COMMERCIAL BENEFITS OF SOLAR
Going Solar is inexpensive and completely self sustainable these days. As the global trend of Solar Panels cost has gone down with newer technologies pushing through, the demand being on an all time high and proper government policy and regulatory support, it does makes a lot of commercial sense to go solar now. Some of the benefits are mentioned below:
Cost Savings on Electricity Tariff:
Cost of energy is rising every day with the increase in demand of fossil fuels and increased urbanisation. India is a country where still we have to achieve 100% access to electricity and we are moving at a fast pace to achieve that, there are many government schemes and work in progress to make new sub-stations, new grids to make power available to all. This also means that the price of power will be on a rising trend till 2030 minimum.
There are many other factors which are leading to price rise like energy theft, transmission and distribution losses and bad shapes of government owned utilities.
In the current scenario, going solar makes a lot of sense for people who want to be selfsustainable for their own energy needs for a period no less than 25 years as that is the guaranteed/warranted plant life.
Now, with the support of government policies like Net-Metering/Gross-Metering it is easy to have 100% power through solar, thus saving all your yearly energy costs.
Accelerated Depreciation is a method introduced by the central government wherein going solar also provides tax incentives and tax savings. For corporates or companies asset depreciation plays an important role in planning their yearly tax.
Solar Energy Investments can be depreciated in an accelerated manner by 40% each year and again 40% the next year on the remaining value thus providing huge savings in tax and boosting plant viabilities.
Using Accelerated Depreciation Equity returns on investments made on Solar Energy Assets can be returned with the first 2 years and entire plant payback with interest can be achieved in 3 to 4 years.
10 Year Tax Holiday:
10 Year Tax Holiday is another tax saving incentive introduces by the central government to boost solar power use, according to the incentive the Solar Power sold to Grid or Private Party cannot be taxed for a period of 10 Years, which again saves a lot of money for the investors and further boosts the Return on Investment.
Renewable Purchase Obligations:
Renewable Purchase Obligation(RPO) is a mechanism built to obligate commercial and private entities with load requirements exceeding 1MW to purchase/have a percentage of power from renewable sources. A Solar Energy Asset provides monetary benefits in terms of savings from the obligation and the purchase of Renewable Energy Certificates as well.
Corporate Social Responsibility:
Owning a Solar Asset also acts counts as part of corporate social responsibility as it reduces your\ own carbon footprint along with the nations, along with providing monetary savings on power.