Savings that can be achieved with solar panels depend on two main aspects:

1. Electricity not drawn from grid
2. Electricity sold through net metering

In first case, savings are given by self-consumption, or by direct use of electrical energy produced by solar panels to reduce that taken from external network. This percentage is quite variable, in fact it depends on performance of modules which can be influenced by climatic season, presence of clouds, solar radiation, efficiency of installed system and presence of solar system storage.

In addition to covering part of your electricity needs through photovoltaic self-consumption, you can sell electricity to ESM (Energy Services Manager) and benefit from balancing payment through on-site exchange. In practice, ESM recognizes certain compensation for electricity sold to grid, credit that serves to reduce cost of electricity taken from grid and paid to your supplier.

At this point, let's try to calculate an estimate of possible savings that can be obtained with solar panels, considering following aspects:

• 3kW solar system without storage
• Energy requirement of 3,000 kWh per year
• Electricity cost 130 PKR/kWh
• Self-consumption percentage of 30% (ESM estimate)

Taking into account an indicative cost of 270,000 to 300000 PKR for 3kW solar system without storage, it is possible to estimate saving of 30,000 to 40,000 PKR per month, or approximately 300,000 PKR per year.

Considering that system's production can range from 3,000 to 4,500 kWh per year, depending on climatic conditions and geographical area, with self-consumption at 30% remaining electricity is sold to ESM with an economic return of approximately 34 PKR/kWh, thus obtaining bonus from ESM of 90,000 to 100,000 PKR per year.

Between 100,000 rupees per year of savings from self-consumption and 90,000 to 100,000 PKR per year from on-site exchange, it is possible to arrive at maximum benefit of 100,000 to 150,000 PKR per year, therefore it takes 5 to 11 years to amortize cost of system and obtain an economic advantage.

However, by taking advantage of tax deductions or discount on the invoice, it is possible to reduce investment by half, with the possibility of recovering the expense in 3 or 5 years and making solar panel decidedly more convenient.

By adding storage system to solar system, it is possible to store part of energy produced and not immediately consumed. In this way, it is possible to increase percentage of self-consumption, making better use of electricity produced by panels to cover one's own electrical needs, while at same time reducing share of electrical energy sold to grid and remunerated through on-site exchange.

This is undoubtedly an advantage, in fact it is more economically convenient to consume electrical energy of solar system than to sell it to grid, since compensation covers just 70% of costs incurred for electricity. 

Actual savings depend on the average self-consumption percentage that can be achieved, in any case let's consider reaching 50% self-consumption and spending 360,000 rupees for 3kW solar system with 4.8 kWh storage.

Savings on bill rises to 300,000 PKR per year, with ESM compensation of 30,000 to 40,000 PKR, for an overall economic benefit of 360,000 PKR per year. Therefore, it is possible to recover expense in about 9-11 years, while taking advantage of 50% discount on bill, initial investment can be amortized in 4-5 years.

Convenience of accumulation, depends on possibility of benefiting from tax breaks, or on level of self-consumption that can be achieved. With percentage of 70% of self-consumption, annual saving reaches 300,000 to 360,000 PKR per year, therefore expense is recovered in 7-8 years, while with the 50% discount on invoice it is recovered in 3-4 years.

Savings that can be obtained with solar system depend on many aspects, for this reason it is necessary to contact qualified professionals and request an in-depth preliminary study. 

Those analyzed also affect the economic convenience of solar systems, such as energy efficiency of property, consumption habits and type of systems used in home for production of domestic hot water, heating and cooling.

It is essential to invest in quality and well-sized solar system, capable of guaranteeing high performance to maximize yield and savings on bill. With SolarsNet it is possible to install new generation solar panels, made with innovative technologies to take advantage of best solutions available on market.