Home Inverter Running Cost: How much you pay for using it?

Home Inverter Running Cost

Is the home inverter running cost the same as the grid power tariff rate? 

 

Most people believe so. They have a notion that the cost of getting power from it is the same as the rate at which they consume electricity.

 

They believe that home inverters are economical to run;

 

They believe that home inverters are a good source of getting power during power shutdowns.

 

If we are comparing to the DG (Diesel Generator), they are definitely cheaper to run, but, if compared to a PV solar, the cost is much higher than the tariff rate of the power grid.

 

 

Each unit of power supplied by the home inverter actually costs roughly 1.6 times the grid rate

 

This means that if the home inverter is giving the output of 1000 W and the grid tariff is Rs. 6.5/Unit, then the cost of getting electricity produced will be Rs. 10.4 (Rs. 6.5 x 1.6) per hour. 

 

Since this is a recurring cost, over a period of time substantial cash outflow happens on running a home inverter.

 

The larger the size of the home inverter, the more will be the monthly expenditure incurred.

 

The loss happens in the home inverter due to various losses associated with it.  

 

To understand the magnitude of the loss in running the home inverter, I have summarized, in the table below the expenses over a period of 25 years, (the life of PV solar systems).

 

Please note that I have ignored the cost of the batteries as they will be required in both the PV solar system and the home inverter system.  Only the cost of electricity has been considered for simplicity, Other maintenance costs have been ignored.

The assumptions done for calculations are given at the beginning of the table.

 

table

Home Inverter Running Cost
Assumptions
Power Shutdown/Day3Hrs
Electricity Tariff Rate6.5Rs./ Unit
Elect charges escalation/yr3%P.a.
Inverter usage Rate approx (assuming 60% loss)10.4Rs./ Unit
Inverter output1000W
YearsInverter Run Hrs.Annual Increase FactorElectricity Consumed/Annum(Rs.)
11,0951.00-11388
21,0951.03-11730
31,0951.06-12082
41,0951.09-12444
51,0951.13-12817
61,0951.16-13202
71,0951.19-13598
81,0951.23-14006
91,0951.27-14426
101,0951.30-14859
111,0951.34-15305
121,0951.38-15764
131,0951.43-16237
141,0951.47-16724
151,0951.51-17225
161,0951.56-17742
171,0951.60-18274
181,0951.65-18823
191,0951.70-19387
201,0951.75-19969
211,0951.81-20568
221,0951.86-21185
231,0951.92-21821
241,0951.97-22475
251,0952.03-23149
Total Inverter hrs.27,375Total-415,200
*Negative figs. means cash outflow

2 thoughts on “Home Inverter Running Cost: How much you pay for using it?”

  1. RAHUL KUMAR SONI

    In my home town daily power cut duration is 4-5 hours in day time i am planning to install inverter syatem need your help on below topics

    1 what will the running cost for 2kva invter system ?
    2. Should i go with 1.5kva or 2kva ?
    3. What is average life of inverter and battery ?
    4. Does inverter cumsums electrity even its fully charged ?

    (electricity bill terrif is 4.5 INR per unit) average load on system is 500watt at a time. And mqximum load is 1500watt.
    I hope you will reply me.

    1. Hi Rahul, here, are the answers to your query:
      01. By inverter I am assuming that you are saying ‘home inverter’. The running cost of the inverter is approx 1.5 to 1.6 times the electricity rate. If it’s a 2 Kva inverter running at 80% load, it will consume 2×80%= 1.6 units per hour. This means a cost of Rs. 4.5 *1.6= Rs. 7.2.
      We deal only in PV solar rooftop solutions. For any clarification, you can call my office at 9708037534. We will be happy to be of any help.

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Home Inverter running cost. How much you pay for using it?

Home Inverter Running Cost
HOME INVERTER

Most people believe that home inverters are very economical. They are a good source of getting power during power shutdowns. People have the notion that the cost of getting power from the home inverter is the same or almost the same as the electricity provided by the power grid.  

But, this is not True.

For each unit of power supplied by the home inverter you roughly pay 1.6 times the grid rate.

For eg., if the grid tariff rate is Rs. 6.5, then the cost of the electricity produced by the home inverter will cost you roughly Rs. 10.4. (Rs. 6.5 x 1.6). This is due to various kinds of loss associated with the use of the Home inverter.

The larger the home inverter size, larger will be the electricity produced. The larger the electricity produced, the higher will be the expenditure per month from the use of the home inverter.

Since, this expenditure is a recurring monthly expenditure, over a period of time the loss becomes substantial.

To compare the home inverter with a PV solar system, let’s take the expenditure incurred by running the home inverter over a period of 25 years (the life of PV solar systems).

We have made a table below showing the cash outflow per year on the use of a home inverter. Please note that we have ignored the cost of the batteries as it will be required in both the PV solar system and the home inverter system and hence is of no significance here. The assumptions made to calculate the figure has been mentioned in the table below.

Home Inverter: How much you pay for it
Assumptions
Power Shutdown/Day3Hrs
Energy Charges6.5Rs./ Unit
Elect charges escalation/yr3%P.a.
Effective Energy Rate approx (assuming 60% loss10.4Rs./ Unit
Inverter Output 1Unit/Hr.
YearsInverter Run Hrs.Annual Increase FactorElectricity Consumed/Annum(Rs.), Outflow
11,0951.00-11388
21,0951.03-11730
31,0951.06-12092
41,0951.10-12477
51,0951.13-12887
61,0951.17-13325
71,0951.21-13793
81,0951.26-14294
91,0951.30-14832
101,0951.35-15412
111,0951.41-16037
121,0951.47-16715
131,0951.53-17451
141,0951.60-18253
151,0951.68-19131
161,0951.76-20095
171,0951.86-21159
181,0951.96-22338
191,0952.08-23653
201,0952.21-25126
211,0952.35-26789
221,0952.52-28680
231,0952.71-30847
241,0952.93-33354
251,0953.19-36284
Total Run Hours27,375Total Outflow-488,142
Home Inverter running cost. How much you pay for using it.

Figures Marked in ‘-‘ are Cash Outflow/year

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