Savings from PV Solar System: Case Study of 3 Kwp off-grid Solar System

Savings from the PV Solar System

Where the power shutdowns are frequent, the off-grid solar system with the batteries are ideally suited for such places as a replacement of the home inverter or the DG (Diesel Generator)

Since, the free solar energy is used for powering, we get substantial savings from the PV Solar System. The point to observe is that this is a recurring savings that we get each month and not a one time savings.

The investment on all other devices such as Home Inverter/ Diesel Generator leads to further recurring expenses due to use of electricity/Diesel for providing backup power.

The PV solar System gives double advantage: 01. It stops the recurring expenses incurred by the Home inverter or Diesel Generator. 02. It generates savings on the electricity cost by producing power from free solar energy. 

As a case study we have taken a 3 KWp off-grid Solar System with the battery bank and calculated the cash outflow over a period of 25 years. 

Here, we are trying to find the relative advantage of the PV solar system over the home inverter. Since, the battery will be required for both the systems we have ignored the cost of replacement of the batteries from the calculations.

As per the table the investment gets recovered by the 5th year and it starts generating savings from 6th year onwards. The total savings comes to Rs. 3,65,367/-

The larger the solar PV System, the larger will be the savings produced.

Assumptions
ParticularsAmountParticularsAmount
Solar Investment240000Electricity Bill without solar3000
solar Down Payment72000Electricity bill after Solar750
EMI16800060monthsSavings from Solar2250
EMI Rate/[email protected]%2127Grid Tariff increase/Yr3%
EMI Load3573.36
Out flowInflow
YearDown Payment on solarEMIElectricity Bill(after solar)Total Outflow with solar(Rs.)Elect.Savings with solarNet Outflow/Inflow
172000393071125012255724750-97807
204288092705215027810-24340
34288095485242828644-23784
44288098355271529504-23211
542880101305301030389-22621
6357310433140063130017294
7010746107463223921493
811069110693320722138
911401114013420322802
1011743117433522923486
1112095120953628624191
1212458124583737424916
1312832128323849625664
1413217132173965026433
1513613136134084027227
1614022140224206528043
1714442144424332728885
1814876148764462729751
1915322153224596630644
2015782157824734531563
2116255162554876532510
2216743167435022833485
2317245172455173534490
2417762177625328735525
2518295182955488536590
Net Savings365367

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