How do solar panels help reduce electricity?

Solar panels use sunlight to generate electricity instead of relying on the grid. Solar panels reduce electricity bills because they use sunlight, a natural source for power generation.

Heavy electrical bills every month can be exhausting to pay. Sometimes, in the name of taxes or past dues, we are bound to pay the power bills.

If this leaves you to worry about saving money for the future, switching to a sustainable power generation source is important.

Let us explore how solar panels reduce electricity bills and help you save the environment.

Solar Panels Financial Benefits: A Smart Investment for Cost Savings

India’s solar energy market is growing because it is backed by the intent to save the environment. Solar panels are now more affordable because advancements in technology have significantly reduced their manufacturing costs. There is also increased flexibility in solar systems.

Here are the reasons why solar panels’ cost savings are notable:

1. Lower energy costs:

You do not have to buy electricity from the local grid or electricity company, saving you energy costs. It is only a one-time installation cost. Let us understand it with an example.

Suppose you install a 3 KW solar panel system. How, will it save you financial money? Read further.

You would need 6 panels of 550W each in this case with over 3 KW capacity. Assuming that these panels will be of Rs.25,000/-. You will need an inverter to maximise the power output, which can cost you Rs.40,000/-. Along with these,. Let us determine whether it will save you any cost or not.

Neat Table

Particular	Cost in ₹
3 KW Panel	90,000
Inverter Cost	40,000
Mounting Structure + Hardware	20,000
Misc Hardware & Electrical etc	30,000
Total Expenses will be	1,80,000
Subsidy Expected	78,000
Expense Incurred	1,02,000

Now understand that 3KW of the panel will produce 10 Units(average) of electricity per day, which implies that per month, there will be 300 units of production.

On average, a family will consume 400 units of power. This implies that solar helps to save 80% of electricity costs. And you end up saving 2250 a Rs.300/- monthly bill instead of Rs.36,000 annually.

You will break through the expense in the next 4 years.

2. No maintenance cost:
Solar panels do not have maintenance costs. Instead, rain can help you in maintenance by cleaning the dirt naturally.

3. Saves on transmission costs:
Solar systems produce power when needed. It avoids expensive transmission costs. By generating electricity on-site, solar panels reduce the need to transmit power over long distances and save costs. Also, during peak hours of electricity demands, you can use power from local sources and save the cost of transmission from the grid.

4. Net metering:
With the feature of net metering, you can send excess used power back to the grid in exchange for credits. This allows you to save and earn while using solar energy.

Understanding Solar Panels’ Return on Investment

The cost of solar panels limits people’s decision when they want to get installation at home or office. Instead, the perspective should shift to understanding solar panels’ return on investment.
The solar panel payback period is the time for energy savings to equal the initial investment. Solar panels offer a payback period of 5-10 years, depending on location, energy consumption, and system size. After this period, the energy savings will contribute directly to your profits, making solar panels a cost-effective and sustainable long-term investment.

To calculate solar panels’ return on investment, here are the quick steps:

Step 1: Add up all the costs, including panel, installation, permits, and maintenance.
Step 2: Subtract savings on energy bills or any subsidy.
Step 3: Divide the net return by the total cost.
Step 4: Multiply the result by 100 to get the ROI as a percentage.

How Solar Energy Reduces Electricity Costs?

Solar energy has unlocked the potential of power generation. It allows us to give back to the environment, a powerful source of energy generation available at a reduced cost. Using net metering, people can send back unused energy to the grid in exchange for credits.
Solar panel’s energy savings are higher in comparison to the conventional sources of energy because the latter depends on coal for power generation. As much as coal is becoming difficult to get, its cost is also rising, leading to a higher cost of power production. Solar energy savings are indirect financial rewards.
Solar energy reduces electricity costs for you with the subsidy you get from the government based on the size of the panel installed.

Conclusion

Solar panels help you save money on utility bills gradually with month-on-month expenses. Solar power lowers utility bills, and the total amount saved will depend on the type of panel installed and the energy consumed. You can contact CUSP Solar here for any solar panel requirements or quote details.

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How do solar panels help reduce electricity?