Solar Rooftop System Investment | Solar Investment in 2024

Why Solar Rooftop System is Good Investment in 2024

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 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 a 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 bills. A solar rooftop installation can reduce 80-90% of the electricity bill every month. A 5kW solar 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 in the future. As solar systems are very reliable, you save money in terms of maintenance as well.

Socially responsible Solar 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. Pollution, Climate change, positive public sentiment and natural resource constraints are creating more demand for electricity procured from renewable energy sources.

Great ROI and attractive paybacks: Solar is one of the few investments available in today’s market that is relatively risk-free and offers a high Return on Investment (ROI). Compared to other investments such as investment fixed deposit (ROI of 5.8% – 6.7%),  Gold (ROI of 16%), and Stocks (ROI of 10%), solar promises an ROI of 25 to 30%. Solar rooftop investment is one of the secure & safest investments 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 subsidies to homeowners for installing on-grid solar system (systems with batteries). In case you own a business then you will be eligible for tax credits through accelerated depreciation up to 40%. This improves the return on investment of solar substantially.

Conclusion

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.

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