How Solar is the best Investment for a Nuclear Family?

Solar can be a smart investment option for a nuclear family in India that can save you tonnes of money.

Now, living in a nuclear family is becoming a norm.

It is all due to increasing urbanization, limited space, changing attitudes, desire for freedom, improved lifestyle, and more privacy.

And

If you choose solar to power your house.

Then it can prove to be a very good investment option with great returns.

Benefits of solar for a nuclear family

1. Solar energy is a clean source of energy. The solar panels used in the system absorb sunlight and produce current. There is no polluting gas emission in this conversion.
2. Solar panels are very durable and have a long life of over 25 to 30 years.
3. Although, it requires a good investment amount initially. But it payback very fast and offers fantastic returns over its lifetime.
4. Installing a solar power system on the rooftop is pocket-friendly as it requires very little maintenance.
5. The smooth electricity from the solar panels improves the useful life of the electrical appliances. Hence it saves and delays the replacement cost of the devices.
6. It is a perfect hedge against rising grid prices. If I take the average growth in grid prices over the last decade. It is growing at 8% per year.

A future scenario

Assuming today’s grid price of Rs. 7 per unit. In the 25^th year, you would be paying Rs. 45 for a single unit consumed.

While on the other hand, solar electricity is cheap and can save you a good amount of money in 25 years.

Thus, making it a very good investment option for the nuclear family in India.

Above all, it is a clean source of energy. By adopting solar you’re contributing towards preserving the environment and mitigating climate change.

“A 5-kW solar power system can reduce over 7 tonnes of CO₂ from air in a year”

Solar helps in mitgating the climate change

After knowing the benefits, most of you might be convinced of adopting solar.

Let us find the right size of solar panels for a nuclear family in India. By Nuclear family, I mean Parents (mother and father) and 2 children.

Finding the energy needs of a Nuclear Family to be met through Solar

With the increase in disposable income, we see families use various electrical appliances and gadgets to make its life comfortable and easy.

I am assuming a middle-class nuclear family uses the following electrical appliances.

1. Fans: 6 x 80 watts
2. LED light: 12 x 12 watts
3. Fridge: 1 x 200 watts
4. AC (in summers): 1 x 1500 watts
5. Oven: 1 x 1200 watts
6. Submersible pump: 1 x 1000 watts
7. Washing Machine: 1 x 600
8. Juicer/Mixer: 1 x 800 watts
9. Laptop: 1 x 20 watts
10. Mobiles: 2 x 10 watts
11. Heater (in winter): 1 x 1200 watts

*(The use can be more or less)

Let us find the average use in hours in a day. This is done to find the total energy consumed in a day.

When I talk about North India.

It has summer and winter seasons.

In summer, people use Air conditioners to get relief from hot weather.

And in winter, heaters are used to keep the surroundings warm.

So, when you are using AC, the heater is not used, and vice-versa.

And

North India sees a longer summer season than winter.

Therefore, I have taken energy consumption by AC into consideration for sizing the solar panels.

The same size of solar panels can be used to run the heater in winter.

Understanding the basic solar power system

First, let us understand the basic solar power system and its working.

A solar power system consists of the following components:

• Solar Panels
• Charge Controller
• Battery
• Inverter
• And all this equipment is connected through the wires.

The solar panels absorb the sunlight and convert it into electricity (direct current).

This direct current passes through the solar charge controller and charges the battery.

(The solar charge controller regulates the charging of the battery and prevents the backflow of the current toward the solar panels).

The battery stores this electrical energy in the form of chemical energy (a kind of Potential Energy).

The energy stored in the battery is used at the night or in cloudy weather (when the sunlight intensity is low).

The inverter converts the direct current into an alternating current.

Why there is a need of doing so?

Because most of our household electrical appliances run on alternating current.

(The alternating current has its own advantages over direct current).

If you want to know more about this then read my post: “Alternating vs. Direct current“.

After doing so, this alternating current is used to run our electrical appliances.

The losses in the solar power system

I’m sure you have understood the functioning of the basic solar power system.

You might have observed that the sunlight falling on the solar panels has undergone many energy conversions (from solar energy to electrical energy to chemical energy and direct current to alternating current).

All these energy conversions are not 100% efficient.

Part of it is always lost to the surrounding that is not useful for meeting our energy needs.

In addition, there are other losses such as dirt loss, shading loss, temperature loss, and age-related losses that get adds up cumulatively with the energy conversion losses.

And the total loss in the system can go up to 30% of the energy produced by the solar panels.

Despite all the above-mentioned losses, the solar power system is financially attractive.

Do you want to know the complete financial feasibility of the residential solar power system then try my Solar Feasibility Spreadsheet
Or
Take my Online Solar Course (How to size the complete solar power system and find its financial feasibility?) that is full of interactive videos and assignment excel sheets.

Solar feasibility spreadsheet and online solar course

Factors affecting the sizing of the solar panel for a Nuclear Family

The sizing of the solar panels mainly depends on the sunlight intensity of the location and the losses in the system.

A good sunlight region means you need fewer solar panels to meet your energy needs.

