How Good Are The Solar Panels for Businesses In India?

Advantages & Disadvantages of Installing Solar Panels on the Rooftops

India is one of the top-selling markets of solar panels. Although there are several challenges associated with it, solar panels are highly preferred in various commercial businesses owing to the various advantages of solar energy.

As a business owner, one of the major challenges that you face is the cost of electricity. Your business is completely reliant on the commercial electricity or power grid which also means that you are subjected to constant electric rate fluctuations. Perhaps, this is the reason why most of the businesses in India are now going for the installation of solar panels.

Currently, India is an emerging nation and a leading generator of sustainable and renewable energy. The adoption rate of rooftop solar panels is gradually accelerating in India as more and more businesses are learning about the importance of solar power.

Advantages of Solar Energy for your Business

Commercial solar is currently used in most businesses. This not only reduces the operating expense but also provides peace of mind against the rising energy cost. You can look for vendors who are environmentally responsible and are focused on maintaining and following sustainable energy strategies. Here are some of the solar power benefits:

1. Saving utility rates

As the demand for energy increases with each passing year, it's time to think about sustainability by focusing on renewable sources of energy. The surge in energy price can actually cause unnecessary stress and hamper your business growth. By installing your own solar power, you can eliminate the problem of rising utility rates. The portion of your electricity usage that is generated through solar energy is no longer subject to increased electricity bills, thus saving more on your pockets.

2. Sustainability and longevity

Most people don't realise it, but commercial electric power is a type of commodity, and it's bought and sold on the basis of supply and demand. But this is only for a limited period of time because the future is unpredictable. Although we have solutions like hydroelectricity, the expansion of hydroelectric production would mean additional flooding, which is not acceptable.

Alternate electric generation sources like solar power are the only solution to the low overhead electric production. By implementing solar power into your business, you are actually making an investment for your business's future. Solar power is unlimited and is a continuous source of energy.

3. Unlimited energy

By investing in a solar power system, you can ensure that you are getting an unlimited source of energy. You will be completely independent of the commercial energy supply by converting to solar power. Besides saving money on the overhead cost, you will also have an assurance of a reliable and constant supply of electricity regardless of what happens to the commercial power supply.

You can also have a series of panels that are interconnected and can convert the sun's rays with the help of the photovoltaic process for producing electricity. With solar energy, you can also have the option of storing the electricity supply through a battery system so that you can have a backup during the night.

4. Environmental and financial Returns

Although the installation cost of solar panels may seem to be high initially, however, it is a long-time investment that you are making for your business. Depending on the size of your solar power framework, it can pay for itself in the next couple of years, as you will benefit from low to zero cost.

Businesses of various sizes have now started realising the efficiency of solar electric energy and are taking it as a key strategic decision that can guarantee them solid financial returns for the upcoming years. Also, it helps to attract more customers to the business as they appreciate the sustainability efforts.

5. Solar tax benefits

This is one of the biggest rewards that you will be getting for your business. All levels of the Federal government are currently supporting sustainable sources of energy like solar power. And to show some support, they are also offering few financial assistance programs and other beneficial tax incentives. Some of the tax benefits that you will receive while converting your business to solar power include:

• Accelerated depreciation- This means that you will be entitled to the program called Modified Accelerated Cost Recovery System that will help you to improve your cash flow and boost your ability to finance the solar power installation process.
  
• Solar renewable energy credit- By opting for this type of solar energy option allows you to recover the installation cost by utilising the system's energy production. These incentives that are guaranteed by the government programs are intended to encourage their move towards solar energy no matter what kind of system you install.

6. Make your business green

With the generation of electricity from solar energy, you can reduce pollution, utilise lesser fossil fuels, thus reducing greenhouse gas emissions. By switching on to solar power, your business does its part fighting with the climatic change and reducing the country's dependence on other or foreign energy sources. As per research, it has been noticed that the buying decision of the customer is also sometimes based on the company's environmental initiatives and responsibilities.

Disadvantages of solar energy installation

Solar energy installation has its own challenges and disadvantages too. But we have to check out both the advantages and disadvantages of solar panels and then move forward with the installation process. Let's check out some of the disadvantages of solar energy:

1. Installation area

For businesses that want to install solar panels, the installation area can be a major challenge. It might be easier for the homeowners, but if the bigger businesses, more power is needed, thereby requiring set up with the installation process in a larger area or rooftop. Also, it must be ensured that the solar panel installation area is out of the reach of grazing animals.

2. Availability of Sunlight

The location's latitude is another factor that determines the efficiency of solar power. Not all the locations and areas get the same amount of Sunlight every day. Thus, the efficiency of solar power drops dramatically the more you go off the equator. Also, during the winter season, you won't get enough Sunlight reaching the install panel. During this period of time, you won't be getting enough solar power to cater to your needs.

3. Deterioration

With constant exposure to various weathering conditions, the solar panels at some point in time will start undergoing deterioration. The reason behind this is also the ultraviolet rays of the sun. Other weathering conditions like hailstorms, wind, snow, rain, dirt and other temperature fluctuations also pose a serious threat to the longevity of solar panels.

4. Higher installation cost

An average-sized panel installation can cost between Rs. 4.50-5 lakh for producing power of 5KW. The factors that determine the higher cost of solar panel installation include the solar panels themselves, wiring, mounting hardware, permits, installation process, repairs, maintenance cost, monitoring, overhead cost, and other additional operational charges.

Conclusion

Deciding on converting your business to solar power isn't something that should be done quickly. You need to understand the importance of solar power, your budgetary convenience, location, and other solar energy advantages and disadvantages. Like any other business investment, you have to measure its pros and cons and then decide to install it.

Also read:

1) How is the future of solar energy in India?
2) What Is The Purpose Of Using Solar Energy?
3) Advantages of Solar Energy You Must Know About
4) How to Start a Solar Energy Retail Business? All about solar energy retailership
5) Solar Panels Manufacturers in India

Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more!
Download OkCredit now & get rid of your bookkeeping hassles.
OkCredit is 100% Made in India.

FAQs

Q. Can I get a better flow of electricity with rooftop solar panels for my business?

Ans. A commercial solar panel that is properly designed and well equipped works on a complete power generation process.

Q. What is "net metering"?

Ans. The concept of selling back solar energy to various electricity boards is known as "net metering."

Q. Can I make more money with solar panel installation?

Ans. The solar panel installation has a positive impact on your business, as you are promoting a greener environment and creating an impact on your customer's mind. This can act as an important marketing tool for bringing in more customers to your business.