Solar Panel Savings: Can Solar Panels Really Save You Money?

Do solar panels save people money?

Alternative energy and sustainability have been receiving a lot of attention recently in India. Given the availability of such natural resources in the nation, renewable power sources like wind, solar, and hydrothermal energy have a lot of potential. The potential to save money while achieving energy autonomy is possibly the best part of solar panel installation. However, it would help if you weighed that aspect against the price of the initial installation.

How long it takes for solar panels to compensate for their setup costs depends on the amount you spend on the panels, how much power you typically consume, and how much renewable power the panels produce. Solar PV typically has a payback time of 3 to 5 years. Solar power in India is a rapidly expanding sector that forms an important aspect of India’s renewable energy mix. As of 30 June 2022, the country’s installed solar potential was 57.705 GW.

Solar Panel Savings

How Much Do Your Solar Panels Save You Annually?

Again, the exact figure varies greatly, but homeowners record annual savings of approx. INR 30,000 for every lakh spent on solar. Several factors affect cost savings with solar panels – Let’s delve into them. 

Production and Consumption of Power/Electricity

The more energy your solar panels produce, the less electricity you need to purchase from the grid and, therefore, the more money you save. 

Electricity Rates

The savings from solar will be higher if you are in a region with a high grid tariff. 

A branded solar system typically has a lifespan of 25+ years. However, additional elements, including the price of solar panels, government subsidies, and savings, may also affect how quickly an investment pays off. For instance, a 5kW solar system generally generates roughly 20kWh daily, solar panel savings up to about 12 lakh throughout the system’s lifespan on power costs.

What are the advantages of solar panels?

Reliable investment

Solar energy is less expensive than other forms of electricity production. Your solar savings grow as your utility company’s energy bills rise. Some consumers can effectively eliminate their energy expenditures or drastically lower them with the use of solar panels  Solar energy systems are frequently valued by home appraisers. Your home’s value will be appreciated thanks to the solar energy system for many years to come. Many clients discover that they are able to recoup their solar panel investments within a few years, often with a 25%-30% return on investment.

Government assistance

The Indian government provides both residential and business solar rooftop installations with certain tax benefits. The goal of the government in this situation is to persuade individuals to use solar energy, whether it be for domestic or business use. As per the Ministry of New and Renewable Energy, the Indian government would subsidize the infrastructure costs of solar rooftop arrays by up to  40%.

Climate-appropriate for India

Rooftop solar systems are an excellent option for those living in India because of the country’s favourable geographic position, which receives plenty of sunlight all year round.

Inexpensive Upkeep and Space-efficient

Rooftop solar panels can be fitted on almost any rooftop with shadow-free space. This makes them extremely adaptable. Regular cleaning of the solar panels is the only thing needed in terms of maintenance.

Long-term monetary benefits

Solar energy systems are long-term assets that are innovative and sustainable. You would be able to produce power for free for the entire 25+ year lifespan of your rooftop solar project.

Solar panel systems provide you with a fantastic risk-free return on investment while also allowing you to contribute to sustainability and green energy. The various benefits of solar panel systems—many of which have been mentioned can be realized with the assistance of a reliable solar professional.

Frequently Asked Questions



Solar panels process the sun’s energy to generate electricity and offer great support in saving electricity. Solar panels can provide a significant portion of electricity depending upon sunlight and the size of the solar panels. This also led to solar power savings on utility bills.

The solar payback period for solar power savings is 4 to 7 years. The save on solar depends entirely on factors like location, subsidies, and the size of the solar panel. Payback period is calculated on the time it takes to save on electricity bills to the amount invested in the solar panel.

The long-term benefit is energy independence as it will be generated by the natural resource. A lot will be reduced on electricity bills. It is also evident that property value significantly increases if it has solar panels. 

It is recommended to clean the solar panels every 6 months if no dust or debris appears. Occasional inspection must be done to check if the system is working fine. Solar panels generally come with a warranty of 25 years but low maintenance can reduce this time also.

India has a lot of buildings, be it residential area or industrial and most of the sunlight can be observed on the rooftop so installing solar systems at rooftops will be best for high solar insolation. There will be no transmission loss and power will be provided directly.

Yes, under PM Surya Ghar scheme subsidies are offered for installing solar panels on rooftops. The plan goes by: for 1 kW Rs. 30000, 2kW Solar Panel Rs. 60000, for 3kW Solar Panel and beyond that Rs. 78000.

Solar energy savings not only on the electricity bills of every house but also provide energy independence in the rural and industrial areas. Greenhouse gas emission is reduced as solar energy uses renewable energy resources to generate electricity.

If you want more solar savings, install them in an area where sunlight availability is high. Get the larger system to create more electricity and save upfront costs via subsidies.

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