Solar System for Home | Cost, Saving, Subsidy with Excel Calculation

 Introduction

Aware Public! Before 3 years, When we got solar installed in our house, so there were a lot of questions in mind

How much electricity will be generated? Will there be electricity in the rain or not? How much will it cost in starting? How much will get the subsidy?

What will be the net saving? will install which company's solar system? will install inverter of which company? Are batteries required or not?

what is on rate system? What is Net Metering? Then what? engaged in research. Asked the vendor, asked friends,

The people who had installed around us, we went to their homes and asked please! tell us something about this. and, after research for many months

finally, we took the decision to install solar at home which was a much better decision

This is a 5 KW solar plant installed on our roof. And while applying it, keep in mind in which direction you are putting it?

At which angle are you putting it? that is important too, for your efficiency so installing solar at home is beneficial financially and environmentally.

that we know. But what is lacking is knowledge. But friends, it will not be there after today's video

we will tell you each and everything every little thing What you should know before installing solar at home.

For installation cost, if capital is less, So its solution will also be found in this video. If you want to compare the return of solar with FD/Mutual Fund,

its Excel calculation will also be found in this video. And those who help me to convey this complete information to you

she is my friend/my college senior, Shreya Mishra. who is the CEO of Solar square, >>RISHABH: Hi Shreya!

>>SHREYA: Hi Rishabh. I am Shreya Mishra. I am the CEO of Solar Square Energy I am a graduate of IIT Mumbai

Rishabh and I have studied in the same college I am Rishabh's senior and my company is Solar Square.

We are a residential Solar company We install rooftop solar in houses, in flats, in a housing society

>>RISHABH: So the aware public, pick up the paper, hold your pen tightly let's begin [intro music]

So first, I ask you a very simple question. When we talk about electricity,

Understanding Units of Measuring Solar

then 3 numbers generally come to mind. One, the electricity bill that comes, is visible the second thing that comes up is the number of units

and third thing that comes is kilowatt (KW) When we are installing solar, we hear 5KW, 3KW

so, what is the co-relation between these three numbers? if you can explain with an example, then >>SHREYA: The KW that we say is the capacity/power rating of the solar system

this system of rating, How much electricity will it make now? That electricity we measure in units

If you receive 300 units, 400 or 500 units in your electricity bill for your month

so that units * kilowatt-hour (KW) means, rating * exposure time How much did you use that power?

that calculates your units so this is the relationship between these three things if your monthly consumption is roughly 350 units

That is, your monthly bill will be Rs. 3500. and you have the requirement of a 3KW rating solar system.

>>RISHABH: Okay, So if I understand it like this If I have installed 3 KW system,

And that will last for 1 hour, So it will make 3 units of electricity according to 3 kilowatts hour is it true?

>>SHREYA: Absolutely correct. but there is one thing that solar, it runs with your sun's radiation

So when the sun rises in the morning So the light comes on at a slight angle. The sun is absolutely up at 12 o'clock in the day

So it produces its peak power So when we say your solar system is of 3 kW rating

so that is its peak rating means, it will give 3 kilowatt power at 12 o'clock Power is a little less at the time of sunrise and sunset.

Rishabh! the effective maths of solar is, That 1-kilowatt solar system that we install at home

roughly gives 1400 units of the year >>RISHABH: Okay, understood.

and the average rate of one unit is running between, 8 to 10 rupees

running between You understand that about 12 to 14 thousand rupees of electricity

One kilowatt plant will make annually >>SHREYA: Exactly 8 to 10 rupees, this is the rate of electricity in India

What KW Solar System Do You Need?

there are some exceptions Like Maharashtra has the electricity of 13 to 14 rupees and some exceptions are like,

like union territories, where the electricity is of 6 rupees >>RISHABH: Everyone knows how many units per month are spent on the electricity bill that comes to their

I take an example There is a bill for 1000 units in my house in summer. In winter, suppose a bill of 500 units comes.

on an average, it is something like 750 units so, for me So now which capacity solar system will be the most financially viable for me?

Should I set up on the higher side, for 1000 units? or should I go with lower-side for 500 units?

