Are you the President, the Vice-President or a Committee Member of your residential society? How would you want to be remembered as – an environmentalist, someone with prudent economic sense or a farsighted changemaker – after your tenure? What about all the three? Read on to find out why residential societies across the nation are stepping into a smart aka solar future.
Why going solar is good for your wallet!
The big financial incentives that will smooth your transition to a solar future are:
1. Go solar with little or no upfront payments
Is the hefty initial investment ‘allegedly’ required that prevents you from going solar? Did you know that your society could go solar with little to zero upfront payments under the Solar Power Purchase Agreement? Talk to our representative to know more about it at Minus CO2.
2. 40 % tax claim through accelerated depreciation
Did you know that your investments on solar energy – if you choose to, that is – will be backed by Government incentives that offer accelerated depreciation up to 40%? Thus, upon your investment in and installation of solar energy, 40% of the cost can be allotted as depreciation in the first year, 40% of remaining cost in the following year, and so on.
3. 30% MNRE subsidy
There exists a subsidy from the Ministry of New and Renewable energy to encourage the installation of solar panels exclusively for those in the residential, educational and social sectors. You can avail a flat 30% subsidy of your system’s cost under this MNRE subsidy. And if you are from the Northeast or any of the special category states, the MNRE subsidy can go up to 70% of the system’s cost.
4. Huge savings on electricity bills
Here comes the big one – eliminate electricity bills altogether or reduce it by 80% when you switch to solar energy. Well, won’t you like an elaboration on the same? Read on.
How Solar Panels equate to zero or negligible electricity bills
A huge share of your society’s expenses is claimed by its common utility electricity bills alone. Could there be anything more advantageous than significantly cutting down the same? We are talking big here – imagine gifting your society savings worth 80% of its electricity bill!
Well, where numbers ought to speak, numbers alone can. Let us consider the monthly electricity bill of a hypothetical society ABC. Let it be ₹50,000.
The yearly bill would amount to 12 x ₹50,000 = ₹6 lakhs, provided the bill of each month is more or less the same.
Now, if the society installs solar panels under the on-grid system, their dependence on the conventional electricity would go less by 80%. This is how one can expect to get the electricity bill reduced up to 80 %.
In the post-solar era, the society ABC would receive only ₹10,000 as its bill. Its yearly expense on conventional electricity will amount to ₹1.2 lakhs only. The society has succeeded in saving over ₹4.8 lakhs!
That is the thing about savings. Its power is in the cumulative effect over a period of time.
Now, imagine how much the society can save in, say, 25 years (Remember the average lifespan of your solar panels is estimated to be between 20-25 years). While the pre-solar days would have Society ABC pay ₹1.50 crores as electricity bill, its post-solar electricity bill will amount to only ₹30 lakhs. That’s savings worth ₹1.2 crores!
Remember, we haven’t even considered the increase in electricity rate that is bound to happen over a period of time, which would only increase the magnitude of your savings compared to your counterparts still stuck in a solar-less world.
Why Minus CO2
At Minus CO2, we believe that all of us would opt for greener, environment-friendly choices if given a choice. One cannot expect an individual, a society or a firm to opt for renewable energy choices if they aren’t affordable. We understand how the many choices we make in life are limited and influenced by money alone. That is why we bring you custom-made solutions that are not just affordable but will also save you much money in the long run! Now if something is good for the planet and your wallet, why would you not choose the same?
To know the exact figures of the savings installing solar panels can bring to your residential society, call us at +91 90226 50560 | 022 4976 6944. We would love to let the numbers speak for us!