It was not a long ago when Indian Consumers became aware of an alternative to rising electricity costs. The system was technical and marketing limited, but the solar wave managed to hit the consumers in Tier 1 and Tier 2 cities. While major credit goes to the central government for its approach towards rewarding people for getting a rooftop solar plant, a significant number of young age entrepreneurs have ventured in this industry, recognizing it as the “next big thing”.
While speaking to one the residents from Gurgaon, Haryana who had just got a 10KW plant for his residence, I was informed “The returns of having a plant is much more than we expected. Our monthly bills from INR 15,000/mon. have come down to INR 4,000/mon. during summers”. We also asked about any Government incentive the resident received, to which we were told that the Government provided him 30% subsidy on the plant which was credited in his account in about 6 months from the date of completion of the project. All the documentation pertaining to the plant was handled by Corrit Energy & Infra. We were able to study the generation data of the same plant for the first 12 months and figured out a good enough generation of 14,890 Units (KWh).
Currently, as per national policy, domestic consumers of multiple states are availing financial support of up to 30% from the Government. The question arises: What about the commercial and Industrial consumers? Should they be switching over to a renewable energy resource too? Well, most certainly- Yes! With commercial tariff hovering around INR 9/unit and the tariff taking a jump of ~10% in every 5 years, investing in Solar Powerplants could be one of the smartest decisions a consumer could make. Solar plants require minimal maintenance and have a supremely long life of over 25 years. What makes it even more interesting is the efficiency of the solar panels. Even after 25 years, the efficiency of the panels would be around 80%.
For any consumer, the key question while making any sort of investment is RoI. This quintessential question drives any purchaser taking a call while making a purchase. We did a basic comparison between various assets including land, gold and a solar power plant (without subsidy) and the results are definitely worth paying attention:
The aforementioned table comprises Avg. RoI returns for various assets. It is only a matter of time before Solar Plant becomes a mainstream investment in the country. With Government setting a massive target of 227 GW for 2022, a lot more marketing and awareness efforts would be deployed in the coming months. Another key factor worth noting is that the corporates can avail “Accelerated Depreciation” benefit towards the Solar Energy investments. This would allow them to get an income tax benefit on 100% investment within the first three years itself.
To summarise, the solar plant investment is a must-have asset for both domestic as well as commercial consumers. While government incentives are only icing on the cake, having a private plant to support your energy requirements is one of the highest returning assets.