FAQ
Most frequent questions and answers
Q.1. WHAT ARE THE CAPEX AND OPEX / RESCO/ PPA MODELS OF SOLAR?
Ans: The CPEX, OPEX(RESCO) and PPA are two models of buying solar energy.
CAPEX: CAPEX stands for Capital Expenditure. If you go solar under the CAPEX model, you are required to pay the total cost of the solar system upfront. This allows you to own the solar system and makes you eligible to avail yourself of the accelerated depreciation benefits.
OPEX/ RESCO/ PPA: OPEX or RESCO stands for Open Expenditure. If you go solar under this model, you essentially choose to not buy the solar system but the solar energy produced by the solar system.
Q. 2 WHICH IS THE BEST MODEL OF BUYING SOLAR – CAPEX, DEFERRED PAYMENT AGREEMENT (DPA) OR POWER PURCHASE AGREEMENT (PPA)?
Ans: From the cost perspective, the CAPEX model of going solar is considered the best model of buying solar followed by DPA and PPA.
The reason behind this consideration is that since the cost of solar PV systems is paid upfront under CAPEX, the cost of solar energy is lower in CAPEX than in DPA and PPA. Under DPA,
The cost of the solar system is split into monthly instalments and the entire cost of installation is initially borne by the installer; you are therefore required to pay minimum interest in your monthly instalments.
This increases the overall cost of the solar system. Under PPA, the Solar PV installation cost is borne by the installer and you only pay for the per unit cost of electricity that you consume therefore the Levelized cost of solar energy is higher in PPA.
Q. 3 WHAT IS NET METERING?
Ans: Net metering is a billing mechanism which allows you to sell excess (unconsumed) solar power generated by your solar system to the DISCOM. For example, if on a given day you generated 20 units from your solar system and consumed only 18 units, the remaining 2 units will be sold to the DISCOM at a set tariff.
Q. 4. HOW MANY AREAS REQUIRE TO INSTALL A 1KWP POWER PLANT.
Ans: 10 Sq feet Area required for Installation of 1kwp Solar Power Plant.
Q. 5 HOW MUCH TIME DOES IT TAKE TO INSTALL A SOLAR PV SYSTEM?
Ans: It takes about 2-4 weeks to install a smaller system and about 4-8 weeks for larger systems. However, the actual construction time at the site is much lower since almost half of the time is spent on off-site activities such as design, engineering, and procurement.COM. For example, if on a given day you generated 20 units from your solar system and consumed only 18 units, the remaining 2 units will be sold to the DISCOM at a set tariff.
Q. 6 WHAT PERMITS & APPROVALS DO I NEED TO INSTALL A SOLAR PV SYSTEM?
Ans: No permits would be needed, if you are going to install an off-grid solar PV system or grid-connected system for captive (self) consumption. For the net metering and gross metering system, certain permits and approvals are required.
For Net & Gross Metering:
- Approval from DISCOM for grid connectivity.
- CEIG(Chief electrical inspector to the government of state) approval for the capacity of more than 10 KW(This capacity may vary from state to state).
Q. 7 WHAT WOULD BE THE ANNUAL MAINTENANCE COST FOR A SOLAR PV SYSTEM?
Ans: The annual maintenance and recurring costs are almost negligible since there are no moving parts and the input fuel (sunlight) is free. For optimum performance, the system only requires cleaning of modules and basic preventive and corrective maintenance.
Q . 8 WHAT IS A SOLAR PV SYSTEM AND HOW DOES IT WORK?
Ans: The annual maintenance and recurring costs are almost negligible since there are no moving parts and the input fuel (sunlight) is free. For optimum performance, the system only requires cleaning of modules and basic preventive and corrective maintenance.
Q - 9 DOES A SOLAR PV SYSTEM PRODUCE THE SAME ENERGY OUTPUT THROUGHOUT THE DAY?
Ans: Since Solar PV works on the basis of the intensity of sunlight it gets, your solar system typically wakes up at around 6 am in the morning and goes to sleep at about 6 or 7 pm in the evening.
Q. 10 WHAT IS THE LIFE AND RELIABILITY OF A SOLAR PV SYSTEM?
Ans: Solar PV is a highly proven and reliable technology and has been in use since the 1950s. A PV system that is designed, installed, and maintained well will operate for 25 years or even more than 25 years. The Inverters, which are an integral part of a Solar PV system, may need a replacement once in the 25 years lifetime of the system. Moreover, since there are no moving parts (unless you are using tracking devices to move modules tilt with the movement of the Sun), there is practically negligible wear and tear.
