Solar Renewable Energy

Should we take solar energy into account?

To find your answers to these questions and more, read on … Dsspak 

Why think about solar energy?

Despite the recent hype about solar technology in the Pakistan in recent years, this technology has been around for many years. Its applications in aerospace and military sciences have proven to be quite viable and useful. In addition, due to high energy costs in Japan and some European countries, solar technology has been used in commercial and residential buildings for over ten years. In fact, your visionary governments have made a long-term commitment to subsidize solar and wind technologies and provide the right incentives to justify their costs.

Installing solar panels for homes and businesses has many short and long term benefits. Solar energy is a great way to take advantage of the free energy that Mother Nature has to offer and there are many positive results from using solar energy, both for personal benefit and for the well-being of mankind . Solar energy will also help reduce the consumption of traditional fossil fuels and have a positive impact on the environment. Before installation make sure that you are choosing the best renewable solar energy.

There are many benefits that come with a switch to solar power. First, given the high prices currently paid for fossil fuels, the money saved on the monthly energy bill is an immediate benefit. The cost of utilities has increased on average by almost 7% per year over the past 30 years and an expected increase of 10% per year for the coming years will not be far behind. By installing solar panels for residential and commercial businesses, Consumers will significantly resist their utility tariffs and will also resist any further increases in utility prices, meaning more money can be saved. Because solar panels are very durable products that require minimal maintenance and are backed by a 25-year manufacturer’s warranty, the long-term tax benefits are just as impressive.

Is the technology mature enough?

For those who have doubts about the maturity of this technology, it should be noted that solar technology has already made a lot of technological progress and may be in the Middle Ages for residential and commercial applications. Of course, like any other technology, it will certainly make more progress in the future. However, it is very likely that the price of the most advanced technology will also produce corresponding advancements. However, the end product is still the same old electricity, maybe produced more efficiently.

The efficiency of the solar panel is particularly important when the space available for installation is limited. If you have enough space to install a solar system of the right size, the efficiency factor becomes somewhat irrelevant, as it is the electricity that comes out of the system. Therefore, improving the efficiency of the panels of the future may not be so important for those who have enough room for the technology of today. The decision to generate solar power with current technology, versus expecting more efficient panels in the future, could very well generate a better return on investment in the long run.

The durability of panels today is excellent, so most manufacturers give a 25 year warranty on their panels! How many high-tech products do we know with such a long warranty period? But comparing the energy industry to the high-tech consumer industry in terms of economies of scale may not be a good comparison between apples. In the energy sector, due to the constant increase in demand and the inevitable constant increase in energy costs, the part / watt ratio is also limited to increasing or, at best, remaining constant for a short time period. Ultimately, the efficiency of a solar system for a given installation will remain virtually constant for a long time (say 30 years), while the lifespan of most high-tech products is less than 4 years.

A better comparison may be with buying a car. In recent years, a new mid-range car, anywhere, can cost anywhere from 300,000 to 400,000. After 10 years, this car might be worth next to nothing. On the other hand, a 400,000 investment in a solar system from day one generates energy and income for 25 or 30 years.

Does this make financial sense?

In order to understand and analyze the financial viability of an investment in solar energy, we need to understand the rationale and their respective scope and projections. We could start with the energy costs of the last 30 years; on average, utility costs have risen 6.7%, and forecasts of 10% or more for the next 20 to 30 years may not be far off.

The second variable is the price in watts of renewable energy sources, particularly solar energy. For a typical system, the price of solar panels, inverters and installation costs was fairly constant, at a speed of about 8.50 / watt-DC.

The third variable is the hourly and utility prices for electricity. Utilities have created complicated pricing schedules to stay profitable. As mentioned above, these rates will inevitably continue to rise in the future. However, the main point that is worth mentioning is that once you invest in a solar system, you have essentially become an energy supplier and can also benefit from the higher tariffs imposed by utilities as a result. In other words, if they sell to the consumer at a higher rate, they will also float at that rate and sell their energy to the utility at a higher rate.

Given these variables, electricity prices and plans differ for the residential, commercial or agricultural sector. Depending on the tariffs / schedules, there is always a minimum amount that determines whether a solar system makes sense or not. If you pay more than this limit, it makes sense to invest in solar power. This threshold can be determined using the available financial return on investment calculators.

Thinking about how many years such an investment would have to be repaid may not be a fair way to think about a solar power generation system. The reason is that if, for example, we only consider 6 years to pay off, say, a 30K solar system, we shouldn’t ignore the remaining 20 years of solid and ongoing income from that investment. This amount certainly represents a large portion of the revenue, with minimal maintenance costs. Another point is the assessment factor for installing a solar system on a plot.

Is this the right time to install the solar system?

The simple answer is, it can be as good now as any other time. The proof of this claim is that once you invest in and install a solar system, you are practically an energy supplier. It will generate electricity at the rate for which the system is designed, with a prudent expected tariff increase of 10% or more per year! And such a system requires minimal maintenance over the next 25 years !! Doesn’t that sound like a better investment than other investments we know today?

Depending on your electricity usage and usage rate / pattern, you may or may not be a good candidate for an investment in a solar system. There are software tools available that can help you analyze if you are a good candidate and can help you make the right decision.

What will your return on investment be?

To find out the return on investment in a solar system, software tools can be used on the websites of some solar energy system suppliers and integrators. These utensils can provide primary and budget records for a solar system application and provide customers with compromise or scenario analysis. A good example is the free ROI simulator available on the website Dsspak

In short, most solar system applicants have a unique situation, such as limited area, budget, time, or electricity demand / consumption, and this requires careful evaluation of your application. The installation of a solar system is a large investment and it is a complicated addition to a particular property, it cannot be treated lightly, like the installation of devices or accessories. It should be integrated into the electrical system of the property and, in most cases, into the public electricity grid, while being aesthetically pleasing. You can contact us to get the estimation about the best renewable solar energy system in Pakistan.