Why Solar is the Best Fit for Industries & Commercial Organizations.
In today’s scenario, alternative power is in high demand. A major factor is the prices of conventional power sources have shot up rocket high and the environmental concerns have prompted many businesses to opt for alternative power sources. In India states have adapted solar for industries & commercial organizations. States which taken a step towards this are Gujarat, Madhya Pradesh and Rajasthan the adaptation of green environment and Adaptability of renewable energy sources for all commercial and industrial organizations have been remarkable as they use solar not only for its stability but it has been a profitable choice for them too. In terms of clean power generation, no restriction and has numerous financial advantages.
According to the study made by Mercom for the year of 2017, there has been increased in solar installations and would have easily crossed 10 GW approximately. This study made in 2017 makes India one of the most important solar markets in the world, after China and the United States; with large-scale projects under the National Solar Policy (NSM or JNNSM) leading in the states of Tamil Nadu, Gujarat, Telangana, and Karnataka.
Are you still in confusion, if solar is suitable for your organization? Below are few advantages, which would help you make the best decision:
- Reduced Power Costs:
Solar power is the alternative power compared to conventional power. Hence this alternative power is adapted by many for the reason being cost. Conventional power’s prices have shot up significantly and by adapting to solar power, users have always recommended it to others too. As the cost of power per unit is significantly lowered from your current energy costs. Investing in a solar power system is almost like prepaying for your energy consumption at a fraction of the cost. Greater savings is always good for business (big or small).
- Return on Investment
The Government of India has been making efforts on its part to promote sustainable energy production and consumption and safeguard the future of the earth. The Central
The Government of India has been making efforts to promote the green and clean environment. And one of the initiatives’ is to promote sustainable energy production and consumption and safeguard the future of the earth. In order to boost and support non-profitable organizations, The Central Government (MNRE) provides 30% subsidy to increase solar production. Solar policy differs in each state, in Gujarat – Solar installation of contract demand load is 50%, in Maharashtra its’ 100%, in Rajasthan its 80% and Madhya Pradesh it has no limits on the solar capacity for private projects. Investing in solar power generates both long-term savings and quick payback. You would attain your ROI within 4-6 years of investment. Accelerated Depreciation Benefit.
One of the major benefits of opting solar power is it provides tax relief! Due to the higher rate of depreciation that businesses can avail under section 32 of Income Tax act. As per the act, the normal depreciation rate for plant and machinery is 15-20%; whereas for solar installations the rate is 40%. This accelerated depreciation accounts for major relief in the upfront cost of the solar power plant by 40% in the first year of operation, 40% in the second year and 20% in the third year. Thus, within a period of three years, a business can claim 100% depreciation for a solar project at effective tax rate (as per government) of 33%.
- Fulfilling the Renewable Power Purchase Obligation (RPO) and Becoming Green
An effort has been made to implement green environment by India. And in this effort an amended National Tariff Policy, RPO has been implemented which shows the increase from a minimum of 0.25 percent in 2012 to 3 percent by 2022. Additionally, CERC and SERCs have issued various regulations on solar RPOs making it mandatory for the industries using a conventional source of energy from open access market. Your organization can also leave an imprint in becoming a part of the global initiative to battle against global warming, adhere to your carbon credits and meet your RPO obligation.
- Hassel Free Maintenance, Reliable Operation and Power Generation
Any solar power system requires little to zero maintenance post installation. At Apollo Power Systems, we go a step beyond installation, to make our clients satisfied and happy with us, by putting our rich experience of 25+ years in place with our expert team is available 24X7 for any assistance. The technology which we use is best of its kind in the market. Contact us to know more.