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Impact Of Basic Customs Duty Hike On Residential Solar

01 March 2022

10 min read | By Pankaj Mohanpuria

Impact Of BCD Hike On Residential Solar Sector

In response to a long-standing demand from India’s solar manufacturing sector, the Ministry of New & Renewable Energy (MNRE) will implement Basic Customs Duty (BCD) w.e.f. April 2022. This move will protect domestic solar manufacturers from the stiff price competition from imported solar modules. Imposing a high tax rate will work in favour of the domestic solar industry in the short term as the price gap between imported solar components and locally-produced solar components will be be bridged.

However, this is just one side of how this hike in basic import duty will impact India’s solar sector. The price of home solar systems is expected to rise as material costs across the supply chain become costlier. A home solar system comprises of solar panels, inverter, cables and mounting structure.

Rise in the cost of solar modules is bound to increase the price of a home solar system as module price comprises more than 50% share of the price of the whole solar system. But in order to estimate how much the price is likely to increase, read more. 

Upcoming Changes in Solar Equipment Prices

India is chasing an ambitious goal of 280 GW of installed solar energy capacity by 2030. However, the country has been heavily dependent on imports so far. This has worked against the domestic solar manufacturers as several are on the verge of shutting down. China alone accounts for 80% of the total solar imports, while the rest consists of imports from Malaysia, Thailand, and Vietnam.

The Ministry of New and Renewable Energy recognizes the urgency to protect domestic solar component manufacturers against stiff price competition from imported ones and reduce the dominance of low-cost imports in the Indian solar markets. 

The Basic Customs Duty is a move that will help boost domestic manufacturing of solar components. As per the proposed duty structure, a basic customs duty of 40% on solar modules and 25% on solar cells will come into force on all solar imports starting April 1st, 2022. This tax imposition is expected to be a gamechanger for India’s Atmanirbhar Bharat vision. It will do away with the cost advantage that has allowed imported solar components so far to dominate Indian markets, providing Indian manufacturers a level playing field and the confidence to scale their capacity and performance.

This has come after the BCD for imported solar inverters was raised from 5% to 20% effective from February 2nd, 2021.

Impact of BCD Price Changes on Solar Industry

Long after the expiry of Safeguard Duty in July 2021, BCD is set to take effect from April 1st, 2022, though the intent of this change was already shared by MNRE in early 2021. As a result, the industry will see a slight increase in solar power tariffs being offered to Commercial & Industrial customers due to expensive solar components.

As per ICRA, the capital cost of a solar power plant project will increase by 23-24%. The official notification from MNRE also clarifies that there is no provision for exempting projects already auctioned. This is no brainer that the same price rise will happen for homeowners as well looking to purchase home solar plants for their house. 

Apart from the low cost, the higher efficiency of imported rooftop solar panels is also another major factor why some of the developers and power producers prefer imported solar panels. But this is set to change as domestic solar manufacturers are also working on efficiency and ramping up their production capacities. Also, this hike in solar plant cost is anticipated to be a short-term disruption until local manufacturing achieves economies of scale and becomes even more efficient than the imported solar modules.

To that end, BCD will create a supportive ecosystem for the domestic solar industry by providing relief against the competitive environment created by low-cost foreign imports, especially China. We should also note that import barriers can only be temporary measures. Eventually, domestic solar manufacturing will succeed only if we are able to compete in the global marketplace – in terms of price, technology, and scale.

Why Get Solar for your Home Now ?

The basic customs duty on solar components will be implemented from April 1st, 2022, meaning the current solar prices are still affordable. Hence, if you are planning to solarize your home in the near future, purchases made during this time will still come at old prices. 

Moreover, there is the added benefit of the simplified rooftop solar subsidy scheme recently introduced by MNRE. This updated subsidy scheme allows homeowners to get solar from any developer of their choice and avail subsidy through a simple online application process. The solar subsidy can further bring down the cost of rooftop solar for your home by up to 40%. 

Harness the energy of the sun to power your gadgets, air conditioning and heating systems, and your entire home with our custom residential rooftop solar systems from HomeScape by Amplus Solar. Our end-to-end home solar power solutions help reduce your energy costs by up to 90%. Designed for luxury and engineered for durability, our rooftop installations come with a 25 years warranty and the investment practically pays for itself in as less as 5 years.

Our renewable energy solutions for homes also include add-ons like high-quality battery backups and a smart solar performance monitoring system to help you keep your solar plant’s health in check. If you want to learn about current solar panel prices, partner with HomeScape – one of the leading residential solar companies in India.

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How Cost-effective is it to install solar at home the Long Run?

