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Solar for Factories

Solar panels for factories — is rooftop solar worth it for your plant?

For most factories, yes — at roughly ₹3.5–5 a unit against ₹7.5–9.5 for industrial grid supply. Whether that arithmetic reaches you turns on two things, and only one of them is your roof. Then come the decisions nobody sells you: rooftop or open access, and on whose balance sheet.

15+ years · 535+ projects · Design, approvals & execution in-house · ISO 9001:2015

The short answer

The arithmetic, before anything else

Industrial tariffs in India sit around ₹7.5–9.5 a unit. Rooftop solar delivers at roughly ₹3.5–5 a unit levelised across the plant's twenty-five year life. Every unit your factory generates and consumes itself is therefore bought at about half price, for two decades after the payback is done. That is the whole case, and it is why the honest question is never whether solar works — it is whether it works on your site.

Two conditions decide that, and the second one surprises people:

Daytime coincidence

Solar pays for units consumed while it is generating. A single-shift plant running 9-to-6 is close to the ideal case. A plant whose load sits on the night shift is not, and no amount of capacity fixes that — the generation is exported at whatever your state currently allows, not consumed at ₹9.

Sanctioned load and transformer headroom

Your DISCOM caps net-metered capacity against your sanctioned load, and the distribution transformer has headroom of its own. What you are permitted to install is frequently smaller than what your roof would hold. This is the single most common reason an application bounces at feasibility — it is a design-stage fix, not an appeal-stage one.

When the answer is no, or not yet. A roof with corroded purlins or asbestos sheeting, where reinforcement costs more than the first years of savings. A load profile that genuinely runs at night. A leased premises with too few years left to reach payback. We would rather say so at survey than design around it — an EPC that only sells rooftop never will.

The route

Three decisions, and they come in this order

Most factory solar conversations start at the wrong end — with a quote for a plant size, before anyone has settled the two questions that determine whether that size is even the right shape of answer. The order below is the order the decisions actually bind in.

  1. In what form? Rooftop behind your meter, open access across the grid, or both. This sets the ceiling on everything after it.
  2. On whose balance sheet? You fund and own it (CAPEX), or a developer funds and owns it and sells you the units (OPEX, also called RESCO or PPA). The engineering does not change. The economics do.
  3. How much? Only now does sizing become a real question — and it is decided by the smallest of three limits, not by your roof area.
Decision 1

Rooftop, open access, or both

These are not competing products; they answer different constraints. Rooftop is cheap and capped. Open access is scalable and contractual. A power-hungry plant usually ends up running both, and the comparison is worth making before capex rather than after.

Rooftop captiveOpen access
Where the plant sitsYour roof, behind your meterOff site, delivered across the grid
CapitalYours under CAPEX, the developer's under RESCONone — you contract for power, not plant
Per-unit costThe lowest available to you — no wheeling, no cross-subsidy surchargeHigher than rooftop: wheeling, cross-subsidy and additional surcharges apply, vary by state and are revised
Scale ceilingHard — usable roof area and sanctioned loadFar larger; contracted capacity rather than roof
What you end up withA twenty-five year asset you ownA supply contract for its term
ApprovalsNet metering and CEIG clearanceState open-access approvals plus the DISCOM interface

The hybrid is the answer more often than either alone: rooftop for the daytime base load, open access for the balance. See how open access solar works for industries, work through the full comparison in open access versus rooftop captive, put your own numbers through the open-access savings calculator, or read the definition if the term is new.

CAPEX, bank loan or OPEX

Decision 2 — CAPEX or OPEX/RESCO, and why it is a finance question

OPEX, RESCO and PPA name one arrangement: a developer funds, owns and maintains the plant, and sells you the units. Under CAPEX you fund it and keep everything it saves. The engineering is identical — what changes is who puts up the capital, who carries the O&M, and who keeps the savings. Compare the term, the escalation and the buyout before you compare headline tariffs; the ten-year view is where the two models separate.

CAPEX

You own the plant

You fund it, you own the asset, and every rupee it saves stays with you.

Depreciation
Accelerated depreciation at 40% WDV in year one. On a typical corporate tax rate that is roughly 10–12% of project cost back as a year-one tax saving — confirm your own position with your CA.
Savings
You keep 100% of the generation. Nothing is shared with a developer.
Payback
Typically 3–6 years for C&I rooftop at a healthy tariff. Yours depends on your blended tariff, region and roof — the calculator gives your number, not an average.
Asset
A 25-year asset on your balance sheet, with the loan (if any) usually clear inside 5–7.

Trade-off: You fund the capital and carry the O&M.

Compare on lifetime rupees
BANK-FINANCED OWNERSHIP

You own it, a bank funds most of it

A lender funds the bulk of the plant against a contribution from you. You still own the asset at the end.

