Yes, solar power today is cheaper than grid power for a lot of consumer categories across most states. Moreover, solar is a one time investment while grid tariff keeps increasing every year. Therefore, by choosing to go solar today, you are locking in a fixed energy price for the next 25 years.
Illustration for an average residential customer in Delhi:
A 2kW Solar PV system costs around Rs 1.4 lacs and has a life of at least 25 years with low recurring costs. This translates to a per unit levelized cost of Rs7 – 8 /kWh for the next 25 years.
Let’s compare this with the cost of grid power. The discom charges the consumer slab-wise but on an average the consumer pays Rs 7.3/kWh. And this price keeps increasing by about 5% per annum, which means you may be paying Rs 24.7/kWh at the end of 25 years. This translates to a per unit levelized cost of approx. Rs 10 – 11/kWh when compared with the 25 year life of Solar PV system.