Investing in solar panels for home in India can be the best financial decision in the long run. So why not switch to solar power today and save money on your energy bills while contributing to a greener future?
Types of Solar Panel for Home Financing in India
If you're considering investing in solar panels for home in India, you may wonder about your financing options. Purchasing your solar panel system outright, leasing it, or buying solar power through a Power Purchase Agreement (PPA) are the common routes you can opt for:
- Purchasing your solar panel system outright: Purchasing solar panels for home can be a significant investment, with a typical rooftop solar photovoltaic system costing around ₹1.5 to ₹1.8 lakhs for a 3 kW system. While plans are available, you can expect an upfront investment, which may seem daunting.
However, it's essential to remember that there are government incentives and bank loans available that can make the investment more manageable. In order to ensure you're making the best financial decision for your budget and needs, you may check with your chosen solar companies or installer for quotes.
- Leasing: Regarding financing solar panels for home systems, leasing is a popular option that falls somewhere between the OPEX and CAPEX models. With a lease model, you'll typically pay an upfront cost and then equal installments over a few years, after which ownership of the project transfers to you.
However, it's important to note that if you lease the system or sign a PPA, a third party will own the solar panel system, which can impact factors: cost, maintenance, and financial offsets.
- Power Purchase Agreement: A solar power purchase agreement (PPA) is an financial agreement where a solar developer handles the design, financing, permitting, and installation of a solar panel system on your property, typically at little or no cost. You only pay for the power generated by the system, which is often cheaper than your local utility's retail rate, and the developer receives the income from selling the electricity.
With a PPA, you can benefit from fixed, predictable electricity costs and reduced energy bills for up to 25 years. Additionally, the developer is responsible for maintaining the system's performance and operating risk, which limits your risk exposure. Plus, solar PV systems can increase the value of your property, and with a PPA, you can invest in your home without any upfront costs.
However, PPAs are commonly offered for larger solar system sizes of 100kW or more and are not suitable options for homeowners in India, whose typical requirement is up to 10kW.
Each option has its advantages and drawbacks, so it's essential to carefully consider the right fit for your needs. In this article, we'll take a closer look at the pros and cons of buying versus leasing solar panels for home:
Pros & Cons of Leasing Solar Panels
Let's analyze the pros and cons of leasing solar panels and how it affects the solar panel price in India.
Pros of Leasing Solar Panels
- No upfront cost
- Reduced electricity bills
- No need to invest a large amount of money initially
- Regular maintenance
Cons of Leasing Solar Panels
- Cannot claim tax benefits
- Have to wait for a certain period
- The leasing company owns the solar panels
- May face complications when selling house
- The leasing company's minimum credit standards may be a barrier
Leasing solar panels is a good option for those who want to switch to solar energy and save on electricity bills without the initial investment. However, it has certain drawbacks: limited ownership and tax benefits.
Ultimately, the decision to lease or buy solar panels depends on individual circumstances and goals. Understanding the pros and cons of each option can help you make an informed decision on the solar panel price in India.
Additionally, the process can be cumbersome with documentation & due diligence needs to be done before entering the agreement. This can make it a long-drawn process and hence is not very popular, especially with residential solar system owners
Freyr Energy: Affordable Solar Panel System
Investing in solar panels can be a smart financial decision for homeowners, but the upfront cost can be a deterrent. Fortunately, Freyr Energy offers solar loan options to help make solar panel price in India more accessible. Here are some key benefits of financing your solar panel purchase with Freyr Energy:
- Hassle-Free Quick Approvals:
Freyr Energy understands the importance of quick approvals, digital loan evaluation, and a sanction process. It means you can get approved for a solar loan within 48 hours without lengthy paperwork or complicated procedures.
- Flexible EMI Option: Freyr Energy offers a zero-cost EMI option for up to 6 month tenures, making it easier for customers to pay for their solar panels in installments. Additionally, Freyr Energy offers multiple financing options ranging from 3 months to 5 years to provide flexibility to our clients without hidden fees or charges.
- High-Quality Products: Freyr Energy prides itself on providing high-quality solar panels and other components for its customers. Their products are durable, efficient, and reliable, ensuring that homeowners get the most out of their investment.
- Customized Solutions: Every homeowner's energy needs are different, which is why Freyr Energy provides customized solutions for their customers to buy solar panels. They take into account factors such as the size of the property, energy consumption, and budget to create a tailored solar panel system that fits the unique needs of each homeowner.
- Expertise and Experience: Freyr Energy has years of experience in the solar energy industry, and its team of experts can provide valuable guidance and advice to homeowners looking to invest in solar panels. From system design to installation and maintenance, Freyr Energy can help homeowners navigate the process and ensure a smooth transition to solar energy.
- Warranty and Maintenance: Freyr Energy offers warranties and maintenance services for their solar panels, ensuring that homeowners can enjoy the benefits of solar energy with no worries about maintenance or repair costs.
- Environmentally Friendly: By investing in solar energy, homeowners can reduce their carbon footprint and contribute to a cleaner, more sustainable future. Freyr Energy's solar panels are environmentally friendly, using clean energy to power homes and reduce reliance on fossil fuels.
Financing your solar panel price in India with Freyr Energy can be a smart financial decision, offering numerous benefits such as hassle-free quick approvals, customized solutions, expertise and experience, warranty and maintenance, and environmentally friendly products.
With Freyr Energy, homeowners in India can enjoy the benefits of solar energy while saving money on their electricity bills and contributing to a cleaner, more sustainable future.