Is solar energy a costly investment: an in depth analysis

11 October 2024 | 2 min read

Pakistan is a country that has many struggles, like other countries, but one of its unfortunate struggles happens to be with energy. Whether it’s the extreme prices and tariffs, the constant blackouts and uncertainty of availability, or the simple matter of the unreliability of the grid, energy reliability is something that Pakistan has yet to learn. During summers, the situation can get too exacerbated by constant breakdowns and sky-high tariffs. One of the best examples of renewable energy that is growing in popularity in the country is solar energy. In this blog post, we will tackle an important question: Is solar energy a costly investment?

From the initial costs and the costs associated with the installation of the equipment, which itself can cause some headaches for more tight-fisted individuals, solar energy seems like an expensive option: many people find it really hard to invest that much money in solar panels and inverters and the whole system, not to mention that since general knowledge around solar energy is minimal, which is why, analysing whether solar energy is costly or not is imperative.

Solar energy systems: costs involved

Starting first with the system itself, solar panels and solar inverters might be the most considerable purchases and parts of the system, considering their price and the fact that both of them need to correspond with the output of the system. Then, depending on the system and its configuration, you might need to invest further in solar batteries, which can further jack up the bill.

As the next step, the system itself needs to be installed, which can incur further costs for the consumer and further drive up the initial costs. Once that has been done and the system has been commissioned, only then does the onslaught of costs and expenditures stop and you can enjoy what the solar energy system has to offer.

Are the initial costs of solar actually worth it?

Now that we’ve talked about the cost let's talk about energy prices in Pakistan, which have quadrupled in the past two years. Ever so much we hear talk of further increasing power prices. In that case, what the regular consumer will be left with is just a light and a fan for their home, and that, too, will contribute to the increasing utility bill.

A good solution for that is solar energy. Solar energy promises energy efficiency and energy reliability, using Pakistan’s high exposure to sunlight to ensure that your premises stay energised at all times. Solar energy is also the perfect way to save your wallet from the actual onslaught of bills that seem to get higher and higher by the day. All in all, solar energy represents the perfect, all-in-one solution for all the consumer’s complaints about the energy crisis in Pakistan.

And yet, when it comes to installing the system, many people baulk at the idea of investing in a product that actively makes life easy and provides lots of utility against the heaps of energy crises that the country is going through. In that sense, yes, the initial cost is totally worth it, and investing in an efficient solar energy solution can make all the difference. But the question remains: is solar energy a costly investment?

Is solar energy a costly investment?

The simple answer is no. Solar energy is not a costly investment at all. Let us first clarify by stating that while the initial costs of solar might be high for some consumers, the utility and the affordability of solar are measured in terms of its return on investment (ROI), which is relatively high. In addition to that, once you have the system installed and it starts saving you big on bills, you can get all of your investment back in the form of these savings incurred in the form of reductions in your utility bills. This solar payback period, as it is commonly known, is the period within which the system essentially pays for itself; the consumer gets all of their initial investment back in the form of savings. Add in net metering, which allows you to sell your unused solar energy back to the grid for credits towards your utility bill, and all of a sudden, solar energy systems seem to be the best possible investment for you to tackle the energy problems of Pakistan.

In closing, remember this: It's not the actual money investment that is made for the solar energy system, but the savings that a consumer incurs on their utility bills; that is why solar energy is not considered a costly investment.

RS Energy: most comprehensive solar energy solutions in Pakistan!

As the top solar company in Pakistan, offering complete solar systems and comprehensive solar solutions designed for maximum efficiency, RS Energy is your partner for energy independence. Follow our three-step plan for your customised solar energy solution, which considers your requirements and provides a solution that will energise your premises for the foreseeable future.