11 important factors to consider when investing in solar energy

11 Factors to consider when investing in solar energy min

Solar power is becoming increasingly popular because of its savings, efficiency and environmental friendliness. However, before deciding to invest in a solar power system, you need to keep in mind some important factors to ensure efficiency and optimize benefits. In this article, VREnergy will provide you with 11 important factors to keep in mind when investing in solar power.

Demand for electricity

Solar energy is increasingly popular because of its efficiency, savings and environmental friendliness. However, before investing in a solar power system, determining electricity demand is extremely important to ensure optimal efficiency.

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Determining usage needs is an important turning point when investing in solar power

How is electricity demand affected?

  • System capacity: High electricity demand requires a system with greater capacity, leading to higher investment costs.
  • Efficiency of use: A system that is too large compared to demand will waste electricity, while a system that is too small will not meet the needs, forcing it to use more grid electricity.
  • Economic benefits: The right system helps save electricity costs, offset initial investment costs.

Determine electricity demand

  • Check your electricity bill: Analyze your monthly electricity consumption to predict future needs.
  • Identify electrical equipment: List electrical equipment, capacity and usage time to calculate total demand.
  • Consult with experts: Solar power experts will help assess needs and advise on appropriate systems.

Solutions suitable for electricity needs

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  • Grid-connected solar power system: Sells excess electricity to EVN, compensating for electricity consumed at night.
  • Independent solar power system: Uses batteries to store electricity at night, suitable for areas lacking grid power.
  • Combined hybrid system: Combines both above systems, ensuring continuous power supply.

Electricity demand is an important factor determining the effectiveness of solar power system investment. Determine your needs carefully, choose the right system and consult with experts to maximize benefits.

Payback time

Solar power is increasingly popular because of its great economic and environmental benefits. Many people are interested in investing in a solar power system but wonder about the payback time. And this is also a common question of many people when they first start approaching.

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The payback period of investing in a solar power system will depend on many factors:

  • System capacity: The larger the system capacity, the more electricity produced, and the faster the payback time.
  • Installation location: Sunny areas will help the system produce electricity more effectively.
  • System cost: System cost will directly affect the initial investment capital.
  • Preferential policies: The state’s preferential policies on solar power also contribute to shortening the payback period.

According to VREnergy’s experience , the payback period for solar power systems is usually from 4 to 7 years . After this time, you will begin to profit from selling excess electricity to EVN.

For example:

  • 5kWp system, cost from 60 million VND, produces 7,500 kWh of electricity per year.
  • Excess electricity selling price to EVN: 2,128 VND/kWh.
  • Annual revenue: 16 million VND.
  • Payback period: about 4  years.

However, it should be noted that:

  • The lifespan of a solar power system can be up to 25 years. Therefore, after paying back your capital, you will continue to earn profits for the next 18 years.
  • Traditional electricity prices are tending to increase, so profits from selling excess electricity to EVN will be increasingly high.

Investing in solar power is a highly profitable and sustainable investment . The payback period is quite long, but then you will earn profits for many years.

System capacity

Solar power system capacity is measured in kilowatt peak (kWp), representing the system’s ability to convert solar energy into electricity. In other words, this is the maximum power level that the system can achieve under ideal conditions (solar radiation 1000W/m², temperature 25°C).

Factors affecting system capacity:

  • Number of panels : The more panels, the higher the system capacity.
  • Capacity of each panel : Solar cells have many different capacity levels, usually ranging from 300Wp to 500Wp.
  • Battery performance : Battery performance determines the rate at which solar energy is converted into electricity.
  • Installation location : Systems installed in places with lots of sunlight will have higher capacity.
  • Installation direction : South is the ideal direction to install a solar power system.

How to calculate system capacity:

To determine the appropriate capacity for your needs, take the following steps:

  1. Determine the daily/monthly electricity consumption needs of your family or business.
  2. Choose the type of solar battery that suits your needs and budget.
  3. Consult an expert to calculate the number of panels and system capacity required.

Choosing the appropriate solar power system capacity is an important factor to ensure investment efficiency. This article has provided you with useful information about system capacity, helping you make wise decisions for your usage needs.

