Solar ROI Calculator India

Estimate your solar panel payback period, lifetime savings, and return on investment with Indian subsidies.

Your Solar Project Details

Your Estimated Savings

Yearly Savings (1st yr)

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Payback Period

0 Years

Lifetime Net Benefit

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Learn About Solar ROI

How is Solar ROI Calculated in India?

Solar ROI (Return on Investment) is a key metric that tells you how profitable your solar investment will be over its lifetime. It's calculated by comparing the total financial gain to the initial cost. The formula is: ROI = (Total Lifetime Savings - Initial Cost) / Initial Cost. Our calculator simplifies this by factoring in all critical variables specific to India:

  • Initial Cost: The total upfront cost of the system minus any government subsidies.
  • Lifetime Savings: The total money saved on electricity bills over the system's 25-year life, accounting for annual hikes in grid electricity prices.
  • Operating Costs: Annual maintenance costs are subtracted from savings to give a realistic net benefit.

By analyzing these factors, you can get a clear picture of when your system will pay for itself (the payback period) and how much money it will generate for you in the long run.

Frequently Asked Questions

What is a good payback period for solar panels in India?

A good payback period for a residential solar system in India typically ranges from 5 to 8 years. For commercial installations, it can be as low as 3-5 years. This depends heavily on your state's electricity tariff, the amount of subsidy received, and the quality of the installation.

Does government subsidy affect my ROI?

Absolutely. The national subsidy under the PM Surya Ghar: Muft Bijli Yojana significantly reduces your initial investment cost. A lower initial cost leads to a much faster payback period and a higher overall Return on Investment. Our calculator includes a field for subsidies to ensure your estimates are accurate.

What other benefits do solar panels offer?

Beyond financial returns, solar panels offer energy independence, protection against rising electricity prices, a reduced carbon footprint, and can increase your property's value. It's an investment in both your finances and a sustainable future.