How to Calculate the ROI of Your Solar Investment
What Is ROI in Solar? ROI ( Return on Investment ) measures how much you gain financially from your solar installation compared to how much you spent. Simply put: ROI = (Total Savings from Solar – Total Cost of Solar) ÷ Total Cost of Solar × 100% A higher ROI means a better financial return. Step 1: Calculate the Total Cost of Installation Your total investment includes: Equipment costs (solar panels, inverters, batteries if included) Installation costs (labor, wiring, permits) Maintenance contracts (if any) Example: A 5kW rooftop system might cost ₹2.5–3.0 lakh in India after subsidies. Step 2: Estimate Annual Energy Production Check how much electricity your system will generate yearly. This depends on: System size (kW capacity) Sunlight hours in your location Panel efficiency Example: A 5kW system in Lucknow generates around 6,000–7,000 kWh per year . Step 3: Calculate Energy Savings Multiply your yearly so...