Shading analysis is one of the most important steps taken before installation of the solar panels. With solar panels, it is important to take into account the objects in surrounding areas which are casting a shadow on the panels, thereby blocking the ability of the panels to produce energy. Even the smallest of things like telephone wires or trees should be taken into account in the shading analysis.

There are quite a few devices and computers that can provide this analysis. The loss of energy that can be caused by shading can be huge and must be eliminated or minimized as much as possible, hence the shading analysis.

There are quite a few devices and computers that can provide this analysis. The loss of energy that can be caused by shading can be huge and must be eliminated or minimized as much as possible, hence the shading analysis.

There are 2 ways to go about with the results of shading analysis; either try to position the things that are causing a shade differently or to position the solar panels in a way to avoid the most shadows and optimize energy production. Both photographic and non-photographic results of the shading analysis are taken into account.

The major components of shading analysis are as follows:

  1. Capture the skyline
  2. Measure the objects which are near to the solar location
  3. Create a digital landscape (either 2D or 3D)
  4. Analysis of data

By using these tools and analysis, the solar panels can be created and installed in a way for you to obtain the maximum benefit.

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The only distinction between buying and leasing a system is in terms of ownership. In a purchase model, you own the solution; whereas under a PPA (Power Purchase Agreement), a third party or the financier owns the solution.

Buying or leasing a solar solution are both decent options if you want to save on your energy costs, help the environment, and become energy independent. It’s essential to consider a Solar Solution Provider with sound recommendation and project base, and your particular financial goals.

Purchasing a solar solution

Outright purchasing a solar solution gives you more in savings over the life of the asset. And can help in reducing your electricity bills by up to 30 percent. Most systems pay for themselves in a period of three to five years.

Cash purchase is beneficial if you want to maximize financial savings from your solar solution.

Leasing a solar solution

If you want to finance your solar solution, you can enter a PPA (Power Purchase Agreement) where a financier finances the installation and you pay a monthly payment at an agreed upon rate. Such agreements are spread over a period of 20 years with a full 20-year performance guarantee, remote monitoring and system warranty.

The benefits of a leasing agreement entail zero upfront cost, and immediate financial savings.

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Every site is completely different; hence the cleaning frequency varies from one site to the other. The five essential factors that affect the cleaning schedule include your location (how often does it rain?), the nature of business( for instance certain manufacturing units release exhaust making frequent cleaning a necessity), the tilt angle of your panels (steeply tilted panels tend to stay relatively cleaner than horizontal PV arrays), the amount of wind-blown dust and pollen, electric rate (higher electric rate makes it more worthwhile to clean your panels), and the cost to clean your panels.

Solar panels get dirty primarily from wind-blown dust and pollen. A small amount of dirt may cause an output decline of up to 5 percent. However, very dirty panels especially near agricultural lands or in areas that do not get rainfall can cause an output decline greater than 20 percent.

A heavy rainfall is good to wash away most of the dirt and debris but may leave a puddle of muddy debris along the lower edge of the panel. Hence making panel cleaning an essential activity. Also, the site must be looked for moss and weeds that develop along the lower row of cells after rains.

A lot of solar companies offer panel maintenance and cleaning as a part of their contract; however, a better way is to maintain the cleaning in-house. Watch our video on Solar Panel Cleaning Precautions for hassle free maintenance.

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1. How do solar panels actually work?

Solar panels are made of highly excitable, conductive materials. When the sun’s rays hit the solar panels, the reaction creates direct current (DC) electricity.

Since most businesses use alternating current (AC) electricity, your solar-generated DC energy will pass through an inverter to become AC electricity. Then it flows through your property’s wiring and behaves just like the power you’ve been using your whole life.

2. Is solar energy reliable and powerful enough for my business?

The only time your solar panels stop generating electricity is when the sun’s not out. That means at night and during eclipses.

The sun is constant. It rises and sets pretty routinely. It’s more predictable and reliable than power plants, which often experience outages several thousand times every year.

Maybe that’s why the U.S. Department of Defense pledged to purchase 3 gigawatts of clean energy for its bases by 2025. As of 2016, they’re on track to meet that goal.

