A solar panel, also called a photovoltaic (PV) module, is a device that converts sunlight directly into electricity using semiconductor technology. Installing solar panels can lower your electricity bills by up to 90%, support environmental sustainability, and provide a reliable source of clean energy for more than 25 years.
How do solar panels work?
- Light Absorption: Photovoltaic (PV) cells capture sunlight and absorb photons.
- Current Generation: The absorbed energy generates an electric field, producing direct current (DC).
- Inversion: A solar inverter converts DC into alternating current (AC) suitable for household use.
- Utilisation: Electricity powers your appliances, with any surplus fed back to the grid through net metering.
Benefits of installing solar panels
- Financial Freedom: Cut electricity bills by up to 90%.
- Net Metering: Receive credits for surplus energy sent to the grid.
- Tax Advantages: Businesses can claim accelerated depreciation on solar assets.
What are solar panels made of?
The main components of solar panels include:
- Photovoltaic (PV) cells – usually made from silicon.
- Protective glass covering.
- Metal frame for durability.
- Encapsulation materials to keep panels stable and weather-resistant.
Different types of solar panels: choosing the right one
Different types of solar panels cater to varying requirements:
- Monocrystalline: Offers the highest efficiency, ideal for limited roof space.
- Polycrystalline: More affordable, suitable for larger installations.
- Bifacial Panels: (Emerging trend) Captures sunlight on both front and rear surfaces for increased output.
Solar panel subsidy in India (2026 update)
Under the PM Surya Ghar Yojana, residential consumers can avail a subsidy of up to Rs. 78,000, significantly reducing the effective cost of a 3 kW solar system and making it more accessible for ordinary households.
Price range of solar panels
Costs vary based on type, capacity, and installation:
- Monocrystalline panels: Higher initial cost but greater long-term savings.
- Polycrystalline panels: Moderate cost, suitable for smaller setups.
- Thin-film panels: Lower cost but less efficient.
Financing options for solar panels
Solar panel installation can be financed in several ways:
- Personal savings or business funds.
- Solar-specific loans or financing schemes.
- Business loan options for commercial installations.
- Check the business loan interest rate before applying.
- Use a business loan EMI calculator to plan repayments.
You can also check your pre-approved business loan offer to quickly fund solar projects.
Tips for the maintenance of solar panels
Proper maintenance keeps solar panels working efficiently:
- Clean panels regularly to remove dust and debris.
- Check wiring and connections for any damage.
- Trim nearby trees to avoid shading.
- Schedule professional inspections periodically.
Financing Your Solar System with Bajaj Finserv
Initial investment shouldn't be a hurdle. With Bajaj Finserv Personal Loans or Business Loans, you can install solar now and pay in easy EMIs that are often lower than your electricity savings.
Conclusion
Solar panels are a smart investment for lowering energy costs and supporting sustainability. Correct installation, financing, and maintenance maximise their benefits. Businesses can also fund solar panel projects through a secured business loan.
