Guide · Updated September 2026
Is solar worth it? The honest numbers, not the pitch
The short answer
Rooftop solar is worth it when your home uses most of what it generates while the sun is up. At the 2026 benchmark of about ₹58,000 per kW, a 3 kW system lands near ₹1,74,000 before subsidy and about ₹96,000 after it. What you are really buying is the bill you stop paying.
The only arithmetic that matters
Payback is net cost divided by annual bill savings. At a benchmark of roughly ₹58,000 per kW installed, a 3 kW system lands near ₹1,74,000 before subsidy; the PM Surya Ghar subsidy takes that to about ₹96,000. The other half of the equation is the bill you no longer pay — and specifically the share of your consumption that happens while the panels are producing, because exported units settle under your DISCOM’s rules rather than at retail tariff.
Why the answer improves with time
Two lines move in opposite directions. Panel output degrades by roughly 0.6% a year, while grid tariffs have been rising around 4% a year. Across the 25-year panel life, the units you avoid get more expensive faster than the units you produce shrink. That asymmetry — not any subsidy — is the actual case for solar.
When it is not worth it
Four honest disqualifiers. If you rent and expect to move within a few years, the payback outlives your stay. If your bill is small, the system sized to it is small too, and the fixed costs — structure, wiring, meter, inspection — dominate the arithmetic. If nearly all your consumption is at night and your DISCOM settles exports at pooled cost, the export route is far weaker than self-consumption. And if the roof is heavily shaded, no subsidy changes that.
Sizing beats maximising
Because the subsidy is capped at ₹78,000 from 3 kW upward, every kW above 3 is entirely your own money. That does not make a bigger system wrong — it makes it a consumption decision rather than a subsidy decision. Oversizing to chase exports rarely pays; sizing to your own daytime load usually does.
Run your own numbers
Guides give you the rules; the calculator gives you your numbers. One input — your monthly bill.
Open the calculatorFAQ
What is a realistic payback period in India?
A well-sized residential system on our own model pays back in the low single digits of years — around 3 to 5 — but that range is driven by your state tariff and how much you self-consume. Run your actual bill through the calculator on the home page rather than trusting a national average.
Does solar still pay if I do not get the subsidy?
Yes, just slower. The subsidy improves the return, it does not create it: the savings come from displacing retail units that get more expensive every year. Without the subsidy, payback stretches and self-consumption matters even more.
What happens if I sell the house?
The system stays with the property and generally transfers with it — a working solar installation is a selling point, not a liability. The subsidy, however, is tied to the household and the connection, so document the commissioning certificate for the buyer.
Is solar worth it in a monsoon-heavy city?
The annual yield already accounts for clouds — cities like Mumbai and Kolkata are modelled on real monthly irradiance, so the monsoon months are in the average rather than missing from it. What changes is seasonality: you will import more in July and export more in April.