That’s renewable energy contributing power equivalent to nearly six coal plants!

Solar energy isn’t a passing fad. It’s the key to a future of lower electricity bills and a cleaner environment.

3. Will my solar panels generate electricity during cloudy, rainy, or snowy days?

Your solar panels don’t need sunshine, per se, to generate electricity as much as they need direct, unobstructed access to the sun’s UV rays.

Similar to how your skin still tans when it’s overcast outside, your solar panels will still generate electricity during cloudy, rainy, or snowy days — they just won’t produce as much energy as they do during clear days.

4. Do I have to go off-grid when I switch to solar energy?

In reality, you probably wouldn’t want to go off-grid. The practice is known as “islanding”, or when you connect your solar array to batteries so you’ll be able to power your business entirely on solar energy instead of using the utility company for power. This practice is incredibly expensive and inefficient for most people as batteries are not as technically developed as solar panels and need frequent replacement.

Most solar adopters choose to stay on the grid for convenience and money-saving.

When you stay connected to the grid, you’ll be able to generate credits with the electric company to lower the price of your bills. This practice is known as net-metering.

5. What is net-metering?

You know how you have an electric meter on your property to record how much energy your business uses every month from the utility grid. When you switch to solar energy, you’ll have an electric meter that works both ways; it shows the utility company how much energy you consume when your solar panels are not generating enough electricity and it also shows how much energy your solar panels generated during the day

Your solar panels will produce a lot of energy during the day when the sun’s the strongest. You most likely won’t use all this solar-generated power. Your excess solar energy will feed back to the grid and help supply power for the utility company. Your utility company will pay for your solar-generated electricity by giving you credits to lower your monthly electricity bill. So at the end of the month, you’ll only pay for the net amount of electricity.

Let’s say you banked Rs.100,000 in solar energy credits and used Rs.150,000 worth of electricity for the month. Instead of paying Rs.150,000 like you normally would, you’ll only have to pay for the balance i.e. Rs. 50,000.

6. How much will I really save on my electricity bills every month?

That depends on how much electricity your business uses, your location, the rate your utility company charges for electricity, and several other factors.

Most solar providers aim to offset at least 30% of your monthly electricity bill, so that’s a good place to start your calculations.

7. How soon will I notice a difference in my electricity bills after switching to solar energy?

Your solar panels will start generating usable energy for your property the day they’re installed. Depending on when you receive your electric bill, you could start noticing lower bills the very first month.

8. What is the best option for installing solar panels with my budget?

If you happen to have a business improvement fund, owning your own solar array is the way to go. While you can definitely pay for your solar installation up front, a lot depends upon your business’s financial goals.

 

You can also choose a power purchase agreement (PPA), and you’ll be able to make the switch to solar with little or no investment upfront. In a PPA, the business pays a monthly rent at an agreed upon rate for a period of 20 years. The business can choose to purchase the system or exit the contract after the end of the contractual term.

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If you are planning to go solar and you do not have a lot of space on ground to install solar panels, you can turn your roof into a solar powerhouse. Few factors to consider when you go solar are: Orientation, shade, material, age, space and pitch.

Rooftop material and age of the structure are the two major points of concern i.e. what types of rooftops are best suited to support the installation of solar panels?

Tile roofs are the most common types of roofs that can be found in Pakistan. It’s easier and more effective to install solar on concrete tiles than on clay tiles.

Metal standing seam roofs are another kind very commonly found in the industries in Pakistan. Metal rooftops are relatively more supportive for solar panel installation than tiled roof. You might want to opt for a structural analysis to have a fair idea of how your roof type and our solar panels would make a perfect combo.

A very important factor to consider is age of the roofs. Solar Panels carry weight of their own. Generally, metal roofs are expected to last for 20 years while concrete roofs are expected to last for 50+ years. If your roof is too old or regardless, you might want to conduct a ‘roof load bearing’ analysis before installing the solar panels to avoid any sort of unforeseen incidents

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How do we currently produce energy? By burning fuels! Only 1 percent of the electricity of the world is being produced by Solar Energy. Which means that the remaining 99% electricity gives a byproduct of excessive emission of carbon dioxide and other pollutants into the atmosphere.

