Rooftop solar is one of the best investments homes and businesses can make in India.
Falling solar panel prices, rising electricity tariffs, and government incentives have led thousands of families and businesses to consider solar energy.
Most people are laser-focused on the upfront cost of the panels and installation, with very few considering the hidden costs usually associated with rooftop solar systems.
A hidden cost is a surprise expense that the first-time solar buyer isn't prepared for that could impact the entire budget, payback period, and performance of the system.
Fortunately, almost all of these hidden costs can be avoided or controlled with proper planning, awareness, and a trusted EPC partner.
In this blog, we will review the most common hidden costs associated with rooftop solar, and things you can do to avoid making an impact on your investment.
Why Hidden Costs Exist in Rooftop Solar?
Hidden costs do not occur from solar technology itself, but rather from a lack of planning, lack of clarity in pricing, delays to address poor installation practices, hidden costs or unexpected structure requirements occur.
For example, a quote may list the price of solar panels and inverters, but leave out wiring upgrades, net metering expenses, civil costs and maintenance.
Then, a few weeks or months later when some of those expenses come up, it shocks a customer and increases project costs.
If you understand each link in the solar installation chain you can spot areas where additional costs might come up and how to mitigate that beforehand.
Structural Modifications and Roof Preparation
Not every roof is ready to accept solar installations.
In many cases, some minor structural work will need to be done to make sure the system is safe and stable.
Some roofs may need chemical waterproofing, or a mere reinforcement on the roof structure or base structure added to support the panels.
If your roof has weak sections, tiles, or surfaces that are not flat, it might need some modification.
Generally speaking, EPCs do not include these expenses in basic quotations. Before making a final commitment to begin work, you should insist on a complete roof inspection.
A reputable EPC company will want to ensure load capacity, slope, roofing materials and shading factors, before suggesting any changes.
This step is crucial in avoiding last-minute surprises and enables long-term safety for the system.
Electrical: Wiring, Conduits and Electrical upgrades
Most solar quotations come with the costs of DC and AC wiring from panels to the inverter and the wiring from the inverter to your distribution board.
Electrical upgrades have several potential hidden costs.
A home may require replacing the distribution board and breaker, longer wiring for runs, external conduits, or a surge protection system.
In homes or buildings of a more vintage construction or location, wiring may require new wiring for new loads and it cannot be ignored, as safety and compliance with your local jurisdiction are paramount goals of the EPC's qualifications.
It is always wise to inquire with the EPC partner to inspect and review the electrical systems transparency.
Inverter Replacement and Long-Term Component Costs
Solar panels usually have a lifespan of 25 years or longer, while inverters tend to last from 8 to 12 years.
That means that you’ll likely need to replace an inverter at least once in the life of the solar power system.
Many new purchasers do not consider this cost when thinking about the long-term analysis.
Even though this is not a current cost, considering what the expense is going forward will help you calculate your payback period more appropriately.
Another cost you should consider is the battery replacement cost if you plan to install a hybrid or off-grid solar system.
Being aware of the warranty details on both the inverter and battery, and what the estimated replacement time frames for both are would also help you plan better.
Operation and Maintenance Expenses
While rooftop solar systems require very little maintenance, they still require some maintenance.
That maintenance includes cleaning the panels, tightening connections, monitoring performance, and occasionally servicing the system.
Some EPCs will provide free maintenance during the first year, but you will have to pay for maintenance after that through an Annual Maintenance Contract (AMC) or pay for maintenance as it occurs.
The cost of the AMC can vary since it depends on the size of your system, your location, and complexity of the system.
To avoid being billed for maintenance services that are expensive or out of nowhere, a good way to evaluate the cost of AMC is to find an EPC that provides a clear AMC pricing structure and outlines the conditions of the AMC (i.e. number of cleaning sessions/year, number of inspections/year, number of emergency maintenance visits, etc).
Shading, Performance Losses, and Poor Installation
Another cost that is not monetary, but rather operational, or performance-related to your solar power system, is poor design or installation parameters that can greatly affect the generation of the system.
For example, if shading analysis is not properly conducted, your panels may generate less power than expected.
Improper mounting, cable losses, or poor-quality mc4 connectors are also factors that can reduce performance.
Less generation means you will pay back your solar investment more slowly and save less, and eventually it becomes an indirect cost to you.
Therefore, you want to hire a company that will perform a proper site survey and shading analysis, plus a performance guarantee.
High-quality monitoring systems enable you to assess the daily production and early detection of performance issues.
Conclusion
Rooftop solar is one of the best and safest investments for homes and businesses.
Hidden costs often arise not from solar's expense, but from customers not having the necessary information about the details of things such as design, installation, and approvals.
When you understand the details and choose a solar EPC partner with experience and a commitment to transparency about costs, you will have no surprises, and your move to clean energy will be smooth, predictable, and profitable.
Thinking about next step? Call us today and get a trusted Solar EPC partner for your home.