FAQs for Project No. 1

UPDATED:  January 31, 2019

THE QUESTIONS PUT TO ME AND MY ANSWERS :

Q.  How much will be the cost ?

A.   It depends upon your consumption.   For example, if you consume say 150 units of electric power in a month, the TOTAL ONE TIME cost of installing a 1 KVA Solar Power Generation Unit will be within 70 to 75 K INR based on my investment in 2017.

Q. What are the prerequisites?

A. 220 sq.ft. of shadow free space on your terrace; an electric bill in your name; and a photograph.

Q. Will I lose my existing electric connection?

A. Not at all.    The power generated by using Solar Energy is Direct Current (D.C).   This is converted into Alternate Current (A.C.) by an Inverter.     Your production is exported to Government and your consumption continues business as usual.    No change is required for any of your existing items like A.C. or Refrigerator etc.

Q. How do they keep track of Export and Import?

A. Your existing meter which records your consumption will be changed to a bidirectional meter.   Here, the meter will record your production and consumption.    If the units of both export and import tally, then you do not get a bill from the electric supply company.    If there is difference plus or minus, your account is credited or debited.    In some States in India, you get money paid for excess production; and in some States they allow you to carry forward excess production for a specified period.

Q.  If I pay say 75,000 (for producing 150 units in a month) or 3 lakhs (for producing  600 units in a month) what is my Return on Investment or Payback period?

A. Based on my experience for 20 months, on my investment of 4 lakhs of Indian Rupees, I am saving my electric bills for Rs.60,000 per year (estimated at Rs.5,000 per month).  So my Return on Investment is 15% tax free which is a sumptuous amount.

On this basis, my payback period will be around seven years and thereafter you enjoy free electricity for life.

Q. What is the life of the Solar Power Generation Unit?

The Panels’ life is claimed to be 25 years.  Warranty is given for 10 to 15 years.   Inverter has a warranty for 5 years.

Q. Can I see a demo of the Unit?

A. Of course. There are many installations.  For example, just visit Cochin Airport in Kerala (India).    The entire power consumed by them is produced by using Solar Energy.  

Q. Can you give a breakup of my investment?

A. Approximately 70% of your investment relates to Panels and Inverter.   20% for Structures,  cables and earthing work. Remaining 10% goes for getting approvals of the electricity company, inspection, fitting a bidirectional meter and authorizing operation, etc. etc.  The bidirectional cost itself Is around Rs. 7 or 8 K.

Q. I am staying in a rented house. My landlord does not want to spend money.

A. Days are not far off for you to live under your own roof.   With these advance good wishes to you, let me just say: the electric bills are ultimately paid by you only.  My friend has let out his house with the Solar installed and he has made some arrangements with his tenant.

Q. Let me know the Pros and Cons of this Unit:

A. Whether one is living in the house or not, on all 365 days Solar Power production takes place (production ceases only when Sun sets or the electricity company shuts down the power supply for any maintenance or other reasons).

Keep in mind the installation Is for life.  I do not think one will be able to trade in for a better technology which may come up in future.  But nothing stops you in going for new technology.

Q. Will the prices drop considerably?

A. A good question.   About four years ago, a kva used to cost a lakh of Indian Rupees. Now it has come down to around 70 to 75 K.  I will not say whether it will come down further.  But one thing is certain.   Electric power charges per unit may not go up for small consumers but people like you and me consuming more units may not be able to escape the rate hike.  Switching to solar is justified from these angles.

By the way, by clubbing demands of your neighbours, and reducing expenses on logistics and installation, the price per kva may come down further.

Q. I am interested; but I do not have money.

A. Banks like SBI/IDBI Bank do offer loans for solar installation. Even if we take into account their interest charges, we derive benefits.

Q. I want to voluntarily serve my School, College, Temple/Mosque/Church/Community Halls by spreading awareness.

A. Very good thought. First begin from your home. In case you are staying in an apartment, ask your Soceity Managing Committee to power common areas/club house/gym/swimming pool with Solar Power.  It is also possible to derive this benefit for your own Apartment, if you can make workable arrangements  with other Apartment Owners.

Others can use their own funds;  if they do not wish to break their Fixed Deposits they can easily raise funds from the community and you can certainly look at forming a Trust and collect moneys for the specific objective.    All that is needed to make a beginning.

Take for example. In Tamil Nadu, Rain Water Harvesting Project was the brain child of an individual lady.   She cleverly took the help of Hon’ble Madam Jayalalitha (who was the Chief Minister of Tamil Nadu, India); today every house in Chennai must have RWH.   This is replicated in other States also today.

Q. What do you think of Payback period? Will it come down?

A. Keep in mind, once you get your full money back in say seven years, for life electricity is free for you.   Anyway, I did check on this with an Upcoming Entrepreneur who is planning to set up Solar Panel production.  According to his estimate, payback may come down slightly and possibly with improved panels (such as generating power from both sides of the panels, and panels under which one could grow plants at least for 25% to 30% area).   According to his personal estimate pay back may come down to say 5 years after about 4 years from now.

Q. Do I have to change my cables, etc. to accommodate solar power generation?

A. Not at all… Do not mix up power generation and power consumption.  These are two different activities.  Whatever is produced by you goes to Grid, while what you consume is from the BESCOM power supply.

Q. What about maintenance?

A. No maintenance is needed. A bit of occasional cleaning of the panels will help in maintaining production.

Q. What do we do when there is a load shedding or power cut?

A. Solar power will be generated when there is sun light and when there is no power cut or load shedding by BESCOM.

During power cut you may continue to have the same process as you do today – like using UPS, or Generator or Candles.  Keep in mind, production is not to be mixed with consumption.

Q. You told me BESCOM will pay for excess production. Can you clarify?

A. As per the current policy, BESCOM will buy every unit you produce and net it out with your consumption.  In case you are out of your house for an extended period and there I no consumption, it makes no difference to the calculation.  You will enjoy solar power production on all 365 days.

Q. Can you help me in getting a reliable vendor?

A. We are only creating awareness with the good intention to help all to derive benefits I have received.  We can of course suggest you the vendor who had installed in our home; and also give you names of some other vendors whom we have come across.   But negotiating with the vendor for best prices, quality, configuration, etc. are all your individual responsibility.  "Uberrima fide" (Buyer beware) principle applies for any deal. This industry runs on mutual trust.

Q. Can you I go for higher models?

A. Of course; you have various options.  A Hybrid Model is available which uses batteries for power storage; one can go also for a better structure so that the terrace can be used for

Relaxation, meditation etc.   Vendor will be able to give you more details and the additional cost involved.

Q. Are you sure we do not take any risk?

A. As I mentioned earlier, Cochin Airport is fully functional on solar power only.   Kerala gets heavy rains.  When the Government themselves have set up such a huge facility, this concern may not arise.  Good luck.

Renganathan Narayanan

P.S. Will update this file with any other queries that may come up.
E&O.E.