Commercial Solar ROI in Tamil Nadu: Worth It?

Commercial vs Residential ROI

• No MNRE subsidy for commercial, but higher tariff rates mean faster payback
• Commercial rates: ₹7-10/unit vs residential ₹3-6/unit
• Daytime operations = better solar match = higher self-consumption
• Typical payback: 3.5-4.5 years (vs 4-5 years residential with subsidy)
• 25-year lifetime savings: ₹40L-₹1.5Cr depending on system size

Cost Breakdown (50kW System Example)

• System cost: ₹25L-30L (₹50-60/watt installed)
• Generation: 200-250 units/day (~6,000-7,500 units/month)
• Monthly savings: ₹45,000-60,000 at ₹8/unit tariff
• Payback: 3.5-4 years
• Tax benefit: 40% depreciation = ₹10L-12L saving in Year 1
• Effective payback (with depreciation): 2.5-3 years

Best Commercial Applications

• Factories: 8am-6pm shift = perfect solar match; large roofs available
• Shops & showrooms: 10am-9pm operations; AC loads during day
• Restaurants: High daytime AC + kitchen; reduces peak demand charges
• IT offices: Consistent daytime load; ESG reporting benefit
• Hotels: 24/7 operations; net metering credits night usage
• Cold storage: Continuous loads; solar reduces compressor cost

Additional Business Benefits

• ESG and sustainability reporting for corporates
• Lock in energy costs against future tariff hikes
• Improved power factor and reduced demand charges
• Property value increase with green certification
• Marketing advantage as eco-friendly business

FAQ

• ROI timeline? 3.5-4.5 years without subsidy due to high commercial tariffs (₹7-10/unit).
• Subsidy available? No, MNRE subsidy is only for residential and agricultural. Net metering available.
• Tax benefits? Yes, 40% accelerated depreciation in Year 1 improves effective ROI by 8-12 months.