If I buy an EV and install solar on the roof, in how many years will the entire money be recovered? Full calculation for 10-15 years

Amidst the ever-increasing prices of petrol and diesel and huge electricity bills running into thousands of rupees every month, there is only one big question revolving in the mind of every middle class family today – “Should I leave the petrol car and buy an electric car (EV)? And will it be the right decision to install solar panels on the roof of the house?” On the surface, the idea seems very tempting that the free sunlight on the roof will generate electricity and from that the car will be charged and run day and night without any fuel expenditure. But the reality is also that the upfront cost of an EV is Rs 4 to 5 lakh more than that of a petrol car and even installing a 3 to 5 kW solar system at home requires an initial investment of Rs 1.5 to 2.5 lakh. The most practical question of the common man is that in how many years will this additional investment of ₹ 6 to ₹ 7 lakh be recovered from the pocket (Payback Period / Break-even) and what will be the total net savings in the next 10 to 15 years? Let us understand its detailed calculation with simple and easy mathematics without any complexity.

Let us assume that your daily commute is about 40 kilometers, which is normal for any working person or business person. According to this, your car will travel approximately 1,200 kilometers more in a month. about 15,000 kilometers a year It is moving.

If you buy a normal 1200cc petrol car (like Maruti Brezza, Hyundai Venue or Tata Nexon Petrol) in a budget of ₹10 to ₹12 lakh:

• Petrol Mileage: Actual average around 15kmpl including city and highway.

• Annual fuel consumption: 15,000 km ÷ 15 = 1,000 liters of petrol.

• Annual fuel cost (at Rs 100 per litre): ₹1,00,000 per year.

• Annual Maintenance and Service (engine oil, filters, spark plugs, etc.): Around ₹10,000 to ₹12,000.

• Total petrol expenditure for 10 years: ₹10,00,000 (if the price of petrol does not increase, whereas in reality it will increase).

• 10 years maintenance cost: Approximately ₹1,20,000.

• Total running cost of 10 years on petrol car: Approximately ₹11,20,000.

Now let us consider the second situation. You replace a petrol car with an electric car (like Tata Nexon EV or Punch EV) for around ₹14 to ₹15 lakh, which gets around 35 to 40 kWh battery and gives a range of 250 to 300 km in real conditions.

• Power consumption of EV: A typical electric car covers a distance of about 7 to 8 kilometers in 1 unit (kWh) of electricity.

• Annual power units required: To run 15,000 km you will need about 2,000 units of electricity in a year.

• If you charge from the grid (government electricity): At the rate of ₹8 per unit, the annual cost of 2,000 units would be only ₹16,000 (i.e. approximately ₹1.05 per km).

• But if you install solar on your rooftop: Under the Central Government’s ‘PM Surya Ghar Free Electricity Scheme’, a direct central subsidy of ₹ 78,000 is available for installation of a 3 kilowatt (kW) rooftop solar system. The net cost of installing a 3kW system after deducting the subsidy works out to be around ₹1,40,000 to ₹1,50,000.

• Solar output: A 3kW solar system produces about 4,000 to 4,200 units of electricity in a year. Out of this, 2,000 units will be spent in driving your car 15,000 km, and the remaining 2,000 to 2,200 units will reduce your home fan, fridge, TV and AC bills to zero or minimum. i.e. driving a car Fuel cost zero rupees per kilometer It happens.

Now the most important question – in how many days will the additional capital invested by you be recovered?

1. Additional initial investment:

   
   

   • Added value of EV over petrol car: ~₹4,00,000

   • Net cost of solar rooftop system (minus subsidy): ~₹1,50,000

   • Total Additional Investment (Extra Upfront Investment): ₹5,50,000

2. Annual Savings:

   
   

   • Direct savings on petrol: ₹1,00,000 per year

   • Savings in maintenance of EV compared to petrol engine: ₹ 7,000 per year (EV does not require oil, clutch plate, exhaust)

   • Additional savings in home electricity bill from solar: ~₹15,000 per year (surplus units saved)

   • Total Annual Net Savings: Approximately ₹1,22,000 per year

3. Break-even period:

   
   

   $$\text{Break-even time} = \frac{₹5,50,000}{₹1,22,000} \approx \mathbf{4.5 \text{ years}}$$

i.e. ok 4 and a half years (about 4 years 6 months) Within 100% of every extra rupee invested by you is recovered. If your daily running is more than 40 km i.e. 60 to 70 km, then this break-even will be completed in just 3 to 3.5 years.

Solar panels have a warranty of 25 years and today, companies give a warranty of 8 years or 1.6 lakh kilometers on modern LFP (Lithium Iron Phosphate) EV batteries. The comparative outline of both the options from a long term perspective of 10 to 15 years is as follows:

If measured on a 15-year scale, while petrol prices are likely to rise from ₹100 to ₹120 or ₹130, solar panels will continue to provide electricity for the next 15 years without any new investment. in your 15 year cycle Net savings ₹11 to ₹13 lakh Which is equal to the full purchase price of your original car.

Although the data is very attractive, this model may not be suitable for every person.

If you have your own rooftop and parking facility and your running average or above, then EV and Solar combo proves to be not just a hobby to save environment but also a wise investment financially giving more solid and assured returns than bank FDs and mutual funds.