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					</table>Various sectors, including agriculture, have realized the benefits of cost savings from switching to solar energy. For a hydroponics farmer, recovering the cost of the solar system in three years, saving on electricity costs, which was more than half of the monthly expenses, and contributing to the environment have been the major advantages of going solar.
For Harbar S. Dhindsa, the co-founder and Chief Marketing Manager of <a href="https://farmcult.com/" target="_blank" rel="noopener">Farmcult</a>, solarizing his 2.5-acre hydroponics farm was “utilizing nature’s potential.”
Dhindsa has saved over ₹25,000 (~$291) per month in electricity bills over the past four years. “Electricity accounted for over 60% of our monthly expenses. The decision to move to solar power helped us put those funds towards innovation,” said Dhindsa.
Located in Punjab’s Rupnagar district, the 15 kW system powers all of the farm’s operations. “Besides growing vegetables, we also use the farm for research and development purposes. We spent approximately ₹750,000 (~$8,747) on installing the system. While we did not receive any subsidy, we have recovered the installation cost in the past three years,” he says.
A significant amount of electricity is required to power pumps, lighting, and other equipment in a hydroponics farm. On average, 30-32 W per square foot of grow space would be required to power a hydroponics farm.
Hydroponics is a soil-less farming method that uses water-rich nutrient solutions to grow plants. It requires a controlled environment to optimize plant growth, including precise control over temperature, humidity, light intensity, and nutrient concentrations.
Asked about the motivation to switch to solar energy, Dhindsa said, “There were two major reasons for making the switch. Firstly, we knew that the initial investment would eventually pay itself back in the form of savings on electricity bills. Secondly, our idea is to promote sustainable living and healthy eating; switching to clean energy was a natural choice.”
Dhindsa, along with his co-founder Pritpal Singh, also helps other farmers switch to hydroponics and solar energy.
The hydroponics farm cultivates a variety of leafy vegetables, such as baby spinach, lettuce, basil, microgreens, swiss chard, and other leafy greens. The startup also provides consultancy services, workshops, and educational tours for other farmers.
“When we consult with farmers, we try to convince them to install solar systems on their farms as well. With proper direction, many of our pipeline consultancy projects are solar hydroponics farms,” Dhindsa said.
While the concept is still new, hydroponics farms across the country are slowly realizing the benefits of transitioning to solar energy.
Solar power is also being widely adopted in India’s agricultural sector, with government programs like PM KUSUM facilitating the installation of small-scale solar projects, the deployment of standalone solar-powered pumps, and the solarization of existing grid-connected pumps. The KUSUM program <a href="https://www.mercomindia.com/maharashtra-and-rajasthan-lead-solar-powered-agriculture-under-kusum-program" target="_blank" rel="noopener">focuses</a> on enhancing energy access, increasing farmers’ incomes, and curbing environmental pollution using solar energy.
Researchers from Cornell University <a href="https://www.mercomindia.com/researchers-find-crops-improves-panel-efficiency" target="_blank" rel="noopener">found</a> that growing commercial crops on solar farms is a potentially efficient use of agricultural land, which can increase both commercial food production and improve solar panel performance and longevity.

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					</table>In the river-locked villages of Assam, accessible only by boats, people faced a lack of primary health services for generations. To access basic healthcare, villagers would travel for hours by ferry to reach the nearest hospital, often resulting in delayed care.
While reaching the remote villages by boats was possible, storing medicines and vaccines and electricity for the crew quarters, kitchen, and toilets was a problem. That’s when the Centre for North East Studies and Policy Research (<a href="https://c-nes.org/" target="_blank" rel="noopener">C-NES</a>) hit upon the idea of using solar panels.
The solar panels power the OPD, laboratory, and refrigerator, as well as the living quarters, toilets, and kitchen.
“The remote villages are located on islands on the magnificent Brahmaputra River. To take medicine to those areas, we had to innovate. They don’t have any primary health centers; we are their only healthcare providers,” says Ashok Rao, program manager, C-NES.
C-NES is a not-for-profit organization started by Sanjoy Hazarika, a journalist and filmmaker who noticed a need for a regular healthcare system in these islands. In collaboration with the <a href="https://nhm.gov.in/index1.php?lang=1&amp;level=1&amp;lid=49&amp;sublinkid=969" target="_blank" rel="noopener">National Rural Health Mission</a>, he started boat clinics, providing healthcare to the villagers.
“These boats are run on a diesel engine, but all the medical equipment and living quarters are powered by solar energy,”  according to  Riturekha Baruah Phukan, District Programme Officer of Boat Clinic, Majuli.
The capacity of solar power systems on the boat clinics ranges between 3 kW and 5 kW, depending on the boat clinic’s size. The cost of these solar systems is in the ₹200,000 (~$2,308)- ₹250,000 (~$2,885) range.
