Solar ROI Calculator
Calculate return on investment and payback period for your solar system
Investment Details
System Parameters
Payback Period
ROI Analysis
Financial Summary
Investment Analysis
Quick Summary
Year-wise Savings Analysis
How Solar ROI Calculation Works
Simple Payback Period
Payback period = System cost ÷ Monthly savings = ₹5,00,000 ÷ ₹3,000 = 167 months
ROI Calculation
Net profit = Total savings - Total investment = ₹15,93,176 - ₹6,25,000 = ₹10,93,176
Escalation Factor
Annual savings increase due to electricity tariff hikes. Year 1: ₹36,000 → Year 10: ₹55,847.82
Total Investment vs Returns
Total investment over 25 years = System cost + Maintenance = ₹5,00,000 + ₹1,25,000 = ₹6,25,000
Solar Investment Analysis
Investment Benefits:
- • Positive ROI: 218.64% return over 25 years
- • Quick Payback: 13 years 10 months
- • Rising Savings: 5% annual tariff increase
- • Asset Value: Property value enhancement
Risk Factors:
- • Maintenance: ₹5,000/year operational costs
- • Technology: Panel degradation over time
- • Policy: Changes in net metering regulations
- • Weather: Seasonal generation variations
Your ₹5,00,000 Solar Investment:
The Solar ROI Calculator helps you evaluate whether a solar investment makes financial sense. Using your system cost, monthly electricity savings, expected tariff increases and maintenance costs, it calculates your payback period, break-even year, and percentage return on investment over the system's life.
Solar ROI Calculator - FAQs
How is the payback period calculated?
Simple payback period = total system cost ÷ monthly electricity savings (in months). The calculator also computes a more detailed break-even year using cumulative year-wise savings that grow with rising electricity tariffs.
How is ROI (%) calculated?
ROI = (net profit over the system's life ÷ system cost) × 100, where net profit is total savings over the years minus the system cost and total maintenance costs.
Why do yearly savings increase over time?
Electricity tariffs typically rise a few percent each year, so the value of the electricity your solar system offsets grows annually — this is factored into the year-wise savings projection.
What maintenance costs are factored in?
By default we assume about 1% of system cost per year for cleaning, monitoring and minor repairs, but you can adjust this input to match your own estimate.
Are the electricity rate increase and system life assumptions accurate?
They're configurable planning assumptions (default 5% annual tariff increase, 25-year system life). Actual tariff hikes and panel lifespan vary and can change over time, so adjust the inputs to match your local conditions.
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