SHREYA: Yes, so the solar system that you buy it will always decide by your monthly average consumption

That is, you will run cooler/AC in summer then you will consume more If you don't even run a fan in cold weather, you will consume less

So always when we design the solar system So we take the average of the year in this

So suppose if you take the average of 6 or 12 months You will see that, it shows your average consumption for the last 6 months

the maths is simple for this, 1-kilowatt system that will give you 1400 units a year

if you divide 1400 by 12 So there are 116 units in the month

Now, will this solar system give the same 116 units every month? No.

It will give more units in the summer It will give a little fewer units in the month of monsoon

but what is the average of the year, So much solar has been installed in India, and around the world.

this 1400, the average for the year You can hold it right In this, only a 2-5% difference comes up or down.

So if you look at your house bill So always buy a solar system according to the average consumption of your house

>>RISHABH: Okay, So for the benefit of the audience here we can show a table Inside which you check according to your table

Your average consumption of this unit is approximately this, So which solar plants will you need? Okay? In the same part, a small point is there,

that few people know which is about Sanctioned load Let's say if my ceiling is too large

Sanctioned Load: Why is it Important?

And I thought, why do I install 5-10 kilowatts? I will install 50 kilowatts but can we do that?

and if no, then why? >>SHREYA: Yes, so first to decide the system for solar,

we see three things no. 1, how much your electricity consumption is? That is, how many units do you require?

The second thing we see is, how much shadow-free space is available on the roof? because for solar, shadow-free space is required

its space calculation is very simple if I say roughly, then, for a 1KW solar system,

we require a shadow-free space of 100Sq. Ft. The 3rd and last thing that we see is, in your bill, your Sanction load

in Hindi, which is written on so many bills as 'Niyamit haar' what is that yours?

in most of the states of India, it is the rule that that the solar system cannot exceed your regular load or Sanction load

means, according to your consumption and the space of your rooftop Suppose you want to buy a solar system of 8KW.

but your regular load is just 5kw so you have to increase your regular load

that means you have to change/increase your load You can also do this load increase easily by applying with the electricity department.

So even if you take solar from solar square So if you need load change in the bill So we get it done for you, only after that

we do your solar installation and application >>RISHABH: Now Shreya I want to ask there are two types of systems

D/B On-Grid & Off-Grid Solar System

On-Grid and Off-Grid what is the difference between both? And which system is mostly what we put at home?

>>SHREYA: Sure, So On-Grid, as suggested in its name this system is connected to your electricity bill grid

Off-grid, which has nothing to do with your electricity grid that is an independent, private, personal solar system

which installed on your rooftop a battery comes with an Off-Grid system by which, whatever the electricity that produced

because electricity will not be generated at night So only in the sunshine hour till the sun is there, electricity will produce

So you can make your whole day's electricity in that sunshine hours you consume in the daytime whatever you want to consume

the electricity of evening and night you put it in your battery And then take that electricity from the battery in the evening and at night

But in the On-Grid system, there is no requirement for a battery this system is connected with a grid

The grid you have is the one that acts as a battery for you. 6 hours a day when there is sunlight

Then you make electricity for the whole day you run your appliances, and your AC during the day

Whatever you consume is made from your solar and is consumed in your home. whatever extra electricity you make,

that you put in the grid You take that electricity from the grid after sunset this exchange of electricity

that you put the electricity in the grid during the day got electricity back from the grid in the evening and night this will net off in your bill

i.e., if you give 100 units and withdraw 100 in the grid then your bill will come to zero unit

the facility of exchanging with a grid is, called Net Metering

This facility, all over India in every state and union territory of India

the government of India has made it a consumer right >>RISHABH: so if I understand it correctly So for example today

My solar plant made 10 units of electricity in 6 hours And I consume 12 units of electricity from the whole day and night together

So the final money that I have to pay to the electricity department is for 2 units or let's say, I consumed only 8

and I made 10 units, so I have 2 extra units with me Probably I will get that money

from the electricity department >>SHREYA: Yes, absolutely correct So if you make your 10 units and consumed 12 units

so you take that excess 2 units from the grid, And 10 units will be made from your solar for free

If you make 10 units and consume only 8 so it will be minus 2 units (-2)

i.e., you gave two units to the grid these units get carried over to you every month.

