This is the best time to install solar power
Whole world is suffering from pandemic COVID-19 and this is the time when everyone should think of being energy independent, saving money and saving environment for his own and for future generations.
By Aniptabh Saxena
Because going solar have so many reasons.......
Renewable source of energy.
Solar energy is a renewable resource, meaning it won’t ever run out or be in short supply. We simply need to build enough solar panels to capture it. Solar energy reaches us via the sun’s rays, while fossil fuels come from ancient carbon-rich remains on earth.
Reduces electricity bills.
Solar energy is clean, in abundance and free to harness thus reducing monthly electric bills. Thanks to new technologies and solar incentives, it is good time to invest in clean solar energy.
Low maintenance cost.
Solar system has a very little maintenance. One has to ensure that panels should be clean, free from any dust and spots. As any dust or spot over panel will reduce the generation.
Earn from surplus generation.
Excess solar power from the inverter may flow out of the house through the utility company’s electric meter and into the city-wide grid. When this occurs, the meter may run backward, and the utility will credit the out flowing solar electricity against electricity purchased from the grid at other times, like at night. This process is called net-metering.
Save money, Save Environment with the Power of Sun
Return On Investment is 40%.
The financial benefits of going solar are now well documented. Solar panel systems actually function as investments with strong rates of return. Minimum ROI is 40%. One can calculate the ROI with information like Gross cost of solar panel system, Value of financial incentives, Average monthly electricity use and estimated electricity generation.
Environment friendly.
Generating electricity with solar power instead of fossil fuels can dramatically reduce greenhouse gas emissions, particularly carbon dioxide (CO2). One of the biggest benefits of solar energy is that it results in very few air pollutants. Widespread solar adoption would significantly reduce nitrous oxides, sulfur dioxide, and particulate matter emissions, all of which can cause health problems. Solar energy not only saves money on electric bills but also reduces carbon footprint and improves the overall health.
Life Span of 25 Years.
As a general rule of thumb, solar panels should last at least 25 to 30 years, based on manufacturer testing. The figures used for solar calculations are also based on a working life of 25 years. However, life expectancy also depends on the quality of the manufacturing process and installation and the type of solar panel installed.
Tax benefit of 30%.
The accelerated depreciation benefit allows the commercial and industrial users of solar power in India to depreciate their investment in a Solar Power Plant at a much higher rate than general fixed assets. This in return allows the user to claim tax benefits on the value depreciated in a given year.
The following example further illustrates the point for the ease of understanding–
Let’s say a commercial or industrial user, Example Pvt. Ltd., falls under an income tax bracket of 30%. Now lets say this user builds a general asset that is valued at Rs. 1 Crore in a given financial year, with an expected asset life of 20 yrs. Under normal circumstances, the user will be able to claim an annual depreciation of 5% of Rs. 1.0 Crore (considering linear depreciation, 100%/20yr = 5%/yr). for purpose of income tax.
This implies that the user will be able to claim tax benefit of 30% of 5% of Rs. 1.0 Crore per year = Rs. 1.5 Lakh per year for next 20 years.
However, when the investment is made in a Solar Plant, the user is allowed to depreciate the asset at 40%, thereby allowing the user to completely depreciate the asset within three years term, and saving a tax of Rs. 12 Lakh, Rs. 12 Lakh and Rs. 6 Lakh in the first, second and third year of operation respectively.
For anyone who appreciates time and value of money, the proposition of saving lakhs in taxes within only the first three years of installing a Solar PV system is lucrative compared to saving the same amount over a period of twenty years. Thus the project ROI (Return on Investment) increases by the virtue of accelerated depreciation.
Other benefits of installing solar system.
Solar panels provide energy independence and protect owners from costly utility rate hikes. Normally utility rates increase at minimum 7% every year. Solar panels increase home value from the moment of installation, last a lifetime and require very little maintenance. Should you decide to sell your home, a home powered by clean solar energy sells at a premium compared to one without solar. Save money and reduce your carbon footprint with clean, renewable solar power.
Loans, Subsidy and Insurance.
According to the Ministry of New and Renewable Energy, the Central Government pays 30% of the benchmarked installation cost for rooftop PV systems. This subsidy is applicable in states that are in the general category. However, a subsidy of up to 70% of the benchmarked installation cost is offered in some states that lie in the special category — North MNRE PV Rooftop Cell. These include states such as Uttarakhand, Sikkim, Himachal Pradesh, Jammu & Kashmir and Lakshadweep. In addition to this, State Nodal Agencies also offer subsidies in various states.
This subsidy scheme is applicable for institutional, residential and social sectors. However, it is not applicable to the commercial sector, industrial sector and public sector undertakings. PSUs are eligible to avail incentives on the basis of energy generation.
For residential consumers, home loan facility is available. For farmers, for solar pumps, loan from NABARD. Loan facility is provided by almost all nationalized banks. Loan from SIDBI (Small Industrial Development Bank of India) is available for Industrial consumers.
Insurance is available as:-
· Home insurance for residential customers.
· Factory insurance for factories.
· Hospitals, Hotels, Schools and Colleges have respective insurance.
· STFI/RSMD preference.
STFI – Storm Thunder Fire Insurance. RSMD – Riots Strike Malicious Damage.
· Premium will be approx. 2.5% of project cost.
great one dear
thanks brother