WHY SOLAR ?..
Benefits the Environment
Non-renewable energy sources are on the decline, making renewable energy sources all the more important. Solar power systems derive energy from the sun, and are one of the most widely used renewable energy sources. Installing solar panels helps combat greenhouse gas emissions and reduces the dependency on fossil fuels. Traditional electricity is derived from fossil fuels like gas or coal, whereas solar power derives all energy from the sun. This is one of the major solar power advantages. Choosing to install solar panels in your home or business is choosing to help the environment and lessen the impact humans have had on the earth.
Investing in solar power is not only good for the environment, but a smart choice for both homeowners and business owners. Installing solar panels offers you protection from constantly rising energy prices, as it is only a one-time cost. You’ll see reduced electricity bills, as all your energy is being derived for free from the sun. Choose an energy option that is good for both you and the environment by choosing solar. Making the switch to solar panels may seem overwhelming at first, but the benefits are clear. Help lessen your carbon footprint by making the switch to solar power, and see how you’re rewarded with lower electricity bills and energy costs.
INCOME TAX Benefits - Rooftop Solar Benefits: Accelerated Depreciation Rooftop Solar Benefits: Accelerated Depreciation Technical Definition Section 32 of Income Tax Act provides Accelerated Depreciation of 80% of the invested capital into Solar PV Projects to professional companies with tax liability. Investors can set off their tax liability on the taxable income to the tune of 80% in the 1st year, and subsequently 20% in the 2nd year.
- In Simple Words :- If your company was paying Rs.33 as tax on a profit of Rs 100 earlier, then by installing a solar plant of Rs 100, you can claim a depreciation expense of Rs 20/-(ie, you need not pay tax for 80% of the profit. You need pay tax only for profit of Rs 20 after 80% depreciation in first year . The 33% tax for Rs 20 is Rs 6.6) Now you end up paying Rs 6.6/- as tax. In other words, you end up saving Rs. 26/- on an investment of Rs 100 in Solar Plant. You can similarly work out depreciation in the second year
- Impact – Reducing the cost of the project to the extent of 26%
Peak power deficits and rising power prices
India continues to be plagued by a persistent demand/supply mismatch with a five-year average energy deficit of approximately 5% through March 2016 according to the Ministry of Power, which has resulted in upward pressure in power prices.
Strong regulatory support
In order to reduce dependence on energy imports and curtail the current trade deficit and the resulting impact on the rupee, the Indian government has taken a number of steps to incentivize the use of renewable sources of energy. To provide further impetus to solar growth, the Indian government launched the Jawaharlal Nehru National Solar Mission, or the NSM, in 2010.
Solar positioned to win among alternatives
India ranks among the highest irradiation-receiving countries in the world with more than 300 days of sunshine per year in much of the country. Solar power generation is viable across most of India, unlike wind and hydro resources which are concentrated in specific regions. In addition, as solar plants can be built near the point of consumption, power produced generally does not incur expensive transmission charges or require infrastructure or transmission investments.
Solar approaching parity
State utilities have seen power costs rise as domestic coal shortages have caused thermal generators to increasingly rely on more expensive imported fuels. An analysis of current tariffs in India indicates that solar power is now competitive with wind, new thermal capacity fueled by imported coal and grid power tariffs for commercial users. Further, diesel power, the most common replacement power source for commercial and off-grid users in the country, is far more expensive than solar power.
How it Works
Solar panels are about harnessing the sun to produce free electricity for the foreseeable future. The electricity produced by the solar power system can then be used in your home or business. Any excess solar power unused may be eligible to be sold back to the grid.Your solar power system will always provide electricity to appliances or equipment. Then, if needed, your electricity retailer supplies extra power. Although your solar power system will only work when there is UV light, be assured that the switch between the solar panel system and the grid will be automatic. There is never a transition time nor do you have to switch anything manually.