So for example, suppose you installed solar at home and you went out on holiday for 15 days

So what will happen to whatever electricity is generated at that time? You didn't consume anything at home All that electricity goes to the grid

And you also get that benefit in Monthly Roll Over Bill but after 12 months, it will have lapsed

So when we design solar systems, Rishabh! We do that on the basis of the average of the yearly consumption

>>RISHABH: So, that means, there is no point to install an excess capacity plant What is your consumption, install accordingly

Because if you make more electricity than that, it will lapse >>SHREYA: Sure Some people have this question Can we sell electricity to the grid by installing a little more system?

we buy for 8 rupees, If we gave 100 units of the month to the grid

So can we earn 800 rupees a month? then it is not like that because whatever you give excess after twelve months

from that not zero but in some states 1,2 or 2.5 rupees, depends on State to State

so no benefit of this because, according to the cost of your solar you take its benefit on 8 rupees

then your economics build If someone gives you 2 rupees for that electricity so there is no economic viability

so we never design excess capacity >>RISHABH: Understood so now it is clear to users

90% cases in India, you don't need battery You will install on grid system

and the cost of the battery is not involved in our equation Now, maybe people thought these as some silly questions,

Does Solar Work when there is a Power cut?

but still, need to ask because it comes from an audience that if I installed solar and it rained that day

so light will go on in my house? alternatively, If someday, the light is not coming from the grid

The power went out and I installed the solar So will all the fan lights keep on running in my house? >>SHREYA: Yes, so this solar system is,

there is only one weakness of grid connected solar system when the grid is off, the system automatically shuts down

Otherwise, if this system continues to generate electricity and keep doing reverse push in the grid and if grid is off,

it is a safety risk / fire risk so, in this grid connected system It generates electricity only when your grid is on

When your light goes out, the power of the house will go off So your solar system automatically shuts off

>>RISHABH: So, So this is a very good point you said, that if the power went out So it is not that if you have installed solar, then the light fans will continue to run in your house.

that won't happen. Okay. >>SHREYA: If you also want a backup for the power cut So, Rishabh! today, people buy solar to reduce their electricity bills to zero.

those who want backup They also buy a battery backup with Solar for 1 to 2 hours

we call it hybrid system i.e., grid is also connected but when grid will be off

so it will run on battery so, three types of systems are there On-Grid system, Hybrid-system, Off-Grid system

Solar Bill Explained

>>RISHABH: At the time of net-metering, do we understand by looking at our electricity bill?

how much of our electricity has gone to the grid this month? Can we go to our meter and check it?

that this month, how much electricity has come from solar? Because I know that most company

even solar square gives you a data, But how much is coming on paper, from where we can check?

>>SHREYA: Yes, definitely We have three parameters in this How much electricity did your system make?

how much electricity does your system put into the grid? And how much electricity was taken from the grid? if you understand these three things,

So you can understand your electricity bill completely The electricity bills that come in India are very confusing

and it will take 2 to 3 months, after installing a solar in any house, a new bill comes

it is called the solar bill That is, your electricity department which gives you the bill before solar

And the bill it gives after solar, that bill looks different Import export of solar is explained in it.

So you can also see from your bill how much net import-export you do?

the app we give you, You can see how much electricity your solar system generated from it.

so, by seeing these two things, bill and your app You can better understand your electricity bill

Components of a Solar System

>>RISHABH: To install one on-grid system, you tell me from the top From Solar Panel to Connecting Meter

which components are required mainly? What a consumer should know. >>SHREYA: Sure,

most of the people said the solar system we want to purchase solar panel in house but actually, the panel is only the part of the system

Many components use into a solar system so, the solar panel is definitely an important part

the same panel that the blue plate you see who takes light from the sun and convert it into an electricity

other than this, the heart of the solar system is, which you can say it's engine or brain

if I say then, it is inverter The inverter makes direct current, i.e., DC

the Inverter convert it into AC (Alternating Current) And in our house, we run appliance fans and AC

that all runs on AC current so, the second component is the inverter

The third component, which is the most important part of the Solar system that is Structure.

On which metallic structure you install your solar panel. So many people think that,

If took the module and inverter, then So now the structure can be anything it is some civil work,

What we are doing is putting solar on it if your structure is not galvanized in proper zinc

not of proper material So your solar structure will start catching rust after 2-3 monsoons.

by holding rust that the structure will weaken Rishabh! the life of the solar system is of 25 years.

