Significant adoption of rooftop solar can be witnessed across India, especially in states such as Maharashtra, Tamil Nadu, Karnataka, Rajasthan and Uttar Pradesh. Improved net metering policies, high grid tariffs and increased awareness among the consumers are the major reasons for an increase in rooftop solar adoption. However, is solar a sound and viable investment? How does it compare to other preferred investment options such as gold, mutual funds, etc? Read further to know more.
Rooftop Solar- The best option for investment in India
With reliable grid-access and reduction in solar panels installation cost, several businesses and homeowners are shifting to solar power. Below are a few reasons as to why one should invest in rooftop solar:
Cost-benefit: According to the ‘India Residential Energy Survey’, there has been an increase in sales of star-labelled electric appliances that are energy efficient. This shows that people have already started to look for options that can help them reduce their electricity bill. A solar rooftop installation can reduce 80-90% of the electricity bill every month. A5kW system can generate around 600 units and save Rs. 4,200 per month.
Security against future grid tariff increase: Solar systems are highly reliable and have a life span of 25 years. This means that you are protected against any increase in the grid tariff of the future. As solar systems are very reliable, you save money in terms of maintenance as well.
Socially responsible investment: Solar is green and an environmentally sustainable choice. A 5 kW solar system is equivalent to reducing 7.3 tons of carbon dioxide emissions every year. Investing in solar creates a positive impact on everyone. Climate change, pollution, natural resource constraints and positive public sentiment are creating more demand for electricity procured from renewable sources.
Great ROI and attractive paybacks: Solar is one of the few investments available in the market today that is relatively risk-free and offers high return on investment. Compared to other investments such as Gold (ROI of 16%), stocks (ROI of 10%) and investment fixed deposit (ROI of 5.8% to 6.7%), solar promises an ROI of 25-30%. Investing in rooftop solar is one of the safest investment as it promises attractive paybacks; with a payback period of 3-5 years.
Solar Subsidy & Tax Benefits
In addition to all the benefits mentioned above, the government offers subsdies to homeowners for installing on-grid solar system (systems with battery). In case you own a business then you will be eligible tax credits through accelerated depreciation upto 40%. This improves the return on investment of solar substantially.
Solar is the best investment right now that offers low risk and high returns compared to any other investment.
Going solar is the best investment after the pandemic which is helping to cut down costs. You can now go solar with little to no upfront cost with Freyr Energy’s financing options.