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In recent years, the cost of electricity around the country has increased significantly. In a developing country such as India, there is an urgency to have a power supply that is efficient and regular to support the citizens and businesses of its growing economy. So, making a switch to more dependable and cost-saving methods of producing energy is a priority.

Indians are generally highly driven by the price that they need to pay for a service or commodity, which makes solar panels the most ideal alternative to traditional ways of producing electricity. Of the myriad benefits provided by home solar panels, the most important benefit is cost saving.

To elaborate further, solar panels for homes help you save costs because of the following factors.

1. Price of electricity

The price of electricity is increasing with each passing day with an increase in usage. Installing home solar panels will enable you to generate your own electricity and minimise the power you eventually consume from the grid, thus reducing or even eliminating power bills. Moreover, there is constant fluctuation in electricity costs, which makes planning your expenditure a real challenge. With home solar panels installed, you can plan your expenditure in an easier manner because the costs remain almost constant.

2. Low maintenance

Solar panels in homes need a heavy investment initially, which is aided by the government to a certain extent. That said, the subsequent costs regarding maintenance and service are quite low for solar panels. They offer a service life of nearly 25 years, when maintained properly. 

3. Power storage

You can easily store the power that is generated by solar panels when not needed and use it for future purposes, especially when electricity costs skyrocket. 

4. Property value

Solar panels at home will surely help you save and earn back installation costs by significantly adding to the market value of a property. Most buyers will not make a fuss when it comes to paying more when they truly know that they will be saving on their electricity bills in the long run.

5. Government subsidies

To promote the use of solar power, the Government of India helps install solar panels by offering subsidies and deductions to both residents as well as businesses.

Actual savings

A 5-kW (kilowatt) rooftop solar panel can help you save nearly 600 units of electricity every month. This will successfully reduce your electricity bills by approximately INR 5,500 every month. 

We have broken down the numbers for you. 

Making an assumption that a 1-kW system can generate four units (kWh) each day on an average, a 5-kW system can generate nearly 20 kWh (kilowatt-hour) per day or approximately 600 units every month. Considering a basic tariff per unit of INR 5.50/kWh, solar panels will be capable of generating electricity that amounts to nearly INR 3,300 per month. This amount can be substantially higher if the tariff in your region exceeds INR 5.50 per kWh.

If your electricity bills are approximately INR 3,000 each month, your subsequent power bills will amount to zero through the installation of a 5-kW solar system. Moreover, if your monthly power bill hovers around INR 7000 per month, then post-installation of the solar panels will reduce your bills to a mere INR 4,000 per month. Further, if your monthly bill is approximately INR 1500 each month, you could be earning as much as INR 1,800 each month from the distribution licensee. 

The last word

If your average monthly power bill is extremely high, and if you are living in a region with high energy rates, then it is highly worthwhile to install solar panels in your home, with the 26% tax break in place. Homes with solar panels will benefit not only your wallet but also the environment.