India receives some of the highest solar radiation in the world. The average daily solar radiation is about 5 kWh per square meter. India therefore has huge potential to turn this freely available energy into power for homes, commercial buildings and industries.
1
Reduce CO2 emissions and carbon footprint
Solar power produces zero CO2 while operating, so it contributes in a big way to reducing greenhouse-gas emissions and your overall carbon footprint.
Today, India is the world’s third-largest emitter of greenhouse gases, after China and the USA.
2
Abundant solar energy throughout the year
India receives some of the highest solar radiation in the world. On average, India gets about 300 sunny days a year, with average solar radiation of about 5 kWh per square meter per day.
3
Independence from the power grid and utility
Solar energy lets homes, commercial buildings and industries become power producers by installing solar PV systems on their roofs or land. The power can be used on-site, and surplus power can be fed back into the grid.
This reduces dependence on fossil fuels, conventional power and grid infrastructure.
4
Low operation and maintenance cost
Operating and maintenance costs for solar plants are very low compared with thermal or other fossil-fuel power plants. The main recurring task is cleaning the modules to reduce soiling losses.
5
Quick start-up from installation to full power generation
Solar PV plants rely on sunlight and produce power in proportion to the available solar radiation. Unlike conventional power plants, generation can begin as soon as installation and commissioning are complete.
6
Solar power costs a fraction of grid electricity
At current market prices, the cost of generating solar power is a fraction of industrial and commercial grid tariffs. This makes solar cheaper to generate and use than conventional sources of power in India.
7
Solar PV plants last 25 years or more
A typical solar PV plant has a design life of 25 years or more, and modules are designed to perform for that long without replacement.
8
Attractive return on investment
Solar PV plants offer attractive returns, with payback typically in 3–5 years at today’s prices. This makes investing in a solar PV plant a very attractive proposition.
9
Net metering gives flexibility in using solar power
Under Gujarat’s state net-metering policy, industries, homes and commercial buildings can use solar power during the day and draw power from the grid at night, lowering overall energy costs.
10
Accelerated depreciation
Businesses investing in solar PV plants can claim accelerated depreciation (currently 40% under Income Tax rules). This reduces tax liability in the early years and improves the return on investment.