Commercial Solar for Factories: Tax Benefits & ROI

For businesses and factories in India, solar is not just green energy—it's a massive financial advantage.

Accelerated Depreciation (AD)

Commercial entities can claim 40% Accelerated Depreciation per year on solar assets. This significantly reduces taxable income in the first few years, acting as a huge tax shield.

Lower Tariffs

Commercial grid electricity rates are often ₹10-15 per unit. Solar generates power at an effective cost of ₹2-3 per unit over its lifetime. This leads to massive operational savings.

Fast Payback

Due to tax benefits and high grid tariffs, the payback period for commercial solar is often 3-4 years, after which the electricity is essentially free for the next two decades.