“Most islands do not have proper electricity for us to power our equipment, such as refrigerators to store vaccines and medicines,” Phukan said.
The clinics were earlier powered using diesel-based generators before switching to solar. The organization collaborated with the <a href="https://selcofoundation.org/" target="_blank" rel="noopener">SELCO Foundation</a> to solarize the clinics.
Currently, the program has 16 boats, of which six clinics on the boats have been solarized.
The clinics and residential quarters are powered by solar energy due to the lack of grid access in these remote areas. However, the boats need to travel long distances, which solar-electric propulsion cannot currently support. As a result, the boats continue to rely on diesel power.
The clinics provide primary healthcare to approximately 250,000 people in 14 island districts.
“We visit the island 18 days a month in batches of three to four days. We track pregnancies and provide support to mothers and their childcare. We also have basic vaccinations and cater to infections, joint pains, and skin-related diseases,” says Rao.
Starting in 2008, the program successfully provided healthcare to the people on the island.
For many years, the river hindered the patients from traveling to clinics, but C-NES innovated using the sun and water to take medical care to the islanders’ doorstep.
“Roads do not reach the islands, and helicopters would be expensive and unviable. Through these solar-powered clinics on boats, we were able to use the water and the sun to our advantage and reach the remotest areas of the state,” says Rao.
There have been many instances of the use of solar power boats to ferry passengers and tourists across water bodies. In 2022, floating solution provider Acquafront Infrastructure <a href="https://www.mercomindia.com/iit-kanpur-backed-company-floating-solar-power-boats" target="_blank" rel="noopener">developed</a> ‘i-Ghat,’ a futuristic project to power boats with solar energy instead of diesel at Kada Ghat, Kaushambi, in Uttar Pradesh.
The Kerala government has also been <a href="https://www.mercomindia.com/kerala-floats-tender-procurement-solar-boats" target="_blank" rel="noopener">using</a> solar boats to ferry people. The Telangana Tourism Development Corporation <a href="https://www.mercomindia.com/telangana-to-deploy-solar-boats" target="_blank" rel="noopener">floated</a> tenders to procure two units each of 25, 80, and 150-seater solar boats for carrying passengers across lakes, rivers, and reservoirs in the state.

Solar-Powered Clinics on Boats a Boon for People in Remote Assam Villages

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					</table>In the fourth article of our series covering all you need to know about rooftop solar systems, we focus on ways to finance your residential rooftop system. This write-up will help you understand the different ways to finance your rooftop installations through banks or financial institutions, the processes and the documentation involved, rates of interest applicable, and the collateral.
Check out the <a href="https://mercomindia.com/want-install-rooftop-solar-system-home/" target="_blank" rel="noopener noreferrer">first</a> and <a href="https://mercomindia.com/money-rooftop-solar-systems-save/" target="_blank" rel="noopener noreferrer">second</a> of the series.
The System Cost
The <a href="https://mercomindia.com/cost-install-1-kw-solar-residential-rooftop/" target="_blank" rel="noopener noreferrer">third</a> article in the series had shed light on the cost of the rooftop solar system, which depends on the price of the modules and inverters used.
The cost of a 1 kW rooftop solar system ranges from ₹45,000 (~$612) to ₹85,000 (~$1,156), excluding the batteries&#8217; cost. A 5 kW system could cost in the range of ₹225,000 (~$3,061) to ₹425,000 (~$5,782), excluding GST.
Financing Through Banks and NBFCs
The first line of financing is banks, which offer loans under top-up plans such as home loans and renovation loans. For this scenario, we are considering that the capital is invested by the consumers who own the rooftop solar systems on their homes.
Some banks specifically finance rooftop installations, albeit rates of interest vary significantly from one bank to another, starting anywhere from 10% to 18%, depending on the borrower&#8217;s source of income and risk profile. The maximum tenure for the loan again varies from bank to bank ranging from 1-5 years up to 20 years.
Even the securitization of the loan varies from one lender to another. Canara Bank will mortgage the residential property and hypothecate the solar equipment. Meanwhile, YES Bank, which has a tie-up with Luminous, can issue an unsecured loan.
