Pros and Cons of Solar Energy


An electricity generating power plant which converts sunlight into electricity is called a solar plant. Solar energy is a booming sector throughout the world. Governments all over the world are investing in this sector. They provide subsidies, tax benefits and various incentives to promote solar energy. One of the major reasons, world is looking towards solar power as a possible replacement for fossil fuels is that it is available abundantly and universally. Solar energy is not confined to few countries or locations. A day comes everyday everywhere and brings with it the immense amounts of solar energy in the form of heat and light. Secondly, solar energy is a clean form of energy. It is the best option we have today in order to fight global warming and climate change. Thirdly, solar power is the most reliable and safe way to generate a passive income. There is even much more to solar energy. Here, in this post we will list and explain entire pros and cons of solar energy.

Pros and Cons of Solar energy

Pros and Cons of Solar Energy

Solar Plant is Reliable and has a Long Plant Life

Solar Plant’s life can be considered to be of 25 years. This is the period for which most solar panels are under warranty.

Solar plants are static devices and does not contain any moving parts. Because of no moving parts, there is no withering and tearing off with time. This gives solar plant its characteristic long life.

These are very reliable devices. Their efficiency does not get affected much even after this long period of time. Though these devices come with a warranty of 25 years, they have much life even beyond this period.

Reduce your electricity bill by up to 100% for more than 25 years using Solar Energy

Solar plants are long life devices. The life of a solar plant is considered to be of 25 years. Though they work effectively even beyond these 25 years. Solar panels often, comes with 25 years of performance output warranty. These are static devices and so are reliable, efficient and long lived. You, don’t have to worry about its working for 25 years after installation.

A solar plant has to be designed and sized effectively to suit one’s requirement. A nicely designed solar plant will nullify your electricity bill or will reduce it to a bare minimum. As discussed, solar plant has a life of more than 25 years. So, you can receive this benefit for all those years.

Create a Passive Income through Solar Energy

Solar energy needs to be looked at as an investment. You get return from your investment, just like you receive it from investing in stock market and fixed deposits.

Pros and Cons of Solar Energy

When you install a solar plant, you save a lot of money you spent on electricity bill over the year. You receive return on investment by four to five years in any type of solar plant. With subsidies, tax benefits and incentives provided by government, you can get Return on Investment (ROI) even faster. Solar plants have a life of 25 years. Now, your savings, gradually, transform into earnings after those four years. When calculated over a period of 25 years, you can calculate your yearly percentage rate of return. You’ll find that, this is much better than many other famous investment schemes.

For Example, you install a 5 kWp solar plant at your house. Yearly you can generate approximately 8100 units from this solar plant. If you assume a unit of electricity to be ₹5/-. You can save approximately, ₹40,500/- in the first year itself. Solar plant life is considered to be of 25 years. Over this period, you can earn lakhs of Rupees from solar energy. In other words, you can have a return of 10% per year from a plant as small as 5 kWp. This becomes your passive income. This creates an income source for you. Now, you can earn from something which is a necessity and for which you are paying for from so many years. Just like any other investment, you have to give it a time before it turns profitable and makes money for you. You will earn even more, installing bigger plants. To read more about how you can earn from solar energy, click here.

Subsidy on Solar energy

In India, Ministry of New and Renewable Energy (MNRE) provides subsidy up to 30% to the consumers who install on-grid solar plant. In special category states, such as, Himachal Pradesh, Jammu & Kashmir, North Eastern States, Sikkim, Andaman & Nicobar Islands and Lakshadweep islands, subsidies up to 70% are provided.

However, these subsidies are for residential, institutions and non-profit organisations only.

Tax Benefits on Solar Energy

If there are subsidies for residential and non-profit organizations, there are tax benefits for all commercial and profitable establishments in India on installing a solar plant.

These tax benefits come under Section 32 of Income Tax Act.

Feed excess Solar Power to Grid through Net-Metering, further reducing your electricity bill

On-grid solar system feed excess solar energy generated by your plant after your consumption to the utility grid. The electricity you export to the grid gets subtracted from your monthly electricity bill. This reduces and sometimes even nullifies your electricity bill. Often times, when you are on a vacation and there’s no consumption of electricity in your house, all the energy generated from your solar plant will get exported to the grid. This will be adjusted as a further reduction in next month’s bill. This will reduce your electricity bill for this month as well as next month.

Get generation-based incentives (GBI) in Solar Energy

In India, when your exported power to the grid exceeds to what you have utilized from the grid over the year, you receive incentives for all extra units you have provided to the grid. Thus, this forms a source of extra income or can been seen as a bonus or award government provides you to supply electricity to them.

Get return on investment within 4 to 5 years of installing Solar Power Plant

Pros and Cons of Solar Energy

Several studies and analysis have been done on this topic suggesting that you can get Return on your Investment (ROI) within 4-5 years of your investment. This is the most probable period within which you can receive ROI. Though, it depends on the quality and cost of components employed which varies according to different brands. ROI also depends on the size of a solar plant. As the size of solar plant increases, the duration of ROI decreases.

