Did you know India ranks 4th as the world’s most attractive renewable energy sector? India’s solar capacity has expanded from 2.63 gigawatts in 2014 to over 41 gigawatts in 2021, a significant increase of 18 times between 2014 and 2021. This has revolutionised the country’s renewable energy landscape, which in turn is reflected in the government launching various solar subsidy schemes. In this article, you’ll delve into the various factors and techniques for comparing solar panel quotes.
How to Compare Solar Panel Quotes?
India has shown aggressive progress with nearly 200% year-on-year growth, the reason being the rapid development of solar power-based industries. With the increasing demand for solar energy-based industries, how would you choose the solar panel that is right for you?
Here are the factors you should compare with different solar power-based industries when getting your new solar quotes.
Initial Investment
The initial installation costs of on-grid solar systems in India depend on the size of the systems and the quality of the components. The average cost of 1kW and 5kW solar panels in India is anywhere between ₹60,000 and INR 3 lakhs. However, with government incentives and subsidies, homeowners and industries can significantly reduce the initial investment costs.
Installation and Maintenance Costs
Generally, all the expenses related to mounting solar panels to the ground, setting up inverters, wiring, and other necessary equipment are all included in the installation cost. It is safe to consult with multiple installers to compare solar quotes and ensure competitive pricing.
The first thing one should ensure is the cost per watt metric. The average solar panel cost per watt in India is around ₹40 to ₹50. By calculating the cost per watt, you can easily compare solar panel quotes for systems with different sizes.
The next cost that you should be aware of is maintenance. Compared to off-grid systems, on-grid solar systems only require minimal maintenance. However, there will be necessary requirements to ensure optimal performance, such as regular cleaning, servicing inverters, and periodic inspection of panels.
System Size and Inverter Choice
System size refers to the power the solar installation can generate under full sunlight. It is represented in kilowatts (kW). The average system size an Indian house requires is 2.3 to 2.4 kW, which is enough to power 1BHK. So, based on the requirements of your home, choose the kilowatts.Â
The factors that determine the size of your solar system are the type of space and the number of appliances you want to run when opting for solar panels. If your home has central air conditioning and an electric furnace, then you’ll require a larger solar installation.
One of the most essential components of solar panels is its inverter. It plays a crucial role in determining the overall cost of the system. The initial investment may spike up if you want to go for high-quality components in your solar inverter, but it will result in longevity and better performance of your solar panel.
Energy Production
With many sophisticated software updates, many solar installers are now leveraging them to assess your rooftop with satellite images, drones, and LiDAR. This software simulates the path of the sun for the entire year and proposes an accurate energy output that will be generated.
Facts that estimate your solar energy production are as follows,
- System size
- Roof tilt angle and orientation
- Azimuth (roof facing direction)
- Any shades or dust that could fall on the roof.
Return on Investment (ROI)
Opting for solar energy means consuming less electricity from the grid and saving on monthly utility bills. During the peak time of solar energy generation, the excess amount will be credited back to the grid, and your meter will credit you for that excess energy production. With on-grid solar systems, you can save substantial long-term utility bills.
Government Incentives
With the high demand for cleaner energy and shared goals towards a sustainable livelihood, the Indian government has established a National Subsidy Scheme and a National Portal for Rooftop Solar, which was launched on the 30th of July, 2022. With the current schemes, homeowners can get up to ₹94,822 as a subsidy for 10kW system capacity.
Financing Options
There are several financing options to look out for, such as bank loans, power purchase agreements (PPAs), and leasing arrangements. It can help residents offset the initial installation cost. Exploring the options below can help purchase more affordable and accessible to a broader range of residents.
- Many financing companies offer solar loans designed to help people go solar at affordable cost, which can be used from the savings generated by the solar installation.
- You can get panels as a lease from the installation company or pay with cash or a loan.
- While applying for a loan, ensure you check the other additional costs and requirements that come with the loan.
Warranties
When you install a solar system at your home, it’s a long-term investment worth decades of clean, renewable energy. Hence, warranties are insurance against any sudden misadventure. There are three solar panel warranties you should be aware of,
- Product Warranty: Covers the component against any defects, such as a manufacturing defect in materials or workmanship. The product’s warranty ranges from 25 years to 40 years.
- Power Production Warranty: This warranty ensures a decrease in power output your solar panel generates. Manufacturers provide up to a 25-year warranty for the performance.
- Installer Warranty: A performance warranty protects your panel’s warranty, whereas an installer warranty protects your entire photovoltaic system.Â
Tips to Get the Best Solar Quotes
Now that you know what factors to compare when getting your new solar panel, here are tips to get the best solar quotes.
Read Customer Reviews
The foremost thing when we buy a product is to look for customer reviews. When planning for solar panel installation, read through the reviews across different industries and have a few options that would be suitable for your home.
Know About the Policies and Incentives
Before you get solar quotes from the industries, ensure you gain as much knowledge as possible about solar policies and incentives. The more you know about the incentives, subsidies, net metering programs, and policies for your area, the better you will understand what’s being described to you when getting your quote.
Although the initial installation cost may be high, the long-term benefits far outweigh the investment. Considering the above factors, such as system size, installation, quality of components, available subsidies, and incentives, you can transition to a more sustainable and cost-effective energy future.
