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Analysis of PV Panel Cost

PV Panel Cost in India
PV Panel Cost in IndiaLanco Solar

Solar panels not just offer electricity alternatives and ecological solutions, but they offer electricity savings as well. This article discuses basic costs of installing a PV panel.

Over the years, Solar panels have become a popular choice among Indians. Offering ecological benefits along with monetary savings, PV Panels can definitely become a better electricity alternative for the country. But in comparison to regular electricity, PV panels require bigger investments. But don’t worry, the returns will be greater, ensuring that you break even and profit from the installation of solar panels. Here’s an analysis of PV Panel costs in India and how these costs can be determined-

Estimation of electricity needs

First and foremost, you need to estimate your total electricity needs if you wish to analyze the cost of PV panel in India. You will have to find out how much kilowatt energy you are using. Also, get an estimate of the months when most electricity is being used. This helps you in estimating the highest energy use at a particular point of the year.

Sunlight

One of the major factors that you should consider while calculating cost of PV panels is the amount of sunlight you receive in your area. For instance, in North Indian cities like Delhi, more sun is available, therefore peak hours here will help convert energy into electricity. In most of the cities, one kilowatt system would be able to produce anywhere from 1300-1700 kilowatt of electricity per year. This would determine your solar photovoltaic system size, which in turn will affect your overall costs. A solar panel with 200 watts may cost INR 11,000-13000, while a Solar panel offering 100 watts or 12 V is priced about 7,000 INR.

Size of the system

Usually, photovoltaic systems are available from 1-5 kilowatts to provide energy for homes. So, while you are determining costs, make sure that you use the thumb rule, which states that a square foot can yield up to 10 watts. Therefore, you would need panels to cover at least 100-200 square feet of area. PV Panel cost in India also varies depending on the use of an inverter. For instance, a roof PV panel with an inverter that supports 3kW and comes with suitable battery which includes 11,000 INR as just battery costs. Usually, a small solar system can run three to four lights, fans and Televisions, which are priced close to INR 50,000; 1kW system is priced between INR 1.20 lacs to INR 1.8 lacs.

Know subsidies and rebates

In India, 30 percent subsidies are available on PV Panels through manufacturers. But a few states offer more rebate after centre’s subsidies. For instance, Tamil Nadu offers additional 20 percent rebate. Therefore, the overall costs would reduce significantly.

Ideally, in a city like Delhi, where one gets an average monthly bill of 4000 INR and has an open roof top of 150 square feet, would require to invest INR 2.1 lacs (Without subsidy) for a system size to 1.5 kW to deal with major necessities. This will help in saving over 1000 INR monthly, while reducing CO2 emissions as well.