Benefits of Grid Connect Solar System for Home

In last couple of years, Solar energy has been one of the most affordable, dependable, and financially viable source of energy. The ‘green’ environmental benefits are the ones you’re more aware of, but there are other well-known financial rewards to replacing traditional coal- powered electricity with solar electricity as well. Solar power/energy is an investment where you’ve to buy solar system and install it on your home or business property. But after the initial investment, it’s just a lifetime of savings with lowered energy bills and increased property value.

Calculate Your Savings

calculate your saving

OK, it’s true that GCRT systems are available and taking enough steps to promote it. But the real question can solar systems recover the investment, if yes, in how many years. The total savings projected after installing GCRT system is tremendous. With rising electricity rates from traditional sources and the govt incentives given to install these systems, makes these systems the best financial investment, the present ROI makes these GCRT systems the best financial investment.

1. Instant Savings

instant saving

These days with new technology cropping up faster than ever, the question is not if solar saves, but how much. Due to solar panels producing utility-free electricity combined with government incentives, you’ll see your bills plummeting down and savings rise up. Whether you have bought the solar system for cash or loan, the solar electricity bill will definitely be less than a traditional utility bill. In fact, you may end up saving money instead of spending money on buying energy.

2. In- Built Savings

monthly saving

Every month you’ll enjoy small energy bill savings, which will quickly add up over a period of time. Depending whether it is cash or loan purchase, those savings will be seen immediately or add up to something big over time.

Everyone will experience contrasting savings, due to the difference in location, sun exposure, and other factors which affect the solar energy generated. While some may get 30% savings, there may be lucky ones who get 100%.

3. Long term Savings

long team saving

When you invest in a solar system, your investment will promise a return every month. Imagine this; for every month your draw energy from solar panels, you don’t need to pay to the utility company. Not only do you accumulate energy, but it will be credited to your account, a proper accounting and adjustment will be done in the form of import/export and banking.


This clearly means what ever is generated extra , it will be adjusted in you peak demand, if there is something extra credit units in your account , it will be paid @ FIT rates of that year,


Which ultimately means, apart from saving you may earn something for the extra units your system generated (basically you will be paid for the extra units sold to discom)

4. Depreciation Benefits

Depreciation Benefits:

This facility is given to promote the usage and application of solar system in industrial / commercial segment. 40% AD (accelerated depreciation) can be claimed for the installation of these systems. This facility ultimately effects the tax payment.

Eliminating or Reducing Your Electric Bill

1. Generating your own Electricity

self generations

With the installation of these GCRT solar rooftop system you will be generating the electricity demanded / required by you. These systems generate electricity as per your requirement and will run all the appliances of your home. There is no need of any battery bank because, here the grid itself is working as a bank ,you generate your electricity – sync it with the grid – deposit if any thing is extra and take it back as and when required.

It’s easy, convenient and simple, you have to just follow the policy procedure and guidelines of your DISCOM, apart from this the DISCOM does a 25 years PPA (power purchase agreement) if you install these grid connect solar rooftop systems.  

2. Security from Rising Electricity Costs

security to rising electricity bill

Electricity costs make a large part of your overall budget. Production of electricity is reliant on fossil fuels such as oil, coal and natural gas, which are susceptible to unstable and unpredictable foreign markets. When you switch to solar, you’re hedging yourselves against steadily rising electric rates. You can ensure, fixed & predictable electricity rates for years to come. As Discom rates continue to rise, so do your savings.

3. Offset against Electricity Costs

net meter

When your solar system generates more electricity than your home can use, your excess power is routed back to the utility grid. Most electric companies pay or credit you for this electricity.

Solar power system produces maximum power during the middle of the day (peak sunshine hours) This way, “Net Metering” help you to keep the complete track record of what your system generates , what you consumed, and whatever is left at the end of FY – if its excess you are paid @ FIT “Feed-In Tariff ”.

4. Dictate Your Electric Costs

electricity cost

Besides helping the environment, one of the biggest reasons to go solar is reducing or eliminating your electric bill significantly. How much you’ll save depends on how much energy your GCRT solar system generates and how much of you consume. Solar installed homes will still draw power from the utility grid. However, the biggest decider of savings is dependent on the rates you would have paid if your electricity came from the utility.


Apart from direct benefits there are few indirect benefits:


Utilization of available vacant roof space;

  • Low gestation period;
  • Lower transmission and distribution losses;
  • Improvement in the tail-end grid voltages and reduction of system congestion;
  • Loss mitigation by utilization of distribution network as a source of storage through net metering;
  • Long term energy and ecological security by reduction in carbon emission;.
  • Abatement of about 60 million tonnes of CO per year over its life cycle; 2
  • Better Management of daytime peak loads by DISCOM/ utility;
  • Meeting of the renewable purchase obligations (RPOs) of obligated entities

Which are targeted at 8% of electricity consumption;

  • Minimal technical losses as power consumption and generation are collocated.


A typical payback calculation:


Cost of standard 5kW GCRT system ( MNRE BMC 50 K per kW)


Subsidy ( 40% 1-3 , 20% balance )


Net installed cost

Rs 170000

Electricity generated/ Bill saved PA ( 4 *5* 330 * Rs 9 per unit )

Rs 59400

Payback in 3 years *


Payback * depends on tariff rate /system cost/ system generation



After 3 – 4 years the system will generate free electricity for you for its entire life (approx. / std life is 20-25 years)


author ajit bahadur solar is my passion

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