<a href="https://mercomindia.com/wp-content/uploads/2020/12/rooftop-solar-loans-by-bank_ver.jpg"><img decoding="async" class="aligncenter size-full wp-image-23015" src="https://mercomindia.com/wp-content/uploads/2020/12/rooftop-solar-loans-by-bank_ver.jpg" alt="rooftop solar loans by bank_ver" width="100%" height="100%" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/rooftop-solar-loans-by-bank_ver.jpg 1685w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/rooftop-solar-loans-by-bank_ver-300x244.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/rooftop-solar-loans-by-bank_ver-768x624.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/rooftop-solar-loans-by-bank_ver-1536x1249.jpg 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/rooftop-solar-loans-by-bank_ver-650x528.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/rooftop-solar-loans-by-bank_ver-624x507.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/rooftop-solar-loans-by-bank_ver-600x488.jpg 600w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/rooftop-solar-loans-by-bank_ver-1024x833.jpg 1024w" sizes="(max-width: 1685px) 100vw, 1685px" /></a>
Mercom spoke to Priyanka Mohan, Director of Kor Energy, who said, &#8220;There are several banks and non-banking financial institutions (NBFCs) where we line up our clients. However, we prefer that our customer&#8217;s existing banks take up the funding since they already have a rapport. We then send the detailed project report to the bank and ask our client to source the loan from them. If there are issues with the banks, we can always approach NBFCs and other institutions that offer solar funding.&#8221;
NBFCs finance solar installations on residential properties. However, unlike banks, the interest rates are quite steep, ranging from 13% to 24%, though most don&#8217;t demand collateral.
<a href="https://mercomindia.com/wp-content/uploads/2020/12/Rooftop-by-NBFC-banking-chart_ver.jpg"><img decoding="async" class="aligncenter size-full wp-image-23014" src="https://mercomindia.com/wp-content/uploads/2020/12/Rooftop-by-NBFC-banking-chart_ver.jpg" alt="Rooftop by NBFC banking chart_ver" width="100%" height="100%" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/Rooftop-by-NBFC-banking-chart_ver.jpg 1849w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/Rooftop-by-NBFC-banking-chart_ver-300x271.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/Rooftop-by-NBFC-banking-chart_ver-768x693.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/Rooftop-by-NBFC-banking-chart_ver-1536x1386.jpg 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/Rooftop-by-NBFC-banking-chart_ver-650x586.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/Rooftop-by-NBFC-banking-chart_ver-624x563.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/Rooftop-by-NBFC-banking-chart_ver-600x541.jpg 600w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2020/12/Rooftop-by-NBFC-banking-chart_ver-1024x924.jpg 1024w" sizes="(max-width: 1849px) 100vw, 1849px" /></a>
Retailer Option
Meanwhile, companies like Luminous, which has tie-ups with YES Bank and IDBI, also finance their end customers through their dealer networks.
The national sales head, solar, and assistant vice president at Luminous India, Sanjay KVS, spoke to Mercom about this, &#8220;Around 98% of our business comes from our distribution network, and we empower our retailer so that they can get us good business. Typically, our dealers are battery and inverter shops. Luminous makes a deal with the larger financial institutions and shares the offers with them. The commercial dues and charges are covered by Luminous so that the customer and the retailer do not have to pay them.&#8221;
Customers can also pay Equated Monthly Installment (EMI) through credit cards as they do with other consumer durables. These options are only meant for the components, where the customer comes to the counter, buys the battery/inverter/panel, swipes his credit card, and then pays the EMI later. Sanjay added that Luminous has an agreement with Pine Labs &#8211; an Indian merchant platform that provides financing and last-mile retail transaction technology.
As for customers who want full-fledged installations, Sanjay said, &#8220;We tie-up with financial institutions such as IDBI and YES Bank, we don&#8217;t offer direct financing. The institutions will assess the creditworthiness, the project size, and, based on that, the loan is approved and disbursed.&#8221;
Installers Vouch for Alternative Means of Funding
When Mercom spoke with various residential rooftop installers, their responses showed clear disdain for bank finance. According to some installers, it makes more sense to opt for a consumer durable loan or a personal loan instead of going for a home loan top-up or NBFC financing.
Sushil Sarawagi, Director of Kor Energy, said, &#8220;There are certain specialized products which the banks have floated for residential rooftop solar. The RBI has instructed banks and NBFCs to include rooftop installations under home loans. But the issue is that under home loans or home improvement loans, the customer has to mortgage their property for ₹500,000-₹1 million (~$6,746-~$13,493). This becomes a bone of contention for the customers.&#8221;
He further added, &#8220;Although we refer our clients to banks, they are not keen on bank financing as they find the whole documentation and mortgage process cumbersome. Our customers are seeking easy finance options similar to consumer durable loans. Through such options, they secure finance for a year or so without significant documentation or any mortgage.&#8221;
Arshi Chadha, COO of Sunson Energy, raised similar sentiments and stated that it&#8217;s more feasible to finance residential properties in a cluster (such as housing societies) instead of funding one residential property. It ensures that payments keep flowing.
&#8220;We are experimenting with a new financing model on a pilot basis where we are approaching clients whom we know will stay with us in the long-term, and we take 50% of the payment from them upfront during the installation phase. The remaining 50% would be under the EMI option,&#8221; Arshi told Mercom.
