Solar for Shop — Complete 2026 Guide for Indian Small Businesses
Commercial electricity tariffs in India are 30–60% higher than domestic rates — typically ₹9–14/unit vs ₹4–10/unit for residential consumers. This makes solar ROI even better for shops and small businesses. A 3kW system on a commercial tariff of ₹11/unit saves ₹4,000–4,500/month — paying back in just 3 years.
System Size Guide by Shop Type
| Shop Type | Avg Units/Month | Recommended System | Approx. Cost | Monthly Savings |
|---|---|---|---|---|
| Kirana / Grocery | 100–150 | 1 kW | ₹60,000–70,000 | ₹1,100–1,500 |
| Medical / Pharmacy | 150–200 | 1.5–2 kW | ₹90,000–1.30 lakh | ₹1,500–2,200 |
| Salon / Parlour | 200–350 | 2–3 kW | ₹1.20–1.80 lakh | ₹2,000–3,500 |
| Restaurant / Dhaba | 300–600 | 3–5 kW | ₹1.80–3.00 lakh | ₹3,000–6,000 |
| Showroom / Boutique | 400–700 | 4–6 kW | ₹2.40–3.60 lakh | ₹4,000–7,000 |
| Small office (10 staff) | 600–1000 | 5–8 kW | ₹3.00–4.80 lakh | ₹5,500–9,000 |
* Costs are gross (without subsidy — commercial shops are not eligible for PM Surya Ghar subsidy). Savings at ₹11/unit commercial tariff.
Tax Benefits for Commercial Solar in India
Even without the residential subsidy, commercial solar has major financial advantages:
- 40% Accelerated Depreciation (Year 1): A ₹2 lakh solar system gives ₹80,000 depreciation deduction in year 1. For a business in the 30% tax bracket, this saves ₹24,000 in tax.
- GST Input Credit: GST-registered businesses can claim 12% GST paid on solar panels and inverters as input credit.
- Electricity Cost as Business Expense: Solar reduces your electricity bill — lowering your P&L expenses and increasing profit without raising prices.
Use our Solar Depreciation Calculator to compute your exact Year 1 tax savings.
On-Grid vs Hybrid for Shops
On-grid (recommended for most shops): Works during grid hours, exports surplus. Lowest cost at ₹55,000–65,000/kW. Ideal for shops in areas with stable grid supply.
Hybrid with battery (for shops with outages): Adds a battery bank for backup during cuts. Cost is ₹90,000–1.20 lakh/kW but ensures business continuity. Critical for shops like medical stores, restaurants, or salons where power cuts mean lost revenue.
Financing Options for Shop Solar
- Business loan: MUDRA loans, MSME loans, or general business loans at 9–14% p.a. for up to 5 years
- Working capital refinance: Some banks include solar investment in working capital limits for businesses
- Equipment finance / lease: NBFC equipment financing at 10–15% p.a.
- RESCO model: Zero upfront, pay only for units generated — increasingly available for commercial setups
Calculate your exact EMI and savings using our Solar Loan EMI Calculator.