Rooftop solar financing options available for business owners to reduce their electricity bills and eventually, stop paying for electricity.

Many financing options are available for business owners to fund installation of rooftop solar plant to run their business in a way that is friendly to the environment as well as pocket.

If you are a business owner and stand for sustainability, think of running your business on solar energy and pay less for electricity. Many banks are providing collateral free loan for installation of rooftop solar power plants to business establishments. These loans are provided at a reasonable interest rates of 9-10% for a minimum period of 5 years. 

Installation of rooftop solar plant of sufficient capacity is highly rewarding for your business, in return you will be paying about the same EMI as your monthly electricity bill. 

Once, you get that load off of your head, Voila!! NO MORE PAYING FOR ELECTRICITY.

Here is how: 

Lets say, is a medium-sized company located in Gwalior, Madhya Pradesh, India. The company operates a service providing facility with moderate electricity consumption, primarily powered by the grid.

Electricity Consumption Profile:

  • Average monthly electricity consumption: 5,000 kWh
  • Average monthly electricity bill: INR 40,000 (assuming an average tariff of INR 8 per kWh)

Rooftop Solar Installation Details:

  • Installed capacity: 10 kW
  • Rooftop space available: 1200 square ft (i.e. 30 x 40 ft building)
  • Solar panel efficiency: 18%
  • Solar radiation in Gwalior: Approximately 5.0 kWh/m²/day


  • Total installation cost: INR 8,00,000 (after incentives, subsidies, and tax benefits)
  • Financing: opts for a solar loan at an interest rate of 9.5% over a 5-year term, resulting in monthly installment payments.

Calculation of Solar Energy Generation:

  • Daily Solar Energy Generation:

    • Solar radiation (5.0 kWh/m²/day) x Rooftop area (120 m²) x Solar panel efficiency (18%) = 108 kWh/day
  • Monthly Solar Energy Generation:

    • Daily solar energy generation (108 kWh) x 30 days = 3,240 kWh/month

Offsetting Electricity Bill:

  • With the rooftop solar installation, can offset a portion of its electricity consumption from the grid.
  • Assuming the solar system generates 3,240 kWh per month, and the business consumes 5,000 kWh per month, the percentage of offset is calculated as:
    • Offset percentage = (Solar energy generation / Total electricity consumption) x 100
    • Offset percentage = (3,240 kWh / 5,000 kWh) x 100 = 64.8%

Calculation of Monthly Savings:

  • Monthly savings from solar energy generation:
    • Offset percentage x Monthly electricity bill
    • Monthly savings = 64.8% x INR 40,000 = INR 25,920/-

Calculation of Monthly Loan Installment:

  • Using standard amortization formulas, calculate the monthly loan installment based on the total loan amount, interest rate, and loan term.
  • Monthly installment for repayment of loan calculated using EMI calculator = 16,801/- p.m.

Net Savings:

  • Subtract the monthly loan installment from the monthly savings to determine the net savings realized by
  • Net Savings = 25,920 - 16,801 = 9,119/- 

Example Summary:

  • installs a 10 kW rooftop solar power plant, generating 3,240 kWh of electricity per month.
  • With a 64.8% offset, the company saves INR 9,119/- on its monthly electricity bill.
  • After deducting the monthly loan installment, enjoys net savings while contributing to sustainability and energy independence.


If you are a business owner who wants to save money by installing solar plant, contact us for hassle-free and affordable financing with our partners. click here

(Note - above illustration is only indicative of the idea, actual figure may vary slightly) 

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