Discover the financial benefits of going solar for your commercial establishment.
Why Commercial Solar Makes Financial Sense in 2024
For Indian businesses, solar is no longer just an environmental statement — it is one of the highest-returning capital investments available today. With commercial electricity tariffs ranging from Rs. 7 to Rs. 12 per unit across major states, and solar generation costs having dropped below Rs. 2 per unit for owned systems, the economics are compelling and improving every year.
This article breaks down the complete ROI picture for commercial solar: upfront costs, financial incentives, payback period calculations, and long-term savings projections.
Upfront Cost and System Sizing
Commercial rooftop solar costs in India (2024) average Rs. 45,000–60,000 per kW all-inclusive (panels, inverters, mounting, wiring, DISCOM approvals, net metering). For a typical 100 kW office or factory rooftop system:
- Total system cost: Rs. 50–60 lakhs
- Annual generation: ~1,45,000 units (at 4 peak hours/day average)
- Annual savings at Rs. 9/unit: Rs. 13.05 lakhs/year
- Simple payback period: 3.8–4.6 years
- 25-year net savings (after payback): Rs. 2.5–3 crores
Key Financial Incentives for Businesses
1. Accelerated Depreciation (AD)
This is the single most powerful financial incentive for commercial and industrial solar in India. Under Section 32 of the Income Tax Act, solar power plants are eligible for 40% accelerated depreciation in the first year of installation.
Example: A Rs. 50 lakh solar installation can generate a tax depreciation claim of Rs. 20 lakhs in Year 1. At a 30% tax bracket, this translates to Rs. 6 lakhs in immediate tax savings — reducing the effective system cost to Rs. 44 lakhs and the payback period to under 3.5 years.
2. Net Metering Credits
Commercial consumers on net metering export surplus daytime generation to the grid and receive unit credits at their applicable tariff. For a business that operates primarily on day shifts, solar can meet 60–80% of total electricity consumption through direct use plus credits.
3. Green Open Access
For businesses with electricity demand above 100 kW (in most states), Green Open Access allows procuring renewable energy from a third-party solar plant at tariffs 20–30% below grid rates. This is an alternative to rooftop solar for businesses with limited roof space or very large energy needs.
4. CSR and ESG Benefits
Solar installation qualifies for CSR credit under Schedule VII of the Companies Act for eligible companies. Beyond compliance, solar installations demonstrably improve ESG scores, which increasingly affect supplier empanelment, bank loan terms, and export market access.
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ROI Calculation: A Real-World Example
Consider a mid-size manufacturing unit in Ahmedabad with a monthly electricity bill of Rs. 4 lakhs (consuming ~50,000 units at Rs. 8/unit):
| Parameter | Value |
|---|---|
| System size | 300 kW |
| System cost (installed) | Rs. 1.5 crores |
| Annual generation | 4.38 lakh units |
| Annual electricity savings | Rs. 35 lakhs |
| Year-1 AD tax benefit (40%) | Rs. 18 lakhs |
| Effective payback period | 2.7 years |
| 25-year net savings | Rs. 7+ crores |
Third Party PPA: Solar with Zero Capital Investment
For businesses that prefer not to deploy capital, the Third Party Power Purchase Agreement (PPA) model allows installing solar at zero upfront cost. Enersol owns and maintains the system; you purchase the generated power at a fixed rate — typically 15–25% below your current grid tariff.
PPA benefits: No capital investment, immediate savings from day one, fully maintained system, locked-in power tariff for 15–25 years, and freedom from electricity price escalation risk.
Getting Started
The first step is a detailed energy audit and site assessment. Enersol's commercial solar team analyses your electricity bills, roof/land availability, shadow patterns, and DISCOM tariff structure to prepare a customised financial model showing your exact payback period, IRR, and 25-year savings projection — completely free of charge.
