SolarCalculatorsUnderstanding Solar PV Financial Analysis
A solar PV system is one of the best long-term investments you can make in India. But unlike a simple bank FD, solar returns depend on multiple factors — system size, electricity prices, subsidies, financing terms, and panel degradation over time. Our PVCalc tool models all of these to give you a complete financial picture.
Key Metrics Explained
- NPV (Net Present Value): The total value of all future cash flows discounted to today. A positive NPV means the project is profitable.
- LCOE (Levelized Cost of Energy): Your effective cost per kWh of solar energy over the system's lifetime. Compare this to your grid tariff to see your savings.
- IRR (Internal Rate of Return): The annualized return rate on your investment. Solar in India typically delivers 15–30% IRR.
- Payback Period: How many years until your cumulative savings exceed the initial investment. With PM Surya Ghar subsidy, this is often 3–5 years.
India-Specific Defaults
This calculator comes pre-loaded with 2026 India-specific values:
- ₹60,000/kWp — Average all-in installation cost
- 1,500 kWh/kWp/year — Average solar yield across India
- ₹8/kWh — Average residential grid tariff
- PM Surya Ghar subsidy — Auto-calculated (up to ₹78,000 for ≤3 kWp)
- 5% grid inflation — Historical average increase in electricity tariffs
How to Use This Calculator
- Enter your system size and adjust the price per kWp if you have a quote.
- Set own consumption to the kWh you use from your solar directly (not exported to grid).
- Adjust financing — if paying 100% upfront, keep own funds at 100%.
- Click Calculate and explore all 5 result tabs.
- Use the Scenarios tab to stress-test your assumptions.