Why you should include solar panels in your total building budget

Building your dream home involves careful consideration of both upfront and long-term costs. While the construction phase may seem like the biggest expense, it’s crucial to account for the ongoing operating costs once the building is built. These include among many things, mortgage payments (if you have taken a housing loan), utility costs, taxes, periodic maintenance, and facelift costs.  All these expenses add up over time and can have a significant impact on your financial well-being.

In his book Rich Dad, Poor Dad, Robert Kiyosaki lays out an essential difference between an asset and a liability. While an asset puts money in your pocket, a liability takes money out of it.

In this article, we’ll explore how integrating solar panels into your construction budget can transform your house into a sustainable asset that generates long-term income while reducing your environmental footprint.

The ‘Trias Energetica’ principle and how it’ll help you in reducing the operating costs of your building

The Trias Energetica principle lays the foundation for designing energy-efficient buildings. By focusing on reducing energy demand, you can make significant strides towards minimizing operating costs. Climatically suited building designs and energy-efficient appliances are just the beginning

Consider our example of a 3-bedroom house in Srivilliputhur, where solar shading and natural airflow were key elements of the design. Additionally, choosing appliances with high energy efficiency ratings is a simple yet impactful step in reducing energy demand.

The Attraction of Solar Panels- Financial and Environmental Benefits

Solar panels emerge as an attractive solution to replace energy demand with locally generated renewable energy. With an average lifespan of 25 years or more and minimal maintenance requirements, solar panels offer a reliable and sustainable energy solution. Moreover, India’s sunny climate makes it an ideal environment for harnessing solar power. Furthermore, by integrating net metering facilities, any excess energy generated can be fed back into the grid, providing nominal returns as well!

Energy Breakdown of a 3-Bedroom House

The following graph breaks down the average energy requirement for a 3-bed house.  In hot climates, cooling and refrigeration demand the most energy, followed by appliances like washing machines, televisions, and cooking appliances. Lighting and ventilation, such as electric fans, contribute to a lesser extent. Considering these factors, a 3-bedroom house can consume up to 1000-1400 units of electricity at its peak, resulting in significant monthly bills ranging from ₹9,000 to ₹12,000. Over 25 years, energy bills alone could accumulate to a staggering ₹30 lakhs (without adjusting for inflation).

Unlocking Savings with Solar Panels

Let’s explore the financial benefits of investing in solar panels. Allocating a portion of your project budget, approximately ₹6.5 lakhs, to install a 10kW solar capacity can cover your daily energy requirements. This cost pales in comparison to the expense of certain other building works such as renovating a kitchen or a couple of rooms. The returns on this investment are substantial. With potential savings of up to ₹30 lakhs from reduced energy bills and the possibility of selling excess electricity back to the central grid through net metering, solar panels prove to be a sound financial decision.

Building as a Long-Term Investment

A house is not just a building; it’s a long-term investment. To truly maximize the benefits, it’s essential to consider the entire lifecycle of your home. By including solar panels in the design stage and allocating just a fraction of the original project budget, you create an asset that generates reliable, long-term income. Investing in solar power aligns your home with sustainability, financial stability, and a greener future.

Building your dream home goes beyond the initial construction costs. By integrating solar panels into your project’s budget, you not only reduce your reliance on the grid but also unlock substantial long-term financial savings. Embracing solar power is an investment that generates income, lowers operating costs, contributes to a sustainable future, and secures your financial well-being for years to come.

At APC Associates, we work with a template which helps you calculate and visualise your energy use. It also calculates the approximate cost of solar panels required for your energy use and what would be the long-term cost savings if you convert to solar.