Installing a solar-powered panel alone can bring down your house’s carbon emission significantly, make the home more energy-efficient, and even reduce your electricity bills. Given these advantages, environmentally conscious or not, you may have considered converting your home to a solar-powered house at some point.
But here’s the thing. Solar panels are expensive, given they are composed of special semiconductors that can convert light to electricity. Moreover, they require additional installation, equipment, and set-up cost too. Safe to say, transforming your home into a solar-powered paradise requires a lot of initial investment. But how much? Let’s find out.
1. Solar power set-up costs
Setting up a solar-powered system at your house involves installing a solar panel, a solar inverter, a solar battery, a panel stand and solar panel installation accessories, along with panel installation cost and service cost. Depending upon the system and the number of solar panels, the installation costs vary.
According to Loom Solar, the average installation cost of a complete solar-based electricity system equipped with the latest technology is approximately Rs. 60,000 per kW and the price differs slightly from state to state.
Even though these costs may seem high at first glance, you can easily cover them with a home loan.
2. Government rebates
Both the state and the central governments offer subsidies to install rooftop systems. Here, the central governments pay a 30% subsidy to install solar energy systems in general states. For states such as Sikkim, Uttarakhand, Himachal Pradesh, Lakshadweep and Jammu and Kashmir, it offers a subsidy of up to 70% on systems costing Rs. 60,000 to 70,000. However, the homes must utilise about 1100-1500 kW per year to avail of the subsidy.
Here’s a tabular representation of the government subsidies you are eligible for depending on the power of the solar energy system you own.
|Up to 3 kW||40%|
|Between 3 kW to 10 kW||20%|
|Above 10 kW||0%|
Additional Read: Complete Guide for an Eco-Friendly Home for Beginners
3. Financing set up costs using a home loan
Sure, a government subsidy might cover a chunk of the installation costs. But what about the rest? What if you want to install a higher power solar energy system for your house or one equipped with more advanced technology? The solution is to opt for a housing loan. The best part? Most lenders even offer easy to meet home loan eligibility criteria, so it’s never too hard to apply for one.
Most lenders provide housing loans specifically to make eco-friendly upgrades. This includes converting your home to a solar-powered space. What’s more, they also allow you to choose your repayment tenure depending on your financial standing. So, you don’t have to stretch your savings to pay off your EMIs. Not sure what repayment tenure you should choose? Use a home loan EMI calculator to help you out.
Solar panel installation can cost a significant sum of money. But that doesn’t mean you need to forgo your lifestyle dreams. Get a loan with Tata Capital to finance all your eco-friendly home needs. Enjoy affordable home loan interest rates and flexi-EMI plans.