Payback of solar panels, calculation and terms of profitability, feasibility of installation

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The significant leap made over the past 10 years in the field of technical development and improvement of solar panels attracts special attention to the issue not only from environmentalists, but also from investors. Today, solar panels are widely installed in many Western countries and are positioned as a technology of the future, on which European and American investors are already making money.

Of course, panels with photovoltaic cells to convert sunlight into electricity remain very expensive. Therefore, many have reasonable questions in terms of their payback. And yet, how can you make money from solar panels? And is this type of investment relevant in Russia?

Benefits of Solar Panels and How to Invest in Them

Investing in solar energy is a potentially beneficial, completely green solution. In addition to the fact that this type of electricity production does not pollute the atmosphere, it is very convenient for providing remote objects with power. Solar panels will also give you energy independence. Equipment owners will not have to pay for electricity to the state, and the surplus can be successfully sold, replenishing their financial assets.

The ways to invest in solar energy are as follows:

• Acquisition of a free plot for installation of solar panels and sale of the full volume of generated energy to the state. The payback period is 4-6 years, depending on tariffs and insolation (amount of sunlight) in the region.
• Installation of a battery on the roof of your own private house with partial consumption and sale of leftovers. Advantages: you do not pay for electricity, you receive a daily fee for the sale of electricity, the value of the house increases significantly on the secondary market. Typically, a solar battery pays off under such conditions in 10 years, after which all generated energy will bring only net profit.
• Installation of batteries on rented areas: roofs of multi-storey buildings, agricultural facilities, technical buildings, etc.

Many people are mistaken that only direct sunlight is needed to generate electricity. It is a myth. Converting sunlight into electricity is possible even on cloudy and winter days, although the efficiency still decreases. However, even in rainy and foggy Britain, investment in solar energy exceeds 20 billion a year, which speaks of its effectiveness.

What external factors affect the payback period of solar panels for a home?

Before calculating your expected income and enjoying future savings, pay attention to points that can slow down or, conversely, speed up the payback process for alternative energy sources in your home.

• Inflation, which, according to officials, is the driving force for the systematic increase in electricity prices. Its fluctuations in recent years range from 7 to 15% instead of the 4% declared by the Central Bank. It is easy to calculate that the increase in payments for consumed electricity is several times higher than the actual inflation rate. Thus, the higher the cost of energy resources, the greater the amount of money you save and the shorter the payback period for solar panels for your home.
• Currency equivalent of the cost of purchasing and connecting batteries. It is he who is important, and not the similar amount in rubles. Considering the stable level of prices in the world for solar batteries, one can note the process of reducing their cost in terms of currency. The result: the cost of the energy source falls, but its efficiency and productivity remain stable, and you receive tangible financial savings.

There is another important point that arises when trying to compare bank investments and investments in the purchase of solar panels. Profit on the former has dropped to 5% per year today and continues to fall under the influence of global inflationary processes. But the purchase of alternative energy sources guarantees income generation for 10-15 years at a minimum level of costs. The benefits of such an investment are obvious. The only condition is that you don’t skimp and choose a reliable battery model from a well-known manufacturer with a long service life. This will save you from the need for expensive repairs and will allow you to fully use the working resource of the solar power plant.

Examples of solar energy investments and their effectiveness

In many European countries, Japan, the USA, and China, the state financially stimulates the private installation of solar panels and provides favorable investment conditions. For example, in Germany, almost 25% of all electricity is produced using alternative sources. When investing money in solar energy, investors here do not face any risks - the bank will easily issue a loan at 20-30% of the down payment, and the installation is fully insured. The advantage of the investment is that it will pay off 100% and generate income in 8-10 years. For German citizens, this is an excellent investment option with the possibility of not only returning funds, but also making good money with a guarantee from the state.

Industry giant Panasonic has also made serious investments in solar energy, having fully equipped the entire city of Fujisawa, Japan, with its panels.

The advantage of this type of energy is the constant reduction in production costs of 1 kW. In Dubai (UAE), the cost of producing 1 kW of alternative solar energy has already undermined the efficiency of standard coal thermal power plants, becoming cheaper by as much as 3 cents. Expert opinions unanimously state that in 2-3 years, investments in this type of energy will pay off in less than 3-5 years.

