📊 Solar ROI Calculator
Updated March 2026
Solar ROI
Understanding Solar Panel ROI in India (2026)
Calculating the Return on Investment (ROI) for a rooftop solar system involves analyzing upfront costs, government subsidies, and longitudinal electricity savings. With the aggressive rollout of the PM Surya Ghar Muft Bijli Yojana, solar ROI in India has reached historic highs, with break-even periods shrinking dramatically in 2026.
The ROI Methodology
Our calculator determines your payback timeframe using the following methodology:
Net System Cost = Total Installation Cost - Government Subsidy
A typical 3kW system in India generates around 360 to 450 units of electricity per month, depending on cloud cover and geographical location (e.g., Rajasthan yields higher efficiency than Kerala). If your state's electricity rate is ₹8/kWh, you save roughly ₹3,000 monthly.
Real-World Case Study: 5kW System
Imagine setting up a 5kW system for a large urban home. The market cost averages ₹2,50,000. Applying the maximum PM Surya Ghar central subsidy (₹78,000), the net investment is ₹1,72,000. Generating approximately 600 units a month saving ₹4,800 monthly, the system pays for itself in entirely within just 3 years. After that, you enjoy virtually free electricity for the remaining 22+ years of the panel lifespan.
Frequently Asked Questions
What is the average payback period for solar in India?
Thanks to the PM Surya Ghar subsidy, the average payback period for residential rooftop solar in India is now between 3.5 to 5 years.
How long do solar panels last?
Tier-1 solar panels, such as those from mono PERC or bifacial technologies, come with a 25-year performance warranty. They lose about 0.5% efficiency per year but remain highly productive for decades.
Do I still get an electricity bill if I have solar?
Yes, you will likely receive a nominal bill for fixed "meter charges." However, under Net Metering, excess electricity sent to the grid offsets your night-time consumption, often bringing your variable usage charges down to zero.