Justifying a Solar Home System Investment
Do you need a Solar Home System?
Let me help you answer the question.
Still contemplating integrating a Solar Home System to your grid connection to guarantee uninterrupted electricity supply and boost your comfort needs? Let’s evaluate the economic, operational performance and of course environmental factors of a standard 5KVA solar home system in comparison to a 5KVA generator, and then you can decide for yourself.
Economic Factor:
The initial cost of installing a solar home system with consideration to the Solar panels, inverters, batteries, and labor is usually a significantly higher upfront cost as compared to purchasing a diesel or petrol generator of the same capacity. This upfront cost has however been on a decline over the years, with an approximate percentage decrease of 83.33% between 2010 and 2022 causing the solar system to be increasingly more affordable.
The cost of a 5KVA SUMEC FIREMAN petrol generator is averagely Fine Hundred Thousand Naira (500,000.00) today, while a standard 5KVA Solar System will cost Two Million, and Seventy-Five Thousand Naira only (2,750,000.00). However, the solar home system has a zero operating and maintenance cost while the operating an maintenance cost for the petrol generator operating at an equivalent operating period with the solar system (averagely 12 hours) is about N250,000 monthly, which translates to N3 million in a year. Thus, in only a year the capital and operating expense put together outweigh the cost of the solar system which lasts longer than a year.
Over a long period, the solar systems will provide significant savings that pay off the initial capital outlay expended at the onset. A solar home system has a life of 5 years minimum, and this is tied to battery life and at this point the battery will require replacement. The battery component of the solar system is usually about 40% of the entire cost. Continuous use of the petrol generator will lead to reduced performance from the wear and tear of moving parts by the third year of consistent daily operation.
Thus, it is obvious that in the long run (averagely 3 years) the solar system is cheaper and every investment in the solar system would have paid off by the second year by the avoided cost of operating and maintaining a diesel generator in addition to the cost of utility-based electricity supply.
Performance Factor:
Even though the solar home system and generator have a power output of 5KVA, meaning they can provide the same amount of power to run electrical appliances and equipment. It isn’t the case with efficiency of both systems, as the solar home system would still maintain optimum performance upon three years since purchase, only the battery component of the system has a life of 3 – 5years before efficiency begins to decrease, while the other components have a life of over 15 years. On the other hand the efficiency of the petrol generator will decrease notably by the third year of consistent (daily) use as a result of wear and tear.
Reliability Factor:
A Solar system have no moving parts therefore reducing the chances of failure, it requires low maintenance making it extremely reliable. For a Generator, if well-maintained, can be reliable but it has more mechanical parts that require maintenance, regular servicing, fuel management, and repairs to ensure continued optimal operation. In addition, the Solar Home System is built to integrate and operate seamlessly without the need of an operator, but the diesel generator always requires human involvement which is not automatic and will lead to downtime for at least the period of transition, which happens automatically and seamlessly for a solar system.
Environmental Impact:
A Solar home system generates its power from a clean and renewable source, producing electricity without greenhouse gas emissions or air pollution. This reduced reliance on fossil fuels eases climate change advancement and promotes environmental sustainability. A generator naturally run on fossil fuels, emitting greenhouse gases, air pollutants, and noise. They contribute to carbon dioxide emissions and other harmful pollutants, negatively impacting air quality and the environment. The average 5KVA diesel generator for a use case of 12 hours daily will emit about 20 tons of CO2 equivalent in a year which is equivalent to the emissions of 3 months of a car used for daily commuting. The emission from a solar system is zero.
In conclusion, a solar system has several advantages over a generator of the same capacity. While the initial cost of a solar system may be higher, it offers long-term savings, low operating costs, and cleaner energy. A Solar home system is reliable, require less maintenance, and have a positive environmental impact compared to a generator.
If you’re convinced beyond reasonable doubt, or even if you’re not, and would like to engage further, kindly reach out to us on 09036721508 or through email on [email protected] for more information.
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