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Why Businesses Are Going Solar and How It Can Change Your Business Economics.

April 20, 2023
1) Energy Independence
Solar panels provide energy independence by reducing reliance on traditional power sources and the risk of power outages. Solar energy systems can be scaled up or down depending on a business’s energy needs for all size of businesses and able to store excess solar energy generated and can be used during periods of high demand or when solar generation is low.
2) Cost Savings
By generating their own electricity, businesses can reduce their dependence on the grid and avoid rising electricity costs. According to a report by the Confederation of Indian Industry (CII), businesses in India can save up to 50% on their electricity bills by switching to solar energy. Additionally, businesses that invest in solar energy can take advantage of government incentives such as accelerated depreciation and tax benefits, which can further reduce the cost of solar installations.
3) Government Incentives & Tax Benefits:
Governments around the world offer various incentives to encourage businesses to invest in solar energy. These incentives can include tax credits, rebates, and grants.
  • Accelerated Depreciation: Businesses can claim up to 40% depreciation in the first year on solar panel systems under section 32 of the Income Tax Act, reducing their taxable income and lowering their tax liability.
  • Interest Subsidy: The Indian government, through the Ministry of New and Renewable Energy (MNRE), provides interest subsidies for solar projects in India ranging from 2% to 5.25% of the total project cost, depending on the project type and size.
  • Goods and Services Tax (GST) exemption: Solar panels and related equipment are exempt from GST in India, providing a 5-18% reduction in costs depending on the state in which the solar panels are purchased.
  • Capital Subsidy: The government provides a capital subsidy of 15% to 40% of the project cost for setting up solar power plants, depending on the size and type of project.
  • Income Tax: Section 80-IA of the Income Tax Act provides a tax holiday for a period of 10 consecutive years to businesses that generate power from renewable energy sources, including solar energy.
4) Reduce carbon footprint
Switching to solar energy can significantly reduce a business’s carbon footprint. According to the Solar Energy Industries Association (SEIA), a typical 100 kW solar panel system can offset approximately 180 tons of carbon dioxide (CO2) emissions annually. This is equivalent to planting 4,000 trees or taking 34 cars off the road each year. By reducing their emissions, businesses can demonstrate their commitment to sustainability and contribute to a more eco-friendly future. Additionally, solar energy generates electricity without producing any harmful emissions, making it a clean and renewable source of energy.
5) Brand Reputation
By adopting solar energy, businesses can create a unique and positive brand image that is associated with sustainability and environmental responsibility. In today’s world, consumers are increasingly concerned about the impact of businesses on the environment and are more likely to support companies that demonstrate a commitment to sustainability. This can lead to increased customer loyalty and trust, as well as positive media coverage.
6) ROI & Long-Term Investment
Investing in solar energy provides businesses with long-term cost savings and a positive ROI. International Renewable Energy Agency (IRENA) reports that solar power is cheaper than fossil fuels in most countries due to falling panel costs and increased efficiency. Lawrence Berkeley National Lab found that commercial properties with solar installations sell for 16% more on average, enhancing both ROI and property value.
7) Sell Carbon Credit and Net Metering
  • Carbon Credit certificate: Businesses can sell their carbon credits certificate on carbon markets to other companies that need to offset their carbon emissions, generating additional revenue while helping to reduce global greenhouse gas emissions.
  • Net Metering: Businesses can benefit from net metering, a system that allows them to sell excess energy generated by their solar panels back to the grid. This can help offset the initial cost of installing solar panels and generate additional revenue for the business.
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Do You Know How Solar Panels Work?

April 20, 2023
At the heart of every solar panel is a semiconductor material, usually made of silicon, which absorbs photons from the sun’s rays. When sunlight strikes the surface of the panel, the photons are absorbed by the semiconductor material, causing the electrons within the material to become energized and break free from their atomic bonds.
Once these free electrons are released, they can flow through the semiconductor material and create a flow of electricity. This flow of electrons is known as a direct current (DC), which can be used to power electronic devices or stored in batteries for later use.
But most of the electricity we use in our homes and businesses is in the form of alternating current (AC), which is why solar panels are connected to an inverter. The inverter converts the DC electricity generated by the solar panels into AC electricity that can be used to power household appliances and equipment.
The efficiency of a solar panel depends on several factors, including the quality of the semiconductor material, the amount of sunlight it receives, and the angle and orientation of the panel itself. Solar panels work best when they are installed in areas with high levels of direct sunlight, such as on rooftops or in open fields.
In recent years, advances in solar panel technology have made them even more efficient and affordable. New materials and designs have increased the amount of electricity that can be generated from a single panel, while improvements in manufacturing processes have brought down the cost of solar panels and made them more widely available.
In conclusion, solar panels generate electricity by converting sunlight into DC electricity, which is then converted into AC electricity by an inverter. While the efficiency of solar panels can vary depending on several factors, advances in technology have made them an increasingly popular and cost-effective source of renewable energy. By harnessing the power of the sun, we can reduce our reliance on fossil fuels and move towards a more sustainable and environmentally friendly future.
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Why Going Solar Is a Bright Choice

April 20, 2023
India is a country with a rapidly growing economy and a rising demand for energy. With a population of over 1.3 billion people, the need for clean, renewable energy is more important than ever. Switching to solar energy is a smart investment for homeowners and businesses in India, offering a range of benefits that make it an attractive option. In this blog post, we will explore the top benefits of going solar in India.
1) Cost Savings
Switching to solar energy in India can provide significant cost savings on monthly electricity bills. With the falling cost of solar panels and increased government incentives, solar energy has become an attractive and viable option for both residential and commercial customers. For example, a residential home with an average monthly electricity bill of Rs. 5000 can save up to 70% by installing a 3 kW solar panel system. With a lifespan of 25 years, the homeowner can expect to save approximately Rs. 12.5 lakhs over the lifetime of the system. Industries in India can save up to 50% on their electricity bills by switching to solar energy, according to a report by the Confederation of Indian Industry.
2) Environmental Benefits
Solar energy is a clean, renewable source of energy that produces no greenhouse gas emissions. By reducing reliance on fossil fuels, solar energy helps to combat climate change and reduce pollution. In India, where air pollution is a major concern, solar energy can provide a sustainable and environmentally friendly solution to meet the country’s growing energy demands.
3) Increased Property Value
Homes and businesses with solar panel systems installed have been shown to have a higher resale value than those without. According to a study by the Lawrence Berkeley National Laboratory, homes with solar panel systems installed can sell for up to 4% more than those without. This can make solar energy a valuable investment for homeowners and businesses looking to increase the value of their property.
4) Energy Independence
By generating their own energy, homeowners and businesses in India can become more independent from the grid. This means that they are less vulnerable to power outages and fluctuations in electricity prices. In addition, solar energy can be used to power remote locations that are not connected to the grid, providing a reliable source of energy in areas where access to electricity is limited.
5) Government Incentives
The Indian government has implemented several incentives to promote the use of solar energy, including subsidies and tax benefits. Under the National Solar Mission, the government aims to achieve 100 GW of solar power capacity by 2022, providing significant opportunities for those looking to invest in solar energy. In addition, there are several tax benefits available, such as a 30% tax deduction on the cost of the solar panel system under the Income Tax Act.
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