As the cost of solar plant continues to decrease, you can get Return on Investment even within 2 years in some cases. Broadly, it can be said that, ROI comes within two to five years for all types of solar plants.

Solar Energy is Free, Abundant and Universal Source of Energy 

Pros and Cons of Solar Energy

Solar energy is the most abundant source of energy available to mankind. Notably, all other sources of energy, be it conventional sources such as fossil fuels or renewable ones like wind and geothermal etc., all are derivatives of solar energy in some form or the other.

Not only abundant, solar energy is a universal source of energy. It is not confined to country or location. It is available everywhere all over the world. Duration and period of sunshine may vary from place to place, but it is available everywhere. It is available everywhere and is also sufficient enough everywhere to suit all human needs.

Nature has bestowed us with sunshine and does not charge us anything for this. It is an infinite amount of energy available for us to harness to suit our needs.

We can say that,

When nature is providing us free electricity through solar, why pay for it.

Generate thousands of units of electricity from Solar Plant

A solar plant as small as 1 kWp will generate approximately 4-5 units of electricity daily for countries like India. This is an average for a day over the entire year. This will correspond to approximately 1600 units annually.

Minimal maintenance of Solar Plant

Solar plant is a static device that generates electricity from sunlight. Neither it contains any moving parts like generators nor it has batteries like inverters which require maintenance. Having no such parts, solar plant is a maintenance free system. No oiling or checking water level kind of chores are required to maintain a solar plant.

Only a periodic washing of solar panels, just like washing a window or a tiled floor is required to maintain a solar plant generating at its full potential. The period of washing varies from location to location. It is that, when you feel panels are dirty and blocking solar radiation to go inside solar panels, you should wash them. To know more about how to clean solar plant, click here.

Solar energy has no Recurring Cost

Solar plant doesn’t require any major maintenance. This makes it very convenient and easy on pocket as it doesn’t have any recurring cost.

Solar Energy comes with Long Warranty

Solar panels have warranty for almost the entire life of a solar plant.

You, generally get a warranty of 25 years on solar panels. This is better than any electrical equipment you can get in the market.

Save Earth by using Solar Energy

Pros and Cons of Solar Energy

Installing a solar plant is equivalent to installing thousands of trees. You can save tons of Carbon Dioxide emissions every year using a solar plant. Click here, to calculate how much carbon dioxide emissions can be saved using a solar plant.

Global Warming and and Climate Change has become the biggest issue of the 21st century. Every nation around the world is being affected by this and some are so badly hurt that their existence has become the real question of concern. Our seasons are changing and pollution levels are increasing to an alarming level.

All these can be taken care off using Solar Energy.

We must take care of our planet. Things which required billions of years to be made are being destroyed in seconds. 

Get 24-hour power backup electricity using Solar Energy

For people, living in areas of insufficient electricity or in areas where electricity has still not reached, solar energy is the best option. It can power all their energy needs.

An off-grid solar plant generates power during the day to be utilized for use and charging batteries. During night, these batteries can power all energy needs.

Solar Panels makes your roof Cooler by several Degrees

During summers, in hot countries like India where temperatures can reach beyond 45 degree Celsius or 113 degrees Fahrenheit, the top floor becomes too hot. Solar plant on your roof saves you from this heat as it absorbs much of the Sun’s heat falling on it. This results in rooms on the top floor being cooler and tolerable.

Solar Plant increases Property Cost

A house or office or building has a higher property cost as compared to the one without. Since, solar plant is an investment, it increases the value of the building on which it is installed.

In case you put your premises on rent, you can receive a better rent, if solar plant is installed on your roof.

Makes your building a modern Green building

Pros and Cons of Solar Energy

Solar energy is a green energy. It is also a modern technology. It’s a must have in any modern building. You put so much money in the interiors to make your building look best. You buy latest gadgets and best furniture to make your building stand out from the rest. But you are always willing to pay the heavy electricity bill every month. This is not a characteristic of a modern building. A modern building should be self-sustained in everything. It should generate electricity of its own and in doing that it should not cause global warming. This will enhance your status in the society.

Apart from the ones mentioned above, there are many more benefits of installing a solar plant while constructing your building. All the cables can be laid in conduits inside the walls while construction. This will gel better with your modern building and will be more beautiful and thoughtful.

There are so many advantages of installing a solar plant. This is the reason why Indian Government under Jawaharlal Nehru National Solar Mission (JNNSM) is aiming big in this sector. Govenment of India and Ministry of New and Renewable Energy (MNRE) plans to install a whopping 100 GW till 2022. Of this, 60 GW will come as Ground-Mounted solar plants and the rest 40 GW will come from rooftop solar plants.

Not only in India, but, all over the world, solar technology is touching lives of millions of people and improving their living standards. Lives of several communities in Africa have changed completely through various innovative designs of this solar technology. Recently, Saudi Arabia has announced, that it is planning to install world’s largest solar plant having a budget of $200 billion. China manufactures the most number of solar panels and is one of the leading countries putting money on solar energy. Germany, USA and Australia are also working hard on research and implementation to grow this sector.

To accelerate this movement, International Solar Alliance (ISA) has been formed with over 100 countries as its members and it is headquartered at Gurugram in India.


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