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Today, Everyone has this Question in Mind: Is rooftop solar worth it for commercial buildings?
The Answer is Absolutely 100% YES!!!.
With rising energy costs and government-backed incentives, Rooftop Integrated Photovoltaics (RIPV) has become one of the highly cost-effective solution for large-scale commercial and industrial buildings.
We’ll make you understand, how to calculate the ROI of a rooftop solar system, it’s payback period, and explore how subsidies and energy savings make it a smart business investment.
ROI (Return on Investment) is a measure of how quickly and effectively your investment in a rooftop solar system pays you back in the form of energy savings.
Formula to Calculate ROI of Rooftop Solar System: ROI = (Net Savings / Total Investment) × 100
Where:
Total Installation Cost
The cost depends on system size (kW), location, type of solar panels, and project complexity. In India, the average cost for commercial solar plants is around ₹4.5- 6 crore per MWp depend upon the site condition and other criteria.
Annual Energy Savings
Commercial buildings that consume large amounts of daytime electricity can see savings up to ₹1.5- 2 crore annually per MWp.
Government Subsidy for Solar Panels for Commercial Buildings
While most subsidies Favor residential use, industrial and commercial solar projects in some states get capital subsidies, accelerated depreciation (up to 40%), and GST benefits. Always check state-wise solar policy.
Maintenance Costs
Annual O&M (Operations & Maintenance) may range between 0.6% to 1.5% of total project cost.
Net Annual Savings = ₹1.8 crore – ₹0.06 crore = ₹1.74 crore
ROI = (₹1.74 crore / ₹4.5 crore) × 100 = 38.66%
Above mention values are not the exact values. Project cost and ROI varied based on various criteria of project.
RIPV systems significantly reduce electricity bills, deliver a strong return on investment, and align with sustainability targets. By using the right ROI formula, factoring in subsidies, and calculating payback accurately, businesses can make data-driven decisions that save costs for decades.
Still wondering if it’s worth it? The numbers don’t lie.
Jatin Singh is a content developer at Sun Photonics Pvt. Ltd., specializing in creating impactful content for solar energy solutions. With a background in tech and health, he has previously worked in digital marketing and pharma. Passionate about sustainability, and currently exploring all things about solar!
Approval by an Expert:
“This content is reviewed and approved by Dr. Sujata Bhaker, who holds a Doctorate in Renewable Energy and brings over 10 years of industry expertise.”
On average, commercial rooftop solar offers 25% to 40% ROI with a payback period of 3–5 years.
Divide your total net investment by annual savings from electricity cost reduction.
Yes, some states in India offer capital subsidies, along with central benefits like accelerated depreciation and GST savings.
Yes, rooftop solar can reduce power bills by up to 70%, offering long-term savings and environmental benefits.
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