Since the industrial revolution in the 18th century, factories and industries across the globe have become among the largest consumers of energy due to their manufacturing activities. More consumption of power meant more energy cost as well as an adverse impact on environment. Over time, the demand for power as well as the pressure to reduce its cost of generation increased. Recently, the grid power tariff for industrial connections has been increasing by 3-4 % per year. As a result, companies started to look for alternatives to conventional sources of power, which gave rise to the idea of using renewable sources of energy like solar.
Solar is the cheapest energy source in the world, beating wind and other fossil fuel equivalents like natural gas. As a result, solar energy is being widely used across different sectors in India. A ‘Bridge To India’ analysis says the manufacturing sector is the biggest adopter of rooftop solar. Commercial and industrial sector contribute to 70% of total installed capacity of solar in India.
The rapid adoption has been due to the multiple benefits that rooftop solar has to offer. Let’s explore further:
Cost benefits: Rooftop solar installations can help in cutting down electricity bills as it will reduce your dependency on the grid for your power needs. Industries can reduce their operating expense with savings from solar. Even the return on investment in solar energy is high. A solar system gives you an ROI of 25-30 percent. This means that you earn Rs. 25,000- 30,000 annually for every lakh you invest in solar.
“We have been able to realize a payback of two years on our 25kW system at our office premise. We are happy with the quick response time that Freyr has been able to offer,” says Kranti Potluri, Director of Chakra Poultry Equipment.
Accelerated depreciation benefits for solar: The government of India has been promoting the use of solar energy across sectors. The government offers accelerated depreciation of fixed assets associated with the solar power plant to both commercial and industrial solar users. The section 32 of the Income Tax Act enables solar rooftop users to get tax benefits on accelerated depreciation of 40%, every year till the asset is fully depreciated
Reduces carbon footprints: Did you know that a 5kW solar system installation is equivalent to planting 80 trees and reducing 8 tonnes of greenhouse gas emission annually? By investing in solar energy, corporates can enhance their CSR image and attain their sustainability goals. Talking about how Freyr Energy helped his company meet its sustainability goals, Uttam Malani, Executive Director of Centuary Mattress, says, “Our energy cost for our Kazipally factory has reduced substantially. Our consumers are already appreciating our efforts towards sustainability. We found a great partner with Freyr energy.”
Low maintenance cost: Another advantage of installing solar roofs is that it requires minimal maintenance. They come with a life of 20-25 years and are very durable.
Seamless source of power: Solar has can be easily used along with other sources of power be it grid power or diesel generators. This also ensures that an industry can scale the solar plant as per their requirement