The good amount of the solar radiations along with the high grid electricity rates in the region play an important role in making solar a feasible option. The average increase in the grid electricity rate in India over last 15-20 years is around 4% per year. The cost of 2 KW solar system (without battery backup) is around Rs. 1,60,000/- with annual maintenance charges around 05% - 1% of the total cost of the system. I am going to incorporate these factors in determining the return offered by the Indian states and the list is as follows:
10. Andhra Pradesh: (Annual Return of 15.05% per year)
It is located in the southern eastern coast of India, receives an average solar radiations of 5.87 KW-Hr/m²/day making it a hot destination for the residential solar.
9. Kerala: 15.18%
This southern most Indian state known for its palm beaches and backwaters offers an annual return of 15.18% to its residential solar owners. Thanks to its good solar radiations and high grid electricity rates. Take a look to its credentials:
8. Tripura: 15.34%
It is located in the north eastern region of the country and it is one of the smallest states of the country offering you an amazing annual return of 15.34%.
7. West Bengal: 15.79%
Located in the eastern region of the country and formerly the capital of British raj will delight you with its solar return of 15.79% per year.
6. Madhya Pradesh: 15.87%
It is located at the centre and one of the largest states of the country making solar an attractive option for its owners.
5. Assam: 15.96%
This eastern state is in the list despite low solar radiations as compared to the other states because of the high grid electricity rates. Take a look:
4. Bihar: 16.93%
This eastern state bordering Nepal will offer you an amazing return of 16.93% per year.
3. Rajasthan: 17.59%
This land of palaces is one of the leading states in terms of the solar power installations. The state is blessed with good amount of the solar radiations, offering excellent annual return of 17.59%
2. Karnataka: 17.97%
This technical hub is located in the south-west India.
This business capital of India known for its film industry grabs the first position in this countdown with an annual return of 19.6%
The feasibility of the solar system depends on the cost of the system, solar radiations, rate of grid electricity and the rate of increase per year. I have evaluated the feasibility of the residential solar with respect to the grid electricity. The higher grid rates facilitates the feasibility of the solar making and making it an attractive option. The states like Goa despite good amount of the solar radiations (5.82 KWHr/m²/day), offering you a very low annual return of 3.11% because of low grid electricity rates, 1.88 per unit, in the state. Therefore, the feasibility is the relative term and in my case it is relative to the grid electricity. The return offered by the solar systems are quite attractive, comparing the return offered by the bank deposits or even the stock market returns. Try installing a system on your roof top and share your practical experience with me on this platform. You are lucky if you reside in any of the above states, offering great returns.