📑 On this page — jump to a section
- Solar Savings Calculator Tool
- How Solar Savings Are Calculated
- Savings by System Size
- Net Metering & Subsidy Explained
- Rooftop Solar Pros & Cons
- Hidden Costs of Going Solar
- Solar Panel Maintenance
- Choosing the Right System Size
- Solar Facts & Stats
- Frequently Asked Questions
- People Also Ask
- Quick Answers
- About This Calculator
Solar System Details
Enter your details for an accurate personalized report
Your Solar Savings Report
ROI, subsidy, payback & 25-year savings breakdown
Detailed Analysis
ROI timeline, system comparison, subsidy breakdown & net metering
📊 Cumulative Savings vs Investment (25 Years)
📅 Year-by-Year Annual Savings
| Year | Generation (kWh) | Annual Savings | Cumulative Net | Status |
|---|---|---|---|---|
| Calculate to see ROI timeline | ||||
* Based on entered tariff with annual escalation. Includes panel degradation. Actual results vary by DISCOM policy and local conditions.
📊 Monthly Savings by System Size
| System | Roof Area | System Cost | Subsidy | Net Cost | Monthly Gen. | Monthly Savings | Payback |
|---|---|---|---|---|---|---|---|
| Click Compare Now to see results | |||||||
🏛️ Subsidy Amount by System Size
| System Size | Subsidy Breakdown | Total Subsidy | Approx. Net Cost* |
|---|---|---|---|
| 1 kW | 1 × ₹30,000 | ₹30,000 | ~₹25,000–35,000 |
| 2 kW | 2 × ₹30,000 | ₹60,000 | ~₹50,000–70,000 |
| 3 kW | 2×₹30k + 1×₹18k | ₹78,000 | ~₹90,000–1,20,000 |
| 5 kW | Capped at ₹78,000 | ₹78,000 | ~₹1,90,000–2,50,000 |
| 8 kW | Capped at ₹78,000 | ₹78,000 | ~₹3,00,000–4,00,000 |
| 10 kW | Capped at ₹78,000 | ₹78,000 | ~₹3,80,000–5,00,000 |
Documents Required
Aadhaar, electricity bill (consumer no.), bank passbook, property proof, cancelled cheque. Apply through your DISCOM's online portal.
Processing Timeline
Net meter installation: 30–90 days after DISCOM approval. Subsidy disbursed directly to bank account after commissioning inspection.
⚡ How Net Metering Works
Net metering is the billing mechanism that makes on-grid solar financially powerful. Your bi-directional meter records both import and export:
Excess generation credits carry forward monthly (or annually in some states), effectively making the grid a free battery for your solar system.
Daytime Generation
Panels generate electricity. Excess (beyond home usage) is exported to grid — your meter runs backward, earning credits.
Nighttime Consumption
Draw power from grid as usual. At month end: Net Bill = imports minus export credits.
Zero Bill Possible
If annual solar generation ≥ annual consumption, bill can be zero. Surplus credits may carry forward per state DISCOM policy.
State Policy Varies
Settlement periods: monthly, quarterly or annually. AP & Telangana offer annual settlement — better for maximizing summer solar credits.
Net Metering Bill Estimator
Calculate your exact net bill with solar export credits
Understanding How Solar Savings Are Calculated
A solar quote full of big numbers can be confusing. Here's what actually drives your real-world savings, in plain terms.
1. System size and peak sun hours
Generation depends on your system's kW capacity and how many peak sun hours your region gets — typically 4.5-5.8 hours/day across India, higher in Rajasthan and Gujarat, lower in the Northeast and coastal Kerala.
2. System efficiency and losses
Real-world output is lower than the theoretical maximum due to inverter conversion losses, wiring losses, dust, and panel temperature effects — typically modeled at around 75-80% overall system efficiency.
3. Self-consumption vs export
Savings are capped by how much of your generation you actually use or can export under net metering — a system oversized relative to your usage generates less proportional savings unless your state offers a good export rate.
4. Subsidy and net cost
Payback period is calculated on your net cost after the PM Surya Ghar subsidy is applied, not the sticker price — this is why applying for the subsidy correctly matters as much as choosing the right installer.
In short: Monthly Savings = min(System kW × Sun Hours × 30 × Efficiency × Tariff, Your Current Bill). Payback = Net Cost After Subsidy ÷ Annual Savings.
Solar Savings by System Size — Quick Reference (2026)
Approximate figures at 5 peak sun hours/day and ₹7/unit average tariff. Your calculator results above will be more precise for your inputs.
| System Size | Monthly Generation | Monthly Savings (~₹) | Typical Payback |
|---|---|---|---|
| 1 kW | ~120 kWh | ₹840 | 3-4 years |
| 3 kW | ~360 kWh | ₹2,520 | 3-5 years |
| 5 kW | ~600 kWh | ₹4,200 | 4-6 years |
| 10 kW | ~1,200 kWh | ₹8,400 | 4-6 years |
Every panel keeps generating well past its payback point — a 25-year panel warranty means 20+ years of largely free electricity after the system pays for itself.
☀️ Why Go Solar in India 2026?
Electricity prices are rising 4–6% annually. A rooftop solar system pays for itself in 3–5 years, then generates free electricity for 20+ more years.
Slash Electricity Bills
A 3kW system can eliminate 60–100% of your monthly electricity bill. After payback, savings compound as tariffs rise — your panels become your best investment.
Subsidy Up to ₹78,000
PM Surya Ghar Muft Bijli Yojana: ₹30k/kW for first 2kW + ₹18k/kW for 2–3kW, capped at ₹78,000. Many states offer additional subsidies on top.
10× Better Than FD
A 3kW solar system with 4-year payback gives ~25% annualised returns over 25 years as tariffs rise. Far superior to FD (6–7%) or MF (12%) on a risk-adjusted basis.
