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Is it worth installing a solar system compared to Electricity?

In India, electricity is primarily produced by hydroelectric and thermal power plants. Since electricity is cheap compared to fuel for powering industries and residences, energy production must be more focused on renewable resources of energy.

However, if solar panels are compared to the conventional way of producing electricity, they have a great advantage over the former and can give a long time energy solution for many of our daily requirements. According to research, the rooftop solar panel reduces greenhouse gas emissions and lowers electricity costs. This is just the beginning of your savings; let us look at the possibility when solar panels and other ancillary items are applied on a wide scale on a daily basis:

solar panel system

The significant features and deciding factors of solar panels over conventional electricity


Solar panels do cost a bit in the beginning but compared to the cost of electricity that you will be paying over the years, the panels are worth your every penny. It not only reduces the cost but also gives you clean emission-free energy right in your own backyard. Maintenance is very low and does not require much to do; however, the primary installation can be considered as a long term investment to extract the maximum out of a solar panel.


A solar panel lasts up to 25 years approximately; however, it still functions the same. But in 25 years there is a huge possibility of better solar panels with improvements coming in the market, hence a change in the solar panels is advisable.

Value addition

You can save a lot on your monthly electric bills almost by 70% in an efficient solar panel setting. The invested amount on a solar panel system usually reaches the break-even point after 3-8 years depending upon its usage and intended energy installation. In the commercial arena, a solar power system’s value decreases over time due to the wear & tear of parts and reduction in efficiency of solar panels. The accelerated depreciation benefit allows the commercial and industrial users of solar power to depreciate the assets, as much as by 40% (FY16-17 onwards in India), built as Solar Power Plant at a much higher rate than general capital assets. This allows the user to claim tax benefit on the value depreciated in a given year.


There places in India where electricity is scarce or even nil, even today. Such places can utilize solar panels to power their homes, switch to modern means of cooking eliminating firewood and coal emissions. They are affordable and can be employed to generate a good amount of electricity in rural areas.


Compared to the cost for a hydroelectric power station, nuclear power plant or a thermal power plant for electricity generation, solar panels are much easier to produce and require very little capital. Apart from this solar energy is freely and naturally available. This does not produce any harmful emissions or exploitation of nature compared to other conventional means of power generation.

The overall impact of solar energy

When there is an increase in the use of solar energy, the overall load on the existing consumption of energy goes down tremendously. This often releases the workload allowing an even distribution of energy consumption and eventual transition to a much more sustainable energy in the future. This is a great move and a permanent solution for balancing the ecosystem.


Compared to electricity produced in a thermal or hydroelectric power station, solar energy does not require transmission lines or transformers to step up or step down the voltages. This not only reduces the cost of installation but also makes it a safe product to be installed right at home for use even by young people with little know-how.

Overall, solar energy is one of the most reliable and dependable means of energy. Capitalizing on the benefits can be great energy as well as money saving opportunity for small homes as well as industries. With better and improved technological advantages in the future, we anticipate that solar power will become a mainstream part of the energy consumption community eventually replacing the conventional non-renewable resources.