“From Sunlight to Savings: Solar Financing Options You Need to Know”

by Sun Rays Blogs

Solar energy has emerged as a ray of hope in the attempt for a more sustainable and environmentally friendly future. It is abundant and renewable, and as such has the potential to change the way we create and consume energy. However, widespread deployment of solar power systems necessitates significant upfront investments. That is when solar financing comes into play. In this blog article, we are going to go into the realm of solar financing, investigating its significance, many alternatives, and impact on our journey toward a cleaner, greener planet.

So the first question comes into mind – “Why Solar Financing”?

  • The most beneficial feature is to make it most affordable for the majority of people, so that solar power may reach the greatest number of people, which will directly or indirectly enhance green energy and reduce pollution.
  • Furthermore, solar energy will quickly reach everyone.
  • Reduced Dependence on Subsidies.

What are the various Solar Financing Options?

  1. SOLAR LOANS – Solar loans are conventional loans that are specifically tailored to finance solar installations. Borrowers can select between secured and unsecured loans, as well as fixed or variable interest rates. These loans are adaptable and can be adapted to specific financial circumstances.

Let’s See with example how “Solar Loans” will be beneficial: –

  • Assume your monthly electricity bill is Rs. 5,000/- and consumption is around 750 units. So according to the consumption, 5 Kw of solar power system will be most economical to reduce electricity bill to null.

Now to Install 5 Kw Rooftop Solar System, it will cost around Rs. 2,60,000/- (Without any Subsidy).

Now let’s assume you take a traditional personal loan (70% amount) with 10% interest, and rest 30% amount you are spending.

70% Amount = Rs. 1,82,000/-

30% Amount = Rs. 78,000/-

As per Electricity Consumption of avg Rs 5500 per month.

Total Electricity expense in one year = Rs 66,000/-

Now Solar Power’s avg generation in one month = 700 Units = Rs 5600/-

Total Savings in one year = Rs 67,000.

Now you have to just repay your loan interest instead of electricity bill for opted tenure of loan. With this your IRR (internal rate of return) will be around 40-44% and payback period of 2-3 Years.

With this option, you can easily go for solar plant installation at your premises without any hesitation, because Solar Plant Warranty is 5 years , Solar Power is proven technology, Can track savings and monitor your plant from Day-1 itself.

There are various banks which provides such loans like SBI, ICICI Bank etc.

  • Power Purchase Agreements (PPAs): PPAs are contracts in which a third party, often a solar supplier or developer, installs solar panels on a property and sells the generated electricity to the property owner at a predetermined rate. This enables property owners to get the benefits of solar energy without owning the equipment.
  • Solar Leases: Solar leases are similar to PPAs in that a third company owns and maintains the solar system on a property. The property owner pays a monthly lease fee to use the system and generate electricity.
  • Government Subsidies: Many countries provide incentives and subsidies to encourage the use of solar energy. These can include tax credits, rebates, and feed-in tariffs, which reduce the cost of solar installations.

In conclusion, solar financing is critical because it removes financial barriers, promotes sustainability, minimizes environmental consequences, improves energy security, generates economic opportunities, and contributes to a cleaner, more sustainable energy future. It enables individuals and businesses to play a proactive part in climate change mitigation and establishing a greener society.

A Close Observation Between performances of different kinds of Solar Modules Technologies.(Based on Actual Data)

by with One Comment Sun Rays Blogs

As we all know how rapidly technology is changing in today’s world, and so is solar technology. We can see how Solar Modules are evolving at a faster rate.

So , Today I would like to share a thorough analysis of Solar Power Generation from Polycrystalline , Monocrystalline and Bifacial Solar Modules. This analysis is purely based on actual Installed Solar plants at residential premises in Vadodara region.

For the comparison, I have taken the solar plant capacity in the range of 3.2 to 3.8 kw system installed on the residential premises. The following are the basic details of all three plants.

1. 3.3 Kw – (330 Wp Polycrystalline Solar Modules )

2. 3.80 Kw –(540 Wp – MonoPerc Half Cut Cell Solar Modules)

3. 3.24 Kw – (540 Wp – Bifacial Mono Perc Half Cut Cell Solar Modules.)

As is common knowledge, a solar power plant’s performance is greatly influenced by even seemingly insignificant elements like cleaning, panel angle, shadow, etc. In order to provide some context, all of the aforementioned plants were carefully cleaned and planted within a year, oriented toward the true south, with an 18 to 20 degree inclination, and entirely situated in an area free of shadows. The generation data is obtained from the online monitoring facility, which has all the systems necessary for a complete examination. The data shown here for comparison is from the month of Oct 2023.

Now lets see one by one how solar generation differs between solar modules technologies.

1. 3.3 Kw Solar Power Plant.

  • Solar Panel Capacity – 330 Wp
  • No of Solar Modules – 10 Nos
  • Solar Module Technology – Polycrystalline – 72 Cells
  • Total Solar Generation as on 09th Oct = 16 Kwh
  • Solar Generation Per Kw = 4.84 Units/ Kw
  • CUF = 20%

  • 2. 3.80 Kw Solar Power Plant.

    • Solar Panel Capacity – 540 Wp
    • No of Solar Modules – 07 Nos
    • Solar Module Technology – Monocrystalline Half Cut cell -144 Cells
    • Total Solar Generation as on 10 th Oct = 19 Kwh
    • Solar Generation per Kw = 5 Units / Kw
    • CUF = 20.8 %

  • 3. 3.24 Kw Solar Power Plant.

    • Solar Panel Capacity – 330 Wp
    • No of Solar Modules – 10 Nos
    • Solar Module Technology – Bifacial Monocrystalline Half Cut cell -144 Cells
    • Total Solar Generation as on 09th Oct = 19 Kwh
    • Solar Generation per Kw = 5.9 Units / Kw
    • CUF = 24.5 %
  • The graph above shows that power generation during the afternoon hours (Peak Hours) is very high, and it also provides constant power for a longer period of time (almost 4 hours) than monofacial panels.

My Observations:

  1. It can be seen that how capacity utilization factor (CUF) is increases substantially from Polycrystalline to Bifacial Monocrystalline Solar Modules.
  2. It is evident that the performance of Bifacial solar modules is significantly higher than that of Mono Perc half-cut cell modules, even when comparing them side by side.
  3. Upon closely examining the data, It is observed that the Bifacial Solar Modules have a significantly longer peak generation period (peak Sunshine Hours) than other solar modules. During peak hours, it is operating at 85% of its maximum capacity.
  4. The CUF of Bifacial Solar Modules is much higher than Poly and Mono Half Cut panels. Bifacial Panels and Monocrystalline Panels are giving almost 18-20% more output as compared to Polycrystalline Panels.
  5. Additionally, it has been noted that bifacial solar modules function particularly well in the presence of high-quality reflective (like-white Tiles, white colored paint) material beneath the panels.
  6. Bifacial Panels are giving high output even in diffused radiation conditions like in early morning and late evening. The production during those hours is quite high as compared to monofacial panels.
  7. Higher capacity modules, such as ones with 540 and 550 wp, have been demonstrated to be space-efficient as well as energy-efficient, even in residential premises. It will undoubtedly be a game changer for large-scale projects.
  8. The data presented above is for the month of October; however, if we predict the generation for the other months, which include summer and monsoon, the bifacial modules will always be ahead in terms of power output due to their greater efficiency in low light(monsoon) and peak hours (summer) To summarize, Bifacial Solar Modules provide superior performance when compared to monofacial panels (Poly and Mono). Without a doubt, with increasing efficiency and capacity of solar panels, bifacial panels will undoubtedly dominate the solar industry in the near future.
  9.