While in poor sunlight, more solar panels are needed to produce the same amount of electricity.

The sunlight intensity is measured in terms of Peak Sun Hours (PSH).

1 PSH = 1000 Watts/m²

If a region receives a daily average of up to 5 PSH.

It is considered very good for a solar power system.

The solar panels work effectively.

India is a sun-rich country with an average of over 5 PSH daily.

It is 5.35.

By looking at this, I can say that solar is very attractive for Nuclear Families in India.

Another important factor is the losses in the system. 

More losses, less output current.

Therefore, the complete system has to be efficient enough to reduce the losses.

We see the latest technology solar panels such as Half-cut solar cell technology, Mono-PERC solar cells based solar panels, and Bi-facial solar panels.

These technologies have reduced heat losses and improved the power output of solar panels.

Now, one can get more power in a limited space.

We also see efficient inverters and batteries.

Despite advancements in technology, there are losses in the system which we cannot avoid right now.

Therefore, it is important to consider these losses (that I have discussed in the above sub-section) before sizing the solar panels.

I assume the total losses consume 30% of the power produced by the solar panels.

(It can be more or less).

It means 70% of solar panel output is available for my electrical appliances.

To compensate for this loss, I need to oversize my solar panels by 1/70% = 1.42 (multiplier).

Sizing the solar panels for a Nuclear Family in India

The formula for solar panel sizing is:

Solar Panel size (Watts) = Multiplier x (Energy needs/PSH)

= 1.42 x (19600/5.35)

= 5000 watts (rounded-off)

Or

5 kW

Therefore, a nuclear family in India needs a 5 kW solar power system to meet its daily energy needs.

The size can be reduced or increased depending on the energy needs.

If a family is not using an AC in summer or a Heater in winter then its energy needs are reduced subsequently.

Even a 3-kW solar power system can meet energy needs.

And a nuclear family can enjoy smooth solar electricity for decades.

Price of a 5-kW solar power system in India

The price of any solar power system depends on many factors such as:

• Brand
• The technology of the solar panels
• Quality
• Warranty
• Service
• Type of system (On-grid, Off-grid, Hybrid)
• Battery Backup

If I talk about technology then we see solar panels based on different technologies such as:

• Polycrystalline technology
• Monocrystalline
• Mono-PERC
• Half-cut solar cell technology
• Bi-facial solar panels and more

Each technology has its own price.

If a consumer chooses a polycrystalline solar panel, then these are affordable but less efficient than monocrystalline ones.

Similarly, the Mono-PERC and half-cut solar cell-based solar panels are the most-efficient ones but have a higher price tag.

They have fewer heat-related losses.

These solar panels can produce more power even in a limited space.

And

Yes, bi-facial solar panels produce current from both sides.

Similarly, we see different technologies in the other components (solar charge controller, battery, and inverter) used in the complete solar power system.

Therefore, it is wise to talk in terms of average price.

When I take branded, good-quality solar panels and other components into the system.

The price of a 5-kW solar power system is:

• Rs. 3,10,000 (grid-tied system)
• Rs. 4,75,000 (Off-grid system with 2-day backup)
• Rs. Rs. 4,10,000 (Hybrid with 1-day backup)

Payback of a 5-kW solar power system in India

When you use solar electricity, you are saving money that you otherwise would be paying to the grid.

The money saved, when you switch to solar, depends on many factors such as:

• The price of the system
• Its maintenance cost
• Grid price and its escalation with time
• The technology of the solar panels
• Losses in the system
• Location and the sunlight intensity and more…

After considering the above-mentioned factors,

The average money that a 5-kW solar power system can save over 25 years is over Rs. 18,00,000.

This system offers you an annual return (IRR) of 16 %

Net Present Value of Rs. 4,70,707.

With a payback period of 8 to 9 years.

My Ending Note

• India is a sun-rich country with an average daily PSH of over 5.
• A 5-kW solar power system is suitable for a nuclear to meet its all energy needs in all seasons.
• In case, the family avoids using AC and Heater then a 3-kW solar power system is sufficient to fulfill their energy requirements.
• A solar power system not only offers an attractive return but also helps in mitigating climate change. A 5-kW solar power system can reduce over 7 tonnes of CO₂ from the air.
• Like any other system, there are losses in the solar power system. These losses can consume up to 30% of the power produced by solar panels. However, the owner can reduce these losses by choosing highly efficient solar panels, regular cleaning, giving the right tilt, installing them in a shade-free area, and choosing the right configuration.
• The price of the system depends on many factors as discussed above. It is advised to choose branded and high-quality solar panels.
• Because solar panels are the first interface between the sunlight and our electrical appliances.
• A poor-quality solar panel that you can get at a cheaper price. But they can significantly reduce the power output that may not fulfill the energy needs.
• Moreover, they have a short useful life and require more maintenance.
• After going through all the aspects, I can say that a 5-kW solar power system is a smart investment option for a nuclear family.
• It can save over Rs. 18,00,000 in 25 years with an annual return of over 16%.

Thank you,

“See you in the next post”

Yash:)

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