📊 Pricing and ROI
Solar ROI Calculator India 2026: How to Calculate Actual Returns in Your City
Typical ROI18-25% annualised
Payback period4-6 years
System life25+ years
25-yr savings (3kW)Rs 7-12 lakh
Key variableYour electricity tariff
The 5 inputs you need to calculate solar ROI accurately
Solar ROI calculations sold by installers are often optimistic. They use maximum sun hours, ignore panel degradation, and use today’s electricity tariff without accounting for variation. A realistic calculation requires five specific inputs for your situation:
☀️
Peak sun hours in your city
Jaipur: 5.8 hrs. Delhi: 5.2 hrs. Lucknow: 4.9 hrs. This directly determines generation.
Peak sun hours in your city
Jaipur: 5.8 hrs. Delhi: 5.2 hrs. Lucknow: 4.9 hrs. This directly determines generation.
💡
Your electricity tariff per unit
Check your latest bill. The rate per unit (kWh) is your savings per unit solar generates.
Your electricity tariff per unit
Check your latest bill. The rate per unit (kWh) is your savings per unit solar generates.
💰
Net installation cost after subsidy
Full installation cost minus PM Surya Ghar subsidy received. This is your actual investment.
Net installation cost after subsidy
Full installation cost minus PM Surya Ghar subsidy received. This is your actual investment.
📉
Panel degradation rate
Typical Mono PERC panels degrade at 0.5-0.7% per year. Use 0.6% for conservative estimates.
Panel degradation rate
Typical Mono PERC panels degrade at 0.5-0.7% per year. Use 0.6% for conservative estimates.
📈
Electricity tariff escalation
Indian electricity tariffs have risen 5-8% annually historically. Use 5% for conservative projection.
Electricity tariff escalation
Indian electricity tariffs have risen 5-8% annually historically. Use 5% for conservative projection.
🔧
Maintenance costs
Budget Rs 3,000-8,000 per year for cleaning and AMC. One inverter replacement in 10-12 years.
Maintenance costs
Budget Rs 3,000-8,000 per year for cleaning and AMC. One inverter replacement in 10-12 years.
Step-by-step ROI calculation: worked example for Lucknow
Let us work through a realistic calculation for a homeowner in Lucknow with a 3 kW system:
| Calculation Step | Input / Formula | Result |
|---|---|---|
| Daily generation | 3 kW x 4.9 peak sun hrs x 0.80 efficiency | 11.76 units/day |
| Annual generation (Year 1) | 11.76 x 365 days | 4,292 units/year |
| Annual savings (Year 1) | 4,292 units x Rs 6.50/unit tariff | Rs 27,898/year |
| Annual savings (Year 5 at 5% escalation) | Rs 27,898 x 1.05^4 | Rs 33,916/year |
| Net installation cost | Rs 1,35,000 installed minus Rs 78,000 subsidy | Rs 57,000 |
| Simple payback period | Rs 57,000 / Rs 27,898 | 2.04 years |
| 25-year total savings (nominal) | Compounded with escalation and degradation | Rs 9.8 lakh approx |
💡
The payback period changes dramatically based on subsidy. Without Rs 78,000 subsidy, payback on a Rs 1,35,000 system is 4.8 years. With the subsidy reducing net cost to Rs 57,000, payback drops to just over 2 years. This is why applying for PM Surya Ghar before installing is financially critical.
SolarSahi calculation · Lucknow · April 2026
City-wise solar generation and ROI comparison
| City | Peak Sun Hours | 3 kW Annual Gen. | Annual Savings* | Payback (after subsidy)** |
|---|---|---|---|---|
| Jaipur | 5.8 hrs | 5,083 units | Rs 33,040 | 1.7-2.5 years |
| Delhi NCR | 5.2 hrs | 4,557 units | Rs 29,620 | 2.0-3.0 years |
| Lucknow | 4.9 hrs | 4,292 units | Rs 27,900 | 2.0-3.2 years |
| Agra | 5.4 hrs | 4,730 units | Rs 30,745 | 1.9-2.8 years |
| Chandigarh | 5.0 hrs | 4,380 units | Rs 28,470 | 2.0-3.0 years |
| Dehradun | 4.5 hrs | 3,942 units | Rs 25,623 | 2.2-3.5 years |
*Based on Rs 6.50/unit average tariff. **Based on net cost of Rs 50,000-80,000 after subsidy. Actual results vary by tariff slab and exact installation cost.
What makes ROI calculations misleading: things to watch
⚠️
Using peak efficiency in generationReal-world output is 15-20% below nameplate capacity due to heat, dust, and system losses. Use 0.75-0.80 as efficiency factor.
⚠️
Ignoring panel degradationBy Year 25, output is 12-15% lower than Year 1. Calculations that ignore this overstate long-term returns.
⚠️
Not accounting for inverter replacementInverters last 10-12 years typically. One replacement costing Rs 15,000-25,000 should be included in 25-year calculations.
⚠️
Zero tariff escalation assumptionUsing today’s tariff for all 25 years is conservative in your favour. Including 4-5% annual escalation gives a more realistic picture.
Frequently asked questions
What is the typical solar ROI in India in 2026?
On a net-of-subsidy basis, solar ROI in North Indian cities ranges from 18 to 28 percent annualised return on the net investment. The payback period on the net cost after PM Surya Ghar subsidy is typically 2 to 4 years in high-sun cities like Jaipur and Delhi, and 3 to 5 years in lower-sun cities like Dehradun.
How do I calculate my specific payback period?
Divide your net installation cost (after subsidy) by your estimated Year 1 annual savings. Annual savings equals: system size in kW x peak sun hours for your city x 365 x 0.78 efficiency x your electricity tariff per unit. Use the city peak sun hours from the table above for your specific location.
Does the ROI calculation change if I take a loan?
Yes. When taking a loan, your true ROI should account for the interest paid over the loan term. However, the monthly comparison that matters most is whether your monthly bill saving exceeds the monthly EMI. In most cases, after the subsidy reduces the loan principal, the bill saving equals or exceeds the EMI, making the system cash-flow neutral or positive from early on.
Is solar still a good investment if electricity rates fall?
Indian electricity tariffs have consistently risen over time and there is no evidence of a structural reversal. Even if tariff growth slows to 3 percent per year instead of 6 percent, solar ROI remains strong given the low net cost after subsidy. The risk of tariff falls is considered low by most energy economists.
How does PM Surya Ghar subsidy affect the ROI calculation?
The subsidy has a dramatic effect. For a 3 kW system costing Rs 1,35,000, the subsidy reduces the net investment to Rs 57,000. The annual savings remain the same regardless of subsidy. Payback on Rs 57,000 at Rs 28,000 savings per year is 2 years. Without subsidy, payback on Rs 1,35,000 at the same savings is 4.8 years. The subsidy more than halves the payback period.
Apni solar savings calculate karo
Free. Koi signup nahi. Real numbers.
Calculator kholo →