India’s solar revolution is here — and the numbers make it impossible to ignore. Our Solar ROI Calculator for India removes all the guesswork. In under 60 seconds, you’ll know exactly how much you’ll save, how quickly you’ll break even, and what your total return on investment looks like over 25 years — With electricity tariffs rising by an average of 5–8% every year and the Government of India offering subsidies of up to ₹78,000 under the PM Surya Ghar Muft Bijli Yojana, going solar in 2026 is no longer a luxury — it is a financially smart decision for millions of Indian households and businesses.

But the biggest question every potential solar buyer asks is: ‘When will I get my money back, and how much will I actually save?’ That is exactly what this Solar ROI Calculator India answers — in under 60 seconds.

Whether you are evaluating a 1 kW off-grid system for a small home in Rajasthan or a 10 kW grid-tied rooftop installation for a commercial property in Maharashtra, our calculator gives you a personalised, state-specific breakdown of your:

• Total upfront investment (before and after subsidy)
• Monthly and annual electricity bill savings
• Simple payback period in years
• 25-year cumulative savings and net profit
• Internal Rate of Return (IRR) and Return on Investment (ROI %)

How to Use the Solar ROI Calculator — Step-by-Step Guide

Step 1: Select Your State

India has 36 states and union territories, each with very different electricity tariff rates (₹/kWh), solar irradiance levels (peak sun hours), and DISCOM net metering policies. Selecting the correct state is critical for an accurate ROI calculation. For example:

State	Avg. Electricity Tariff (₹/kWh)
Maharashtra (MSEDCL)	₹8.50 – ₹11.00
Karnataka (BESCOM)	₹6.00 – ₹9.50
Rajasthan (JVVNL)	₹6.50 – ₹8.00
Tamil Nadu (TNEB)	₹4.50 – ₹7.50
Delhi (BSES/TPDDL)	₹3.00 – ₹8.00
Gujarat (DGVCL)	₹4.95 – ₹6.60
Uttar Pradesh (UPPCL)	₹5.50 – ₹7.00
West Bengal (WBSEDCL)	₹6.50 – ₹8.50

Step 3: Choose Your Solar System Size (kW)

Enter the system capacity in kilowatts (kW) you are considering. If you are unsure, you can let the calculator recommend the optimal size based on your monthly bill and available roof area. Here is a quick reference:

Monthly Bill Range	Recommended System Size
₹500 – ₹1,500	1 kW
₹1,500 – ₹3,000	2 kW
₹3,000 – ₹5,000	3 kW
₹5,000 – ₹8,000	4–5 kW
₹8,000 – ₹12,000	6–8 kW
₹12,000+	8–10 kW or more

Step 3: Enter Your Monthly Electricity Bill (₹)

Start by entering your average monthly electricity bill in Indian Rupees. You can find this on your DISCOM bill (e.g., MSEDCL, BESCOM, JVVNL). If your bill varies seasonally, use the average of the last three months. The calculator uses this to estimate your monthly energy consumption in kWh automatically.

Step 5: Enter Installation Cost per kW (₹)

Enter the cost per kilowatt of your solar system. The default is ₹60,000/kW, which is the current market average for a quality tier-1 panel installation including inverter, mounting, and wiring.

2026 market range:

• Budget systems: ₹40,000–₹50,000/kW
• Standard quality: ₹55,000–₹65,000/kW
• Premium (Tier-1 panels): ₹65,000–₹80,000/kW

Step 5 — Adjust Sunlight Hours & Tariff Increase Rate

Daily Sunlight Hours (3–7 hrs): This is your location’s average Peak Sun Hours (PSH) — not total daylight, but the hours when sunlight intensity is strong enough for effective generation.

