1. What are my solar buying and financing options?
Broadly, there are two –
a. Invest in your Solar PV system – You can purchase your own solar PPA; this requires a hefty initial investment but one can easily procure bank loans in this regard. Also, there are government subsidies that can ease the burden of initial investment – a 40% tax claim through accelerated depreciation for the commercial sector and 30 % MNRE subsidy for those in the educational, social or residential sector are examples.
b. Enter into Solar PPA with a reliable solar company – You can go solar with little to zero initial investment as well, by Solar PPA. When you enter into a Solar Power Purchase Agreement (Solar PPA) with Minus CO2, the company installs and maintains the Solar PV system in your property, and sells you the solar power generated by the system at rates lower than the conventional electricity rates. The solar company owns the system until the lock-in period, the term till which the agreement lasts, after which the ownership is transferred to you.
2. What is Net Metering?
Net metering enables you to sell the excess electrical energy produced by your solar PV system to the conventional electricity grid. This earns you credits that enable you to draw energy from the grid when your system is not producing enough power for your use. Learn how solar savings are maximized by net metering in this article. Read More
3. How much does a Solar PV system cost?
The cost of a solar PV system largely depends on the size of the system. An estimate of costs in Rs per Wp for various sizes is listed below:
|Size of Solar PV||Cost per Wp|
|Up to 10 kWp||Rs 72-90/Wp|
|10 – 100 kWp||Rs 63-70/Wp|
|Above 100 kWp||Rs 60-63/Wp|
Costs can be significantly higher for off-grid systems that employ solar batteries. It may fall between 110-125 Rs/Wp. To determine the system-size and estimate cost of a solar PV system you need, talk to us at +91 90226 50560 | 022 4976 6944
Did you know that you can go solar without any initial investment as well? Learn more here
4. Do I need to buy Insurance for my Solar PV system?
As is true of all assets, it is advisable to have an insurance cover for your solar PV system. Solar PV systems that are designed well and properly installed are known to be highly reliable. In addition, all its various components are covered under warranties too.
5. Is solar power cheaper than grid power?
Yes, solar power is cheaper than grid power. Take the example of the state of Maharashtra. While electricity costs Rs 12 per unit in the state, solar power from Minus Co2 would cost only Rs 7 per unit. Also, grid tariff keeps increasing with time. And if you go solar, you are effectively ensuring fixed energy prices for the next 20-25 years!
6. What are the return on investment (ROI) and the payback period of solar PV?
Payback period is the amount of time it takes for you to recover the initial investment you made in your solar PV system. Return on Investment is the effective returns that your investment on solar PV system gifts you. It is easy to see that higher your monthly savings, shorter will be your payback period and higher the return on investments you earn.
Commercial and industrial consumers of Minus CO2 are found to recover their initial investment in 3-5 years, while residential consumers can expect payback within 5-7 years. Once the initial investment is recovered, the energy produced by your solar PV system for its remaining life period is absolutely free! Remember, the average lifespan of a well-installed solar PV system is 20-25 years.