Solar ROI Calculator
Calculate return on investment and payback period for your solar system
Investment Details
Total solar system investment including installation
Monthly reduction in electricity bills
Investment: ₹5,00,000 | Savings: ₹3,000/month
Annual savings: ₹36,000
System Parameters
Annual increase in electricity tariff rates
Yearly maintenance, cleaning, and repair costs
Expected operational lifespan of solar system
Parameters: 5% tariff increase, ₹5,000 maintenance
System life: 25 years | Total maintenance: ₹1,25,000
Payback Period
Simple Payback
13y 10m
167 months
Break-even Year
Year 12
Monthly Recovery
₹3,000
ROI Analysis
Return on Investment
218.64%
Over 25 years
Total Savings
₹15,93,176
Net Profit
₹10,93,176
Financial Summary
Initial Investment:₹5,00,000
Total Maintenance (25yr):₹1,25,000
Total Investment:₹6,25,000
Net Benefit:₹10,93,176
Investment Analysis
ROI breakdown over 25 years with 5% annual tariff increase
Quick Summary
System Cost:₹5,00,000
Monthly Savings:₹3,000
Payback Period:13y 10m
ROI:218.64%
Total Savings:₹15,93,176
Net Profit:₹10,93,176
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
Break-even in Year 12 when cumulative savings exceed system cost
ROI Calculation
Net profit = Total savings - Total investment = ₹15,93,176 - ₹6,25,000 = ₹10,93,176
ROI = (Net profit ÷ System cost) × 100 = 218.64% over 25 years
Escalation Factor
Annual savings increase due to electricity tariff hikes. Year 1: ₹36,000 → Year 10: ₹55,847.82
Tariff increase: 5% annually | Maintenance: ₹5,000/year
Total Investment vs Returns
Total investment over 25 years = System cost + Maintenance = ₹5,00,000 + ₹1,25,000 = ₹6,25,000
Returns exceed investment by ₹10,93,176 providing 218.64% ROI
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:
Payback: 13y 10m
ROI: 218.64%
Net Profit: ₹10,93,176
Break-even: Year 12
Monthly: ₹3,000/month
Total Savings: ₹15,93,176
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