Investment costs

Solar power investment costs include 4 main factors:

  • Solar panels: Accounts for 60-70% of the total cost, plays a key role in harvesting energy from sunlight.
  • Solar power inverter: Converts direct current from the panels into alternating current suitable for the home electrical system.
  • Auxiliary equipment: Includes cables, racks, monitoring systems… to help the system operate effectively and safely.
  • Installation costs: Includes transportation, construction, maintenance, warranty costs…

Eg:

  • Solar panels: Account for the majority of costs, ranging from 12,000 – 20,000 VND/Wp (depending on brand and capacity).
  • Solar power inverter: Converts direct current from the battery into alternating current for household use. Price from 4,000,000 – 12,000,000 VND/kW.
  • Rack frame, wiring, accessories: Additional costs, ranging from 2,000,000 – 4,000,000 VND/kW.
  • Installation costs: Includes transportation, construction, and maintenance costs. This cost ranges from 1,000,000 – 2,000,000 VND/kW.

Investing in solar power is a smart decision that brings long-term economic and environmental benefits. Consider the factors that affect costs to have an appropriate financial plan.

Incentives

Energy demand is increasing, along with environmental concerns, making solar power a bright solution for the future. In order to promote the development of the solar power industry, the Vietnamese Government has issued many attractive incentive policies for investors. This section will provide you with detailed information about those preferential policies, helping you grasp this potential investment opportunity.

Firstly, preferential policies on solar power investment capital . Energy demand is increasing, along with environmental concerns, solar power is emerging as a bright solution for the future. In order to promote the strong development of the solar power industry, the Vietnamese Government has issued many attractive preferential policies, especially preferential capital policies.

Preferential capital policies allow organizations and individuals to borrow capital at preferential interest rates from commercial banks to invest in solar power systems. The loan interest rate support can be up to 7%/year, helping to significantly reduce investment costs and improve the economic efficiency of the project.

To access preferential loans, organizations and individuals need to meet the following conditions:

  • Have enough financial capacity to carry out the project.
  • Have a clear financial plan, ensuring the ability to repay loans.
  • The project must be approved by a competent state agency.

Incentive capital policies are a “golden opportunity” for organizations and individuals to invest in solar power. Take this opportunity to contribute to building a green, clean, beautiful environment and developing renewable energy for the country.

Second, the preferential electricity price policy allows households and businesses to sell excess electricity from solar power systems to EVN at a fixed price. The preferential electricity price is higher than the traditional electricity price, helping investors recover capital quickly and increase profits.

This is a potential investment opportunity for households and businesses, contributing to environmental protection and national energy security.

paperwork process

Once you understand the great potential of solar energy, invest in a solar power system for long-term economic benefits. Understanding the necessary documents and procedures will help you carry out the project smoothly and effectively.

Depending on the scale of solar power project implementation, there will be separate procedures. If it is a household solar power project, we will have a dossier requesting electricity sales including:

  • Written proposal to sell solar power .
  • Technical documents on solar power systems.
  • Factory certificate, quality certification of main equipment.
  • Minutes of acceptance of solar power system.
  • Documents proving land use rights (for ground-mounted solar power systems).

Installation location

To optimize the efficiency and benefits of the system, choosing the appropriate installation location plays an extremely important role.

The location of the solar power system installation directly affects the efficiency and benefits of the project. Therefore, you need to carefully consider factors such as direction, angle, shade and distance when choosing an installation location as follows:

Optimal installation location:

  • Roof: This is the most ideal location to install a solar power system because: Direct exposure to sunlight for a long time; There is a structure available to support the system. Do not occupy land area;
  • Rooftop terrace: Similar to the roof, the terrace is also an ideal location to install a solar power system. However, it is necessary to pay attention to the load-bearing capacity of the terrace before construction.
  • Ground: This location is suitable for large-scale solar power projects. However, additional investment is needed in the support frame system and may affect the surrounding landscape.

Factors to consider:

  • Direction : The solar power system should be installed facing south to receive direct sunlight for the longest time.
  • Tilt angle : The optimal tilt angle for installing solar power systems in Vietnam is from 10 to 20 degrees.
  • Shade : Avoid locations obscured by shade from trees, houses or other obstacles.
  • Distance : It is necessary to ensure a safe distance between the solar power system and surrounding obstacles to avoid the risk of fire.

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Benefits of choosing the right installation location:

  • Increase electricity production efficiency : Solar power systems installed in the appropriate location will receive more sunlight, thereby increasing electricity production efficiency and saving costs.
  • Reduce maintenance costs : A suitable installation location will help minimize the environmental impact on the solar power system, thereby reducing maintenance and repair costs.
  • Increase aesthetics : Installing a solar power system in a beautiful location will contribute to increasing the aesthetics of your home or building.