Arshi added that although Sunson works on securing loans, the deals are quite expensive. &#8220;The rates are high as 16% whether our clients approach banks or NBFCs, and it makes more sense to go for personal loans. I have gone to every bank&#8217;s head office, from Bank of Baroda to SBI. Banks like SBI will only finance rooftop installations as a top-up loan. One of my clients owns a 50-year-old home worth ₹100 million (~$1.3 million); why would they give it as collateral for a ₹1million (~$13,493) loan. The ideal way to finance rooftop installations is through loans with zero collateral.&#8221;
In summation, there are plenty of choices for the end consumer to finance their rooftop solar installation &#8211; from conventional mortgage loans to &#8216;no security&#8217; personal loans and even over the counter credit card payment options. It boils down to being aware of all the available options to make the right financing choice.
Contact us by filling out this <a href="https://mercomindia.com/lead-generation-form/" target="_blank" rel="noopener noreferrer">form</a> if you are planning to install a rooftop solar system for your home.

Residential Rooftop Solar Loans: All You Need to Know

Rooftop solar systems empower consumers with two distinct benefits – savings on power costs and contribution to the environment by going green. The two most popular models are- OPEX and CAPEX when it comes to the investment options in rooftop solar systems.
We have elaborated on what these models entail and why each of them makes a convincing case to invest in rooftop solar.
OPEX Model: 
The OPEX or the operating expenses model is a system where the developer owns the solar project, and the consumer only has to pay for the energy generated. This model is also called the Renewable Energy Service Company (RESCO) model.
Rooftops installed under the OPEX or RESCO model require the consumers to enter into a long-term, legally binding agreement for the roof on which the solar system is installed. They must also sign a long-term power purchase agreement (PPA) for the supply of power.
PPAs can be signed for up to 25 years, and the consumer is expected to pay a pre-determined tariff for this duration. Any excess electricity generated may be injected into the grid.
In this model, all capital expenses and risks are entirely borne by the developer. The developer will be the system&#8217;s owner for its entire lifetime and must provide operation and maintenance services throughout.
According to rooftop installers, consumers could have to pay a tariff ranging between ₹3.8 (~$0.051)/kWh and ₹5 (~$0.068)/kWh for the PPA duration. The tariff varies depending on the state and the policies prevalent at the time.
A major benefit of the OPEX model is going solar without any large upfront investments. However, not all installers may be willing to undertake smaller projects which individual households or smaller companies may be interested in. OPEX project installers tend to prefer medium to large-sized projects under this model.
&#8220;Not many companies offer rooftop installations under the OPEX model for around 5 kW in size. They need a minimum capacity of around 500 kW or more to make it viable. Hence, the primary consumer base for the developers is the commercial and industrial (C&amp;I) sector,&#8221; said Shobit Rai, Director at <a href="http://www.prozealinfra.com/" target="_blank" rel="noopener noreferrer">Prozeal Infra Engineering</a>, a solar engineering, procurement, and construction (EPC) company and rooftop developer.
Once the PPA expires, the ownership of the rooftop project will be transferred to the customer. However, companies also include a provision for them to buy back the project before the PPA expires. This allows the consumer to transfer the project back to the developer after five years at a pre-determined rate.
Consumers who do not have the resources to operate and maintain the projects or are not ready to make a long-term capital investment in a technology they are not sure about can opt for this model. They can choose to exercise the buy-back provision on their PPAs after giving the project a trial for five years.
Some other drawbacks of the OPEX route are the lack of any tax depreciation benefits, Goods and Services Tax (GST) benefits, and a higher levelized cost of energy (LCOE), explained Raghav Mittal, Chief Executive officer at <a href="https://www.sunalphaenergy.com/" target="_blank" rel="noopener noreferrer">SunAlpha Energy</a>, a Jaipur-based solar EPC company and rooftop installer.
The OPEX model is ideal for smaller companies with expansion plans looking to meet their green initiatives. They can avail benefits of around 30-40% on their electricity bills, depending on the tariffs set by their respective state distribution companies (DISCOMs), said Prozeal&#8217;s Rai.
The CAPEX route is the better option for all other consumers, especially considering states are currently providing significant subsidies on residential rooftop solar installations.
CAPEX Model: 
The CAPEX or the capital expenditure model, on the other hand, is a self-funding model where consumers have to bear all the capital expenses incurred in installing a rooftop system upfront. These expenses include funds used to set up, maintain, and operate the project. They also include the cost of the equipment, labor, upgrades, and other material costs.
Consumers taking the CAPEX route can approach vendors or installers to set up the rooftop solar system to reduce their power costs. Any residual power or excess generation can be injected into the grid.