02 February 2022

11 min read | By admin

Cost effective solar installation

A residential solar energy system is a smart investment that comes with the promise of guaranteed long-term savings. Despite the high upfront cost, the expenditure or you may call it an investment is offset in just the initial few years through sizable energy output, significant net cost savings, and a hassle-free maintenance experience. In addition to being a clean, renewable source of energy that eliminates carbon footprint, solar energy is actually getting more affordable and rewarding than you think.

Cost of Installing a Solar Panel at Home

The average cost of a residential solar panel installation varies from state to state in India. Several state governments are offering financial support and subsidy schemes to make the cost of rooftop solar installation affordable for as many homeowners as possible. Here is a sample of the subsidy structure by IPGCL  (Delhi DISCOM) for their last tender (May 2020) for residential rooftop solar systems. 

SOLAR SYSTEM SIZE (KW)  SUBSIDY BENCHMARK COST (BM)
1-3 40% of BM cost Rs: 37000/ kWp
3-10 20% of BM cost Rs: 32,400/ kWp
10+  Subsidy for first 10KW only Rs: 32,400/ kWp

In earlier times, a small capacity solar PV system used to be enough to power a home. In the current times, India’s domestic energy consumption per capita is increasing and we use a lot more units of electricity today than in the past. Apart from the usual home appliances that we use, we use a lot more heating and cooling devices, smart devices, electric vehicles than before.  Hence, a 3 kWp solar system generating 12 to 15 units per day is the minimum you would need to run your home efficiently. For a bungalow with 4-5 ACs or a big farmhouse, a 5KWp system or above would be a better choice.

Maintenance of Rooftop Home Solar Panel

Routine maintenance of your solar batteries and the solar PV system will allow timely detection of potential repairs, security concerns, and signs of damage. Have your solar installer inspect the system’s wiring and electricals at least once a year. The preventive maintenance would involve inspecting fittings, electrical conduits, visible electrical hardware, and ground conductors as well. You will also need to keep your glass PV solar modules clean of any dust, debris, or bird feces that may accumulate over time. Make sure to clean your PV modules with a wet cloth once a month or every fortnight if you live in dusty areas for optimum generation. Note that the solar system should be on switch off mode when you attempt self cleaning. 

Your rooftop solar system uses a kind of mild steel rack system to be mounted. Cleaning and checking the racking for signs of damage, loose hardware, and debris accumulation should be performed once every year to prevent any uprooting of solar panels from the racking during an event of extreme weather like a storm or heavy rains.

Your solar batteries also need professional maintenance to ensure efficiency and extend their life. In addition, a little upkeep done routinely will keep your batteries in good condition. During winter, your lead-acid batteries will also need a refill of distilled water every 2 to 4 weeks. Also, monitor the battery charge, and if found flooded, apply an equalization every 90 days. 

Energy Output of Solar Panel

Power output is a key factor in selecting the right residential solar panel system. Also, when installing a solar system in your home in India, the price you pay is based on the proposed solar system capacity per kilowatts. 

Calculating the accurate electricity generated by a rooftop solar PV system can be a complex math exercise, but you can estimate it yourself for your home if you know your monthly electricity bill through various solar calculators. In the Indian scenario, for every 1 KWp of solar system,  an average of 4 kWh (units) will be generated per day, accumulating to 1,400 to 1,600 kWh in a year. This estimate may differ from the actual generation as meteorological conditions affect solar power generation capacity. Many other factors like the home’s location, the orientation of the roof, solar panel efficiency, and ambient temperature affect solar energy production, which is taken into account by the solar installers when they give you the first proposal after the technical assessment or a site visit. 

Net Savings in the Long Run

The overwhelming 6-figure cost of a residential solar panel installation keeps most homeowners on the fence. Investing in rooftop solar installation also brings attractive returns and eventually the system pays for itself with the huge cost savings in the electricity bill. With a grid-connected solar system, you will not only do away with fluctuating electricity prices but can also earn electricity unit credits via net metering by sending any excess power generated back to the grid. The DISCOM will then charge you only for the net units consumed in a particular month thus reducing your electricity bill by a great extent.  

Thanks to the little maintenance and a life expectancy of 25-30 years, you can expect a payback period of just 5-7 years on most solar PV systems available in the market. The Internal Rate of Return (IRR), expressed as the percentage of return on investment (ROI), represents the rate of returns you expect to receive on your solar panel installation cost. 

Suppose you make an investment in buying solar for your home. This investment would not only pay for itself but you get your electricity for free after the payback period is over. With advancements in technology, PV modules of higher efficiency are being developed which gives even more savings and generation through your residential solar panel systems.