Green & Resale Value
A 3kW system avoids ~2.5 tonnes of CO₂/year — equal to planting 115 trees annually. Solar also increases urban property resale value by 3–5%.
Rooftop Solar — Honest Pros & Cons
Solar is a strong investment for most Indian homes, but it isn't the right fit for every roof or budget.
Advantages
3-6 year payback, then 20+ years of largely free electricity, government subsidy up to ₹78,000, rising resale value, and a hedge against yearly tariff increases.
Disadvantages
Meaningful upfront cost even after subsidy, requires adequate unshaded roof space, generation drops on cloudy days, and on-grid systems don't work during grid power cuts without a hybrid inverter.
On-Grid Systems
Cheapest option, uses net metering to "bank" excess generation with the grid, but shuts down during power cuts for safety unless paired with a hybrid inverter.
Off-Grid / Hybrid Systems
Adds battery backup for power cuts, but batteries significantly raise upfront cost and shorten overall payback economics compared to a pure on-grid system.
💡 Pro Tips to Maximize Solar Savings
Right-Size Your System
Size to cover 70–100% of your bill. Over-sized systems have lower ROI where net-meter export rates are low. Use 100 sq.ft per kW as a thumb rule.
Choose Mono PERC / Bifacial
Mono PERC and bifacial panels deliver 20–22% efficiency vs 15% for poly. Over 25 years, this means 30–40% more energy from the same roof space.
Shift Loads to Daytime
Run washing machines, EV charging, geysers and ACs during peak solar hours (10am–3pm). Maximise self-consumption and reduce night-time grid dependence.
Apply for Subsidy First
Register on pm-suryaghar.gov.in before ordering panels. Choose a DISCOM-empanelled installer and DCR (Made-in-India) panels to qualify for ₹78,000 subsidy.
Annual O&M Contract
A cleaning + inspection contract (₹2,000–4,000/year) keeps panels at peak efficiency. Dusty panels lose 15–25% output in Indian conditions — clean monthly in summer.
Smart Monitoring App
Install a Wi-Fi inverter with a monitoring app. Track daily generation, spot underperformance early, and validate actual vs projected savings in real time.
Compare 3+ Installers
Solar installation costs vary 20–40% between vendors. Get at least 3 quotes. Insist on ALMM-listed panels, Tier-1 inverters, 25-year panel + 10-year inverter warranty.
Plan for Future EV
If you plan to buy an EV in 5 years, add 1–2 extra kW now. Charging your EV during peak solar hours saves ₹1,500–₹3,000/month vs petrol — dramatically boosting ROI.
Solar Panel Maintenance Checklist
Solar panels need minimal maintenance, but a few habits keep generation — and savings — at their peak.
Check the monitoring app
A sudden drop in daily generation is often the first sign of dust buildup, shading, or a fault worth investigating.
Clean the panels
Rinse with water (avoid abrasive scrubbing) — dust and bird droppings can meaningfully reduce output, especially in dry, dusty regions.
Professional inspection
Have a technician check wiring, mounting hardware, and inverter health before the next high-generation summer season.
Trim overhanging branches
New shading from growing trees can silently cut output on affected panels — worth a periodic visual check.
Choosing the Right Solar System Size
| Current Monthly Bill | Recommended System | Roof Area Needed |
|---|---|---|
| ₹1,500-₹2,500 | 1-2 kW | 100-200 sq ft |
| ₹2,500-₹4,500 | 3 kW | 300 sq ft |
| ₹4,500-₹7,000 | 5 kW | 500 sq ft |
| ₹7,000+ | 8-10 kW | 800-1,000 sq ft |
A rough rule of thumb: budget about 100 sq ft of unshaded roof area per kW of system capacity, and size the system to cover 70-100% of your current bill for the best ROI.
Solar Facts & Stats Worth Knowing
25-year warranty
Most panels carry a 25-year performance warranty, guaranteeing at least 80-85% of original output by year 25.
Up to ₹78,000 subsidy
PM Surya Ghar Muft Bijli Yojana covers a meaningful share of eligible system costs for residential rooftop solar.
~0.5% annual degradation
Modern panels typically degrade about 0.5% per year, meaning generation stays strong for decades.
2.5+ tonnes CO₂ saved/year
A typical 3kW system avoids roughly 2.5 tonnes of CO₂ annually — comparable to planting over 100 trees a year.
📐 How to Calculate Solar Savings
The key formulas used in this calculator:
Example: 3kW On-Grid, Tamil Nadu (5.2 sun hrs, ₹6.5/unit):
Monthly Gen = 3 × 5.2 × 30 × 0.80 = 374 kWh · Monthly Savings = ₹2,431
Net Cost = ₹1,73,000 − ₹78,000 = ₹95,000 · Payback = ~3.3 years
Quick Answers
Best system size to start with?
Size to cover 70-100% of your current bill — usually 3kW for an average Indian household.
Is the subsidy automatic?
No — you must apply on pm-suryaghar.gov.in before installation, using a DISCOM-empanelled installer and DCR panels.
Biggest mistake to avoid?
Oversizing the system relative to your usage in a state with a low export rate — it lowers your effective ROI.
Does solar work in power cuts?
Standard on-grid systems shut off during outages for safety — a hybrid inverter with battery is needed for backup power.
People Also Ask
❓ Frequently Asked Questions
About This Calculator
📌 Please Note: This tool provides an estimate based on standard peak sun hours, typical system efficiency, and current subsidy rules. Actual savings depend on your roof orientation, shading, panel quality, installer pricing, and your specific DISCOM's net-metering policy. Always confirm current subsidy eligibility and terms at pm-suryaghar.gov.in before installation.
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