Introduction to On-Grid Solar Systems

Affordability and sustainability: These two terms best define solar energy. Adopting a solar system is a significant step towards a sustainable lifestyle. On–grid solar systems are known for their hassle-free maintenance, high efficiency, and cost-effectiveness. They are a common configuration for residential and commercial purposes and don’t rely on batteries for power storage. This blog will shed light on the working principle of on-grid systems and their long-term financial aspect.

How On-Grid Solar Systems Work? 

The solar panel absorbs the sun’s rays and converts them into direct current (DC). The inverter then converts the DC into alternating current (AC) and sends it to the grid. A net meter is installed to monitor the power sent to the grid, and a bill is generated at month-end, recording the power consumption from the on-grid solar system.

Benefits of On-Grid Solar for Homes and Businesses

• Low energy tariffs: The homeowner or business owner pays only for the power required. The excess power is pumped back into the grid, reducing the power bill.
• Net metering: Allows the owner to feed surplus power to the grid and receive a credit on the monthly power bill. 
• Low maintenance cost: Because no batteries are used, on-grid solar systems are easy to install and maintain.
• Environment-friendly: With zero harmful emissions, switching to a solar system can greatly reduce one’s carbon footprint.

Net Metering: A Key to Lower Bills

Net metering is the easiest way to store excess energy without using the battery. Also known as net energy metering (NEM) is a billing tool offered by electric utilities to send excess energy back to the grid. ‘Selling’ electricity back to the grid makes the homeowner eligible for a credit on their electricity bills. For example, if anyone gives back 10,000 kWh of electricity in a month and uses 30,000 kWh in the same billing cycle, then a surplus price of 10,000 kWh will be deducted from the monthly bill. Therefore, the owner has to only pay for the 20,000 kWh of energy used. Here are some other benefits of net metering:

• The owner enjoys financial benefits by returning the excess power to the grid.
• The owner doesn’t have to rely on backup or storage systems, so the maintenance hassle becomes negligible.
• It eliminates the heavy cost of batteries as the excess energy is transferred back directly to the grid.

The Financial Impact of Installing On-Grid Solar Systems

It’s a well-established fact that an on-grid solar system can save significantly on your energy bills. As a reputed solar installation company, we simplify your solar payback calculations so that you can get the most out of your investment. One of the crucial factors in deciding your energy savings is the payback period. This represents the time taken for your initial solar investment to be recovered through energy savings over the months. The shorter the payback period, the sooner you start getting rewards! 

Cost Savings Over Time with On-Grid Systems

Our experts suggest the following points to keep in mind while calculating the energy usage and cost savings over time:

• A more extensive solar system will generate more electricity than a smaller one, leading to faster payback.
• While homeowners can expect a payback within 4-5 years, business owners can expect the same within 3-4 years. This means for the next 19-20 years, you will be getting free energy for your needs.
• As a thumb rule, consider this formula for calculating total savings: Electricity Cost per kWh x Monthly Usage in kWh x 12 months x 25 years.

The Role of KCP Solar in On-Grid Solar Solutions

As a solar company in Tamil Nadu, we offer eco-friendly and high-performance on-grid solar solutions for every commercial and residential use. With nearly four decades of expertise in the solar industry, we have diversified and revolutionised our products and services to match the market’s growing needs. Our engineering team can help you find an efficient solar option that fits your budget and energy needs while ensuring excellent returns.

Conclusion

KCP Solar is known for its integrated on-grid solar solutions and significant market presence. We boast a global portfolio recognised for quality, reliability, and technology. Our high-efficiency PV modules cater to clients from small domestic systems to large industrial projects. Take your first step towards a greener future with us.