A Simple Guide to Solar System for Beginners!

The purpose of this blog is to educate our readers about the different components of a solar system. Often people confuse a solar panel for a whole solar system as solar panels are the most visible parts of the solar system. Even when you google solar system it takes to the universal solar system instead of the one comprising of solar panels, solar inverters, batteries, etc. Let us take a look at the various components of a solar system, its types and the price range it is available for. We will also learn about the benefits of installing a solar system in this blog.

What is Solar System?

what is solar system

A solar system is a complete set of components used to generate power. A solar system is a setup that generates electricity by utilizing the solar energy. A typical solar system consists of solar panels (which absorb sunlight), inverter (which converts DC into AC), mounting structure (that hold the panels in place), batteries (to store the extra power generated), grid box and balance of systems (wires, nuts etc.). A solar system comes in various sizes like 1kW, 3kW, 5kW, 10kW etc. It comprises of:

a) Solar Panels/ Modules

what is solar panel

The most important component of a rooftop system are solar panels. They are the center of the system and everything revolves around them. Solar modules comprise almost 50% of the total cost of the system. Different types of solar modules will give different results.

b) Inverters 

what are solar inverters in india

Inverters are the powerhouses of the entire solar system that convert DC into AC. Approximately 25% of the total solar system cost comprises of inverters.

c) Batteries

what are solar batteries

They store the excess energy generated by the panels which can be used later when the sun goes down. Batteries are charged using solar panels. Higher the AH, higher will be backup time. Usually, a 150 Ah battery gives around 3 hours of backup on 400 watt power consumption. In India, 150 Ah is bestselling rating as it can last up to 3-4 hours if you use Led light, few ceiling fans, Led Television, mobile and Laptop charging.

d) Balance of Systems 

These include accessories like wires, cabling, mounting structures, junction boxes etc.

People/ buyers are also confused between an on-grid and off-grid solar system. An on-grid solar system is a system which works along with the grid, while an off-grid solar system works independent of the grid. It is more popular in India and comes with a power backup.

Importance of Solar System?

In this paragraph, we will discuss about the benefits of installing a solar system. Due to falling costs and improving technology, solar has become a mainstream source of electricity generation. Not only that, it is also a lucrative business option.

1. Investment Opportunity

modern business opportunity

People are always looking for lucrative business opportunities. They typically prefer low-risk and high return businesses and solar is one of them. It is estimated that out of the 3540 industries in India, renewable energy will be the most profitable industry over the next decade. It is claimed that an investor can earn up to 20% ROI per annum by investing in solar business. Solar as an investment opportunity is ideal for businessmen, real estate companies, hospitals, hotel businesses, etc. These businesses have extra funds in hand, and are always looking for profitable business ventures. Below are possible showing investment opportunities with return, and risk factor.

roi in solar industry

Solar business makes complete sense financially as the electricity tariff is very high in India. Installing a solar system is a viable option, because 1 kW solar system can roughly generate about 1500-1600 units of power annually. Some of the residential complexes charge around Rs. 7-8 per unit for electricity. You can therefore, recover your money in roughly 6-7 years’ time. If you put this money in a bank, you earn interest at the rate of 7%-8% max. The stock market is high risk, high return investment and is highly volatile too. 

2. Reducing Electricity Bill

solar system benefits

One of the major incentives of installing a solar system in your home is the reduction in the monthly power bills which is surmounting in the states of India. People, particularly homeowners are looking at installing solar system for this purpose. They are happy to save their hard-earned money and this saving is their earnings.

3. Power backup

solar energy system benefits

Many establishments such as small shops, offices, clinics, etc. install a solar system for power backup. Solar power offers a good alternative when there is a power cut. With a good power storage option, solar offers an ideal source of power supply. People also save on expensive diesel cost which is involved in the running of gensets.

Solar System Range & Their Output Per Day

solar system for home, college, hospital, factory, petrol pump

Nowadays, solar is finding increased applications. It is now easy to spot a solar panel mounted in schools, offices, hospitals, residential complexes, banks, railways, airports, parking lots, government buildings etc. As such solar system in available in various sizes and capacities in order to meet the needs of different customers. See full our installations.

solar system complete range and pricing

Price of Solar System in India

We have grouped these solar systems as below:

1-10 kW Solar System – is generally installed in residences, schools, petrol pumps, etc. It typically costs Rs. 1 lakh per kW.

11-50 kW Solar System –  is generally installed in factories, hotels, hospitals, etc. It costs approximately Rs. 75,000 per kW.

51 kW and more – are utilized in solar parks, and utility solar. These cost around Rs. 50,000 per kW.

An Off Grid Solar System typically costs Rs. 98,000 per kW while an On Grid Solar System costs Rs. 75,000 per kW.

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