How To Reduce The Cost Of Your Home Solar System

With the improvements in the telecommunication sector, more and more people are getting attracted to the features and usefulness of solar technology. Solar is nowadays becoming the most popular way to generate electricity. The usage of solar panels is increasing day by day. And why not? There are various benefits facilitated by solar panels that include a reduction in the cost of electric bills, reduced carbon footprints and potentially increased home values, all at once.

Solar systems in homes are seen as genuine things in today’s era. Mostly, an off-grid solar system is used in homes as they facilitate its users with long power backups during crucial circumstances. A homely solar system provides double benefits to its owner. On the primary basis, it increases the value of your property without any tax increment; on the other side, it boosts your savings by reducing your heavy electricity bills through net metering. Home solar systems are smaller than commercial solar systems. If we go deeper and talk about its range, then the solar system for home is available from 1kW capacity to 10kW capacity.

Solar Power for home cost

How to reduce solar panel cost

The installation of the solar panel system reduces the electricity bills by approximately 30 years, but it contains a significant upfront cost. Let’s explore some more ways to reduce the cost of a solar system by focusing on energy consumption.

Start With Energy Efficiency

Most solar installers consider the size of the panels by keeping the household usage of the electricity in mind. Add up your historical usage by reviewing the annual electricity bills. After making the reduction in home energy consumption, small-sized solar panels will be advisable. Start the analysis by examining where your home is inefficient and take action accordingly.

Suppose your home consumes more electricity by making the usage of incandescent and halogen light bulbs and then replacing them with LED bulbs. Switch off the computers when not in use and unplug idle electronics, which could be consuming more power. When some electronics are in standby mode, they can continuously consume a small amount of energy.

Air conditioners and heating systems can increase the consumption of power. In the summer times, set the temperature as high as possible while still being comfortable and use window treatments to keep your home cooler naturally. In the winter, put on a sweater and keep the thermostat as low as possible.

If you have old and inefficient home appliances, replace them with Energy Star-certified products. There are types of water heaters that run on electricity. Save energy by installing low-flow plumbing fixtures and use cold water instead of hot water, if possible.

Get Competitive Bids

When installing a solar system, go through the market and analyze the market rates of the panel. Most of the small solar installers have lower prices than the bigger solar contractors. The price of a solar system is dependent on the cost of the components. Never forget to ask for solar bids that include high-quality products with lower-priced solar panels and equipment. In addition to this, battery storage also adds a significant amount to the cost of a solar system and might not be worth the upfront cost.

Shop around while choosing an installer to find the best prices, warranties, and solar equipment available.

Solar panel price forecast 2023

As mentioned by GlobalData, those who are striving to improve their carbon footprint by making a decision to install rooftop solar panels during the pandemic missed out on what has been over a decade-long annual price drop.

As per the analysis made by the data and analytics companies, the price of panel systems dropped every year between 2013 and 2020. After the period, the arrival of COVID-19 has relatedly disrupted the supply chain.

‘Rooftop Solar Photovoltaic (PV) Market, 2021 – Global Market Size, Market Share, Major Trends, and Key Country Analysis to 2030’, as per this report, it has been witnessed that rooftop solar prices decreased between the years 2013 and 2020. The massive downfall was due to an increase in the supply of solar cells and modules. Therefore, logistics constraints caused by the COVID-19 pandemic led to a rise in the price of raw materials and a sharp increase in solar PV system prices in 2021.

In 2020, the global rooftop cumulative solar PV capacity stood at 248.8 gigawatts (GW), which reflected an increase of 23.8% when compared to 2019. The Asia-Pacific region accounted for 53.5% of the market share, whereas China alone holds 12.4% of the global market. Europe and North & South America (NA&SA) accounted for 29.1% and 13.6%, respectively. Governments in the region are promoting rooftop solar PV installations through various long-term policies, financial incentives, subsidies, and tax benefits.

How much do solar panels cost for a 1500-square-foot house?

As for the cost of installing solar panels for a 1500 sq. ft. home, the estimates run somewhere between INR 600000 to INR 160000. If the range caught you off-guard, your eyes aren’t deceiving you: it is that big a range for installing solar panels at home. The answer to that lies in the diversity of factors barring the square foot of your house that decides the cost of installation.

The cost of solar panels and the other miscellaneous components can vary greatly. Be it the amount of suitable space available on the roof or particular power requirements, the cost of installing solar panels runs much deeper than you think. But it’s safe to assert that home solar panels cost relatively less when you know what the money is going into and manage it accordingly.

Cost of solar panels for 3 bedroom house?

The cost of putting solar panels on a 3-bedroom home varies between the cost range of INR 1200000 and INR 200000. The typical 3-bedroom home in the United States is said to cover around 2,000 square feet. It becomes reasonable to conclude that the mentioned sized property is occupied by two to four persons. With this size and occupancy, your expenditures will be comparable to any home like this. Depending on your overall energy usage, the cost of the solar panel is determined, which can either be more or less.