Region / State	Peak Sun Hours (Daily Avg.)
Rajasthan, Gujarat	5.5 – 6.5 hours
Maharashtra, Telangana	5.0 – 6.0 hours
Karnataka, AP	5.0 – 5.8 hours
Tamil Nadu	5.0 – 5.5 hours
Delhi, Punjab	4.8 – 5.5 hours
West Bengal, Odisha	4.5 – 5.2 hours
Northeast India	3.5 – 4.5 hours
Himachal Pradesh, J&K	4.0 – 5.0 hours

Annual Tariff Increase (0–10%): India’s residential electricity tariffs have historically increased by 4–7% per year. The default of 5% is conservative and realistic. A higher rate means your solar savings grow faster over time.

What Your Solar Calculator Results Mean

Once you hit Calculate (or after adjusting any slider), six headline results appear instantly. Here’s what each one means:

Total System Cost (₹)

This is the gross cost of your solar installation before any subsidy — calculated as your chosen system capacity (kW) multiplied by the installation cost per kW you entered. For a 3 kW system at ₹60,000/kW, this would be ₹1,80,000.

Net Investment — After Subsidy (₹)

This is what you actually pay out of pocket after the PM Surya Ghar Yojana government subsidy is deducted. For a 3 kW system, the subsidy is ₹78,000, reducing your real cost to approximately ₹1,02,000. This is the figure your ROI and payback period are based on — not the gross cost.

Monthly Generation (Units/kWh)

The estimated number of electricity units your solar system will generate each month, calculated using your system size, sunlight hours, and an industry-standard 80% system efficiency factor. A 3 kW system in a 5-hour sunlight zone generates approximately 450 units/month.

Annual Savings (₹)

Your electricity bill savings per year, calculated by multiplying your annual solar generation by your state’s current electricity tariff rate. This figure grows each year as electricity tariffs rise — which is why the 25-year projection is so powerful.

Payback Period (Years)

The number of years it takes for your cumulative electricity savings to equal your net investment. In most Indian states with a 3 kW system, this is 2–4 years — after which every rupee of savings is pure profit for the remaining life of your panels (20+ years).

25-Year ROI (%)

The total percentage return on your net investment over the full 25-year warranty life of your solar panels. Values above 500% are common in India — and above 1,000% for states with higher tariffs (Kerala, Assam, West Bengal, Tamil Nadu). This figure accounts for the annual tariff increase rate you set.

Detailed Financial Breakdown — What Each Line Tells You

Result Line	What It Shows
Daily Energy Production	How many kWh your system produces on an average day
Annual Energy Production	Total yearly generation in units (kWh)
Monthly Electricity Savings	How much your electricity bill drops each month
10-Year Total Savings	Cumulative savings in the first decade (great for loan comparison)
25-Year Total Savings	Total lifetime savings over the panel warranty period
Net Profit (25 Years)	25-year savings minus your net investment = your real profit

PM Surya Ghar Yojana Subsidy 2026 — Everything You Need to Know

Launched by the Government of India, the PM Surya Ghar: Muft Bijli Yojana (PM Surya Ghar Free Electricity Scheme) is the world’s largest residential solar subsidy programme. With a budget of ₹75,021 crore, it aims to install rooftop solar on 1 crore Indian homes.

Subsidy Amount by System Size (2026)

System Capacity	Central Government Subsidy	Effective Cost Reduction
Up to 2 kW	₹30,000	30–40%
2 kW to 3 kW	₹60,000	35–45%
Above 3 kW	₹78,000 (capped)	20–30%

Who Is Eligible?

• Indian residential households with a valid electricity connection
• Connection must be in the applicant’s name
• Property must be owned (not rented) — check with your DISCOM for the latest rule
• System must be installed by an MNRE-empanelled vendor
• Only one subsidy per household/electricity meter

How to Apply for PM Surya Ghar Subsidy

1. Visit the official portal: pmsuryaghar.gov.in
2. Register with your electricity consumer number
3. Apply online and get vendor approval
4. Choose an MNRE-empanelled installer from the portal
5. Get the system installed and inspected
6. Submit net metering application to your DISCOM
7. Subsidy is directly credited to your bank account within 30 days of inspection

Additional Benefits Beyond the Subsidy

• Collateral-free solar loans at subsidized interest rates through nationalized banks
• Net metering — sell excess electricity back to the grid and earn credits
• 25-year panel performance warranty on MNRE-approved panels
• Free technical support from registered installers
• State-level top-up subsidies available in select states (Gujarat, Uttar Pradesh, others)

State-Wise Electricity Tariff Rates & Solar Potential in India (2026)

Your state’s electricity rate is the single biggest factor in how fast your solar panels pay for themselves. Higher rates = faster payback = better ROI.

