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Is rooftop solar worth it for a small business in India?

✅ Verified Answer 📅 Updated: Jun 2026 🏢 By BookMyPartner Team
✅ Expert Answer
For businesses with electricity bills above Rs 20,000/month, solar is almost always worth it.

Financial Case for Commercial Solar

A typical Rs 50,000/month electricity bill can be reduced to Rs 5,000–15,000/month with a properly sized solar system. Typical commercial solar ROI: 20–28% annually, payback: 3–5 years, system life: 25+ years.

Key Financial Benefits

1. Electricity savings: Replace Rs 8–12/unit grid power with Rs 2–3/unit solar power
2. Income Tax benefit: 40% accelerated depreciation on solar in Year 1 (significant for profitable businesses)
3. Net metering: Sell excess power back to DISCOM at Rs 2–5/unit depending on state
4. Carbon credits: Eligible under Indian carbon credit schemes

Which Businesses Benefit Most

Factories with high daytime power consumption (manufacturing, cold storage), commercial establishments (offices, malls, hospitals), and agriculture/irrigation pumping. Businesses operating primarily at night benefit less.

System Sizing Guide

Rs 20,000/month bill → 15–20 kW system → Rs 12–15 lakhs → Payback 4–5 years
Rs 50,000/month bill → 40–50 kW system → Rs 28–35 lakhs → Payback 3–4 years
Rs 1 lakh/month bill → 80–100 kW system → Rs 55–70 lakhs → Payback 3–3.5 years

Calculate your exact ROI with our Solar ROI Calculator or Bill Savings Calculator.

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