That is, it will be on your roof for 25 years, it will make electricity Its integrity should remain strong for 25 years

so the design of that structure its wind speed handling and it's being rustproof

Made from the right material and the right grade galvanize in zinc, very much important.

The 4th component is cables. There will be many cabling connections in the solar system

These cables will be kept for 25 years in the outdoor weather

rats can bite them There will be weathering on them wear and tear will happen on it Keeping all that in mind, the right cable has to be installed.

so that the cable never gets damaged/exposed Apart from this, there are 15-20 more components.

But, these are the four main components one more thing, which is not a component of solar

but is very important that is After Sale service and AMC Like we buy Annual Maintenance Contract (AMC) with AC

Similarly, to make the solar system perform well year after year its preventive maintenance,

health checkup, its AMC (After Sale Service) is very important

so this is not hardware, is a service component of a solar system, which is very much important

>>RISHABH: Now I want to ask that, let's take an example because, as you told me, 70% people in India,

Installation cost with example

install a plant around 3KW So what is the cost of setting up a 3-kilowatt plant?

without any subsidy And if we put 5 kilowatts, put 10 kilowatts

So by multiplying it in the same ratio can we calculate by 5,10 or any other kilowatt

>>SHREYA: Yes, so in the cost calclation of solar system, a lot of things matter in it

Which technology did you take? Modules come with a variety of technologies in modules like, poly PERC, mono PERC

mono perc half-cut solar, so many technologies there Similarly, there are many technologies of inverters. string inverter, optimizer, micro inverter

structure have also many grades, types you installed the solar structure in 1ft or on 6ft

you have sloping roof at your house, you installed on sloping roof or shingles This cost depends on many things

but, whatever the per kilowatt cost is, you assume that, like, from Rs. 45,000

up to Rs. 60-65,000 per KW, the cost of solar system is, the Government of India also gives subsidy on this cost

So if we have a 3-kilowatt system Because, in most of the houses which are required, it is 3 KW

and if I will keep an average of 50,000 the cost of the solar system.

So, the system is of Rs. 1.5 lakh in different states, On this, the government gives subsidies at different rates.

the max if you see, then the subsidy of 40-45,000 rupees, This subsidy program is currently active in many states of India.

And this subsidy is given to the consumers. i.e., if after subsidy which is the cost of landed solar system,

The cost of 3 KW systems will be around Rs. 1.25 lakh This 3-kilowatt system as we talked about earlier

Will make 350 units for a month and through this, you will almost save 3-3,500 rupees in your electricity bill

That is, the system of Rs.1.25 lakh will give you savings up to 30,35,or 40,000 rupees a year,

>>RISHABH: in four years, your cost will be completely recovered from that after that it's free >>SHREYA: After that, you will enjoy free electricity for 21 years

One thing to always remember while buying solar that today if your electricity is of 8 rupees

Solar Inflation & Degradation

After 10 years, the same electricity in 16 rupees, 100% means it would have been doubled

so the saving of solar, it will grow a little every year

>>RISHABH: But Shreya, as you told its service life is 25 years In 25 years, obviously the ability to generate electricity for the machine

it goes down too >>SHREYA: So, the solar system is, if today your system give you 100 units

so, after 25 years This point degrades every year from 0.7% linearly

this is the electronic mechanics of solar panel So its performance decreases slightly by 0.7%

Your electricity price goes up That's why your savings are constant or better from year to year.

>>RISHABH: Understood, that's a very good point Because most people think that after 25 years it becomes totally zero.

that means, it is not like that It will continue to give electricity around 80% even for 25 years.

Very rarely, there is reduction in it But, right now I want to ask when I was installing solar at my house then a big confusion came

Whatever you just said, so many varieties are there Different types of solar panels are available in the market So first, tell me

Types of Solar Panels Available in India

Which panel gets the subsidy? which panel does not get subsidized? And if we go to choose

and if we have the option So which panels and which inverters should we choose? >>SHREYA: So, if I talk about solar module

there are two type of technologies Poly and Mono solar panels What subsidy is available in India

It is available only on Made in India solar cells and solar panels which is, that only the poly technology is available in India

so, if you want to install a solar system with subsidy at your home then you have to buy poly

if you want to purchase mono technology then you will not get subsidy on that. what are the difference and benefits of mono technology?

