Expensive Car, Daugther’s Wedding or SOLAR?

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Expensive Car, Daughter’s Wedding OR SOLAR SYSTEM?

Solar is in the news bigtime. Hardly a day goes by when a local newspaper does not have a solar article. People are talking about solar in offices. Homes and businesses are exploring ways to benefit from solar.

Enter Solar system. For a typical free-standing house with own roof, a 5 KWp system will cost Rs 4 to 5 lakhs fully installed. Big question is, is it worth it? Are there not better uses for your money?

Like spending on a nice car or saving for a daughter’s wedding?

Let us get straight to the point. You could spend same amount of money to buy a nice car. Buying a nice car or any car for that matter is not an investment. It is a straight expenditure. Further, there is no return on this money. It is gone, gone for good – unless you sell the car. Then, you may recoup some money but it will be much less that what you paid for – due to depreciation! hand-icon

We often save for children’s weddings, expensive as they are. It leaves a great impression on friends, relatives and your circle when a wedding is lavish. Some might even argue money spent on a wedding is an investment in the child’s future. Let’s be clear though, there are no tangible legal returns, but wedding albums, videos and memories of a wedding well-hosted are savoured for long hand-icon

Let us take a look at Solar system now. Main objective with Solar is to save on power bills. Let’s see what a typical household will pay for electricity over the years, assuming a conservative 7.5% pa hike in rates:

bravosolarIn 10 years this household would have paid Rs 8.48 lakhs in electricity bills, in 15 years Rs 15.67 lakhs and in 20 years nearly 26 lakhs in bills!

On the other hand, a Solar system of 5 KWp, producing about 22 units/day, suitable for this household,pays itself off in the 6th year! But the most important part is what this household pays–near zero in 7th year, in 8th, and in 9th, 10th, 11th … all the way up to 25 years or even more! Wow! hand-icon1

Of course there is marginal annual maintenance, a likely inverter replacement in 8th-9th year [~ Rs 40,000] and some consumption from the grid, still the fact remains this household will SAVE MASSIVELY ON ELECTRICITY

Now then – could these huge savings over time be used elsewhere? How about on the child’s wedding or on that nice car you have put off?

At Bravo Solar we can help you achieve such savings. Come and talk to us ….. boy-icon

References:
[1] TDPPL Tariff Schedule 24-Jul-2014
[2] Distribution & Retail Supply Tariff, Haryana Electricity Regulatory Commission, 1-Apr-2014
[3] Tariff Order, Rajasthan Electricity Regulatory Commission, 2013-14
[4] Tariff Orders FY2014-15 for PSPCL & PSTCL, State of Punjab

Factors to consider before getting Solar

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What are the Factors to Consider when Getting Solar?

Solar is in the news bigtime. Hardly a day goes by when a local newspaper does not have a solar article. People are talking about solar in offices. Homes and businesses are exploring ways to benefit from solar. Big question is, where do you start?

Let us take a look. What drives the decision to select a solar system for your rooftop?

There are essentially 4 KEY FACTORS:
1. How much does it cost?
2. What is the performance like?
3. How will I fund the purchase?
4. What government benefits are available in going solar?

Firstly, cost of a fully installed rooftop, grid-interactive system can range anywhere from Rs 85,000 to Rs 1,30,000 per kWp depending upon your Supplier, type of your rooftop, quality of components installed, inclusion of batteries and the size of your system. Larger the size, lower the per kWp cost – owing to economies of scale. Most critical is your choice of a good Systems Supplier hand-icon1 – one who studies your power load and its daily profile, performs a proper inspection of the rooftop before quoting, fully supports you by applying to the discom for permission to connect your solar system to the grid, installs the best quality components and provides warranty and AMC support throughout the life of your solar system

Once installed, the SAVINGS sun-icon emerge almost immediately. Power bills for the month(s) following successful commissioning of your solar system start showing reduced usage amounts owing to reduced purchase of grid power, which is now replaced by your own solar power! Best part is your savings continue for the life of the system, 25 years or even more! It is important to ensure though, your installed system matches your needs and is well maintained

Owning your system outright by making an upfront investment is the easiest and fastest way to get solar at your rooftop and start saving on power. Alternatively, one can obtain a loan to fund the system purchase, but you need to be aware that in such case monthly repayments will chew away your power savings, adding more years to your break-even period

The government of India, via its Ministry of New & Renewable Energy has announced subsidies for rooftops for retail, commercial and industrial customers of 30% of total project value for systems up to 100 kWp. While this may sound attractive, it is also very important to be aware that subsidy pipeline is currently empty and applicants have queued up for over 2-3 years in most cases. Overall your decision is whether you wait for a subsidy with a huge waiting period and a risk that subsidy may even be cancelled whilst you wait and see your power bills rising as power rates climb every few months OR get a solar system now and start enjoying power savings almost immediately and become power-independent hand-icon

At Bravo Solar we can help you get your best option. Come and talk to us… boy-icon

References:
New Solar Target by Govt of India – http://timesofindia.indiatimes.com/business/india-business/Govt-targets-100000MWsolar-power-by-2022/articleshow/45185167.cms
Solar boost to rooftops – http://timesofindia.indiatimes.com/city/chennai/Solar-boost-TN-tops-in-rooftopinstallations/articleshow/45183946.cms

Solar options for Residents of India

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What are the Solar Options for Residents of India?
– by Sandeep Chandra