According to rooftop installers that Mercom <a href="https://mercomindia.com/cost-install-1-kw-solar-residential-rooftop/" target="_blank" rel="noopener noreferrer">spoke</a> to, a 1 kW system under the CAPEX model will cost anywhere between ₹45,000 (~$612) to ₹85,000 (~$1,156). Similarly, a 5-kW solar rooftop system is expected to cost anywhere between ₹225,000 (~$3,061) to ₹425,000 (~$5,782) for CAPEX consumers. The values are inclusive of taxes and subsidies.
&#8220;The CAPEX model is beneficial to companies or consumers who have excess cash in their books and are interested in availing GST and depreciation benefits. The payback period for these projects is usually not more than four years,&#8221; said Rai.
On top of these, the CAPEX model also allows consumers to enjoy complete ownership of the product. They have control over the type of technology being used and, more importantly, the quality of the components that go into their projects. Aside from GST input and accelerated depreciation benefits, consumers also enjoy a lower Levelized Cost of Energy (LCOE) in the CAPEX route.
&#8220;The project&#8217;s safety and quality are under the consumer&#8217;s control under this model, whereas, under the OPEX model, it is left to a third party. They might compromise on these aspects to save costs on their end. This is not the case under the CAPEX model,&#8221; said Sachin Agrawal, Deputy General Manager &#8211; Solar at <a href="https://www.godrejandboyce.com/" target="_blank" rel="noopener noreferrer">Godrej &amp; Boyce</a>, a rooftop solar EPC company.
One possible downside to this model is that all the risks involved in owning and operating the rooftop system would have to be borne by the project owner. This includes operations, management, and maintenance. However, it does not take long for consumers to recover their investments under this model.
It takes just about four years for consumers to see returns on their capital investments. Consumers and companies with sufficient cash reserves should ideally go the CAPEX route as they can claim depreciation and GST benefits, which come up to about 40%, said Rai.
This also makes more sense for residential consumers, especially when coupled with state subsidies. In March, Uttar Pradesh <a href="https://mercomindia.com/up-announces-subsidy-residential-rooftop-solar-systems/" target="_blank" rel="noopener noreferrer">announced</a> subsidies ranging from ₹15,000 (~$208)/kW to ₹30,000 (~$416)/kW for residential rooftop projects between 1kW and 3 kW coupled with a 40% central subsidy. Punjab also <a href="https://mercomindia.com/rooftop-solar-cost-residential-consumers-punjab/" target="_blank" rel="noopener noreferrer">announced</a> a subsidy model under which a 1 kW rooftop will only cost around ₹22,000 (~$298).
Which One is the Best? 
So, which option makes more sense for consumers looking to go green? Mercom asked rooftop developers and installers what they have seen in the market so far.
&#8220;The CAPEX model is generally preferred by small and medium-scale enterprises and retail players as it is relatively cheaper than the OPEX model. Though it entails an upfront cost, it also enables consumers to claim tax benefits under the depreciation model of an asset. In contrast, the consumers for the OPEX model are generally multinational corporations and large-scale enterprises,&#8221; said Rajan Trehan, Senior Assistant Vice President &#8211; Corporate Strategy and Finance at <a href="https://www.itsmysun.com/" target="_blank" rel="noopener noreferrer">MYSUN</a>, a rooftop solar development company.
The larger upfront investments incurred under the CAPEX model are offset to a large extent as costs can be recuperated reasonably fast – within four or five years – and consumers have complete control over the quality of components used. Paired with state and central subsidies for the residential sector, this would be ideal for consumers under this segment and even larger corporations.
&#8220;If you have unutilized cash reserves, you should go the CAPEX route as the cost recovery period is pretty short. If you are not confident about the operational risks, technology, or warranty, among other things, then you should go for an OPEX installation and still enjoy benefits over around 30-40% on your power bills,&#8221; Rai concluded.
In June, Mercom India Research&#8217;s <a href="https://mercomindia.com/product/q3-2020-india-solar-market-update/" target="_blank" rel="noopener noreferrer">Q3 2020 India Solar Market Update</a> showed that Gujarat, Rajasthan, Maharashtra, Karnataka, and Uttar Pradesh were the top five states in terms of rooftop installations.

CAPEX or OPEX – Ways to Finance Rooftop Solar Systems and Realize Huge Savings

In the third article of our series covering all you need to know about rooftop solar systems, we will focus on the installation process. This quick guide will help you understand the process, the components involved, the approximate money and the time required for setting up a rooftop solar system.
Check out the <a href="https://mercomindia.com/want-install-rooftop-solar-system-home/" target="_blank" rel="noopener noreferrer">first</a> and <a href="https://mercomindia.com/money-rooftop-solar-systems-save/" target="_blank" rel="noopener noreferrer">second</a> articles of the series.
This article provides a snapshot of the entire series of events and a rough estimate of the system&#8217;s capacity required for a household.