Your contribution
Not zero — this is the number most often misstated. The published captive schemes we checked want 20–25% of project cost: SBI Surya Shakti sets 20% minimum for captive projects and states deviation is not permitted; Indian Bank IND-SURYA SHAKTI asks 25% on equipment and erection. Read 27 Sep 2026 — re-check before you budget on it.
Security
Expect the financed assets hypothecated, plus a lien or mortgage over the land and building the plant stands on. Personal guarantees from directors are common.
Tenure
Commonly 10–15 years door-to-door including any moratorium, which is what lets the EMI sit below the monthly saving on a healthy tariff. Whether it actually does is arithmetic, not a promise — the EMI calculator uses your numbers.
Who decides
The lender, not us. SEPL prepares the technical pack it asks for — system design, BOQ, generation estimate and commissioning evidence. We do not assess your credit, submit applications on your behalf, or promise a sanction.

Trade-off: You take on a repayment obligation and the O&M, and the lender takes security over the building.

Test it against your own EMI
OPEX / RESCO / PPA

You buy the output

An investor or developer builds and owns the plant on your roof, and you buy the units it makes. This is how the model works in the market — whether a given project qualifies is a question for assessment, not a standing SEPL offer.

Capital
No upfront plant CAPEX from you, and the plant stays off your balance sheet. That is not the same as free — you take on a PPA with a tariff, a term, and usually a minimum-consumption or deemed-generation obligation.
Tariff
A per-unit rate agreed in the contract, normally below your current DISCOM tariff. Check the escalation clause — it decides the deal.
Risk
Performance and O&M sit with the developer for the contract term.
End of term
Read the transfer clause carefully. Some contracts hand you the asset; others do not.

Trade-off: Smaller saving, usually more total cost than owning across 25 years, and you give a third party rights over your roof for the term.

Model a PPA offer you've been sent

Solar PPA, RESCO or bank loan — which suits your factory?

Request a project-specific review of bank-financed ownership and investor-funded alternatives. Availability, borrower contribution and terms depend on project assessment and the lender or investor.

Request a solar finance assessment

Published borrower contribution on the captive solar schemes we checked (2026-09-27): State Bank of India Surya Shakti Solar Finance — 20% minimum for captive projects, with deviation not permitted; 25% minimum for other-than-captive; Indian Bank IND-SURYA SHAKTI — 25% on the cost of the equipment and erection charges. SEPL is an EPC contractor, not a lender — we are not presented here as a partner of any bank, and the loan decision is the lender's.

Want to see what a real proposal looks like before you talk to anyone?

We'll send a worked 500 kWp commercial example — layout, BOQ structure, generation model and the full CAPEX-versus-PPA comparison. A sample, not a quote for your site.

Request sample 500 kWp ROI proposal

Figures above are indicative and depend on your tariff, region, roof and tax position. Tax treatment changes — confirm depreciation and input-credit specifics with your CA before you commit. We put the assumptions on screen rather than in a footnote.

Decision 3 — the sizing logic

Size to the smallest of three limits

1

Consumption limit

Your daytime base load sets the ceiling on what solar can offset without fighting banking rules. A plant bigger than your consumption exports at unfavourable rates — or gets curtailed. How we measure it →

2

Roof limit

Plan ~100 sq.ft of shadow-free roof per kW. Skylights, vents, parapets and shadows shrink the usable figure — and old structures need a verdict before design.

3

Rules limit

DISCOMs cap net-metered capacity against sanctioned load, and banking rules differ by state. Check your sanctioned-load headroom →

Worked example

A ₹3 lakh/month factory, sized honestly

Monthly bill₹3,00,000 (₹9/unit blended)
Consumption≈33,300 units/month
Solar to offset it≈275 kW
Shadow-free roof needed≈27,500 sq.ft
Indicative turnkey cost≈₹77 L
Est. monthly saving≈₹2.9 L/mo
Indicative payback≈2.2 yrs

Same assumptions as our calculator (~120 units/kW/month, ₹24–32k/kW). Your tariff, roof and DISCOM shift every line — run yours.

Reality checks

Where factory solar goes wrong

  • Sized to the roof, not the load — the #1 payback killer. Bigger is not better past your consumption.
  • Winter honesty — North India's fog season cuts generation; models that ignore it overpromise by 8–12% annually.
  • Structure skipped — panels on corroded purlins are a liability, not an asset.
  • Penetrations treated as roofing, not engineering — the panels rarely cause the leak; flashing and unsealed mounting points do, and a leak over a production line costs more than the generation it interrupts.
  • DG interlocks missing — solar that trips your changeover or back-feeds a DG is an integration failure, not bad luck.
  • Vendor guarantees that guarantee nothing — what a PR guarantee must actually say.
Straight answers

Factory solar questions, answered by engineers

Is rooftop solar worth it for a factory in India?

