top of page
JJPV LOGO-01-1.png
Cost for rooftop solar panels for home i

Trusted Solar Power: EPC Services and Scalable Solar EPC Solutions for Businesses

May 28

2 min read

ree

Imagine if your factory’s electricity bill suddenly dropped by half - and you never had to worry about rising power costs again. That’s what many factories in India are doing in 2025 by switching to solar panels. Solar energy not only saves big on bills but also makes your business more reliable and eco-friendly.


In this blog, we’ll explain the actual cost of factory solar systems, how the installation process works, and how you can get the best returns on your investment.Keep reading to see why going solar could be the smartest move for your factory this year.


Why Factories Are Switching to Solar Power in India


  • Massive Cost Savings: Solar power can reduce factory electricity bills by 30-50%, helping industries save lakhs every year.

  • Protection from Rising Tariffs: With grid power costs increasing annually, solar offers a fixed, predictable energy expense for decades.

  • Energy Independence: Factories can rely less on the grid and avoid power cuts or voltage fluctuations that disrupt production.

  • Long-Term Reliability: Solar panels last for 25+ years and require minimal maintenance, ensuring stable, uninterrupted energy.

  • Sustainability Advantage: Switching to solar improves a factory’s green image and supports ESG goals, which is key for export-oriented businesses.

  • Government Incentives: Benefits like accelerated depreciation, net metering, and state subsidies make solar an even more profitable investment.

  • Quick Payback: Most factory solar installations recover their cost in 3-5 years, after which the power is practically free.

In short: Solar power helps factories in India save big, stay efficient, and go green-all at the same time.


Cost & Installation Process of Solar Panels for Factories


1. Indicative Cost Ranges for Factory/Industrial Solar Systems

The cost for industrial/large commercial rooftop systems in India in 2025 typically falls in the range of ₹35,000 - ₹50,000 per kW


For example:

  • A 100 kW system might cost around ₹35 - 45 lakh.

  • A 500 kW system could cost in the region of ₹1.8 - 2.5 crore


Cost per watt (₹/Wp) estimates:

  • < 100 kW: ~₹42/Wp 

  • 100–200 kW: ~₹37/Wp

  • 200–500 kW: ~₹33/Wp 


Breakdown of cost components (for industrial systems):

Component

Share of total cost

Solar panels

~55-60% 

Inverters

~15-20%

Mounting structures

~8-10%

Balance of System (BoS) wiring, etc.

~5-7%

Installation & labour

~5-8%


2. Installation Process for FactoriesHere’s a step-by-step overview of how a solar project for a factory typically proceeds:


  • Site Survey & Load Assessment: Evaluate the factory’s energy consumption profile (daytime hours, peak loads), available roof/ground area, shading, and structural strength for rooftop mounts.

  • System Design & Equipment Selection: Decide system size (kW) based on energy requirement and available space, choose module type (mono, bifacial, etc), inverter type, and mounting structure. 

  • Permits & Approvals: Obtain approvals from the local DISCOM or electricity board for interconnection/net-metering or captive use; structural clearance if rooftop; compliance with safety/regulations. 

  • Procurement & Installation: Supply of panels, inverters, mounting & wiring; mounting structure and panels installed, inverters wired; setting up safety gear (earthing, surge protection), testing. 

  • Commissioning & Grid Connection: After physical installation, the system is tested, commissioned, and interconnection with the grid (if on-grid) or captive usage begins; the monitoring system is activated.

  • O&M (Operation & Maintenance): Regular cleaning of panels (especially in dusty factory environments), monitoring system performance, inverter maintenance/replacement, logging generation vs expected performance.


3. Key Cost & Installation Considerations


  • Roof type & condition: RCC flat, metal shed, or ground-mounted will affect cost significantly (mounting structure cost, labour complexity).

  • Panel/inverter quality: Higher efficiency panels (mono/bifacial, TOPCon, etc) cost more but deliver more output. 

  • Scale & location: Larger systems get economies of scale; remote or difficult access sites raise labour/transport costs.

  • Grid connectivity & export rules: If surplus is exported to the grid, metering policies and export tariffs matter.

  • Absence of direct subsidies: For industrial C&I systems, direct capital subsidies are usually not available (unlike residential). The benefit mainly comes via tax incentives (e.g., accelerated depreciation).


Key Factors to Maximize ROI from Factory Solar Systems

Investing in solar power for your factory can deliver massive savings and a quick payback, but only if the system is planned and managed wisely. Here are the key factors that can help you maximize ROI from your solar installation in 2025:


1. Accurate System SizingYour solar system should be designed based on your factory’s actual energy consumption pattern-especially during peak daylight hours. Oversized systems lead to excess unused power, while undersized setups limit potential savings. A detailed load analysis helps find the sweet spot for maximum utilization.


2. Use High-Efficiency ComponentsInvesting in Tier-1 solar panels, high-quality inverters, and durable mounting structures ensures higher energy generation and lower degradation over time. Efficient systems may cost slightly more upfront but deliver better returns over 25 years.


3. Regular Operation & Maintenance (O&M)Factories often face dusty environments that can reduce solar output by up to 10-5%. Regular cleaning, real-time performance monitoring, and preventive maintenance can help maintain consistent energy production and protect long-term ROI.


4. Optimize Self-ConsumptionThe more solar energy your factory consumes directly, the better your returns. Align heavy machinery or production loads with daylight hours to maximize self-consumption instead of exporting surplus to the grid.


5. Leverage Financial IncentivesUse Accelerated Depreciation (40%), GST input credits, and net metering benefits to improve cash flow and shorten your payback period. These incentives play a big role in boosting ROI for industrial setups.


6. Smart PPA or OPEX AgreementsIf you’re choosing an OPEX or PPA model, negotiate for a tariff at least 15-30% lower than grid rates, and review the escalation clause carefully. Transparent agreements with reliable developers ensure predictable long-term savings.


7. Monitor Performance DataUse a remote monitoring system to track generation, consumption, and savings in real time. Early detection of performance issues helps maintain system efficiency and secure consistent ROI.

In summary, maximizing solar ROI for factories is about smart design, quality


equipment, proactive maintenance, and informed financial choices. With the right planning, your factory’s solar system can become a self-sustaining asset that powers both productivity and profit for decades. 


Power Your Factory’s Growth with JJ PV Solar

At JJ PV Solar, we don’t just install solar panels - we help factories turn sunlight into long-term profit. With 450+ successful industrial rooftop installations and the trust of 20,000+ satisfied customers, we deliver complete EPC solutions from design and engineering to installation, monitoring, and maintenance. Using advanced technology and premium-grade components, we ensure maximum energy generation, faster payback, and long-term reliability.


Partnering with JJ PV Solar means more than switching to renewable energy - it’s about reducing operating costs, boosting ROI, and powering your factory’s sustainable growth with a name India’s industries trust.

May 28

2 min read

Related Posts

bottom of page