What are the economical benefits of solar energy?
Solar Performance Specialist
Solar energy has been transformed into a viable alternative to conventional, non-renewable energy sources in recent years. In addition to the environmental benefits, it is an economically sound investment. The main economic benefits of solar energy are that it is a green alternative and cost-effective option. Solar energy has been growing rapidly in recent years due to its price advantage and efficiency. It is widely used for its green properties and the hope that it may one day provide sufficient power for entire countries or regions.
The primary economic benefits of solar energy will be discussed in this article. We'll also discuss some of the environmental benefits, as long-term sustainability requires that environmental benefits outweigh economic gains
What are the Economical Benefits of Solar Energy?
Traditional energy-saving methods, such as switching to LED lighting and using natural ventilation instead of an air conditioner, can help reduce energy expenses to some extent, but only to a certain extent. Ultimately, you will have to pay whatever monthly expenses are incurred as a result of your energy usage. However, this is not the case with solar energy. Solar energy allows consumers to become self-sufficient in terms of meeting their energy needs, reducing their reliance on utilities. You can power a huge number of electrical gadgets in your home or workplace if you put high-capacity solar panels on your roof. As solar panels can last for more than 25 years without needing much maintenance, they have a higher return on investment over the long term.
- Net metering
One of the most distinctive economic benefits of having a solar PV system installed at your house or workplace is net metering. Net metering allows you to sell the excess energy generated by your solar PV system to the grid in exchange for credits. The solar PV system may produce more energy than is required during certain months of the year when sunshine reception is at its peak. If you have net metering, you can transmit this additional energy back to your area's local grid. The credits earned can be utilized to purchase electricity during the months when energy consumption exceeds the solar PV system's output. Solar net metering also allows developers to profit from the installation of rooftop solar systems in diverse locations.
- Way to avoid Time-of-Use (TOU) rates
During peak hours, when demand is highest during the day, time-of-use rates can increase energy costs since electricity consumed during these hours is charged more than electricity consumed during non-peak hours. You will not be obligated to comply with your power distribution company's TOU prices if you have a solar PV system installed at your home. This can save you a lot of money on your utility costs.
- State subsidies
Solar energy needs a significant upfront expenditure, as it necessitates the installation of solar panels, batteries, and wiring, among other things. As a result, most individuals are hesitant to switch to solar energy because they lack the financial means to do so and are uncertain about the time it will take to recoup their investment. To make things easier, some state governments, as well as the federal government, have devised measures to reduce people's investment burdens through subsidies on solar panels, easy loans, and other means. Some Indian states provide solar panel subsidies of up to 50%. All of these steps are being made to encourage people to convert to renewable energy sources and reduce carbon emissions.
NOTE: Subsidy is only applicable for residential on-grid plants up to 10kW capacity. Applicable only if we install panels and inverters of selective make. E.g. We can only use a string solar inverter for subsidized solar plants.
- Solar upgrade home value
Investing in solar energy has been proved in numerous studies to improve the value of your home by a factor of ten. Thus, if you intend to sell your home in the future, purchasing and installing a solar PV system will be a wise investment. With energy costs expected to rise in the future, solar power is a good investment. As a result, individuals will prefer to buy a home with a solar PV system.
- Solar energy is free
Traditional energy sources are reliant on natural resources, and if these resources get depleted and their prices rise, customers will be forced to pay higher energy bills. The nicest part about solar energy is that it is completely free! Apart from the initial investment in establishing a solar PV system, you will incur no operating costs in the long run. Of course, there is a fee for upkeep, but it is negligible when compared to the benefits.
Environmental benefits of solar energy
The economic benefits of solar energy were explored in the previous section. As previously said, in addition to the immediate economic benefits that solar energy provides, it also has a plethora of environmental benefits that are critical for long-term growth and development. Some of the environmental advantages of solar energy include:
- Lowering greenhouse gas emissions
The largest producers of greenhouse emissions are fossil fuels utilized in conventional energy sources. Solar energy, on the other hand, is a non-polluting source of energy that uses sunshine. As a result, it aids in lowering greenhouse gas emissions.
- Reduces Air pollution
Studies have found that air pollution leads to the deaths of 6.4 million people each year. Every year, we hear about poor air quality in cities around the world. Since solar energy emits no carbon, it reduces air pollution significantly, making the earth a more living and breathing place. As a result, people will be able to live healthier lives and save money on medical costs.
- Helps in reversing climate change
Forest fires, floods, droughts, and storms have all become more common as a result of global warming. It has resulted in rising sea levels, putting coastal residents at risk. Global warming has the greatest impact on the poorest of the poor, destroying livelihoods and lives. A shift to solar energy can assist to mitigate global warming and, as a result, can benefit people from all walks of life.
- Job creation
The solar energy industry is growing, and as a result, new job possibilities are opening up. Solar energy generates jobs, which is essential for unemployed youth in developing and low-income countries.
In this article, we talked about all the major economic and environmental benefits associated with solar energy. The overarching threat facing human civilization today is climate change, which makes switching to alternative, green sources of energy a necessity. If you are amongst the ones who are skeptical of making a transition to solar energy, we would advise you to go through this article thoroughly and contact us. We will help you to find out about the immense economic benefits of solar energy.