For most factories, yes — and the arithmetic is not close. Rooftop solar lands at roughly ₹3.5–5 per unit levelised over the plant's life against ₹7.5–9.5 for industrial grid supply, so every unit the plant generates and the factory consumes is bought at about half price for twenty-five years. Two conditions decide whether that arithmetic reaches you. The first is daytime coincidence: solar only pays where the load runs while the sun is up, which is why single-shift manufacturing is the ideal case and a night-shift plant is not. The second is capacity: your DISCOM caps net-metered capacity against sanctioned load, and the distribution transformer has its own headroom, so what you may install is often smaller than what your roof would hold. Where both conditions hold, payback typically lands in the three-to-six year band and the plant runs for two decades after that.

Open access or rooftop — which suits a factory?

They answer different constraints, and large units increasingly run both. Rooftop is behind the meter: no wheeling charge, no cross-subsidy surcharge, the lowest per-unit cost available to you — and a hard ceiling set by your roof and your sanctioned load. Open access buys power from an off-site plant across the grid: it scales far past what any roof allows, but the delivered cost carries wheeling, cross-subsidy and additional surcharges that vary by state and are revised, and it is a contractual commitment rather than an asset you own. The common answer for a power-hungry plant is a hybrid — rooftop for the daytime base load, open access for the balance. Anyone selling only one of the two will not raise the comparison.

CAPEX or OPEX/RESCO — which model should a factory choose?

OPEX, RESCO and PPA are three names for one arrangement: a developer funds, owns and maintains the plant on your roof, and you buy the units it generates at an agreed tariff. Under CAPEX you fund it, own it, claim accelerated depreciation and keep every rupee it saves. The engineering is identical — this is a finance decision, not a solar one. CAPEX suits a company with the capital and the tax position to use the depreciation, and over the plant's life it wins because nothing is shared. RESCO suits a company that wants the savings without the capital outlay or the maintenance responsibility. Read the term, the tariff escalation and the buyout clause before comparing headline tariffs: a RESCO rate below your grid tariff is not automatically the better ten-year outcome.

How much solar does my factory need per lakh of monthly bill?

As a working figure at a ₹9/unit blended tariff, a ₹1 lakh monthly bill is roughly 11,000 units — about 90–95 kW of solar if you wanted to offset all of it, or less if your DISCOM caps net metering at your sanctioned load. Size against consumption and rules, not the bill alone; the calculator does this arithmetic for your numbers.

My factory runs 6 days a week. What happens to Sunday generation?

Under net metering it's exported and credited per your DISCOM's banking rules — which differ by state and are tightening in several. Under a captive/behind-the-meter design without export, Sunday generation is curtailed unless you shift load. This single policy detail changes optimal plant size by 10–20% and is exactly the kind of input an EPC should model before quoting.

Is my factory roof strong enough for solar?

Pre-engineered sheds usually take ~12–15 kg/m² of additional load comfortably, but older trussed roofs, corroded purlins and asbestos sheets need a structural verdict first. We survey before we design — replacing sheeting or reinforcing purlins is sometimes part of an honest quote, and skipping that check is how plants end up on roofs that can't hold them.

What does factory solar cost per kW?

Current C&I turnkey benchmarks run roughly ₹24,000–32,000 per kW installed for rooftop systems (from ₹28,000–32,000/kW at 100 kW to ₹24,000–26,000/kW at 1 MW), varying with structure type, cable runs, inverter class and metering scope. See the detailed breakdowns for 100 kW, 250 kW, 500 kW and 1 MW plants, or run your own configuration in the calculator.

Does GST or depreciation change the economics?

Materially. Businesses can claim accelerated depreciation (40% WDV) on solar assets and input credit treatment depends on how the contract is structured — both improve post-tax payback versus the sticker calculation. We flag the current treatment during proposal; confirm specifics with your CA, as tax positions change.

Who handles the DISCOM paperwork and inspections?

We do, in-house — net-metering application, CEIG approval and synchronisation. Approvals are our core trade as an MEPF contractor; our published guide on net-metering timelines in UP, Punjab and Haryana reflects filings we actually run, not theory.

Free · 30 seconds

What would solar actually save you?

Three inputs. Your numbers appear before we ask for anything.

  1. 1 Your site
  2. 2 Your numbers
  3. 3 Full report
Roof type
Statutory approvals

DISCOM Net-Metering & CEIG Applications Prepared and Filed In-House.

Approvals are our core trade as an MEPF contractor — not something we sub out to a consultant and hope for. You sign, we file, we follow up.

  1. 1

    Feasibility & application

    Load study, single-line diagram and the net-metering application prepared and filed.

  2. 2

    CEIG / Electrical Inspector

    Drawings, test reports and the inspection itself — coordinated and attended by our team.

  3. 3

    Synchronisation & meter

    Bi-directional meter, DISCOM sign-off and grid synchronisation, through to commissioning.

Send one electricity bill. Get an engineering answer.

WhatsApp a recent bill and two roof photos — an engineer replies with what your factory can realistically install, and whether it's worth doing.

ONE PARTNER. END TO END. You focus on your business — we handle the rest.
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