Solar Power for Replacing Diesel Generators: Top 10 Reasons Why Solar Energy Makes Sense for Institutions.

April 19, 2013 

by Abhishek Gupta

For the last couple of decades Diesel Generators (DG) have been used where ever the electricity grid has failed to deliver, and they have done their job well. But like with many technologies every once in a while there comes an alternative that forces a shift in paradigm. This is especially true in business where competition is a brutal reality and profitability is a ruthless king.

In 2012 a solar power company, made a revolutionary bid to supply solar power for India’s grid at Rs 7.49 per unit (kWh), much cheaper than the cost of power generated by DG. What does this mean for businesses and commercial entities using DG sets?

If power can be supplied to the grid at that price, can institutions generate solar power for their own use at even less? Let’s examine the top 10 reasons why solar energy should be adopted by institutions to stay competitive.

1) Why solar energy makes sense with high current diesel costs:

At the current cost of diesel fuel DG operating cost is about Rs. 18/kWh including taxes, maintenance, transportation and storage costs. Electricity from solar power generation systems can cost as low as Rs. 2-3/kWh. Which begs the question…what would you rather be paying for your power?

2) Solar power for balancing increasing diesel prices:

If you follow the news: any news, you know that the high cost of diesel will continue to rise. Like any other natural depleting commodity, even with the subsidies gone, the post-subsidy diesel price scenarios don’t look good. Starting NOW solar power will always be cheaper when compared to power from DG sets. So if you are using a DG today you are already damaging your business.