How 1 lakh spent on solar plant is better than FD?

Solar panels can make us energy sufficient by processing Sun Energy. It is a brilliant way to curb ongoing climate change. From the Paris Agreement to UN debates, the climate has always been a major concern. Upgrading to Solar Panels is a real contribution that we can make towards our healthy future.

Using solar energy can make everyone get rid of electricity obtained by exploiting mother earth. There will be no more air pollution, water pollution, global warming etc. resulting out of using fossil fuels for our needs. Apart from environmental satisfaction, solar plants can also make us financially happy. It breaks the trap of paying hefty electricity bills. Additionally, Solar plants investments will give higher returns than Fixed Deposits. This article will explain the concept in brief.

What are Fixed Deposits?

FDs are defined are the financial instrument with a safe rate of interest. Fixed deposits are “safe investment, offer good returns, and are easy to open”.

What does Investing in a Solar plant mean ?

The energy produced by using solar energy will be the same as electricity that is provided by Electricity Departments. Investing in Solar plant means the savings that can be made on the electricity bills by using the sun’s energy.

Comparing Rs.1 Lakh Invested in Fixed Deposit and Rs.1 Lakh Invested in Solar Panels.

At an average, Fixed Deposit gives 7% the interest rate. This interest rate is subject to change with changes in government policies. If person A invests Rs.1,00,000 in a Fixed Deposit, he will receive Rs.584 per month (approx.) as his interest. This will sum up to Rs.7000 per year.

Now, if we have to compare solar invested to investment in Fixed Deposits, we have to know electricity rates. In India, electricity prices have tended to increase significantly for almost a decade now. Currently, the average electricity rate per unit is Rs.6.

Investing Rs.1,00,000 in a Solar plant will produce approximately 8 units of energy in a day (for a place with adequate sunlight, Eg North of India). Here’s how energy produced will be calculated in terms of money, 8units × Rs. 6 = Rs.48 per day.

With the same mode of calculation, person A will save Rs.1,440 (Rs.48 × 30) in a month and Rs. 17,520 (Rs.48 × 365) in a year.

As compared to FD, person A can save Rs. 10,520 more in a year.

Other Profits :

Government, both at Central and State level has been quite enthusiastic in bringing schemes related to solar energy. Schemes like Bescom‘s allows people with solar panels to import electricity as well as export access electricity to the department. This programme makes people earn money by generating electricity. Many other schemes are also available like Manohar Jyoti Yojana (Haryana), Mukhaya Mantri Solar Power (Delhi), CREST (Chandigarh) etc.

Another way of earning through solar investment is by investing in Solar stocks Competition in the Solar market has tremendously enhanced with an increase in awareness about climate damages. As a result, solar stocks are growing rapidly. Many high technology companies provide their customers with good featured solar panels available at affordable price. This industry tends to grow more. Hence, investing in stocks dealing with Solar market will bring a good return.

Maintenance cost of Solar Panel will not affect the Return promised from its installation.

The obvious concern is the Maintenance cost. Installing a Solar Panel at the top of your roof will require you to maintain it timely. Maintenance will ensure that your Solar Panel is working without any harm and efficiently. But there is nothing to worry. With tons of warranties that come with the solar installation and a few regular steps, solar panels are easily maintainable:

Make sure that the solar plant is clean and free from any defects.

Check once in a month if all parts are working efficiently.

In case of any defects, immediately contact experts (Performance Warranty and Product Warranty comes with assured working of the solar panel for nearly 20 years)

To clean off the dirt, clean water and mild soap can be used.

Make sure that in the cleaning process, the panel is not scratched.

Do not clean the panels frequently. Just keep a regular check on the working. Most of the times, the cleaning part can be done in the rain.

Hence, to sum-up, Solar panels can be installed easily. They come with safe and secure rate of investment, which turns out to be more than usual FDIs. Solar Panels come with easy maintenance. Recent government policies have made it much easier to shift to this renewable form of energy forming. Investing in solar plants can make a person immune to big budget electricity bills .