s start comparing investment in solar power against a term deposit.
A term deposit in most scheduled banks, would avail an interest of about 7% per annum. At this rate, an investment of Rs. 1 Lakh, will make around 7000 per year, which is approximately Rs.584 per month.
An equivalent investment in solar energy, can buy a solar power plant of approximately 2 KW. Such a system shall produce approximately 8 units in a day. Thus considering an average energy cost of Rs. 7 per unit, it will offset 8 units x Rs 7 per unit = Rs 56, worth of energy in a day.
Considering, 300 days of active solar generation in our country, we can estimate the yearly earnings to about Rs. 16800.
This is more than double the earnings accrued on term deposits.
We have to understand here that, by this calculation not only do we accelarate returns on our investment, we also ward off unwanted future expenditure on power, which is only going to increase, considering the increasing cost of power generation and our increasing dependence on electrical appliances.
Solar Plant Maintenance and its Effect on Overall Investment Performance
Solar power plants come with performance warranty of 25 years. So the obvious concern is viability of maintaining a solar plant in such a long term.
Contrarian to most viewpoints, solar power plants are easy to maintain, and regular preventive checks can ensure hassle-free operations over the stated warranty period.
Here are a few points to consider while maintaining solar panels:
- Solar panel should be kept clean and free of visual impairments.
- Conduct regular inspections for all electrical connections to check for lose ends and stray current paths.
- Make sure the top glass surface is protected from physical damage and scratches.
To sum-up, solar panels can be installed easily and are easier to maintain, if done regularly and diligently.
Should You Install Solar Panels On Your Rooftop?
Solar panels are an excellent investment option for the household, if your house meets the following criteria:
Receives good sunlight throughout the year
Better access to sunlight means better output from the solar plant. Hence, if your house falls in an area that receives ample sunlight round the year, you should immediately get a solar power plant installed in your rooftop to harness this free source of energy.
Has High electricity bills
This is always the primary reason why people look towards other energy alternatives to fulfill the energy needs. Energy prices are moving skywards and are only expected to do so in years to come. Even with the current energy prices, replacing the grid power by solar can return the investment on the solar plant in a few years. This makes a good case to invest in solar and avail free power, thereafter.
Has Ample Shadow-Free Roof Space
For installing rooftop solar, one requires adequate shadow-free roof space. The roof has to be robust to withstand the weight of the solar panel installation. Houses having flat rooftops are better suited for solar installations than households having steeper slopes.
Considerations Before Installing a Solar Rooftop Power Plant
Setting up a solar power plant requires a significant upfront investment, which includes equipments, installation and permits. So it is very important to ensure the right equipments and technical expertise is used to set-up the solar plant. Solar panels being the most important unit of a solar plant, it is desirable to ensure that you use the solar panels from the most trusted sources
The returns on a solar investment greatly depends on solar potential of the place where the plant is installed. Evaluating the overall site conditions before installing a power plant is needful to have a realistic estimate of plant output and subsequent returns.
Returns on solar power plant are strongly linked to how well the power plant is maintained in the long run. The operating costs are significantly low for a solar power plant, but timely up-keeping is essential.
Rapid advancements in solar technology could lead to newer, more efficient technologies that could impact the competitiveness of older installations.
As with any investment ,it is recommended to conduct a thorough study to understand factors specific to the instrument and its alignment with your long term goals. Consulting with experts in renewable energy and regulatory matters can help you make a well-informed decision. Overall, renewable energy, especially solar energy is going to be the future of the energy landscape, hence like any good investment decision, the earlier the better. It may just be the best time to invest in a solar power plant on your rooftop.
About LUBI Electronics
LUBI Electronics is a leading company in India, exhibiting expertise in the automation, solar, and control panel industry.
For more information on our offerings, please reach out to us at firstname.lastname@example.org.