Let us take example of Delhi. On 8th September 2014, Delhi’s Electricity Regulator Commission, DERC – notified its Net-Metering Policy for the benefit of residents of Delhi. This Policy also applies to all businesses, schools, factories, hospitals, hotels, etc operating within Delhi. So, now Delhi residents can have own Solar Power System, help the environment and save money too! hand-icon1

Most other States are either ahead of Delhi (Kerala, Gujarat, Tamil Nadu) or following up (Rajasthan, Punjab, Assam) with similar Solar policies

DERC released guidelines for all supply & distribution companies that serve Delhi – NDPL, BSES (Yamuna) and BSES (Rajdhani) – to enable Delhi residents and businesses to connect their Solar Power systems with these companies’ respective electricity grids

What does this mean to you? Under this policy any buyer of power in Delhi can install their own Solar Power system, connect it to the local grid and earn savings on power bills from electricity produced. Not only that, if there is a net surplus over the billing period, your bill for that period will be zero plus you will accumulate a credit for the extra power you feed into the grid! How cool? This is possible due to NET-METERING sun-icon

How do you take advantage of this? It depends on your current situation. Do you live in a single house or in a society? Do you have spare space on your rooftop? Do you currently use a genset or an inverter/UPS? Do you want solar power to supply you when grid supply goes off? Are you a user with large reactive loads, eg a lot of motors, air-conditioners, etc? Are you a heavy user during peak hour and paying peak rate? In most situations your best option will be solar panels on the roof with an inverter (called grid-tie inverter) feeding the grid hand-icon

Some of the options are:
OPTION 1 – Setup your rooftop solar power system, connect with the grid and net-metering takes care of the power produced and power used equation so you get an adjusted bill each month. In this option, if grid supply goes off, so does your supply. You do not get power automatically because you have a solar power system. Surprised? Yes that’s true
OPTION 2 – Similar to Option 1 but rather than selling surplus to the grid, you store it in batteries, so that if you lose grid power, batteries can support your load. Size of batteries will greatly drive your cost in this option
OPTION 3 – Enhance Option 2 with a genset, so that you always get power, whether from solar or batteries or genset depending upon time of day, type of load, etc. This option helps to contain your total solution cost and you may be able to keep your genset as well, if you have one!

Deciding the best option that minimizes your monthly power bills and keeps total cost of your solar power system as low as possible is absolutely critical

If you ever thought of Solar or wanted to go trendy about the environment, then a wonderful opportunity now welcomes you

At Bravo Solar we can help you get your best option. Come and talk to us… … boy-icon

References:

  • DERC Policy: http://derc.gov.in/Regulations/DERCRegulations/Regulations%202014/Renewable%20Energy%20Net%20Metering%

Solar targets in GW, MW, KW not in GWh, MWh, KWh

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Why are Solar targets stated in GW, MW or KW instead of in GWh, MWh or KWh?
– by Sandeep Chandra

India’ Ministry of New and Renewable Energy [MNRE], on its website has laid down India’s target  for grid-connected Solar Power as 100 GW by 2022 [revised from 20GW in 2015]

Since one GW, or gigawatt, is 1 billion watts, this suggests that installed capacity of all Solar Power Plants across the country is target to be 20 billion watts by 2022. This is equivalent to powering 200 million [or 20 crore] 100 watt light bulbs simultaneously! How cool! hand-icon1

Whether it is GW, MW or KW, these are units of power. Most people understand power in the sense of a power rating, for example, a light-bulb of 100 watts or a water pump of 5 HP or horsepower. Although, there are some others who believe power is what is in the hands of a politician or something only powerful person can enjoy! Here though, we will restrict ourselves only to power measured in watts sun-icon

Regardless of the power rating of devices at your home or office, your electricity bill is not based on the power rating of those devices, rather it is based on the amount of electrical energy those devices use. Devices with higher power rating consume energy faster than devices with lower power rating. So, it is the total electrical energy consumed that is important. Energy from the grid as much you need, when you need it – that is important. That energy is measured in KWh or MWh depending upon the size of energy demand. So, shouldn’t the total energy generated in KWh or MWh be a more important target setting than the size of the power plant in KW or MW?

Another way to look at it is this: Power is energy used over a unit of time or rate of energy consumption. As an analogy it is like speed which is distance travelled over a unit of time. To get total distance travelled you multiply speed with time, same way to get total energy consumed you multiply power with time and get KW * h = KWh. Now see for yourself, what is more important as a milestone – speed or distance you travelled? Same way what is more important -power rating or energy consumed? Get the picture. The energy generated and consumed is specified in KWH or MWH, not in KW or MW hand-icon

So, you would expect the important thing for the government should be how much energy it plans to generate because that is what people will consume. This is the people’s point of view

But wait! How will the government know how much you will consume, when you will consume? They can only plan for the eventuality that you get as much energy as you require, when you require. To do this they plan for a minimum capability. This covers your peak demand power. That is, they assume all your devices are on at full at a given time, using their peak energy. Then they work backwards to see what power capacity will provide that. And that is measured in KW or MW. Hence all power plants are rated in KW, MW or GWboy-icon

References:

  • MNRE Solar Mission http://www.mnre.gov.in/solar-mission/jnnsm/introduction-2/
  • Units of Power: 1 GW = 1,000 MW = 1,000 * 1,000 KW = 1 million KW = 1,000 * 1 million W = 1 billion W
  • Units of Electric Energy: 1 GWh = 1,000 MWh = 1 million KWh = 1 billion Wh
  • 1 HP = 745.7 watts