How Long Do Solar Panels Take to Pay for their-self in India?

If you're thinking of installing solar panels on your home, you've probably got a lot of questions. Many prospective purchasers will ask whether solar is worthwhile or whether solar panels will finally pay for themselves. Yes, both questions are correct. However, there are numerous variables, particularly with relation to your unique residence.

Installing solar panels on your roof is most likely thrilling. A door-to-door salesperson will offer reduced monthly utility bills, huge long-term savings, and increased home value. However, it is a big investment that will take years to fully develop.

So, how long do solar panels take to pay for themselves? It's tricky, but on average, it will take 3-4 years for Indian homeowners to recoup their losses.

When studying residential solar panels, you'll come across the terms "solar payback" and "solar payback period." It's a combination of the cost of solar panels, property tax breaks, accelerated depreciation, and your energy consumption. Solar panel payback calculators will give you a ballpark figure.

The "solar payback period" is the amount of time it will take for the savings on your energy bill to cover the whole cost of the solar panel installation. After several years of saving money on your electricity bill, you'll break even, the solar system will have paid for itself, and everything else will be pure savings.

Of course, the length of time depends on how much money you invest in solar to begin with. In India, the average cost of installing solar panels on a home is roughly Rs3,20,000 + GST. Some spend more, while others spend much less, depending on the quality of the components utilized.

What is the Property Tax Advantage?

The property tax savings and other state incentives to use renewable energy are significant aspects of paying off your solar panels.

Those that take advantage of the property tax solar benefit receive a reduction in their annual property taxes. You must take advantage of this benefit by notifying your local municipality that you have put a solar rooftop on your property, and they will process it for you.

India's Average Solar Payback Period

We'll go over the usual time it takes for your solar panel system to pay for itself now that you know a few more details. Again, this varies depending on the cost of the panels, subsidies, local energy rates, and how much electricity you use during the year.

According to most websites and calculators, the ordinary Indian homeowner should anticipate their solar panel system to pay for itself and provide a return on investment within 3-5 years.

If we haven't already stated it, this varies greatly depending on where you reside and how much you spend. For example, several sections of Maharashtra receive significantly more sunlight than other states. Furthermore, Maharashtra has substantially higher energy expenses than the national average, so you might theoretically pay it off faster because energy is more expensive in the state.

Some states, such as Chandigarh and Panchkula, have very low energy prices, about Rs7 per kWh or unit, and it will likely take a little longer to pay off your solar panels for a 5kW average system if you spend INR 3,20,000 on your energy bill.

As previously stated, several websites and solar providers, such as Bigwit Energy, feature solar return on investment calculator tools to assist you in understanding things. Make sure you understand how much you intend to spend on a solar panel array for your roof, your normal monthly energy consumption, and any tax or state advantages that may be available. Then, enter all of that data into a solar calculator.

In Maharashtra, for example, the average price of power is roughly INR10 per kWh. Many Maharashtrians consume approximately 8,900 kWh of energy per year. With a solar panel budget of INR3,20,000, it will take me roughly 3.5 years to save enough money on electricity to pay off the entire system. That's better than the national average, but your circumstances may differ.

You should also think about the equipment you employ, such as how efficient the panels are, the angle and position of your roof, and whether or not you finance the solar panel system. Not everyone can afford to invest in solar, therefore many homes finance the installation through Bigwit Energy. However, you must now consider any fees or interest on that borrowing.

Can Solar Panels Cover Their Own Costs?

Can solar panels, once again, pay for themselves? Absolutely. If you live in certain states, you might pay off a complete house solar panel system in less than five years. In other places, it may take up to 5 years until the system pays for itself. But once it happens, everything else after that is just savings and extra money in your bank account.

Even if you don't live in the house long enough for that to happen, a solar panel system can still be a beneficial investment because it increases the value of your home. Not every homebuyer will desire to take over your lease as long as it is not a lease.

How Long Can Solar Panels Be Used?

Last but not least, we wanted to briefly discuss the lifespan of solar panels. Is it worth it to wait 10+ years until the savings on your energy bill pay for them? That depends on your circumstances and how long you intend to stay in the house.

Most rooftop solar panels, according to MNRE, can easily last 25-35 years. The most prevalent form, photovoltaic (PV panels), is extremely dependable and long-lasting. Many residences who installed solar panels in the 1980s and 1990s are still operational today.

However, keep in mind that energy production may decrease over time, especially if adequate maintenance is not performed over time. On the other hand, grid electricity rates are gradually rising, which may help you pay off your panels sooner.

Another way your solar panels can pay for themselves these days is if you purchase one of the many fascinating electric vehicles that are currently available or will be available shortly. Charging an EV at home with solar will save you money at the gas pump and eliminate the need for EV charging stations, significantly accelerating the payback of the entire solar system.

Finally, you must decide whether solar is good for you by assessing the advantages and cons, estimating how long you will own your home, and selecting the best arrangement for your family. Try giving us a try, here at Bigwit Energy we take all projects on turn key basis and you as a home owner don’t have to step out of the comfort of your home for any process.

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If you want to be the part of BigWit solar rooftop family, you can give us a call on 7082955224 or send us a mail on sales@bigwitenergy.com. BigWit Energy is one of the best solar companies in Chandigarh, Mohali, Punjab, Panchkula and all of North India and we offer EMI plans of upto 3 years for our customers too pan India!

Alternatively you can schedule a callback from us at your preferred time over here.