The main difference is, space efficiency. If a Panel of Poly gives you a Power of 330-350 KW

So the mono panel is more space efficient the one panel of mono will give you 450, 500 or up to 550KW power

so if your electricity requirement is high And there's less space on your roof then you can go with Mono.

But the IIR, that we said that you will always get better on that poly with subsidy

Although at present, only poly modules are made in India. Mono models will also be made in India in the next few years

And those who are homeowners they will also be able to buy mono modal, under subsidy

But, in today's date a subsidy is only available on Poly And that is made in India

>>RISHABH: okay, in poly does it matter? That it is of which company? or more and less all have the same production?

>>SHREYA: We always advise our homeowners Buy peer 1, High Quality and Trusted Brand Solar Modular inverter

Because, on the module you will get 10 years of manufacturing defects and 25 years performance warranty on that

you can get 5-10 years of warranty on the inverter too This warranty can only be honoured by a reliable company.

who stayed for 25-100 years in business so, from the warranty's point of view

it is very important that we buy models and inverters from trusted reputed brands If you choose your solar company, the solar installer correctly

So you can fully trust his words, choice, and selection of brand

whenever you have a problem Any issue will come, you will call only your solar company

So when buying solar The thing that is most important is,

Make sure you choose the right installer and the right brand that do good quality work

give you the right after sales service And if you ever have any problem then Your solar company will also do warranty claims etc. for you.

AMC: Why is it a MUST buy?

>>RISHABH: Shreya! Now let's talk about its maintenance so, as you told that, if you will take AMC

then it will do its maintenance on your behalf so, first I want to know that If we take AMC

What do these AMC guys do? And suppose if you don't have any AMC you want to do cleaning and all on your own

so what's the way If not, what difference will it make? >>SHREYA: Yes, many people thinks that

once we installed a solar system Putting it on we can forget, it will work fine for 25 years

It has no maintenance requirements But such as every device Your vehicle/AC needs servicing

same with solar system You should always ask your solar company Must demand after sale service and AMC contract

why is it required? Solar system requires three servicing

Preventive, Technical and mechanical maintenance i.e., Your solar company should come to your house after every few months

and should do a health checkup of your system All electrical connections are fine? All mechanical connections are fine?

This is a very important maintenance part The second thing is,

What many consumers and people don't understand that is, India is a very dusty country

as dust, soil, and bird droppings get deposited on top of the solar panel If you don't clean your panels for six months supposedly

your system's performance will go down up to 30% >>RISHABH: Okay >>SHREYA: To clean this,

requires proper technical technician and a specialist brush So that you can clean the panels of your solar modules

without scratching, So, the cost of AMC is, Solar Square to all its customers

5 Year quarterly AMC Package we give it by adding it into a system cost

So we don't charge anything extra But if the customer has more frequency

Like we charge monthly or every 15 days AMC so it has different costing

The process of Installing a Solar System

>>RISHABH: now as if we Want to install a solar system at home through Solar Square so, what is the process?

how long does it take? What quotation do we get from your side? And if I want to know more

whether it is feasible in my house or not? how much system will be right for me? So can you help the customer with that?

or does it have some charge? >>SHREYA: Sure If you want to get your home solar installed from Solar Square,

For that, you can register on our website We provide free Solar Consultation to all customers

In which either our solar experts will come to your home or you can take this consultation on call

they notice your electricity bill and see your roof and by considering your requirement

they will guide you How many KW solar systems do you need? Whether subsidy is available in your city or not?

Will the design of the solar system suit your roof? From solar square, within 15 minute

we will give you a 3D design during that consultation, in which you can exactly see

how would that solar system look like? where it will be installed on your roof? So this is the first part

according to your requirement You will get informed about 3D design and quotation, in this consultation

After that, you can make your decision Once you book solar system from us

with a very nominal booking amount with advance amount system you can book your solar system with us.

to set up your system Solar Square will take care of all government permits and all applications.

and Solar Square is the first company in India, Whose pre-fabricated solar structure and solar system there

That is, our solar structure It is made in the factory by precision manufacturing

on your roof it will be installed and assembled very modularly and in a simple way

>>RISHABH: And , Shreya! You know in India, for any government work, subsidy or any other work You have to go so many times for anything,

Subsidy: Everything you need to know

in this, we have to take money from the government So do I have to run as a consumer for a subsidy? what to process?

