Solar energy is a unique proposition in India. While the majority of the country is not aware of the impact and benefits that the resource can offer, there is a minority section, that has gradually accepted solar as a means for bringing economy and contribute to the environment as well. That minority sector is also trying to bring solar technology in domestic use. Buying and installing the solar equipment are the major cost factors, but these can be recovered in a few years.
The solar panels and water heaters together cost about Rs 0.8 million and are being installed for the past five to six years. The cost of setting up a solar energy system depends on the number of solar panels and water heater. For 1 KW installation including inverter and batteries the cost is about Rs 0.2 million.
Right now, the cost of solar energy is 2.5 times more expensive than conventional electricity. But the cost is coming down. In another three to four years, there would be very little difference between the two, as the price for generating and supplying conventional energy is rising.