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A solar photo-voltaic system is proposed to be installed at the roof top of a hostel. The cost of installation and the annual maintenance are INR 2,40,000 and INR 6000 respectively. It is expected to generate 600 kWh of electricity per month. Assume unit price of electricity as INR 5. Ignoring the discount rate, the payback period of the investment in years is____________
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- 8 to 8
- 6 to 6
- 4 to 4
- 2 to 2
Correct Option: A
8 to 8
Let the payback time be ‘PB' year.
So, 240000 + 6000PB = 600 × 5 × 12 × PB
⇒ 240000 + 6000.PB = 36000.PB
⇒ 240000 = 30000.PB
⇒ PB = 8 Years
