ON GRID - SmartEco Power Systems

On Grid Solar System

Grid-Tie RTS Solutions

Conceptual Overview

When sunlight falls on the photovoltaic (PV) solar panels, DC electricity is generated. DC is then converted into AC by the solar inverter.

The on-grid rooftop solar system (also known as grid-tie) is connected to the main utility power lines (KEB grid) and produces electricity during the day when grid is up.

This power is available for instant use OR exported to the grid, if unused. If at any time due to low sunlight, if system doesn’t generate enough power, it draws the power from the grid to make up the shortfall. Surplus power generated from panels that is not used is fed into the grid.

The bidirectional meters measure the solar generated electricity going into grid AND units drawn from the grid. At the end of each month, they are reconciled. The ‘net-consumption-units’ arrived at, are charged at grid tariff.

For the surplus ‘net-units-exported-to-grid’ CESCOM pays the consumer as per buy-back tariff agreed in the Power Purchase Agreement (PPA) valid for 25 years.

Many are opting for on-grid system as they get a credit for the excess power generated and save on their monthly electricity bills by captive consumption of solar power during the day.

Based on sun irradiance in the state, the guidance on power production is ~4Units/Day/KW of panels. It may generate above 5Units/Day during summer and below 4Units/day during rainy/winter season. 4Units/ KW/ Day on an average is a yardstick to measure RTS performance.

Advantages ✅

Achieve long term savings on energy bills. Higher the captive consumption of solar power, more is the savings as grid-tariff is bound to increase in future.
Surplus power exported to grid will get additional revenue to offset the fixed demand charges and thereby helps to achieve zero monthly bills.
Less expensive compared to off-grid and solar hybrid systems. Lower upfront cost, since battery storage is not needed.
Good choice in urban areas with a reliable grid.
Only on-grid systems can get subsidy for residential customers.

Disadvantages ❌

Doesn’t prevent power outages, as it relies on the grid for reference. If grid is down, RTS is also down.
As per design, as a safety measure, on-grid systems do NOT generate power when grid power is down. This is to avoid accidents from RTS system exporting power to grid while grid maintenance is going on.
On-grid systems DO NOT have batteries for power storage. They don’t function as UPS.
On-grid systems will NOT generate power efficiently during cloudy and rainy days and during night.

What components On-grid Solar installation has ?

Among RTS solutions, on-grid systems require minimal number of components. Hence, they are least expensive. Grid-tie systems have:

Standard solar equipment like PV panels, mounting structures and connectors.
Grid-tie inverters, either string inverters OR microinverter(for each panel).
Bidirectional electric meter to track electricity generated, exported to grid and power imported from grid.
Other standard BOS components like AC/DC connectors/safety disconnects, MCB etc.

Our Solution Partners

In view of 25 Long Years of RTS lifetime, the components that constitute the solution are key to performance of an installation. Here are India’s Top Rated Brands that make our solution

A Note on Zero-Export Option

The zero-export option in grid-tie RTS functions like any grid-tied system except that there is NO export of surplus power to grid. It is useful only in places where 100% power units generated by solar is consumed during the day.
Surplus power generated if NOT used, will go waste as there is NO export to grid. Hence no CESCOM buy-back possible. This option can save money on monthly energy bills by preferential use of RTS power during day VS expensive grid power. Hybrid inverter has settings to facilitate Zero Export.
No CESCOM approvals needed for zero-export installations, no PPA with CESCOM, No limitation on the installation capacity.

Few tips before deciding on On-grid option

Undertake an energy audit by knowledgeable EPC vendor. SmartEco does it for free. Assess the need of how much capacity and type of system needed (e.g. on-grid/off-grid/hybrid solar) based on your power requirements, other criteria and budget.
Explore other options like off-grid or hybrid solar, if grid power cuts are common in your area, On-grid solution may NOT be a right choice.
Evaluate the pros and cons of going for subsidy and external finance. Each has advantage/ disadvantages. (Refer to SmartEco FAQ).
Evaluate the OEM brands used as part of solution. Not all component brands are equal w.r.t quality, brand image, market presence and warranty support credentials.
Check on EPC vendor credentials from ‘technical expertise and local support’ perspective. Check for customer feedback on social media. Local presence of vendor helps to minimise turn-around time when issues come up post installation.
Ask for site visits, meet and discuss with other RTS owners on system performance, vendor’s technical knowledge, experience and local support before deciding.