State	Electricity Rate (₹/unit)	Avg. Peak Sun Hours	3 kW System Payback (est.)
Assam	₹8.20	3.5–4.0 hrs	3.8–4.5 years
Kerala	₹8.00	3.5–4.5 hrs	3.5–4.0 years
West Bengal	₹7.80	4.0–4.5 hrs	3.0–3.8 years
Tamil Nadu	₹7.50	5.0–6.0 hrs	2.0–2.5 years
Uttar Pradesh	₹7.00	5.0–5.5 hrs	2.2–2.8 years
Andhra Pradesh	₹7.10	5.0–5.5 hrs	2.2–2.8 years
Telangana	₹6.70	5.0–5.5 hrs	2.3–2.9 years
Karnataka	₹6.80	5.0–5.5 hrs	2.2–2.8 years
Rajasthan	₹6.50	6.0–7.0 hrs	1.8–2.3 years
Odisha	₹6.40	4.5–5.5 hrs	2.5–3.2 years
Punjab	₹6.30	4.5–5.0 hrs	2.7–3.3 years
Madhya Pradesh	₹6.00	5.0–6.0 hrs	2.3–2.9 years
Haryana	₹5.90	4.5–5.5 hrs	2.7–3.3 years
Gujarat	₹5.80	6.0–7.0 hrs	2.0–2.4 years
Delhi	₹5.50	4.5–5.0 hrs	3.0–3.5 years
Maharashtra	₹7.20	5.0–5.5 hrs	2.2–2.6 years

Read More: PM Surya Ghar guide 2026, Solar panel prices in India, 3kw solar panel prices in India

7 Key Factors That Affect Your Solar ROI in India

Understanding these variables helps you get the most accurate results from the calculator — and helps you make smarter decisions when going solar.

1. System Size (kW)
Larger systems generate more power and save more, but subsidies are capped at ₹78,000 for 3+ kW. Going bigger than 3 kW makes sense only if your monthly bill is consistently above ₹5,000–₹6,000.

2. State Electricity Tariff
The higher your per-unit electricity cost, the more valuable each unit your panels generate. This is the most impactful variable in the ROI equation. States like Kerala (₹8.00/unit) and Assam (₹8.20/unit) have the highest tariffs, though their lower sunlight availability tempers overall returns.

3. Annual Electricity Tariff Increase Rate
Electricity tariffs in India have risen at an average of 5–7% per year over the last decade. Every percentage point increase means your solar savings grow faster. Locking in solar now is essentially hedging against future tariff hikes.

4. Installation Cost per kW
This can vary by ₹20,000–₹40,000 per kW depending on panel brand (Tier-1 vs. local), inverter quality, and installer margin. Always compare at least 3 MNRE-empanelled vendors to get a fair price.

5. Peak Sunlight Hours
This is your location’s solar irradiance — the number of hours per day when sunlight is strong enough for effective generation. Rajasthan and Gujarat average 6–7 hours; northeastern states and Kerala average 3.5–4.5 hours.

6. System Efficiency (Panel + Inverter Quality)
The calculator uses an 80% overall system efficiency — a realistic industry average accounting for inverter losses, shading, soiling, and temperature derating. Premium Tier-1 panels with quality inverters may achieve 82–85%; budget systems may fall to 75%.

7. Net Metering Availability
If your DISCOM has approved net metering for your connection, excess solar power you don’t consume is fed back to the grid and credited against future bills — effectively earning money from unused generation. Net metering can reduce actual payback periods by 10–20% in high-generation periods.

Frequently Asked Questions — Solar ROI Calculator India