Investment in solar panels is a safe investment for a long and foreseeable future. Solar panels offer a clean energy source that everyone is now looking into investment in solar panels. Solar panels can be seen in almost every other house, in agriculture, in industries and local businesses too.
People are investing in solar panels as they are bringing a huge benefit to them in the form of low cost, free and clean energy throughout the year. If you are still confused whether investment in solar panels is safe or not, continue reading this blog. In this blog, we will discuss, 6 reasons why solar is a safe investment.
6 Reasons Why Solar is a Safe Investment:
Following are the top 6 reasons why solar is a safe investment.
Investment in Solar panels is safe as it is a one-time investment only. All the major cost will be covered one time only. High-quality solar panels are designed to last for several decades. In many cases, manufacturers of solar panels offer warranties for about 20 to 25 years, and the solar panels often continue to generate electricity efficiently even beyond that period. A well-maintained solar panel system can provide electricity for 25-30 years or more, making it a long-lasting investment.
Free Energy Source:
In country like Pakistan, where sunlight is available throughout the year, investment in solar panels is safe as it will keep on producing energy non-stop through the year. The latest technology of solar panels can also produce the energy if the weather is a little cloudy.
The users of solar panels are using free electricity and are using this free energy source and saving on their utility bills. The initial cost of purchasing and installing solar panels can be high, but this investment often pays for itself over time. Many manufacturers also offer installments, and many commercial banks offer different types of loans for just investment in solar panels.
In Pakistan, where sunlight is abundant, the return on investment (ROI) for solar panels can be relatively quick, typically ranging from 5 to 8 years, depending on various factors such as the cost of electricity, system size, and government incentives.
Rising Electricity Costs:
In the last month alone, fuel (petrol) prices have increased by Rs.262 in June 2023 to Rs.300 plus in September 2023 and cost of electricity has doubled in the last three months. The users have to pay utility bill for electricity every month. The rising costs of electricity has a direct impact in the increase in the electricity bills to be paid every month. In these unstable times, investment in solar proves to be very beneficial as not only it reduces the electricity bills (percentage depends upon usage) but also provides free energy during day time at least.
Pro-tip: Users can use heavy machinery like electric motors both in homes and agriculture sector only in the day time. It can lead to huge reduction in electricity bills.
Income Generation through Net metering
Net metering is a billing arrangement for solar energy systems in Pakistan that allows homeowners and businesses to connect their solar panel systems to the electricity grid. Net metering enables you to feed any excess electricity you produce through solar panels back into the grid. But question arises that “how does Net Metering work?”
How Does Net Metering Works?
To participate in net metering, you first need to install a solar panel system on your property. These solar panels capture sunlight and convert it into electricity, which you can use to power your home or business.
WAPDA will install a bi-directional (two-way) meter. This special meter is capable of measuring electricity flow in two directions: from the grid to your property and from your solar panels to the grid.
During daylight hours, when your solar panels are generating electricity, any excess electricity that you don’t use immediately is sent back to the WAPDA’s grid through the two-way meter. It is usually 20% to 40% of the energy production. This excess electricity is measured and credited to your account.
At night or when your electricity demand exceeds what your solar panels are producing, you draw electricity from the WAPDA’s grid. The two-way meter keeps track of this as well. Your billing is based on the “net” electricity you consume, which is the difference between what you generate and what you draw from the grid.
If your solar panels generate more electricity than consumption in a given billing period (e.g., a month), the excess electricity is credited to your account. These credits can offset your future electricity bills. In some cases, you may even receive a payment or a reduced electricity bill by WAPDA if you consistently generate surplus electricity.
Benefits of Net Metering:
Some of the benefits of Net Metering are given below.
Net metering allows you to offset your electricity costs by selling excess electricity to the grid and receiving credits. It can lead to significant savings on your electricity bills.
Net metering provides a degree of energy independence, as you can generate your electricity and rely less on grid electricity, which may be subject to price fluctuations. It is a great way to escape the load shedding of electricity.
In Pakistan, currently, there are zero tariffs and import duties on solar panels if the complete modules and systems are imported. Many neighboring countries have kept their tariffs at 40% which is way more than in Pakistan.
Zero to Low Utility Bills:
Depending upon the usage and the system, the electricity bills can be reduced to zero to low bills. In residential settings, the smaller systems like 3 KV to 5 KV can provide free electricity the whole day and can also charge batteries for use at night. While the larger systems of 10 KV and above provide the day and night free energy but also depends upon usage.
As there is no energy production at night, batteries have to be used which can lead to a minimum electricity bill. The monthly income can be saved to be used in many other different ways.
Solar panels have very few moving parts, which means they require minimal maintenance. The solar panels are made up of glass sheets that are not damaged very easily in the extreme conditions of Pakistani weather. Regular cleaning to remove dust and dirt is typically all that’s needed. Mostly, rain also helps in cleaning the solar panels. This low maintenance requirement reduces ongoing costs.
Once installed, solar panels generate electricity from sunlight at no additional cost. It means you won’t have to pay ongoing fuel costs, unlike traditional power sources like fossil fuels or even grid electricity, which are subject to price fluctuations.
In conclusion, it can be stated solar panels are a safe investment. people who are looking to invest in solar panels should contact Bright Energy for a more detailed discussion.