Savings from PV Solar System: Case Study of 3 Kwp off-grid 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 power, we get substantial savings from the PV Solar System. The point to observe is that this is a recurring saving that we get each month and not a one time savings.

On the other hand, the investment in Home Inverter/ Diesel Generator leads to further recurring expenses due to the 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, if we purchase the PV Solar on 5 year loan, the cash outflow stops by the 5th year and it starts generating savings from the 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.