Components of a rooftop solar system
The average capacity of rooftop systems installed at home ranges from 1 kW to 10 kW depending on the availability of ideal roof space and is the permissible capacity allowed by the distribution company (DISCOM). Most DISCOMs only allow 80% of the sanctioned load. That is, to install a 5 kW system, you need to have a sanctioned load of not less than 6 kW. Your electricity bills have the details of the sanctioned load mentioned in them.
Speaking to Mercom India, Prateek Agarwal, co-founder and director of <a href="https://www.solar91.com/" target="_blank" rel="noopener noreferrer">Solar91 Clean Private Limited</a>, said, &#8220;The various components that go into the making of a rooftop system are modules, string inverters, module mounting structure, cables, conduits, earthing electrodes, lightning arrestor, earthing strips, and civil foundations.&#8221;
The cost of the rooftop solar systems largely depends on the price of modules and inverters used. An advanced technology module will cost more but is also of premium quality, lasts longer, generates more energy in constrained roof spaces and requires low maintenance. When it comes to inverters, micro-inverters cost more than string inverters but have several advantages, particularly in partially shaded conditions. We will discuss the technology differentiators in another series.
The installation of a rooftop system mainly involves getting a no-objection certificate from the DISCOMs, setting up the structure and modules, cabling, inverter installation, and finally getting a net metering or gross metering connection. The whole process could take two to four months to be completed, and your installer handles most of it.
The average cost of a system 
The cost of a 1 kW rooftop solar system ranges from ₹45,000 (~$612) to ₹85,000 (~$1,156), excluding the cost of batteries. We are assuming the rooftop solar systems are connected to the grid, and the power is not stored in batteries.
A 5 kW system could cost in the range of ₹225,000 (~$3,061) to ₹425,000 (~$5,782), excluding GST. There could be other costs involved, including constructing an elevated structure or strengthening the roofs where necessary. The system&#8217;s price varies on the brand the consumer chooses. It also depends on the quality of solar panels, inverters, mounting structures, and other equipment used for the system. So, if the consumer wants to go for a cost-effective model, it would cost them around ₹225,000 (~$3,061) &#8211; ₹325,000 (~$4,396).
These systems are assets that last for more than 20 years, and the quality of the components used plays a significant role in the performance and maintenance of the system. A 5 kW system produces nearly 20 kWh of electricity on a good day and 600 kWh a month, earning ₹3,300 ($45) per month if we consider a tariff of ₹5.50 ($0.075)/kWh.  On average a rooftop solar system’s cost can be recovered in 5-6 years.
Speaking to Mercom, Shaili Yadav, Business Head of <a href="https://homescape.solar/" target="_blank" rel="noopener noreferrer">HomeScape Solar</a> (a residential arm of Amplus Solar), said, &#8220;The total expenditure involved in installing a solar system includes system design and equipment cost, which accounts for 75% of the investment, whereas installation and commissioning accounts for 10% of the total cost. Regulatory approvals will cost you 5% of the total investment, while annual maintenance will account for 10%.&#8221;
This Diwali, you could gift yourself a rooftop solar system and contribute to a clean and green environment.
Contact us by filling out this <a href="https://mercomindia.com/lead-generation-form/" target="_blank" rel="noopener noreferrer">form</a> if you are planning to install a rooftop solar system for your home.

Cost to Install a 1 kW Solar System on a Residential Rooftop Can Range from ₹45,000 to ₹85,000

This is the second article in a series that explains all you need to know before installing a solar system on your rooftop. The <a href="https://mercomindia.com/want-install-rooftop-solar-system-home/" target="_blank" rel="noopener noreferrer">first article</a> focused on the specifics of rooftop design, quality, size, and system life. This article will get into the financial benefits of installing a solar system.
Mercom spoke to several rooftop solar installers to understand an average residential rooftop solar system&#8217;s financial implications. This article will get into the financial benefits of installing a solar system.
Savings on monthly electricity bills
&#8220;Homeowners can save approximately 600 units of electricity monthly that can reduce their electricity bills by around ₹5,500 (~$75.2) with the installation of a 5 kW rooftop solar system in their homes,” said Arshi Chadha, Chief Operating Officer of Sunson Energy.
Here is the breakdown of numbers for a 5 kW rooftop solar system. Assuming that a 1 kW system would generate 4 units (kWh) per day on an average, a 5 kW system would generate about 20 kWh/day or 600 units per month. Considering a tariff per unit of ₹5.50 (~$0.0739)/kWh, the solar system will be able to generate power amounting to approximately ₹3,300 (~$44.37)/month. This amount can be more if the tariff in that region is more than ₹5.50 (~$0.0739)/kWh.