Or Solar Square does that too. Subsidy will come directly to my account, Or it will be reduced directly from what my cost is

>>SHREYA: Yes, so, the solar subsidy in India, whatever the current program is

in some states, subsidy is available now, like, Maharashtra, Madhya Pradesh,

Gujarat, Rajasthan Uttar Pradesh and many more states this subsidy will come to you as consumer upfront discount/upfront benefit

The solar company claims the subsidy from the electricity department. so that, as a consumer,

You do not have to wait for this subsidy but, one thing I want to tell you here,

very soon, the Government of India, will bring a new National Subsidy Program

by that, in whichever state you live If the subsidy program is not running in your state On this One National Portal

From Kashmir to Kanyakumari, from the West to the East any state or union territory

You can take advantage of solar subsidy. But this subsidy will come in the account of the consumer.

this is called direct benefit transfer This program in the next few months Ministry of New and Renewable Energy is commissioning this in India

this is very nice program Whose benefit can be availed by the houses of the whole of India.

This subsidy is a commitment of the MNRE In 30 days after installing your solar system

This subsidy will be automatically deposited in the consumer's account in 30 days.

>>RISHABH: Last question, the cost of solar For example, I want to set up a 5-kilowatt plant So as you mentioned initial cost

Can we get a Solar System on EMI?

if we do calculation for the same So you told the average around 50,000 rupees So according to 50,000 my costing came is,

almost 2.5 lakh rupees. you mentioned a subsidy of Rs. 45,000 on 3KW so on 5, if I do extrapolate it

So the subsidy will be around 3000 so my cost is about 2 lakh rupees.

but, 2 lakh is also a significant cost for some people but if we see the cost benefit then surely it is beneficial for long term

But it becomes a little significant for 1-time investment. So can I get a loan for this from the bank or any place

Or some EMI option is available >>SHREYA: So you don't need to go anywhere for financing EMI

our sales solar consultation, which will be visited you You will have a conversation with our solar experts

In the same visit, our solar experts by approving your EMI within 5 minutes

Also provide you Zero percent EMI If you want a loan from 6 months to 12 months

so on Zero percent EMI you can get this loan from solar Square

You don't need to apply to a bank or anywhere else >>RISHABH:So audience! As promised,

Moving on to Excel Calculations So we have installed solar system of 5 kilowatts 1400 units are made from 1 KW in a year

And this system degrades by 0.7% annually We have considered the price of electricity today as 8.5 Rs/kWh

And like everything else, its price will increase every year We have assumed that the price will increase by 3% every year

and to install a system of 5 kilowatts Today we have to spend 2.5 lakh rupees So this is the illustration of 25 years

Electricity will be produced 7000 units in the first year And because the system will undergo linear degradation every year from 0.7%

So in the coming years, it will produce a little fewer units. But even in the 25th year, it will produce about 6000 units.

Electricity rate is 8.5 for the 1st year But if you increase every year by 3% So in the last year, the rate of electricity will be 17.3

and here are the amounts In the beginning, we have to invest 2.5 lakh rupees, then we have written it in negative. And after that, this is the amount of electricity for every year

what we're going to save So by putting 2.5 lakh, in next 25 years We will save electricity of about Rs 19,63,000

That is, by investing 2.5 lakhs, for the next 25 years you have generated an IIR of 26% on your money

So, friends, you will get the link to this Excel in the pinned comment of the video. And friends if you are planning to install the solar system at your home,

so, in a pinned comment of the video, I am giving you the link to Solar Square who provide free consultation

around everything, how much it will cost? Which system will be right for you? What is the capacity of the system to be installed?

you must check out that link fill out a form there and their team will contact you

if you have any question or suggestion then mention it in the comment I and the team of Solar Square

we will try to answer as many of them as possible That's all in today's episode Give permission to your aware RJ

See you in another episode of LLA Jai Hind!!!