Are you searching for the best solar plant installation company in Delhi or Gurgaon to start your solar journey? Check out HomeScape by Amplus Solar to get the most out of your residential solar panel installation cost. We are empaneled by DISCOM for solar subsidy in many states which will further reduce the upfront investment for you and increase your savings. 

Our well-designed solar system produces optimum output throughout the whole year. With us, you get an end-to-end hassle free solar solution with warranty-backed components and a safe module mounting structure with branded wiring and cables for your rooftop solar panel system.

Get your solar journey started today with a quick technical assessment and a customized solar quote from our industry experts.

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How Solar Panels add to the valuation of Homes?

18 January 2022

9 min read | By admin

How Solar Panels add to the valuation of Homes

There aren’t many big home transformations as much like a rooftop solar PV system that adds substantial value from day one and delivers the best ROI for many years to come. Since solar is still relatively new in the market, not many homeowners know how it can add to the valuation of their homes. 

Depending on several factors like the type of solar, location of your house and more, your solar investment will yield attractive returns in the long run. 

Let’s see how and by how much value a residential solar system adds to your house.

Types of Residential Solar Systems

When you’ve made a decision to buy a rooftop solar system, you can pick either an on-grid (also known as a grid-connected) solar system or an off-grid solar power system (solar with battery storage). Your choice will define your access to solar electricity, the equipment needed to store solar energy, the electricity billing and metering process, and what happens if the power grid fails.

With a home solar system not connected to the local utility grid, you depend only on sunlight for your energy needs. The system will also have a series of batteries to store solar power generated, so that it can be used overnight or on cloudy days when you don’t get enough sunlight for optimum generation. 

On the other hand, with a home solar system tied to the grid, you have the back up of the utility company. The grid acts as a huge battery bank for end consumer. You can even sell the surplus solar energy back to the grid as per the net metering guidelines of the state and can always get lack of electricity from the grid in case your generation lags behind your consumption. 

Location of the House

Before wondering about solar rooftop prices, it is important to know if your home is in a good geographical location for installing solar panels, especially if you live in densely populated regions of India. One pre-requisite for installing a solar system on your rooftop, is that the solar panels must get direct sunlight to produce ample electricity for your domestic needs. 

You can ask any solar installation company in Delhi or anywhere in India to inspect your property’s orientation with respect to sun, roof angle, and any shading due to trees or neighboring houses to determine if your roof receives enough direct sunshine.

The solar installation companies determine all these things after a site visit to your premises, and share the proposal with an estimate of required solar capacity system and projected solar generation based on annual irradiation. The right installation will ensure that your solar panels can generate maximum electricity, thus giving you maximum savings in the electricity bill.

Among the numerous advantages of installing a solar energy system, solar for home is also a great way to offset electricity bills for the foreseeable future. With unstable conventional energy tariffs in India, a home producing its own electricity becomes more attractive to potential buyers when put up for sale. You can easily raise the valuation by the total economical benefit that solar system is going to provide you for the residents of the house for the lifetime of the solar system. 

Installing solar panels adds significantly to your home’s resale value. For each kilowatt installed, the value can increase by lakhs. However, the rate may be higher or even lower depending on your property’s geographical location and your system’s age and output.

Life of Solar Panels and Output

The average lifespan of a solar system as per the market standard is 25 to 30 years. After this period, the system’s electricity production declines below what it initially produced. The energy generation capacity is determined by the location of your home and the size and quality of your system. A 1kWp solar system, for instance, can give an average of 1400 units per year.

Since solar panels don’t have any moving parts, they are not prone to physical damage and may continue to produce energy for many decades. Premium solar panels for homes are of sturdy build and rarely get damaged by debris, strong wind, or other external factors. Internal damage can only result from inclement weather and a poor racking setup, which is also less common.

However, if you are selling your home when the solar system is nearing or has crossed its high-efficiency age, such old solar systems might not add much value to your home.

It’s true that the initial residential solar panel installation cost is still high for homeowners. However, the high (or not so high) solar rooftop prices are offset by the system’s powerful as much as 90%* in Delhi and Gurugram, and also increase your home’s value.

Want to know the price of a rooftop solar system and the optimum size for your home?

HomeScape by Amplus Solar offers end-to-end, hassle-free solar solutions. We are among the top solar installation companies in Delhi and other states of India and have solarized more than 800+ residential homes so far. The unique designs of our transparent, dual-glass solar panels add aesthetic appeal to your roof while powering your home.

Reach out to our solar experts for a home assessment today.

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Why is a Site Survey required prior to installing a Solar Rooftop System?

