Rooftop Solar PV System Buying Guide for Urban Consumers
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Today a typical urban house is equipped with – A tv, freeze, washing machine, AC, fans, lighting, CCTV, Mobile, Lift, Motors, etc
The common thing required to run all these gadgets is electricity. We can’t think of a smooth life without these gadgets and electricity. In Fact, backup systems like battery banks or DG sets are installed for uninterrupted supply.
The problem in urban area is not the availability is electricity, in fact in many A&B class or metro city availability is electricity is not an issue. But the issue is the charges, if you see your electric bill the average charge you pay is somewhere between Rs 6- 12 per unit in domestic sector.
Apart from that it keeps on increasing and it will keep increasing. Everyone tries to reduce his electric bills; some go for energy-efficient equipment’s and some limit their usage. But everyone wishes for a one-time permanent solution for his electrical demand
Here Solar energy plays a vital role, you can generate your own electricity, use grid as storage, and use your electricity any time
Solar energy has solutions for every segment – the only thing is you have to understand the system and select the system as per your requirement. We can categorize these solar systems as per the prevailing problems.
Grid Connected Rooftop (GCRT) Solar System
These systems are tied to the utility grid through a grid-interactive inverter and AC meter typically installed for residential, commercial, or utility applications and do NOT provide backup power in the event of an outage.
Working of an on-grid solar pv system
An on-grid system is designed to first allow solar energy to be consumed by the customer. The system owner acquires the energy credit at the end of the month (maybe year – in some states) if the electricity exported exceeds the import and only pays for the electricity imported from the grid in case import exceeds the exports. This system involves, the installation of a net energy meter that keeps track of electricity imported and exported by and to the grid.
The following components in Figure 2 are the primary constituents of a typical residential On-grid solar pv system:
Power Flow through a Net-metered Grid Connected System
Applications:
Advantages:
With net meter in place, the consumer has to pay only for the surplus electricity he/she consumes, ensuring the bill generated every month is reduced drastically. They do not require bulky and costly battery storage solutions, as fewer solar panels are required due to no need to produce extra power when there is no sunlight.
Solar PV systems generate clean, renewable energy that does not produce greenhouse gas emissions. This factor is among many potential pros of on-grid solar systems since the consumer contributes to safeguarding the eco-system.
The elimination of batteries in the on-grid system makes maintenance quite easy. It also eliminates the cost of upkeep of the batteries.
These systems can also synchronize with a diesel generator on site. This is important in case grid power is not available.
The on-grid solar systems can increase the value of consumers’ homes or businesses. In some cases, solar panels can make your home more valuable than without them.
On-grid solar inverters are optimized to produce the maximum amount of energy possible.
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On-grid solar inverters shut down the power supply to the house the minute electricity goes off from the grid. Although Anti-Islanding results in a power outage at home, it is important. If a lineman is working at a faulty site and your system keeps producing electricity despite the grid having been shut down, the working personnel will get electrocuted.
The cost of an?On-grid solar system?is lower than other?types of solar systems because there are no batteries. It also generates the highest amount of power compared to other types of solar systems.
Installation of an on-grid system is easy and can be done easily by oneself on the rooftop. It can be easily installed on residential rooftops, rooftops of commercial complexes, housing societies, community centres, government organizations, private institutions, etc.
Since an on-grid solar system does not require batteries, it is cheaper to install when compared to an off-grid system. It is less costly when compared to other solar systems.
A user can avail of government subsidies and other incentives to install on-grid solar systems.
Limitations:
Approx Cost of an On-Grid System
Described below is an approximate (minimum) cost of a 2 kW Grid Connected System (Non-Subsidized)
Total System Cost Including GST and Installation = ? 1,11,377
Return of Investment
Let’s calculate the return on Investment on a 2 Kw on-grid pv system.
Total Effective Cost of 2 kW Solar System = ? 1,11,377
Let’s assume that 1 kW of the solar system would generate 4.5 kWh (4.5 units) of AC energy.
Let’s also assume that average sunny days per year = 320 days
Total units generated by 2 kW solar system = 320 * 2 * 4.5 units = 2,880 units
Let’s consider the average electricity cost per unit = ? 7.00
Saving in 1 year = ? 7.00 * 2880 = ? 20160
Savings in 25 years = ? 5,04,000
Return on Investment in number of years = 5.52 years
Investment Return Rate for 1st Year= 18.10 %
Note – Here, an electricity rate is assumed to be constant, which is not the case usually. The customer can have a payback period of around 4.5 years if 3% increase per year in electricity cost per unit is considered.
Subsidy structure for on-grid solar pv system
Central Financial Assistance (CFA)/ Central Government Subsidy for rooftop solar plant installed by a residential consumer under the simplified procedure is as follows.
Calculation of CFA/subsidy: The CFA/subsidy would be calculated based on the total solar module capacity/solar inverter capacity/capacity approved by DISCOM, whichever is lower.