Solar energy offers numerous benefits, including financial savings, environmental impact, and even increasing the value of your home. Here are some of the most frequently asked questions about making the switch to solar.
With a solar energy system, you generate your own electricity at home, reducing the amount you need to purchase from your utility company, or potentially eliminating the need to buy any at all. Utility companies, or DISCOMs, may even compensate you for excess electricity your system generates and sends to the grid through a policy known as net metering. Additionally, depending on your location, you could qualify for other solar incentives like local rebates and tax credits. Your savings with solar will vary depending on factors like your electricity rates, but for most homeowners, it’s a financially sound investment.
The easiest way to determine your electricity costs is by reviewing your utility bill. If the rate isn’t listed, simply divide the total amount you owe by the total kilowatt-hours (kWh) used in a month to calculate your effective cost per kWh.
In most cases, adding solar panels increases your property’s value. Numerous studies have shown that homes with solar energy systems sell for more than those without, often adding significant resale value.
When you connect your solar panel system to the grid, you may benefit from net metering—a major solar incentive provided by the Government of India under the PM Surya Ghar Muft Bijili Yojana Scheme. Essentially, your utility acts as a “bank” for the energy your solar panels generate. When your system produces excess energy, it’s sent to the grid, earning you credits. During times when the sun isn’t shining and you need grid electricity, you can use these credits, reducing or eliminating your electricity costs until they run out. Net metering policies vary by state, so it’s important to check the rules in your area.
Solar panels convert sunlight into electricity. The panels are made of solar cells, which generate direct current (DC) electricity when exposed to sunlight, a process known as the photovoltaic effect. Since most home appliances use alternating current (AC), inverters are used to convert DC electricity into AC. Once converted, the electricity flows into your home to power everything from lights to appliances. If your system generates more electricity than needed, the excess is either sent to the grid (through net metering) or stored in a battery if you have one.
Solar panels depend on sunlight to generate electricity. They produce less energy on cloudy days and none at night. However, solar is still a smart choice even in cloudy areas, especially with rising electricity costs and financial incentives. For instance, as of 2024, homeowners in Andhra Pradesh can still save more than INR 2,00,000 on electricity bills over the 25 to 30-year lifespan of their solar system.
Unless your solar system includes battery storage and you’re fully off the grid, you’ll still receive a bill from your utility. However, with a solar system that matches your energy use, you can significantly reduce your bill or even bring it down to zero.
Yes, it is possible to go off the grid with a solar system that includes battery storage. However, for most homeowners—especially in urban areas—staying connected to the grid is more practical. This allows you to draw power from the grid when your system isn’t producing enough and earn credits for excess power you send to the grid if net metering is available.
No, if your solar system is connected to the grid, it will shut off during a blackout to protect utility workers and emergency responders. If you want to keep your lights on during outages, you’ll need to pair your solar system with a battery.
The annual maintenance cost for solar panels is around Rs. 1000 per kilowatt (kW) installed. This includes not only routine maintenance but also insurance, asset management, security, and equipment replacement costs. Generally, solar panel systems require little maintenance throughout their 25-35 year lifespan. Solar panels are made with durable tempered glass that can withstand most weather conditions and only need occasional cleaning. If there are any technical issues, most manufacturers offer warranties ranging from 10 to 30 years.
The cost of installing solar panels is approximately Rs. 2.2 to 2.5 lakhs for a 3 kW system before any incentives or rebates. However, most homeowners can benefit from the PM Surya Ghar Muft Bijili Yojana scheme, which offers subsidies, making solar energy an even more affordable and sustainable option.