14 July 2021

5 min read | By admin

rooftop solar system

Solar rooftop systems and other sources of renewable energy are on the rise. Residential rooftop solar systems have proven to be environmentally sound and efficient for domestic households, along with monetary benefits such as saving on electricity bills and government subsidies.

Solar panels are generally placed on a rooftop or in an elevated position to ensure a steady and consistent supply of sunlight. This sunlight is then converted to DC electricity and then into AC electricity by an inverter.

To ensure domestic solar systems perform at optimum capabilities, solar providers must consider a variety of factors before going ahead with the installation. A Site Survey prior to installation gives service providers all the information they require to correctly install and operate a residential solar system, tailored to every customer’s specific needs.

The three main factors assessed during a site survey are:

  • Feasibility – is the solar plant installation feasible at the location?
  • Viability – does the solar installation provide financial benefits in the long term?
  • User requirements – are user requirements correctly understood?

Site surveys ensure that you have a rooftop solar power system designed specifically for your needs as per your location, rooftop space and the electricity required to power your home. HomeScape has three unique product variants that are tailor-made to fit your space: the Atrium, the Aerial and the Terra.

During a site survey our team determines the following factors:

  1. Shading Analysis

This helps determine the correct location to install a solar plant. The orientation and mounting of the solar panels determine the amount of incident sunlight which in turn contributes to the amount of electricity generated. The solar panels need to be shade-free to get the optimum performance from the solar photovoltaic system. The area must be assessed to ensure there are no barriers that cause shading on the panels.

  1. Roof Structure Inspection

This is done to measure the size and to determine the attributes and structure of the roof. The rooftop area and size of the panels determine how many solar modules can fit in the space available. We consider the following factors:

  • Surface Area (rooftop dimensions)
  • Roof Inclination
  • Roof Direction
  • Construction Material

  1. Usage Analysis

This is the overall analysis of required instruments such as DC and AC converters and electricity usage. This helps determine the overall generation of electricity and an estimate of the units of electricity that can be saved.

  1. Financial Analysis

Government has released many incentives and financial aids for the solar panel system users. The overall cost of installing and the economic viability of the system are other important parameters that are estimated during the site survey.

Conducting a site survey is the starting point for a rooftop solar power system installation for a home in India. Your site survey results and shading evaluation in combination with the energy audit helps you make an informed decision about switching to solar.

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Personal Guide to install solar at home: Part 5- Rooftop Solar Panel Installation, Warranty and Maintenance

29 January 2021

14 min read | By admin

solar panel installation

In the previous parts of our blog series, we discussed about receiving your solar proposal, documentation and the types of permits. Here is the final part of a five-part ‘Personal Guide to Installing Solar at Home’ series. This article will be covering the installation process, as well as the warranties and maintenance.

Step 9: Installation

Once you’re done with confirming the proposal , site visits, permit work and planning, the actual rooftop solar panel installation will only take a few days of work. If you are installing an on-grid system with net metering, the process will take additional time. While the decision process for rooftop solar panel installation can take a while, the installation time frame is quick and simple. The actual day when your rooftop solar panel installation starts will be exciting.

1) Set-Up

The solar installer you chose will start by preparing your roof and ensuring the shingles or tiles are attached correctly. They will set up a temporary structure used to support the work crew and materials to help in the process. It helps to take care of safety during the whole rooftop solar panel installation process.

2) Solar Panel Mounts

Then, the installer will set up the solar panel mounting system. It will support the base of the solar modules. It’s the only piece of equipment which is attached to your roof. The entire mounting arrangement must have a tilt and have an angle between eighteen to thirty-six degrees to have most sunlight exposure.

3) Solar Panel Installation

After the installer sets up the mounts, the solar module itself has to be installed on the mounting structure. They should make sure to tighten up all the bolts and nuts so that it stays firm and steady. The panels are mounted on the racking when they are firmly connected to the racking.

solar panel installation

4) Wiring

Then, they put in electrical wiring that will connect to your electrical panel and the general power system. MC4 connectors are predominantly used as wiring for solar modules. During the wiring installation, the company must ensure that the electricity supply from the grid to home is turned off .

5) Solar Inverter

Once the electrical wiring is done, the installer should link the solar inverter to the system. The inverter(s) are connected to the modules to convert direct current (DC) into alternating current (AC) energy which is used in households and on the grid. The solar inverter may be used indoors or outdoors and is normally placed near the main system.
Inverters stored in a spot that is not too hot are often more efficient. If kept outside, the inverter should be kept out from the afternoon sun. If installed indoors, the garage or utility room is typically the most reliable location as they remain cool for most of the year with ventilation.