Q . 11 WHAT IS THE RETURN ON INVESTMENT (ROI) AND PAYBACK PERIOD OF SOLAR PV?
Ans: The payback period for your solar PV system stands for the amount of time it takes for your initial investment in the solar system to be recovered from the savings it yields.
The Return on Investment (ROI) refers to the effective returns that your investment would generate throughout the life of the solar system.
The higher your monthly savings on power bills from solar is, the quicker your initial investment would be repaid and the higher your ROI would be. Typically, commercial & industrial consumers should expect payback in 3 – 5 years and residential consumers should expect payback in 5- 7 years. Once the initial cost of your system is paid back, the energy generated by it for the next 18 – 22 years is almost free of cost.
Q. 12 HOW DO I KNOW THAT MY SYSTEM IS WORKING EFFICIENTLY?
Ans: To keep a regular check on your system performance, it is recommended that you install a data logger (data monitoring device) along with your Solar PV system.
This device will allow you to compare the actual with the estimated performance on a daily, monthly and annual basis.
Q. 13 WHAT IS A DATA LOGGER?
Ans: This is a device that helps you as well as your installer/ O&M contractor to monitor your Solar PV system’s performance on a real-time basis on your mobile phone or laptop. The data logger indicates parameters like generation on a daily, monthly & yearly basis, plant performance ratio, etc. and can send alerts in case of any faults or low generation.
Q. 14 WHICH SOLAR PV SYSTEM IS SUITABLE FOR ME?
Ans: Depending on your energy consumption pattern (consumption during the day vs night), power outage pattern, availability of policies like Net Metering and access to grid power (for rural areas), you can choose between an on-grid and an off-grid solar PV system. On-grid systems are the most commonly used systems and are the least expensive and require very little maintenance. Off-grid systems use batteries which cost significantly more and need high maintenance.
Q. 15 HOW MUCH WOULD A 1 KW OFF-GRID SOLAR SYSTEM COST IN INDIA?
Ans: Generally A 1 KW off-grid solar panel costs approx Rs. 60,000 to Rs. 1,05,000 in India & this price could vary.
Q. 16 HOW MUCH ELECTRICITY DOES A 1 KW OFF-GRID SOLAR PANEL PRODUCE?
Ans: Depending on your energy consumption pattern (consumption during the day vs night), power outage pattern, availability of policies like Net Metering and access to grid power (for rural areas), you can choose between an on-grid and an off-grid solar PV system. On-grid systems are the most commonly used systems and are the least expensive and require very little maintenance. Off-grid systems use batteries which cost significantly more and need high maintenance.
Q. 17 HOW TO CALCULATE SOLAR PANEL REQUIREMENT?
Ans: If you already have a single inverter battery (12V), then you should install 12V solar panels, and if you have a double inverter battery (24V), then you should install 24V solar panels. If you want to install solar panels for big homes, shops, schools, hospitals, petrol pumps and other applications, site surveys must be required.
Q. 18 HOW CAN I GET A SUBSIDY ON SOLAR PANELS?
Ans: PV, short for Photovoltaic, derives its name from the process of converting light (‘photo’) directly into electricity (‘voltaic’). Simply put, a Solar PV system is a power station that generates electricity from sunlight.
The main components of a Solar PV system are Solar Panels or Modules and Solar inverters.
Q. 19 IF I INSTALL A SOLAR PV SYSTEM AT MY PLACE, HOW MUCH WORKING LIFE SPAN CAN I EXPECT FROM IT?
Ans: Solar PV System is a static system i.e. it does not consist of any rotating or moving parts. So it is not prone to any kind of damage caused due to the friction between the moving parts or any other mechanical phenomenon that causes damage to a generator or a motor. A Solar PV System can easily last from 20 to 25 years and can even work for a longer period if maintained properly.
Q. 20 WHAT KIND OF MAINTENANCE SCHEDULE DO I HAVE TO FOLLOW TO KEEP THE SOLAR PV SYSTEM IN A HEALTHY CONDITION?
Ans: A Solar PV System requires very minimal maintenance from the owner and is very easy to maintain. Regular cleaning of the Solar Arrays should be ensured so that the system works at its full efficiency and occasional checks should be done to ensure that there is no shading over the Solar Array because of any obstruction. The components of the system except the Solar Arrays have to be kept in a shaded area. These small steps can result in a healthier and longer life span of your Solar PV System.