The cost of installing a solar roof on a three-bedroom house is determined by some the factors, such as:

•         How much energy does your home utilize on average, and how much money do you spend on utilities?

•            The potential of your rooftop (how much sunshine it receives).

•         The average cost of installing a solar panel system in your area.

•         The average labour cost in your area.

•         Local rebates and incentives will be available in your area.

Lower solar installation prices are projected to continue to fall downward.

Various Solar panels for home government scheme

As we all are aware of the fact that solar energy is a free & clean source of energy. This energy reduces the dependency on natural resources, for instance, water and coal. Government has a plan, or we can say a motive, to install solar power in each house through which each roof will produce its self-energy. Government always has the financial support to install solar power in residential homes.

How to get free solar panels from the government by facilitating Solar Subsidies?

The government of India has a target to install 40GW solar panels in residential home buildings, but unfortunately, India has achieved only 5GW by the year 2021. The Indian Government has a target to accomplish 280GW solar panels by 2030. This simply states that every year there should be an installation of around 10GW. The government has taken new initiatives to install solar panels in homes. The initiative includes the facility for customers that can install solar panels by any solar dealer/distributors/company/installers, and after the installation of the panels, they will send the picture of the solar panel to the nearest electricity board.

Subsidy Benefits

There are three parties involved in the overall procedure:

1. Customers,

2. Channel Partners, and

3. DISCOMS.

#1. Customer Benefits

The subsidy is only available for Residential Homes (Individual Homes & Big Apartments) but not in commercial and industrial sectors. A solar subsidy is only available on Grid Connected Solar systems (Without Battery systems). The installation of the solar panel is a costly procedure and requires huge investment; the financial assistance motivates people to invest and takes some burden on their shoulders.

If you plan to install a solar system through a subsidy scheme, the solar installation company will facilitate the 5 years of performance warranty, and after the breach of the period, you are self-responsible for your solar system.

This subsidy is not available for commercial and industrial customers because they can avail of other benefits like accelerated depreciation, tax holidays, and excise duty exemptions.

#2. Channel Partner Benefits

The benefits of the Channel Partners are availed from the larger customer base and get more business. It becomes tough for the man to figure out the processes of getting the subsidy though he very much desires it. This is the reason why channel partners come into the picture. The channel partner tries to work with the customer and the government departments and expedite the process of getting a subsidy for the customer.

#3. DISCOMS Benefits

The demand for power consumption is decreased in the residential sectors, and they can give more in commercial areas. It is seen that the commercial areas need more electricity than residential areas.

The customer is satisfied as he gets his financial aid, the channel partner attains satisfaction as he gets a new customer, and the government, too, is happy as it is one step closer to its solar target of installation.

Solar Panel Subsidy Scheme in India

#1. Solar Panel Subsidy in Uttar Pradesh

Uttar Pradesh is one of the largest and most backward states in India. But this state is rich in high solar radiation. The state is looking forward to setting up solar parks in different parts of the state on land owned by the government. Currently, UP has the seventh-largest installed rooftop solar power generation capacity in India.

#2. Solar Panel Subsidy in Kerala

For group housing society projects and residential welfare associations, Kerala has a capacity of up to 500 kW. The centre will facilitate a subsidy of 20% approx. If a customer has a desire to install the plant by investing the whole amount, they can choose to avail of up to 40% of plant cost as a subsidy.

#3. Solar Panel Subsidy in Maharashtra

The solar project subsidy in Maharashtra is managed and organized by MEDA. The installation of solar panels in Maharashtra has a capacity that accounts for more than 1800 MW, and rooftop solar is nearly 230 MW. This state has the fourth-highest installed rooftop solar power generation capacity in the country. The state is strengthening its policy of providing financial assistance for using solar energy in cottage and areas of micro industries.

#4. Solar Panel Subsidy in West Bengal

West Bengal is a pioneer in solar technology in India. Government-owned WEBEL was the prime manufacturer of solar energy panels in the country. It is compulsory for all large housing societies in West Bengal (having a total contract demand of more than 500 kW) to install solar rooftop systems to meet a minimum requirement of 1.5% of their total electrical load by solar energy. The subsidies are applicable as per the guidelines mentioned by the SECI.

#5. Solar Panel Subsidy in Haryana

In order to save resources for future generations, Haryana (Department of Renewable Energy) has introduced an electricity-saving project which is named Solar Rooftop Power Plant. Under this scheme, it is mandated to plant Solar systems Plant to every Residential, Institutional, Social Sector, Private, Commercial & Industrial Sector across the state.

Are solar panels getting more expensive day by day?

There’s no question about it that solar panels are expensive and it is going to be more expensive day by day, costing between INR 700000 and INR 2100000 for most homes. There are two main reasons that solar panels cost so much:

The first is the cost of the equipment. Producing it requires advanced manufacturing as well as expensive raw materials, such as high-grade silicon for solar panels and lithium for solar batteries.

The second is due to soft costs, which include a professional solar installation that is safe, compliant with local codes and manufacturer warranties, and can pass the necessary inspections.