Reduce Your ELECTRICITY BILL by 90% | Finance With Sharan

do you have a television do you have an [Music] AC if yes then you'll be getting one of these Bad Boys called electricity bill every freaking month in this video we're going to talk about how to reduce your electricity bill by 90% so make sure to watch till the end of this video electricity consumption in India has tripled since the early 2000 when we couple that with tariff inflation of 6.6% it should come as no surprise that electricity bills have trip in the last decade we think that we are the smartest species alive but we

are the only species paying for naturally available resources on our planet that are free like land water electricity these things are supposed to be free and we are paying for it what a bunch of fools let us start with electricity according to the landard generator report The Whole World's electricity demands I'm talking about the whole world the whole world's demands can be met if you set up a solar power plant of an area of 705 km by 705 km that is around 500,00 ,000 Square km more or less the area of Spain if we had

such a huge solar power plant electricity for the entire human population would be free but you and I are both selfish I mean who cares about the rest of the people right 8 billion people big whoop let's just see how we can get it for ourselves for free and finally get out of this electricity bill scan let's first begin with an understanding of how our electricity bill gets calculated in simple mathematics your final bill is the number of units that you consume multiplied by the cost per unit the practice followed by Most states is that

the more units you consume you get bummed to a higher tariff laab this is very similar to income tax slabs basically the more money you make the more taxes you charge for example if you're making more than 10 lakhs a year you're bumped to the 30% income slab this is business so States like Maharashtra Andra Pradesh Tamil Nadu and Telangana have some of the highest tariff rates in the country for electricity at 9 freaking rupees per unit every state electricity board sets a different tariff slab according to the number of units one consum other states

like Gujarat offer cheaper electricity with their highest tariff rate at only 5 rupees per unit so if you want to move to a place with no alcohol and cheap tariff rates Gujarat is the place for you I know I'm not going Point Blank the more units you consume at the highest tariff the more will be your bill and so it's in your interest and benefit to produce those highest tariff slab units by yourself so that you can keep your electricity cost Down 2 + 2 is 4us one that's free quick match but how do you

do that how do you produce electricity by your self that's where Sun comes to your rescue the solution to your expensive electricity problem lies in the installation of rooftop solar system most of us would have learned this in our school because all of you were busy playing pen fight in class just to recap a solar panel harnesses the radiation we receive from the Sun and converts it into clean electricity it's like a plant but unlike a selfish plant it doesn't use a sunlight for its own food now there are three types of rooftop solar systems

as available in the market let's start with the cheapest one cuz I know you guys firstly there is the on grid system which is the cheapest to set up and the electricity produced by your mini solar plant is transferred to the local grid secondly there is the off- grid system where the produced units are stored in a battery for one's own consumption and of course the battery and other Hardware makes the system the most expensive of the three and finally there is the hybrid system which combines the best parts of both on grid and off-

grid that is in the normal course of the day the units produce go to the grid but when the grid is Switched St the units are stored in an internal battery going forward we will be discussing the workings of the on grid system as it is not only the most economical of all three systems but also doesn't require much space to set up further it certainly helps that the government also provides subsidies on the purchase of solar panels which makes the system Cheaper by around 20 to 40 percentage oh my god wow all right so

now you're convinced about setting up a solar system but what should you know before setting it up you need to know two things the primary requirement is setting up a solar system in space no not that not that solar system this one essentially you need a sharree area like a rooftop now A 1 Kow hour panel takes up approximately 10 square m of space which is the size of a typical bedroom in a 2bhk house so not very big but not very small then there's also AMC or annual maintenance contract that's about 3,000 rupees per

panel all put together the cost of 1 Kow panel comes between 60,000 Rupees to 1 lakh now I know you must be thinking this is a lot of money but wait till the end of the video to understand exactly how it can help you make more money than the amount of money that you're spending in addition to the cost the solar panels will also have a natural degradation in efficiency which is around 05% annually this brings the general life expectancy of these panels at 20 to 25 years other than the cost another question people often

ask is how many panels do I really need on my roof well simply the answer to this question is a combination of the area available to you and the units you consume and to some extent the highest tariff rate in your state which is the number you're trying to replace with your own electricity produced now that you know the basic components of the solar system on your roof here are the calculations first figure out how much shade free area is available to you secondly determine how many units are consumed at the highest tariff rates for

this you have to go through your electricity bills and find out for yourself and thirdly use this tool that I have Linked In the description down below to see how many panels that you require to substitute those higher L frits let's take an example I pay around 4,500 rupes per month for my electricity bill o I know that's a lot now here is the breakdown by units now let's say I installed 4 KW panels to offset 500 units of electricity consumption this would be my monthly bill you see that I just slashed my bill by

10 times that's a 90% reduction in my bill my Roi on installing these four panels comes to around 18 percentage and breaks even in just 3 years another interesting fact that one needs to consider is the the subsidies offered by the government subsidies under this rooftop solar scheme is available only for on grid solar systems and for a maximum of 10 panels the subsid is available only on those panels that are manufactured by Indian companies and have been notified by the local discount that is the local electricity Distribution Company as per the subsidy rules the

first 3 KW panels receive a subsidy of rupees 14588 and the next kilowatt hour panels up to the maximum allowance of 10 panels are subsidized by rupes 7,2 184 each per kilow hour panel now let's talk about net metering because this device will help you understand how much money you're saving by installing the solar panels so under the on grid system electricity bills are arrived at using the net metering method let us understand this with the help of an example under the net metering method you only pay the bill for the net of units consumed

by you that is imported units minus units exported to the department that is the units that you produce using your solar panels so basically you pay for the net amount of electricity that you're consuming now you can understand why we're only optimizing for the units at the highest tariff rates because even if you produce a lot of units if you're only optimizing for the lower units it's not going to make much Financial sense for you so only install enough solar panels to reduce your bills at the highest tariff rates so now you know that you

can save a lot of money by installing solar panels but exactly how much money let's understand this with the help of an example let's assume that there are 300 sunny days in a year and since a 1 Kow panel produces 5 units a day we get around 1,500 units in a year as we can see here the rate of return is different for different unit prices essentially lower the Tariff rate lower is the return on investment which means if you're producing units to offset the lower tariff rates not going to get much benefit from your

solar panels remember I told you that your electricity bill is dependent on how much you consume so if your electricity consumption is such that the average tariff rate is five or less then it wouldn't make much sense for you to invest in a solar system in fact we have also calculated the break even year at different unit prices which has been calculated by assuming that the saved electricity cost every year is reinvested at 11% post tax returns until the useful life of the Panet which is around 20 to 25 years okay enough of Gan now

that you know money can be saved how to actually Implement all of this step one register in the National solar rooftop portal which is solar rooftop.in step two log in with your credentials and apply for a rooftop solar system as per that given form step three wait for the feasibility report provided to you by the local discom once you receive the approval to install the solar system through any approved Vendor by your local discom step four Once you have finished your installation submit your system details to the local grid and apply for a net meter

step five after installing the net meter and a final inspection from the discom they will generate a commissioning certificate from the portal step six you can submit your bank details with a certificate subsidy on solar panels will be sent to you within 30 working days now I know all of this can be overwhelming because it is it's not so easy to do all of this so if you don't know where to start companies like Tata solar Loom solar and many others are providing these services this is not a sponsored video I'm just naming some of

these companies will help you to implement all of this so the next time your dad yells show him this video and tell him that you already got it covered if some of you guys have already installed solar panels I would love to hear the pros and cons of your experience in the comment section down below that's it guys thank you so much for staying till the end of the video if you learn something new smash that like button and subscribe to my channel I will see you in the next one