System quality

Although it brings many benefits, not all solar power systems are as effective as desired. System quality plays a key role in ensuring project performance, durability and safety.

Therefore, QUALITY is an important factor that determines the effectiveness of solar power investment. Choosing high quality, reputable equipment and using professional construction services will help you own a solar power system that operates efficiently, durable and safely.

Specifically, we will be interested in:

Solar panels

  • This is the most important component, responsible for converting sunlight into electricity.
  • You should choose a battery panel with high performance, long lifespan and a reputable brand.
  • Some famous battery panel brands on the market today include: Canadian Solar, Jinko Solar, Hanwha Q CELLS, Trina Solar, JA Solar.

Inverter (Inverter)

  • The inverter has the function of converting direct current from the battery panel into alternating current for use in household electrical appliances.
  • You should choose an inverter with high performance, suitable for system capacity and with a good warranty.
  • Some reputable inverter brands: SMA, ABB, Schneider Electric, SolarEdge, Fronius.

Racking frame system

  • The bracket is responsible for fixing the solar panels on the roof or on the ground.
  • The rack frame needs to be firmly designed, have good load-bearing capacity and withstand harsh weather conditions.
  • It is recommended to use galvanized steel or aluminum rack frames to ensure high durability.

Power cable

  • Electric cables are responsible for transmitting power from the battery panel to the inverter and from the inverter to electrical equipment.
  • You should use electric cables with appropriate cross-sections, good load-carrying capacity and resistance to harsh weather conditions.

Construction unit

  • Choosing a reputable, experienced construction unit and a team of professional technicians is an important factor to ensure the quality of solar power system construction.
  • You should consult with people who have used the services of the construction unit before deciding to choose one.

System construction contractor

Ultimately, the effective exploitation of this energy source will depend on the choice of a reputable and professional system construction contractor.

And the important role of construction contractors:

  • Consulting: The contractor will help you choose the system that suits your needs, financial conditions and installation location.
  • Design: A team of experienced engineers will design the optimal system, ensuring the highest operating efficiency.
  • Construction: Install the system according to technical standards, ensuring safety and efficiency.
  • Warranty and maintenance: System warranty and maintenance support, giving you peace of mind during use.

Choosing a reputable and professional construction contractor is a key factor for a successful solar power project. Take the time to research and choose the right contractor to ensure the system operates effectively and safely, bringing optimal economic and environmental benefits to you.

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Operation & Maintenance (O&M)

To optimize profits and ensure system longevity, operations & maintenance (O&M) plays an extremely necessary role. This article will shed light on the importance of O&M and provide tips for investors.

The importance of O&M:

O&M is considered the “soul” of the solar power system, determining operational efficiency and profits. A system with good O&M will:

  • Increase power generation efficiency: Remove dust and periodically check to help the system absorb light optimally, increasing power output. According to research, effective O&M can increase output by 5-10%.
  • Extend system lifespan: Early detection of damage and timely maintenance help prevent the risk of incidents, minimize equipment repair and replacement costs, and increase system lifespan up to 25-30 years.
  • Ensuring safety: Periodic O&M helps check the electrical system, prevent the risk of fire, explosion, short circuit, and ensure safety for users and surrounding assets.
  • Cost savings: O&M helps optimize efficiency, minimize power waste, and save long-term operating and repair costs.

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Secrets to effective O&M:

  • Choose a reputable O&M unit: Choose a unit with experience, a team of professional technicians, and modern equipment to ensure service quality.
  • Sign a clear O&M contract: Clearly define work items, maintenance frequency, warranty, performance commitment, and responsibilities of both parties.
  • Monitor system data: Use a monitoring system to monitor power output, performance, and early detection of potential problems.
  • Perform periodic maintenance: Comply with the manufacturer’s recommended maintenance schedule, ensure cleaning, inspection, and maintenance of equipment according to regulations.
  • Maintain O&M records: Carefully record the history of maintenance, repair, and replacement of equipment to monitor system efficiency and evaluation.

O&M is a smart investment for solar power systems. Applying effective O&M know-how will help investors optimize profits, ensure safety and increase system lifespan, contributing to the success of solar power projects.

Conclude

Investing in a solar power system is an important decision. You should carefully consider the above factors to ensure effectiveness and optimize benefits. Hopefully this article has provided you with useful information to make an informed decision.

Note: This article is for reference only. You should consult solar power experts for specific advice for your case.