Why an On-Grid System Over an Off-Grid Solar System?
Mr. Ravi Kumar lives in Ghaziabad city in the state of UP. About a year back, Ravi had installed an inverter battery system in his home since the area that he lives in experienced frequent power cuts. But Ravi and his family faced too many issues with their battery system. It wouldn’t provide enough backup and Ravi spent tons of money in maintaining the inverter battery system.
Ravi then read articles about the on-grid solar system and he decided that it was perfect for his home. PV on-grid rooftop solar power system is one of the most popularly used solar solutions for houses and commercial establishments. Grid-tie solar, also known as on-grid, works in connection with the main grid. It offers the advantage of running load directly through solar and selling excess solar power back to electricity companies by feeding the grid.
UP receives approximately 12 hours of daylight every day. And investing in solar power in this area would definitely bring perfect results.
Ravi then approached a solar dealer and after a detailed discussion, the dealer advised him to install a grid-tie inverter in his home. Grid-tie inverter would not only reduce his monthly electricity bill by running his home load on solar but would also help him earn money by selling the excess solar power produced by solar panels back to the grid.
An engineer visit is very important for a solar rooftop project as the engineer can point out certain findings that can affect the performance of the solar panels.
And so Ravi installed the following system in his home.
- Grid-tie inverter – 2KW
- Solar Panels 250W/24V – 8 panels
Why Grid-Tie Inverter?
Grid-tie inverters are an on-grid rooftop solar solution that can run the load completely on solar and also sell excess solar power back to the company by feeding the power to the grid. Grid-tie inverters are 97% efficient, which can help the user make use of maximum power coming from the sun.
Units Generated and Load Running
The system is expected to generate approximately 10 to 12 units of electricity on a daily basis depending on weather conditions. The installation was a success. The system is now running on solar and provides electricity in the house (two-floored) at all times. Their monthly electricity bill was approximately INR 3500 per month.
How Does Net Metering Work?
The concept of selling back solar energy to the electricity board is called ‘Net Metering’. Let us understand this with an example. In this case, the solar panels will generate approximately 250 units of electricity per month. So, let’s take for example Mr. Ravi uses 100 units out of 250 units from solar power to run his load and exports the rest of 150 units to the electricity board. He also imports 50 units from the electricity board to run his load so he is essentially exporting a net total of 100 units if we subtract 50 units from it. These 100 units exported to the electricity board will get credited in his account.
In his next billing cycle, these 100 units will be deducted from the amount he owes to the electricity board. And so on and so forth. Whatever be the units he exports to the electricity board will be deducted from the units he imports. This is the net metering concept.
UP government also gives subsidy on on-grid solar systems. So, in general, on a 1KW solar power plant, an amount of INR 21000 will be given as a subsidy to the customer. If a 2KW system is installed, then INR 42000 will be given and so on.
You can check out our article on Solar Panel Subsidy in India.
The net metering and subsidy given by the government make solar power a very cost-effective and affordable solution for one and all.
The solar dealer says, ‘We have installed a 2KW grid tie inverter at Mr. Ravi Kumar’s home about 10 days back according to their load requirements. Their home has 2 Air conditioners, 3 fans and about 6 tube lights and a water heater. This solar system generates approximately 9 units per day since its installation. We are hopeful that their monthly electricity bill reduces down by 80% in their next cycle on 15th December.’
We wish Mr. Ravi and his family all the best and hope to serve him and his family again in the future.