As the world turns its focus towards sustainability and reducing carbon footprints, rooftop solar systems have emerged as an excellent choice to save on electricity bills while contributing to environmental conservation. But how much can you actually save by installing a rooftop solar system? Let’s explore this renewable energy solution provided by several reputed solar EPC companies in Mumbai.
Overview of Rooftop Solar Economics
Rooftop solar systems work by capturing sunlight through photovoltaic (PV) panels installed on your roof. The energy generated is used to power your home or business, reducing your dependency on grid electricity. The savings come from reduced electricity bills as you’re generating your own power instead of buying it. This leads to significant savings over time, especially when electricity prices are gradually rising.
Here are some factors that influence how much you can save with a rooftop solar system:
- Monthly power bills: Switching to solar can result in savings on electricity bills. Households with high power consumption or larger businesses can save more through solar energy.
- Rooftop size: The size of your roof directly impacts how many solar panels can be installed. A larger rooftop allows for more panels, which can generate more electricity and lead to higher savings.
- Hours of sun: Areas with more sun hours per day will produce more electricity. For instance, regions like Mumbai can expect a higher return on investment compared to areas with less sunlight.
- Net Metering: Net metering allows you to feed excess power back into the grid. This excess energy can be credited towards your future electricity bills, thereby increasing your savings.
Example Scenarios
- Residential savings: A typical residential installation with a 5 kW solar system can offset around 70-80% of the electricity bill. For a household with a monthly bill of ₹6,000, this could translate to savings of ₹4,000-₹5,000 per month or around ₹48,000-₹60,000 annually. Over a 25-year lifespan, this could add up to savings of over ₹12-15 lakhs.
- Commercial savings: For businesses, the savings potential is even higher. A commercial establishment can install a solar system ranging from 20 kW to 100 kW or more. For a business with a ₹50,000 monthly electricity bill, a solar system could cut this cost by 60-80% leading to savings of ₹30,000-₹40,000 per month or ₹3.6 lakh to ₹4.8 lakh annually. Hence, businesses can save millions of rupees over a 25-year period.
Subsidy Impact on Cost
Government subsidies and incentives play a significant role in reducing the upfront cost of rooftop solar installations. This reduces the payback period and improves the return on investment, making rooftop solar a viable option for users.
Payback Comparison
The break-even point or payback period for a rooftop solar system typically ranges from 4 to 6 years. After this period, the savings generated from the solar system are essentially free. The payback period is often shorter for commercial installations compared to residential setups due to their higher electricity consumption.
Interested in saving with rooftop solar? Contact VEMC today for a free site assessment or quote to understand the potential savings for your home or business. As a leading Solar EPC company in Mumbai, we offer tailored solar EPC services to maximise your energy savings. Reach out to us on +91 8976951701, +91 9819907445, 022 43117133, or email us at marketing@vemc.co.in now.