Tag: solar power

Solar Power Returns Are Better Than The Bank

by vemcoblogs -

Whenever you invest in a new source of energy, one of the most critical things you look out for is the returns you get. Energy inevitably involves finances and any savings you make on it are as good as earnings. A cursory look at our history tells us that the costs of energy never go down and on the contrary are always on the ascendant. The fact that your finances are intricately tied to your energy needs makes it all the more important to make the right decisions when it comes to choosing the source of your energy.

When it comes to solar power, you can actually calculate these returns to great levels of precision. In fact, these returns are actually so healthy that they can even exceed the interest yielded by your bank deposits. In this blog, we take you through a full-fledged calculation to prove how solar power returns are even better than your bank investment. 

Let’s do some simple math!

In India, the average rate of return on a fixed deposit across banks these days is 6%. The figure is obviously subject to changes in government policies from time to time, depending upon a number of macroeconomic factors. However, if you were to deposit an amount of Rs. 100,000 in a fixed deposit today, you would receive somewhere around Rs. 511 per month summing up to Rs. 6136 per year.

Now if you invest the same Rs. 100,000 in a solar plant, it will produce electricity of around 8 units per day at a place with adequate sunlight. The prevalent rate of electricity in India is Rs. 6 per unit (this is a very modest estimation as the rates are always growing by the day). This means you produce electricity worth Rs. 48 (8×6) per day and Rs. 1440 (48×30) per month. The total worth of electricity you will produce in a full year would be Rs. 17,520 (48×365). Solar power returns, therefore, are almost thrice the amount you will be receiving as interest on a fixed deposit of the exact same amount!

Solar means independence

Energy dependence is a major issue in our society and even politics today. Energy is basically the very lifeblood of our modern economy. With growing research & development in the field of solar power, we could have a unique opportunity to rid ourselves of our dependence on fossils and other conventional sources of energy. Solar being a perpetual source of energy, especially in a tropical country like India, energy independence won’t be such a far-fetched dream after all, if we are able to make the most of this abundant source. This also entails a lot of benefits for not just human societies but also the environment at large. Quite clearly, solar power is on many levels the fuel for the future!
For further information on solar payback or solar O&M, feel free to call us at 022 43436655 or email us at marketing@vemc.co.in. VEMC is one of the top solar companies in Mumbai. It is an ISO 9001:2015 certified company with a rich industry experience of 72 years.

How significant is it to evaluate the right financial model for solar power system?

by vemcoblogs -

Making the shift to solar power can be beneficial for your business, especially, cost-saving in the long run. However, before you can go green, there are a lot of technicalities to take care of.

When you’re considering shifting to solar power, you’ll find two models in the market: the capital expenditure (CAPEX) model and the operating expenditure (OPEX) model.

In this blog, we will be discussing the two models in detail to help you reach an informed decision.

The CAPEX Model

In this type of financial model, the client approaches VEMC to install a solar pump system on the premises owned by the client. After the commission of the system, the ownership gets transferred to the client and VEMC’s scope ends. Hence, in this type of model, the client pays for the installation of the plant, and the ownership too rests with the client.

Some of the advantages of this model are:

  • The client gets to have complete ownership of the plant and its operation
  • Based on the capacity of the solar plant, the client can save sizeable margins on electricity
  • The client can earn several subsidies and taxes from government bodies, for example, the central finance assistantship (CFA)
  • The client can be partially immune to rising utility electricity prices
  • Industrial and commercial clients can get accelerated depreciation benefits as well

The OPEX Model

In the OPEX model, the investor invests in the project and the client only pays for the power he consumes. The amount of consumption is agreed upon in a contract known as the Power Purchase Agreement (PPA).

What is PPA financing?

The Power Purchase Agreement (PPA) covers the contractual terms of the solar plant and the individual roles of the parties involved. There are usually three parties involved in such a contract – the investor, the installer, and the end client. VEMC is usually the installer for most of the clients. The investor invests in the solar plant and the client buys all or part of the power they want to consume at a rate that can be fixed or changed with time. VEMC installs the plant as per the investor and client’s approval and takes ownership of the plant’s annual maintenance. The client can terminate the agreement after payment of a certain amount or buy the plant directly from the investor.

Choosing the right financial model for your solar investment will depend on your budget and purpose. If you have the resources to take all the responsibility for the installation and maintenance of the plant, CAPEX will be a good choice. But if you don’t have dedicated personnel to look after the systems, OPEX can be a good option for you.

VEMC is a well-established solar EPC company in Mumbai and a pioneer in the field of electromechanical engineering products, allied equipment, and services. VEMCO Solar is a market leader in solar solutions — be it solar panel installation, procurement, commissioning, net metering, or electrical connections. If you are looking for solar panel installation in Mumbai or solar O&M, please reach out to us at +91 98199 07445, and we will be happy to provide you with customized support and services.

How Commercial Solar Can Become The Essence Of Businesses

by vemcoblogs -

If you own a business, you are probably familiar with rising electricity costs. Switching to solar energy offers many benefits that can help you override ride. Let’s look at some of the advantages that commercial solar can provide to your business:

Reduce Overhead Costs 

A huge benefit of installing solar is the resulting elimination of overhead costs of energy. On average, you can save about three-quarters of your electric energy costs by making this transition. Moreover, you will have access to a consistent energy supply that is clean and reliable.

Sustainability and Longevity 

In the years to come, industries will be steadily less dependent on costly fossil fuels due to more regulations on emissions from petrol and coal. Clean and green energy that is environmentally sustainable will be the order of the day. You can make the switch to renewable solar energy and reap the benefits from now.

Energy Independence

Changing to solar energy also gives you independence from commercial sources of electricity, so despite what happens to the grid, you can avail of your own supply whenever you need it. Power failures and other contingencies that cause downtime will no longer be an issue. With solar power, you can also choose to store electricity through a battery system. This will give you a backup source of power during the night or in low light.

Tax Benefits

Governments tend to provide enormous tax rebates and financial aid for businesses using renewable energy. This can be a huge relief and cut down on your overall costs substantially. Look up what the regulations in your state or country are, and make a decision accordingly.

Long-term Financial and Environmental Returns 

Although the cost of solar panel installation may seem high at the outset, it is an investment that yields exponential benefits over the long run. Be it financial or environmental, costs keep declining significantly in the coming years when you choose to use solar energy. In this regard, solar power provides very high returns on investment while keeping your business sustainable in the long term. What’s more, more and more consumers are leaning toward brands with green practices, so this can boost your brand image too.   

You can consult an expert in solar power installation among the top solar companies in Mumbai to ensure a smooth installation.

VEMC is a well-established solar power plant company and a pioneer in the field of electromechanical engineering products, allied equipment, and services. VEMCO Solar is a market leader in solar solutions — be it solar plant erection, procurement, commissioning, net metering, or electrical connections. If you have any requirements in this space, please reach out to us at +91 98199 07445, and we will be happy to provide you with customized support and services.