Solar Power is More Affordable & Economical – Why?

You know what? The talk about rooftop solar power being is not expensive. And I will show you why. Let us consider having a rooftop solar power plant. I am considering a grid-tied rooftop solar power plant, a system that does not have a battery included.

All that are required for such a grid-tied solar power plant are solar panels with mounting structure, inverters and the standard electrical cables etc. Below are the actual costs for putting up a rooftop solar power plant. I have taken a 1 kW solar power plant for illustration. As solar power plants are modular, these data should be the same for any size of solar power plant. Total cost of solar power plant is less than INR 60000/- per kW

Below are the units a solar system can generates in most parts of India please note that I am taking approximate numbers for rating over time but these numbers are conservative and are less than what a solar power system can actually deliver over 25 years.

Total Units Generated per year:

• Years 1-5 – 1,400 units total of 7,000 units (100% rated Capacity)
• Years 6-10 – 1,300 units total of 6,500 units ( 92% rated Capacity)
• Years 11-15 – 1,200 units total of 6,000 units ( 85% rated Capacity)
• Years 16-20 – 1,100 units total of 5,500 units ( 78% rated Capacity)
• Years 21-25 – 1,000 units total of 5,000 units ( 71% rated Capacity)
• Total number of units generated over 25 Years : 30,000

Finally, we have been conservative on capital subsidies – we have taken NO government subsidies in the above calculation

Based on the above

• Table No.of units Generated by 1kW Solar Panels over 25 Years Period = 30,000
• Total capital cost of the 1kW Solar System:INR:60,000/-
• Total operations and Maintenance cost over lifetime: Negligible
• With all the above, the Cost per Unit of electricity generated = INR: 60,000/30,000
• INR = 2.00 PS
• Folks, there are no hidden costs that are missing in the above calculation.

Solar Power is More Affordable & Economical – Why?

If at all anything, we have been conservative. To satisfy the financial accountant in you who wishes to factor opportunity costs etc., I will generously add another 10% to the cost.

Another 30 paisa and that brings it to about INR2.30 per unit. That means INR: 2.30 per unit of electricity in solar power.

As a commercial or industrial user and domestic, institutional clients, you are paying what, Rs. 10.00 per unit to your utility? And surely this will increase to beyond INR. 15.00 per unit, pretty soon in next Five Years? If not way beyond INR.12.00 Per unit.