While the major sources of pollution are thought to be transport and industry manufacturing, burning fossil fuels (specially coal) to produce electricity accounts for more than 33% emissions in the atmosphere.

Another problem with the traditional electricity production methods which depends on fossil fuels is that the fossil fuels are scarce resources. There will be a time, probably within the next 30-40 years when these resources will be exhausted. On the other hand, electricity production from solar power will never be exhausted. In fact, during Summers when electricity usage jumps because of air conditioners and we experience frequent power outages, the same solar power that is warming the country can be used to produce electricity that will power our air conditioners.

The impacts of Solar power on nature compared to the impacts of conventional electricity production are very minimal. As per the Energy Research Center of Netherlands, electricity generation from coal contributes 96% to 98% more greenhouse gases than solar power.

Additionally, solar power is less toxic to humans, uses lesser resources (as in land and water) and is more environmental friendly. While you may think that a small 1 MW project might not really make a difference, you can take the example of Reon’s solar power project for Servis, which contributes in reducing 517 tonnes of electricity annually. That’s like 12,925 tonnes in 25 years! Sounds like a lot? That’s because it is. This is just the impact of 1 solar plant. Imagine the kind of power you have! Join the solar revolution.

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Solar energy works by converting the sun’s energy into electricity that can be used to power your residential or commercial appliances. But how does this happen? Read ahead because we will be answering all your questions about solar energy in this blog.

Sun, which is one of the biggest sources of power in the solar system, releases tiny packets of energy which are known as photons. They travel all the way from the sun to the Earth and the number of photons released in one hour are enough to satisfy the global energy needs for one whole year. Well that’s a lot. However, not all these photons are utilized and converted to electricity. Power generation from solar panels in Pakistan is still a relatively recent concept. However, awareness regarding this technology is spreading rapidly and there has been a huge growth in the usage of solar power over the past few years.

 

So how exactly does this process take place?

Solar Panels are installed to do this task. As soon as the photons hit a solar panel, they knock out the electrons from the atoms. With the presence of conductors on the positive and negative sides of cell, it creates an electrical circuit. When electrons pass through the electrical circuits, electricity is generated. Therefore, the more panels you install, the more electrons will be released and the more electricity will be generated. And this is how it goes.

However, if you are worried about the number of solar panels to install in your company because you might end up under or over producing electricity, let your solution provider take care of it. At Reon, a team of expert engineers calculate your energy requirements and advise you accordingly.

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The State Bank of Pakistan, in light of the global initiative to reduce the impact of climate change has been taking a few steps. One of these includes the “State Bank of Pakistan’s financing scheme for Renewable Energy Projects”. This scheme was made public mid of 2016 and started to fully be used from 2017.

The scheme has two major advantages for Pakistan; it not only addresses the foreign exchange deficit problem of the country but, it also holds the potential to defer significant capital investments required in the aging electrical network. Additionally, it has two categories:

  1. system sizes ranging from 1MW to 50 MW
  2. system sizes ranging from 4 kW to 1000 kW

The second category is more relevant to the commercial and industrial sector of Pakistan, as it solves the more pressing challenges faced by the country.

Under the scheme, industries can borrow up to 100% of the cost for installing solar and wind projects. The interface for the commercial/industrial entity is the commercial bank that gets funds at the borrowing rate of 2% from SBP. This is after all due technical and commercial documents have been provided.  The commercial bank and the industry then have a spread of 4% from which they get to negotiate and close. The financing rate can be locked at anything between 2.5 % to 6 % depending on the bankability of the industrial client and their relationship with the commercial bank.

The financing must be paid back within 10 years, as no grace period is provided for the construction of the project which can be anything from 4 to 5 months for a 1 MW plus project. However, the best thing about this scheme is that the borrowing is available at fixed rate instead of being KIBOR indexed considering that our current inflation rate is already close to 4%.

