Solar for business in India
Commercial and industrial (C&I) rooftop solar plays by different rules than a home system. There's no PM Surya Ghar subsidy, but higher tariffs and tax benefits often make the business case even stronger. Here's what changes.
How business solar differs from residential
No PM Surya Ghar subsidy
The central residential subsidy applies to homes only. Businesses don't get the ₹78,000 grant, but they have other, often larger, financial levers instead.
Accelerated depreciation instead
Commercial owners can claim accelerated depreciation on the solar asset, writing off a large share of the cost against taxable profit in the early years, a substantial effective saving for profit-making businesses.
Higher tariffs = faster payback
Commercial and industrial electricity tariffs are typically far higher than residential. Because you're offsetting pricier units, C&I solar often pays back faster than a home system, commonly in 3-5 years.
Different net metering limits
Many states cap net metering for larger C&I systems and push them toward net billing, gross metering, or open access. The right model depends on your load profile and state policy.
Three ways to finance it
CAPEX (own it)
You fund the system upfront (or via loan), own the asset, claim depreciation, and keep all the savings. Best ROI if you have the capital and taxable profits.
OPEX / RESCO (PPA)
A developer installs and owns the system on your roof; you simply buy the power at a fixed, lower per-unit rate under a power purchase agreement. Zero upfront cost, lower savings.
Open access / group captive
For large loads, source solar from an off-site plant through the grid. More complex, but unlocks scale beyond your own rooftop.
Why payback is often faster for businesses
A home might pay ₹6-8 per unit; a commercial connection can pay ₹9-12 or more, and industrial time-of-day tariffs can be higher still at peak. Since solar offsets your most expensive daytime units, every kWh generated saves more money than it would for a household. Stack accelerated depreciation on top, and post-tax payback for a profitable business commonly lands in the 3-5 year range, after which the power is effectively free for the remaining 20+ years of panel life.
How to get started
- 1
Analyse your load profile and current C&I tariff, the higher your daytime consumption, the better the fit.
- 2
Decide CAPEX vs OPEX based on your capital and tax position.
- 3
Check your state's net metering / net billing cap for commercial systems.
- 4
Get quotes from EPC providers and compare per-kW pricing and warranties.
- 5
Factor in accelerated depreciation with your accountant to see the true post-tax payback.