Introduction
One of the most common questions we get at Solyug Energy is: “How much money will I actually save if I switch to solar?”
The answer lies in comparing the cost of grid electricity with the cost of solar-generated electricity. This blog breaks down the numbers with real-world examples for households, businesses, and industries.
Current Electricity Costs in India
On average:
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Residential: ₹6–₹8 per unit
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Commercial: ₹7–₹10 per unit
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Industrial: ₹8–₹12 per unit
These tariffs increase by 4–6% annually due to fuel costs, inflation, and grid inefficiencies.
Cost of Solar Electricity
With rooftop solar:
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CAPEX Model: ₹2.5–₹3.5 per unit (after ROI).
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OPEX Model: ₹4–₹6 per unit (fixed tariff under PPA).
This means 40–60% cheaper power compared to DISCOM electricity.
Household Example
A family in Surat consumes 300 units/month (₹2,400 bill at ₹8/unit). Installing a 3 kW rooftop solar:
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Cost: ₹1.5 lakh (after subsidy)
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Generation: 3600 units/year
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Savings: ₹28,800 per year
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Payback: 4 years
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Lifetime savings: ₹10–12 lakh
Business Example
A small textile unit consumes 1,00,000 units/month at ₹9/unit (₹9 lakh bill). Installing a 200 kW solar plant under OPEX:
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Solar tariff: ₹5/unit
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New bill: ₹5 lakh
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Monthly savings: ₹4 lakh
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Annual savings: ₹48 lakh
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20-year savings: ₹9.6 crore
Industrial Example
A factory in Maharashtra installs 1 MW solar system under CAPEX:
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Investment: ₹4 crore
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Generation: 14 lakh units/year
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Savings: ₹10.5 crore over 25 years
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Payback: ~4 years
Net Metering Advantage
With net metering, excess solar power exported to the grid is credited to your bill, further maximizing savings.
ROI and Lifetime Value
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Average payback period: 3–5 years (CAPEX).
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Solar panels last 25 years+, meaning 20 years of free electricity after ROI.
Conclusion
When you compare electricity costs, the numbers speak for themselves. Grid electricity is getting costlier every year, while solar power gives predictable, low-cost energy for decades. Whether you are a homeowner, shop, or factory, switching to solar is the smartest financial decision.
At Solyug Energy, we help you calculate accurate savings, ROI, and design a solar system that maximizes your benefits.