Is rooftop solar worth it in India?
Short answer: for most homes with a monthly electricity bill above about ₹2,000, yes, comfortably. After the PM Surya Ghar subsidy, a typical residential system pays for itself in roughly 4-6 years and then generates largely free electricity for two more decades. But it isn't right for everyone. Here's how to tell.
The 10-second test
Multiply your monthly bill by 12, then again by 20. That's a rough floor for your 20-year savings if you offset most of your usage. Compare it to a net cost of ₹1-1.5 lakh for a typical 3kW system, for most households, the savings dwarf the cost.
Run your exact numbersWhen rooftop solar is worth it
Your monthly bill is ₹2,000+
Above roughly ₹1,500-2,000/month, the subsidised payback is short enough that solar clearly wins over 25 years.
You own your roof
You need a stable, unshaded roof you control, owned homes and independent houses are ideal.
You plan to stay 4+ years
Payback is typically 4-6 years after subsidy. Stay past that and the rest is largely free power.
Your area has net metering
Net metering lets surplus daytime generation offset your night-time usage, which is what makes the savings add up.
When it may not be worth it
Your bill is very low
Under ~₹1,000/month, the absolute savings are small and payback stretches out, the case is weak.
Heavy shading or tiny roof
Trees, taller neighbouring buildings, or a cramped roof cut generation enough to hurt the economics.
You're renting or moving soon
If you can't keep the system for the payback period, you may not recover the upfront cost.
Net billing at a low export rate
Where exported units are paid far below the retail tariff, savings shrink, run your state's numbers first.
Pros and cons at a glance
The upside
- Cuts your electricity bill by 70-100% when correctly sized
- Pays for itself in about 4-6 years after the PM Surya Ghar subsidy
- 25-year panel life means ~20 years of near-free power after payback
- Adds value and energy independence to your home
- Protects you from future tariff hikes
The trade-offs
- •Meaningful upfront cost, even after subsidy (typically ₹1-1.5 lakh net for a 3kW system)
- •Savings depend on sunlight, roof quality, and your state's net metering rules
- •Subsidy is reimbursed after commissioning, not deducted upfront
- •Requires occasional cleaning and rare inverter maintenance
A worked example
Take a home with a ₹3,000/month bill. That's roughly 3.5kW of solar. At ₹60,000/kW the gross cost is about ₹2.1 lakh; the ₹78,000 central subsidy brings the net cost to around ₹1.32 lakh. With ₹36,000/year in bill savings, the system pays back in under four years, and over 25 years nets close to ₹7 lakh in savings. Change the bill and the state, and the calculator does this for you instantly.