If your electricity bills are generally around ₹3,000(~$40.33)/month, your power bills will be zero by installing a 5 kW rooftop solar system. And if your monthly bill is about ₹7,000 (~$94.12)/month, then with the system installed, your bills will be reduced to just ₹4,000 (~$53.78)/month. And if your monthly bill is around ₹1,500/month, after the installation of the rooftop solar system with net metering, instead of paying ₹1,500 (~$20.16)/month, you could be earning ₹1,800 (~$24.20)/month from the distribution licensee (DISCOM). Net metering is a form of billing that enables consumers to be compensated for the surplus power generated at a price determined by the state. Net Metering is vital if you have to sell excess electricity to the grid and get paid for it in return. <a href="https://mercomindia.com/net-metering-drag-rooftop-solar-growth/" target="_blank" rel="noopener noreferrer">A net metering</a> connection is not easy to get, and availability depends on where you live.
<a href="https://mercomindia.com/wp-content/uploads/2020/10/Financial-Benefits-From-a-5kW-Rooftop-Project.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-22259" src="https://mercomindia.com/wp-content/uploads/2020/10/Financial-Benefits-From-a-5kW-Rooftop-Project.png" alt="Financial Benefits From a 5kW Rooftop Project" width="533" height="440" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/10/Financial-Benefits-From-a-5kW-Rooftop-Project.png 533w, https://cms.mercomindia.com/wp-content/uploads/2020/10/Financial-Benefits-From-a-5kW-Rooftop-Project-300x248.png 300w" sizes="(max-width: 533px) 100vw, 533px" /></a>
The numbers in the table above will vary based on factors like units of electricity generated every month by the rooftop solar system. A good quality rooftop solar system maintained well can produce more than the average units mentioned above.
The savings will depend on the units generated and the electricity tariff in the city. An average tariff of ₹5.50 (~$0.0739)/kWh has been considered to calculate scenarios, but this could be more or less based on the location.
The other critical element is to have a net metering facility to supply electricity to the grid and get paid for it. The net metering topic will be addressed in our future series.
Breakeven period 
According to Jayant Mhetar, co-founder and chief executive officer of <a href="https://ztric.com/" target="_blank" rel="noopener noreferrer">Ztric India</a>, the breakeven period for a 5 kW solar system installed with a government subsidy are between two and a half to three years. However, the breakeven period for a 5 kW rooftop solar system is approximately four to five years without any government incentives.
Breakeven is a point at which the system&#8217;s cost is fully made up for by the savings or income you have earned from it. This article discussed the savings or the income you can earn from your rooftop solar system. In the next article, we will discuss the investment needed to set up a rooftop system.
How does it help the environment?
A rooftop solar system can help reduce the toxic carbon dioxide from the air. Chada explained that a 5 kW solar system could reduce nearly 7.3 tons of carbon dioxide emissions annually. She added, “A rooftop solar system on top of a household can save two trees every week while generating clean energy to meet the needs of homeowners.”
“The majority of energy generation in India happens through coal-based facilities. Every time a homeowner generates solar power through a rooftop solar system, it reduces dependence on coal, eventually decreasing carbon dioxide emissions to achieve climate change targets,” said Mhetar.
Climate change is affecting all individuals on a global scale, and its effects have been especially severe in India. “Climate change is not just the government&#8217;s responsibility. Everybody must contribute to the cause,” said Mhetar.
Mhetar added, “We are part of the reason for the negative impact of climate change because we are using vehicles and air conditioners, and are heavy electricity consumers.” He further explained that the government&#8217;s steps towards having a better future would be more impactful if every individual starts to contribute by offsetting some of their consumption with renewable energy like installing a solar system on their roof.
Chada also echoed the same thoughts. She said, “Shifting from coal-based energy to solar energy; homeowners will contribute towards a better environment while saving money on power bills monthly.”
According to Mercom India Research’s <a href="https://mercomindia.com/product/q2-2020-india-solar-market-update/" target="_blank" rel="noopener noreferrer">Q2 2020 India Solar Market Update</a>, residential solar installations made up for just about 3% of the total rooftop solar installed in India during the quarter. Mercom expects the growth in this segment to be two-fold year-over-year.
Contact us by filling out this <a href="https://mercomindia.com/lead-generation-form/" target="_blank" rel="noopener noreferrer">form</a> if you are planning to install a rooftop solar system for your home.

Here is How Much Money Rooftop Solar Systems Can Save for Households

Solar energy is the most flexible form of renewable energy and has become affordable enough for most households. As solar costs keep dropping, the process of installing solar, what to know, where to start, whom to call, and what to pay is not so simple.
Mercom has been receiving a flood of inquiries for rooftop solar installations from residential customers who want to know how to install and whom to talk to. This reiterates our view that the lack of awareness among the consumers is one of the primary reasons for rooftop installations not gaining momentum in the residential space.
While the COVID pandemic has affected consumers&#8217; finances over the past six months, interest and adoption of solar among residential customers in India have always been weak when compared to other countries.
