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03/08/2024

Cost of Solar Panel Installation and Payback Period

In this post, estimate size of solar panel for your residential home, cost of solar panel installation and payback period is given.

Cost of Solar panel Installation


AIM

Estimate the size of solar panel for your residential home, cost of solar panel installation and payback period.

 

A

Objective

 

After completing this experiment, student will be able to

Calculate residential load and unit consumption of residential load

Estimate size of solar panel, incentive, cost of solar panel installation and payback period for amount to be invested.

Estimate amount of CO2 emission reduction by using suitable solar panel calculator

B

Expected Program Outcomes (POs)

 

·       PO1: Basic and Discipline specific knowledge

·       PO2: Problem Analysis

·       PO6: Project Management

·       PO7: Lifelong learning

C

Expected Course Outcomes (COs)

 

1.    CO4: Understand government policies for renewable energy sources

D

Practical Outcome (PRO)

 

2.    Estimate load calculation for residential consumer, solar panel installation cost, incentives calculation, payback period and reduction of CO2 emission for given data.

E

Theory

 

You can estimate the size of solar panel / number of solar panels by estimating number of units consumption per month or by energy bill by utility company.

As per PM Surya Ghar Solar Roof Top Portal

Benchmark CFA (Central Finance Assistance)

Mode

Capacity

CFA for General States/UTs

Through National Portal for Rooftop Solar

1 – 2 kW

Rs. 30000/kW

Above 2 – 3 kW

Rs. 18000/kW

Above 3 kW

CFA is capped

 

CFA for given kW Capacity of solar panel

Sr. No

kW Capacity of solar panel

Benchmark cost of solar panel

CFA (Central Finance Assistance or Subsidy) From Government

Consumer have to pay

1

1

Rs. 50,000

Rs. 30,000

Rs. 20,000

2

2

Rs. 1,00,000

Rs. 60,000

Rs. 40,000

3

3

Rs. 1,45,000

Rs. 78,000

Rs. 67,000

4

4

Rs. 1,85,000

Rs. 78,000

Rs. 1,07,000

5

5

Rs. 2,25,000

Rs. 78,000

Rs. 1,47,000

6

6

Rs. 2,40,000

Rs. 78,000

Rs. 1,62,000

7

7

Rs. 2,80,000

Rs. 78,000

Rs. 2,02,000

8

8

Rs. 3,20,000

Rs. 78,000

Rs. 2,42,000

9

9

Rs. 3,60,000

Rs. 78,000

Rs. 2,82,000

10

10

Rs. 4,00,000

Rs. 78,000

Rs. 3,20,000

 

Let us try to understand size of solar panel requirement by unit consumption per month. There are several energy calculators available in the website. Here we use torrent power energy calculator OR you can calculate watt hour by using clip on meter and multimeter.

Calculation of monthly watt – hour

Sr.

No

Appliance

Name

Watt(w)

No. of Appliances

Daily Use (Hours / Day)

Total Daily Watt – hour (Wh)

1

Ceiling Fan

50

4

10

2000

2

Air conditioner 1.5 Tons

1500

1

5

7500

3

Computer

200

1

3

600

4

Electric iron

550

1

0.2

110

5

Lamp

18

5

4

360

6

Refrigerator

300

1

24

1200

 

 

 

 

 

11770

 

Daily watt – hour = 11770

Monthly unit consumption: 11770 × 30 = 353100 Wh = 353 kWh

Let us assume that unit price of energy consumption is Rs. 8 / unit which includes fuel charges, regulatory charges, govt duty and meter rent. The per unit energy prices depends upon number of unit consumption, Higher the rate for higher consumption of electricity and vice versa

Total Energy Charges = 353 × 8 = Rs. 2824

You must enter following data in the PMSURYAGHAR Portal.

(Link for portal: https://pmsuryaghar.gov.in/rooftop_calculator)

1.    Your state:

2.    category of customer: Residential

3.    Average monthly bill:

Option to enter following data

4.    Your rooftop area in square meter or square feet

5.    You want to invest in solar panel                                          

6.    Solar plant capacity (kW)                                         

7.    Sanction Load

Solar Panel Calculator

Now, we calculate the cost of the solar panel installation and payback period as per PMSURYAGHAR Portal. 

1

Size of solar panel

5 kW

2

Cost of plant

Subsidy

Consumer have to pay

Rs. 2,25,000

Rs. 78,000

Rs 1,47,000

3

Annual unit generation

7884

 

Life time unit generation (25 years)

197100

4

Financial saving

Daily

Yearly

For 25 years

 

Rs. 64.8

Rs. 23652

Rs. 5,91,300

5

Carbon dioxide emissions mitigated

141 tonnes

 

Solar Panel Payback period

Cost of solar plant: Rs 147000

Cost of solar plant

Annual Saving

No. of year for initial cost of plant

Rs. 1,47,000

Rs. 23652

6 Years and 3 Month (As per portal calculation, it is 5.89 years, considering interest on yearly saving amount of Rs. 23653)

 

Payback period: 6 years and 3 months

It is considered that Rs. 147000 is not kept in bank fixed deposit. If it is kept in bank account, interest is also calculated. This calculation is only reference point of view to understand size of solar panel for your residential home, cost of solar panel installation and payback period.

F

Interpretation of Results

 

The installation of solar panel is one time investment for your daily life energy consumption bill. In the above case study, you will get your investment money back in the 6 years and 3 months for 5 kW solar panel installation. The initial financial burden of solar panel installation will contribute yourself towards CO2 emission reduction.

G

Conclusion

The installation of solar panel at the residential premises not only provide to you financial freedom from electricity bill after payback period but contributes nation to achieve net zero CO2 emission by 2050.

 

 

H

Practical related Questions

 

1. State the limit for CFA (Subsidy) to residential consumer for installation of 4 kW.

 

 

 

 

 

2. What is meaning of payback period?

 

 

 

 

 

 

 

 

N

Assessment Rubrics

 

 

Sr. No

Criteria

Maximum Marks

Obtained Marks

1

Understanding of theory/concept

5

 

2

Explanation of conclusion

5

 

3

Discipline and regularity

5

 

4

Quality of term work

5

 

5

Timely completion of term work

5

 

  

Signature of Staff


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