Benefits from solar panels and their payback

Unfortunately, in Russia there is no preferential procedure for connecting solar panels to public power supply networks.
The exception is network-connected solar power plants with a capacity of 5 to 25 MW, which are supported within the framework of the Russian Government Decree of May 28, 2013 No. 449 “On the mechanism for stimulating the use of renewable energy sources (RES) in the wholesale market of electrical energy and capacity.” Under this regulation, owners of grid-connected solar power plants receive payments for installed capacity, i.e. for each installed kW of solar panels. The amount of payment is determined by formulas; the calculation procedure is given in the Appendices to the Resolution and will not be considered here, because This resolution has no relation to solar panels installed by individuals and enterprises to reduce their own electricity costs. The full text of Resolution No. 449 dated March 28, 2013 can be downloaded from the government website or here. All others must be connected to electrical networks using a general process connection procedure, which is quite complex and expensive.

The situation may soon change radically. Owners of private solar panels with a capacity of up to 15 kW can expect free connection to local power grids and even receive payments for electricity supplied to the network. This hope is given by the recent Instruction of the Vice President to the Government of the Russian Federation on stimulating the development of microgeneration based on renewable energy sources dated February 17, 2020. It is possible that soon any owner of a solar panel connected to the grid via a suitable grid-tied PV inverter will be able to receive a small compensation for sending excess solar electricity to the grid. It is intended that the current market price on the wholesale electricity market will be used for payment calculations. Of course, this makes it unprofitable to return the excess to the network, but it will be possible to legally connect to the power grid. The order makes an exception for apartment buildings - for them there is no procedure for installing and connecting solar panels to the electrical grid.

What is the situation in Russia?

Russia lags behind European countries in many respects in terms of green energy development. The country's economy is still 100% dependent on gas and oil production. However, the government's interest in this area of ​​solar energy in recent years creates some hope for profitable investment in the future. For now, the Russian Government is focused on the construction of state-owned solar power plants, the total generation of which in 2024 could reach 10-15% of the total electricity generation.

Perhaps we should expect favorable tariffs for selling electricity in the near future. The main problems so far remain dependence on the weather and the lack of a large number of sunny days in the central part of Russia, as well as the low cost of electricity produced by other classical sources.

What size solar panel is most optimal and cost effective?

In order to provide the average home with electricity autonomously and completely throughout the year, a very large solar panel is needed. The exception is if you use only energy-efficient appliances and are concerned about redistributing consumption in accordance with the arrival of solar energy. Which in the usual case is far from the case - we all strive for maximum comfort without the need to constantly monitor whether “there is enough solar energy to turn on the washing machine, kettle or power tool.”

For a grid-connected system, the optimal solution is to install a solar panel with a power of approximately 4 kW (16 solar panels of 250-280 W each). Such a solar battery will allow you to obtain most of the electricity required for your home in the spring and autumn. In order for your home to be fully supplied with electricity from solar panels during this period, you need a power of 6 kW (24 solar panels of 250-280 W each).

You can also see calculations of the cost of a solar power plant and its payback in the article “The price of an average solar power plant in Russia.”

Costs and payback

In the field of solar electricity generation, there is a very positive trend - the cost of solar photocells is constantly decreasing, and the cost of 1KW of electricity, meanwhile, is growing. It turns out that after purchasing solar panels, the estimated payback period will constantly decrease. In general, an exact calculation of payback will not make sense, because there are no universal standards here, and the dependence on other factors is very high: the number of sunny days, changes in tariffs, the cost of the installation itself, etc.

The approximate estimated cost of the equipment complex at the end of 2016 is less than $1 per 1 Watt, respectively, a 10 kW installation will cost about $8,000, 20 kW - $16,000-$20,000, etc. You can increase power gradually by purchasing additional solar modules, batteries, and inverters. You can speed up the payback by 3-4 years by purchasing cheap but unreliable Chinese panels, or take care of quality and durability by overpaying 30-40% for German equipment.