For a homeowner, information on rooftop suppliers, costs, government policies, subsidies, and procedures are hard to come by.
The ideal roof for your solar system
The most important part of a rooftop solar installation is the quality of the roof.
A critical factor is the age of the roofing structure and the wear and tear it has endured. If repairs are needed, then they should be taken care of before a solar system is installed. The roof should be capable of holding installations securely.
Shaili Yadav, Business Head at <a href="https://homescape.solar/" target="_blank" rel="noopener noreferrer">HomeScape</a>&#8211; a residential solar installer by Amplus Solar, says, &#8220;The installation itself isn&#8217;t heavy to cause any damage to the rooftop; however, strong winds can adversely affect installations. Therefore, the roof must hold the installation when winds are blowing at high speed.&#8221;
The other key feature concerns sunlight. It needs to be available 365 days of the year, in an ideal situation. In other words, the roof must not be shadowed by any large objects like the trees, adjacent roofs, or buildings.
Ramesh Shivanna, Director at <a href="http://www.sadbhavanaenergy.in/" target="_blank" rel="noopener noreferrer">Sadbhavana Energy</a>, says that typically a 100 sqft shadow-free roof is required to install a 1 kW rooftop solar system.
It is necessary to factor in the type of rooftop and its orientation before installing solar systems. Slanting rooftops are optimal for installing solar modules, especially when the slope is towards the south. Since India falls in the northern hemisphere, south-facing rooftop solar systems will receive the most sunlight.
In the case of flat rooftops, modules should be installed at an angle facing south.
What should the size of your rooftop solar system be?
The ideal size of a rooftop solar installation for an average home can be anywhere from 1 kW to 10 kW. The ideal roof area available and the capacity allowed by the power distribution companies for installation will determine the size of the rooftop solar system that can be installed.
Typically, electricity charges in any home depend on factors such as the total area of the house, appliances used, and hours of usage, among other factors.
For example, in Bangalore, a two-bedroom house with 8-9 lights of 40 Watts (W) each, 6-7 ceiling fans, 2-3 water heaters, and two air conditioners will attract a monthly electricity bill of approximately  ₹2,000-3,000 ($27-41) considering an average electricity tariff of ₹5.50 per unit (kWh). The usage and the corresponding bills will vary based on the utilization of these gadgets. The bill will be considerably higher in summer when the air conditioners are running through the night. These homes will generally have a 6-7 kW of power capacity utilization permission from the power distribution company.
According to Yadav, on an average, a 5 kW system is installed on domestic rooftops. The efficiency of the installation depends on the efficiency of the solar panel. If the panel is rated 330 W, then a 5 kW system would require about 15 solar panels.
&#8220;We ask for the electricity bills from customers. For instance, consider someone consuming a certain number of units, which translates to ₹15,000 ($203) in power bills. We divide the bill amount with the power distribution company&#8217;s tariff, which is in the range of ₹5-6 (~$0.06)/unit, and it works out to around 2,500-3,000 units of power consumed in a month.&#8221;
These rooftop solar systems are connected to the grid, which means the electricity produced from the rooftop solar system is supplied to the distribution company, monitored through the net metering system when available.
The power produced by a rooftop solar system does not mean that you are no longer dependent on the grid. It only means that you are generating clean energy to compensate for the power you were using from the DISCOMs and reducing your power bills at the same time. The money you invest in the rooftop solar system will be made up for by saving on the electricity bills.
How long will my rooftop solar system last?
Mercom spoke with the founder and CEO of <a href="https://usolar.in/" target="_blank" rel="noopener noreferrer">U-Solar</a> Clean Energy, K. R. Harinarayan, who said, &#8220;A rooftop solar system will generate clean energy for approximately 25 years. The solar system&#8217;s maintenance is important for its longevity, and it is essential to procure the best products.&#8221;
Once the system crosses its useful lifetime, you can either re-invest in the project by replacing or upgrading the products, including solar panels and inverters, or recycle the components.
According to Mercom&#8217;s <a href="https://mercomindia.com/product/q2-2020-india-solar-market-update/" target="_blank" rel="noopener noreferrer">Q2 2020 India Solar Market Update</a>, India&#8217;s average rooftop solar project cost has been consistently dropping. The drop in small rooftop solar installation costs is primarily due to the falling prices of solar panels.
Our upcoming articles will try and answer questions like cost, savings, and other important information vital in installing a residential rooftop solar system.
Contact us by filling out this <a href="https://mercomindia.com/lead-generation-form/" target="_blank" rel="noopener noreferrer">form</a> if you are planning to install a rooftop solar system for your home.
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Image credit: By U.S. Department of Energy from United States &#8211; Children of the Sun Solar Initiative, <a href="https://commons.wikimedia.org/w/index.php?curid=79977287" target="_blank" rel="noopener noreferrer">Public Domain</a>

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