Cost of Solar Panel Installation and Payback Period

In this post, estimate size of solar panel for your residential home, cost of solar panel installation and payback period is given.

Cost of Solar panel Installation

AIM	Estimate the size of solar panel for your residential home, cost of solar panel installation and payback period.

 

A	Objective
	After completing this experiment, student will be able to Calculate residential load and unit consumption of residential load Estimate size of solar panel, incentive, cost of solar panel installation and payback period for amount to be invested. Estimate amount of CO2 emission reduction by using suitable solar panel calculator
B	Expected Program Outcomes (POs)
	·       PO1: Basic and Discipline specific knowledge ·       PO2: Problem Analysis ·       PO6: Project Management ·       PO7: Lifelong learning
C	Expected Course Outcomes (COs)
	1.    CO4: Understand government policies for renewable energy sources
D	Practical Outcome (PRO)
	2.    Estimate load calculation for residential consumer, solar panel installation cost, incentives calculation, payback period and reduction of CO2 emission for given data.
E	Theory
	You can estimate the size of solar panel / number of solar panels by estimating number of units consumption per month or by energy bill by utility company. As per PM Surya Ghar Solar Roof Top Portal Benchmark CFA (Central Finance Assistance) Mode Capacity CFA for General States/UTs Through National Portal for Rooftop Solar 1 – 2 kW Rs. 30000/kW Above 2 – 3 kW Rs. 18000/kW Above 3 kW CFA is capped   CFA for given kW Capacity of solar panel Sr. No kW Capacity of solar panel Benchmark cost of solar panel CFA (Central Finance Assistance or Subsidy) From Government Consumer have to pay 1 1 Rs. 50,000 Rs. 30,000 Rs. 20,000 2 2 Rs. 1,00,000 Rs. 60,000 Rs. 40,000 3 3 Rs. 1,45,000 Rs. 78,000 Rs. 67,000 4 4 Rs. 1,85,000 Rs. 78,000 Rs. 1,07,000 5 5 Rs. 2,25,000 Rs. 78,000 Rs. 1,47,000 6 6 Rs. 2,40,000 Rs. 78,000 Rs. 1,62,000 7 7 Rs. 2,80,000 Rs. 78,000 Rs. 2,02,000 8 8 Rs. 3,20,000 Rs. 78,000 Rs. 2,42,000 9 9 Rs. 3,60,000 Rs. 78,000 Rs. 2,82,000 10 10 Rs. 4,00,000 Rs. 78,000 Rs. 3,20,000   Let us try to understand size of solar panel requirement by unit consumption per month. There are several energy calculators available in the website. Here we use torrent power energy calculator OR you can calculate watt hour by using clip on meter and multimeter. Calculation of monthly watt – hour Sr. No Appliance Name Watt(w) No. of Appliances Daily Use (Hours / Day) Total Daily Watt – hour (Wh) 1 Ceiling Fan 50 4 10 2000 2 Air conditioner 1.5 Tons 1500 1 5 7500 3 Computer 200 1 3 600 4 Electric iron 550 1 0.2 110 5 Lamp 18 5 4 360 6 Refrigerator 300 1 24 1200           11770   Daily watt – hour = 11770 Monthly unit consumption: 11770 × 30 = 353100 Wh = 353 kWh Let us assume that unit price of energy consumption is Rs. 8 / unit which includes fuel charges, regulatory charges, govt duty and meter rent. The per unit energy prices depends upon number of unit consumption, Higher the rate for higher consumption of electricity and vice versa Total Energy Charges = 353 × 8 = Rs. 2824 You must enter following data in the PMSURYAGHAR Portal. (Link for portal: https://pmsuryaghar.gov.in/rooftop_calculator) 1.    Your state: 2.    category of customer: Residential 3.    Average monthly bill: Option to enter following data 4.    Your rooftop area in square meter or square feet 5.    You want to invest in solar panel                                           6.    Solar plant capacity (kW)                                          7.    Sanction Load Solar Panel Calculator Now, we calculate the cost of the solar panel installation and payback period as per PMSURYAGHAR Portal.  1 Size of solar panel 5 kW 2 Cost of plant Subsidy Consumer have to pay Rs. 2,25,000 Rs. 78,000 Rs 1,47,000 3 Annual unit generation 7884   Life time unit generation (25 years) 197100 4 Financial saving Daily Yearly For 25 years   Rs. 64.8 Rs. 23652 Rs. 5,91,300 5 Carbon dioxide emissions mitigated 141 tonnes   Solar Panel Payback period Cost of solar plant: Rs 147000 Cost of solar plant Annual Saving No. of year for initial cost of plant Rs. 1,47,000 Rs. 23652 6 Years and 3 Month (As per portal calculation, it is 5.89 years, considering interest on yearly saving amount of Rs. 23653)   Payback period: 6 years and 3 months It is considered that Rs. 147000 is not kept in bank fixed deposit. If it is kept in bank account, interest is also calculated. This calculation is only reference point of view to understand size of solar panel for your residential home, cost of solar panel installation and payback period.
F	Interpretation of Results
	The installation of solar panel is one time investment for your daily life energy consumption bill. In the above case study, you will get your investment money back in the 6 years and 3 months for 5 kW solar panel installation. The initial financial burden of solar panel installation will contribute yourself towards CO2 emission reduction.
G	Conclusion The installation of solar panel at the residential premises not only provide to you financial freedom from electricity bill after payback period but contributes nation to achieve net zero CO2 emission by 2050.
H	Practical related Questions
	1. State the limit for CFA (Subsidy) to residential consumer for installation of 4 kW.           2. What is meaning of payback period?
N	Assessment Rubrics
	Sr. No Criteria Maximum Marks Obtained Marks 1 Understanding of theory/concept 5   2 Explanation of conclusion 5   3 Discipline and regularity 5   4 Quality of term work 5   5 Timely completion of term work 5

  

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