6) Solar Battery

If you opt for an off-grid solar system, a battery is necessary since it is used to store backup power ,which is connected with the solar inverter.

7) Grid Connection

To link the inverter to the grid, the installer will have to simply plug it in the main power switchboard, so that it receives power from the grid. The output wire should also be connected with a board that is supplying electricity at home. To determine the excess energy generated from the solar system, the installer needs to install a metering device.
The installation time will range from 1 to 3 days, subject to the size of the system you are installing. Net-metering can add time to your installation process . If your installer needs to add a power meter for net-metering, it might add a few hours to your solar installation.

8) Consumer Unit

The inverter should be linked to the consumer unit (known as the distribution or fuse board) to generate electricity. To observe the amount of electricity the solar modules generate, a generation meter should also be connected . To evaluate your solar systems’ performance, you can check on the HomeScapes’ remote monitoring app.
For instance, you can check the electricity generation data and decide the appropriate time for using your dryer or other utilities. It will also show the import and export of the power happening due to the net-meter.

Step 10: Warranty and Maintenance

Warranty

The final step with significant aspect is the warranty of the solar power system. Warranties for solar panels protect your solar investment and are an integral part of any rooftop solar panel installation. There are two kinds of warranties that keep your modules covered, and knowing the differences between them is vital to make sure you get the most suitable agreement for your solar energy system.
The two types of warranties are:

  1. Product (or materials) warranty
  2. The performance warranty

A product warranty of solar modules covers the panel itself and guards you against obstacles like manufacturing defects, environmental issues and unanticipated wear & tear. A material warranty will typically guarantee 10 to 12 years without the modules failing.
The performance warranty will ensure 90% production at ten years and 80% at twenty-five years. As with most guarantees, more the period, the more it is advantageous to you. The solar inverters come with a 5 year warranty which can be increased by AMC (Annual Maintenance Contract).
Warranties, are a very confusing topic for some solar owners. However, there is nothing to worry as HomeScape provides hassle-free warranty management. We have AMC packages which cover up to the lifetime of the product. You can buy it to safeguard your whole solar system. We present the best-in-class warranty on all parts. In case of failures, you can contact us without having to run to the manufacturer.

Maintenance

As opposed to many other technologies generating power, solar photovoltaic systems have low maintenance and service requirements. However, proper upkeep of a solar plant is necessary to optimize energy yield and maximize the life of the system. Some of the maintenance activities include module cleaning once in 15 days (dust, bird dropping, and other debris can cause a decrease in power generation).

Maintenance activities

The other items to take care of include::
  • Checking module connection integrity
  • Checking junction/string combiner boxes
  • Inspecting mechanical integrity of mounting structures
  • Vegetation control
  • Tightening cable connections that have loosened
  • Replacing blown fuses
  • Repairing equipment damaged during module cleaning or intruders.

Maintenance activities

Homescape Remote Monitoring System:

At HomeScape, we have designed an RMS (Remote Monitoring System) called HomeScape Solar, which is IoT based, to keep a record of the performance of your solar plant. The application can be found in Android and iOS.
It helps with the following functions:

  • Notification alarm– If the plant, inverter or any component is not working properly, the HomeScape Solar app sends you a notification.
  • Various plant parameters – Solar energy generation, solar energy consumption, units fed back to the grid, savings and contribution to the environment can be viewed.
  • Plant performance– The performance of the solar system can be seen at different time scales: daily, monthly, annually or between any pair of dates.
  • String monitoring– You will be able to take a look at all the parts of the system with the help of our app.

In essence, we highlighted how the solar system installation takes place starting from setting up, installing the mounts, solar panels, wiring, inverters, batteries, connection to the grid and consumer unit. We have also discussed about the significance of solar warranties and upkeep. Many of the solar companies, including HomeScape, offer a warranty on solar panels as long as 25 years.
With this article, we conclude our ‘Personal Guide to Installing Solar at Home’ series. It is now time for you to switch to the most eco-friendly option by installing solar systems for rooftops for power generation and use!
Save your money and help the world as well. Be prepared for a world which will soon switch to solar power!

Read about previous parts of the five-part series here:
Part 1- https://homescape.solar/personal-guide-to-install-solar-at-home-part-1-system-type/
Part 2- https://homescape.solar/personal-guide-to-install-solar-at-home-part-2-system-type-and-budgeting/
Part 3- https://homescape.solar/personal-guide-to-install-solar-at-home-part-3-choosing-the-solar-installation-company-and-site-survey/
Part 4- https://homescape.solar/personal-guide-to-install-solar-at-home-part-4-proposal-and-documentation/

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