With the most depressive calculations, the installation of solar modules with an operating period of 30 years should pay for itself in 15 years in the northern regions of Russia, in the southern regions in 7-10 years with partial consumption. That is, over the entire period of operation, you can increase capital by 190% -500%.

What to consider when purchasing solar panels

If you want to calculate how profitable it will be to install a solar system, then before starting all the stages you need to perform a number of actions. They will help you decide on the type of solar panels, their quantity and cost, which is a prerequisite for calculating the payback.

Average monthly electricity consumption

Before choosing and buying solar panels, you need to decide on their power and quantity. And this can be done only after calculating the electricity consumed, that is, how much current the solar system should produce so that you cover all your needs in the house. How to do it right? There are two options:

1. Transfer meter readings.
2. Calculate yourself.

The second option will be more detailed and will allow many errors to be taken into account. So, to find out how much electricity a battery should produce per month, you need to calculate your total average monthly consumption. To do this, it is better to take a pen with a piece of paper and write down all the electrical appliances that you regularly use. It will be convenient to make a small table. Below you can see an example.

For powerful electrical appliances (refrigerator, washing machine, microwave), you need to add another 5% to the value of energy consumption in W*hours; this gap will be used for the first few seconds of starting the device, because the starting power is 3-4 times higher than declared.

The number of operating hours you indicate is approximate, but it is best to take a little more to definitely cover consumption. Next, you multiply the energy intensity of each device by the number of operating hours and get the value - daily electricity consumption. All that remains is to add up the indicators for all devices and multiply by the number of days per month. This will be your overall approximate energy consumption. Based on our data, this is 8300 W per day or 249 kW per month. You can find out how many watts a particular electrical appliance consumes from its technical documentation or on the website of the manufacturer or seller.

It is not enough to calculate only the total average monthly electricity consumption; it is important to adjust this value for other energy losses associated with the operation of the solar system.

So, the value of 249 kW per month needs to be adjusted upward, firstly, due to the energy consumption of devices necessary to ensure the operation of solar modules, and secondly, to take into account the conversion of direct current into alternating current. This means that solar panels, receiving solar radiation, produce direct current with low voltage, which is insufficient for domestic needs. For this, a special inverter is purchased, which produces an alternating current with a voltage of 220V at the output. The operation of this device “consumes” about 10-15% of the generated energy. And also a battery, which is also necessary to accumulate current and provide electricity in the dark, when there is no sun and the batteries do not work. Thus, about 30% will need to be added to the resulting value for average monthly electricity consumption.

Solar system cost

Before purchasing solar panels, you first need to decide on your budget and how much you are willing to invest in this system, since purchasing solar modules alone will not be enough. Costs will be associated with installation, connection, and maintenance. All this doesn't come cheap. One or two panels will not be enough to service your home, especially if you want to go full solar. This will require about 10 batteries. One medium-sized panel with 36 elements of good quality and high power will cost between $300-500. There are, of course, cheaper options, but then more panels will be required for large output. So, on average, a solar system will cost about $5,000.

Battery installation and maintenance costs

Buying 5 or 10 sections of solar panels will not be enough. For the system to fully operate, you need to spend extra money on an inverter and battery. An inverter is necessary in order to convert direct current received from the sun into alternating current with a voltage of 220V, which is needed for domestic needs. The cost of inverters varies, depending on the manufacturer and power. On average, such a device will cost about $300.

Next will be the battery. It allows you to use electricity at times of day when it is actually impossible to generate current from solar radiation, for example, at night or on cloudy days. The price of a battery is also affected by its capacity. The higher it is, the higher the cost. For long and uninterrupted operation, a controller is connected to the battery. Its task is to control the voltage level and protect against complete discharge of the battery. The controller kit with battery will cost $500.

Costs will also be associated with installation - purchasing fasteners for solar panels, special structures for fixing, screws, brackets. If the installation is carried out on the roof, then it is better to call specialists, as well as a professional electrician to lay the wiring. The cost of work will depend on the complexity, number and size of batteries. The services of such workers also include maintenance of the solar system, for example, changing the angle of inclination depending on the time of year or removing dirt and snow from the modules. Such events will also affect overall costs.

Payback of solar panels