This allows the industries/commercial entities to hedge their energy rates for the next 25 years which otherwise are at the mercy of rising oil and gas prices and the US dollar. More so, this is particularly important for industries/commercial entities which are exporting goods or services and are competing with global market players.

This scheme is now aggressively being used as its proving to be a win-win for the industrial clients, our country and for the local banks. However, it works on a first come first serve basis and is set to expire in June 2019. Lastly, industries with gas generation are now also going with distributed solar PV generation to reduce gas consumption.

Hence, the key is to get a reliable & bankable EPC solar company which is experienced in installing large MW scale projects and understands the SBP scheme process. Since once the EPC company is decided, the commercial bank and the EPC company must collectively work to get the funding approved.

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Going solar not only saves up a substantial chunk of your energy bills but is also the biggest step any organization can take at being more environmentally conscious. However, with the decision comes the daunting task of deciding on a solar financing option.

Fortunately, going solar is affordable by making an informed decision about the best funding options; be it buying or leasing. Some key factors to consider when deciding on ‘cash purchase’ as a financial option are as below;

Cash Purchase

Buying a solar panel system seems like a big up-front cost but it really is a long-term investment. An organization that decides to pay a little more up-front can reap benefits for decades to come. More so, a 30 percent reduction in electricity bills reflects the expected amount of savings. Other advantages include:

• A reduction in the total time required for installation
• Generally, a maximum return on investment is offered
• Complete ownership of the asset

However, with complete ownership of the asset also comes an organization’s sole responsibility of both its operation and maintenance. Therefore, if/when considering the cash purchase route capital costs and product warranties should be taken under careful consideration.

Business Case

Lastly, the graphic representation of a textile business case model below will help in demonstrating an organization’s cumulative savings. More so, it will help in concluding one part of the ‘buying vs leasing’ debate.

An organization opting to go for a cash purchase on a 1000 KW solar power project that is an on-grid system (with all other factors such as, rooftop etc. constant) can reap savings as high as 800 million. The savings in case of a cash purchase model sees a steep, steady growth as the organization is producing its own electricity. There by reducing their cost and increasing their overall savings.

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In continuation with the “buying vs leasing” debate, the second financing option is a ‘solar lease model.’ On paper, for many organizations solar leasing sounds quite lucrative as it allows them the opportunity to upgrade to a solar system without a prior investment.

Hence, some key factors to consider when deciding on ‘solar leasing’ as a financial option are as below:

Solar Leasing

Solar Leasing, is a good short-term solution for many organizations as it comes with not only a zero-upfront cost but also an immediate savings on the monthly utility bill. Furthermore, in the long run, organizations can also experience an increase in savings when traditional energy costs might rise.

Other advantages include:

  • Paying only for the electricity consumed.
  • No responsibility for operations or maintenance.
  • Lower energy rates than standard grid rates
  • Hedging against future jumps in electricity rates

However, a few solar leasing shortcomings that need to be considered are that since a third party pays for the installation, they have complete ownership of the system (at least for 20 years). More so, even though the monthly utility bill decreases, it isn’t as much of a decrease as the leasing company does recoup the cost of its investments from the overall solar energy savings. Lastly, as lucrative as solar leasing maybe, it isn’t an option open for all. Most, solar providers have set criteria on filtering out which organizations fit the bill, and which do not.

Solar Leasing

Business Case

Additionally, the graphic representation of a textile business case model below will help in demonstrating an organization’s cumulative savings. More so, it will help in concluding the second part of the ‘buying vs leasing’ debate.

An organization opting to go for solar leasing on a 1000 KW solar power project that is an on-grid system (with all other factors such as, rooftop etc. constant) can certainly reap savings as high as approximately 250 million. However, these savings are nowhere close to what an organization could reap had they gone for a cash purchase model. Part I: Financing your solar installationThis is because the organization will still be buying the electricity from the leasing company which will be recouping the cost of its investments from the overall solar energy savings.

Hence, regardless of the “buying vs leasing” debate, the end goal is to go solar. Every organization’s needs, situations and end decision making may vary but these are a few pointers that should be kept in mind. Moreover, considering the right Solar Solutions Provider can really help in narrowing down the right financial options that fit your organization.

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