Choose a Right Installer/EPC Vendor

Grid-tie RTS solutions not only requires good photovoltaic design understanding but also good knowledge of grid LT/HT electrical fundamentals. Knowledge on KEB/KREDL/Govt agencies’ procedural formalities for sanctions/approvals/policies is essential to guide customers w.r.t taking up right decision.

Go with an EPC vendor who is knowledgeable, provides the un-biased value-for-money solution to meet your exact requirements and NOT force-fit any standard solution to you.

Look for value-added services vendor offers, like liaison support with CESCOM /OEMs/Banks and NBFCs etc. so that going solar is made easy for you.

Return on Investment (ROI) for On-Grid RTS

Among the 3 solar solutions (on-grid, off-grid and hybrid solar), on-grid RTS is the one that gets you the highest ROI and pays back in shortest period. Key points to note:

Commercial RTS will have 30%-50% ROI considering the benefits of accelerated depreciation and GST claims. Residential RTS may get 20% – 28%.
Higher the captive consumption of solar power, better will be the ROI.
With loan, ROI will have slight impact due to interest burden. Still, they are impressive. (Refer to “Financing options”)
With subsidy ROI will also an impact because of lower buy-back tariff from CESCOM for the surplus exported units. Subsidy is beneficial when captive consumption is maximum.

“ It is widely known fact that RTS investment returns (ROI) are much better than average returns on investments made in mutual funds, FDs and Gold “.

An indicative list of residential and commercial RTS projects’ cost-benefits.

Note:

Lifetime profits include savings from captive power consumption + earnings from exporting surplus power to Grid + interest earned for savings made after the pay-off years.
Accelerated depreciation benefit can be claimed at 100% within 3 years. NPV of the tax savings is adjusted against the initial cost to arrive at net investment.
Current grid tariff is in the range of Rs. 7.00 – 10.00 and it may be 6-7 times after 25 years due to constant tariff hikes.
Average 25 years grid tariff for residential is approx. Rs.12.50 whereas lifetime average cost of solar power comes to 1.40–Rs.2.30/unit only.
RTS cost figures are indicative as on Mar-2024 (excluding GST and other costs)

SmartEco credentials in On-Grid solutions

“On-grid RTS solutions constitute 90% of SmartEco projects.”

We have been rated at 4.8 out of 5 that we are extremely proud of.

We have been featured in SiliconIndia publication as ‘10 most promising Green Energy Solutions Providers – 2023’ based on customer survey. ”

Our grid-tie solutions for both residential AND industrial combined together include several hundred KW capacity in total. We take care of 500KW+ RTS installations’ maintenance and performance monitoring as part of AMC support.

Rest assured, you will be in safe hands when it comes to ongrid-solar solutions.

International Youth Hostel, Mysore

Embarking on a cost reduction initiative, moved away from 100KW grid power to a fully self-reliant 40KW HT solar rooftop solution. Solution included energy audit, load reduction, right-sizing RTS with a super structure. Key highlights:

45-60K electricity bill brought down to minimum. ROI of 34%. Annual savings of Rs.5.63L. Lifetime savings of Rs. 1.4Cr.
An international award winning project for YHAI for Sustainable Tourism.

MayFlower, a leading hotel in Mysore

A hotel with considerable spend on electricity opting for 50KW Grid-tie solar as sustainable energy solution. Key highlights:

60K monthly savings on electricity charges. ROI of 35%. Annual savings of Rs. 7.29L. Lifetime savings of Rs. 1.8Cr thru captive consumption alone.

Tranquil Blue Studio Service Apts Mysore

Significant cost reduction of Rs. 60-65K/month made possible thru this 50KW RTS installation. Highlights

ROI of 34%. Lifetime savings of 2.36 Cron captive consumption + interest on savings.
Lifetime annual avg savings of Rs. 9.44L.

Machine Tool Manufacturer in Mysore

A machine tool manufacturing industry unit, with over Rs. 75K monthly spend on power, adopting 40KW solar energy plant on rooftop.

ROI of 30+%. Lifetime annual avg savings of Rs. 8.82L.
Lifetime savings of Rs. 2.2o Cr on savings.

Get Ready to Save the Environment and your Energy Bills !!

Get in touch with us and we will be very happy to study your requirement and come up with cost effective Energy saving solutions, that are both environment friendly and budget conscious.

“ VISIT US TO KNOW MORE ABOUT OUR CUSTOMER STORIES AND SEE FOR YOURSELF THEIR GREEN ENERGY INITIATIVES AND LIFETIME SAVINGS THEY ACHIEVED.

We at SmartEco take great care to see that you have a wonderful experience with us and work together to have a great piece of rooftop solar power system. Come visit our experience center to get a better idea.