Rajasthan C&I Units Switching to Rooftop Solar to Cut Power Bills

These systems can offer payback in three to five years under the CAPEX model

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Rooftop solar is steadily transitioning from an environmental choice to a financial necessity for India’s commercial and industrial (C&I) sector, but system costs, technology, and regulatory policies shape the path to adoption.

In solar-rich Rajasthan, conducive policies and growing awareness are helping businesses adopt rooftop solar. While the momentum is picking up, C&I entities must equip themselves with knowledge of the relevant policies, the optimal capacity of the rooftop solar system, and system costs to maximize savings from making the switch.

Electricity expenses can account for as high as 40% of an industrial unit’s operational cost. Adopting rooftop solar, therefore, is an economically and environmentally prudent choice.

According to Arvind Datt Semwal, Domestic Head at Adani Solar, when transitioning to rooftop solar, identifying the load pattern, the age of the building, and the earthing for the systems are important first steps.

Stressing the need to choose reliable engineering, procurement, and construction (EPC) contractors, installers say that shade on a rooftop solar system can reduce energy generation by 30% to 40%.

Since 40% of an industrial unit’s costs are attributed to electricity expenses, rooftop solar can provide significant relief to businesses.

Raghunath V.C., Director at Swelect Energy, explained that the setup costs for a rooftop system can be addressed through a renewable energy service company (RESCO) or a capital expenditure (CAPEX) model.

Under the CAPEX model, C&I units procuring power from the grid at a tariff of ₹8 (~$0.09)/kWh–₹10 (~$0.11)/kWh, need to spend ₹3 (~$0.03)/kWh to ₹3.5 (~$0.039)/kWh on a rooftop system with an assured payback of three to five years.

He emphasized that consumers should not size their projects above their requirements, adding that in Rajasthan, consumers can only bank power up to 1 MW every month.

Pratibha Sharma, Head- Sales and Marketing (North India) at Ningbo Deye New Energy, stated that selecting the right inverter can also help consumers achieve a greater return on investment.

She stated that inverters play a crucial role in the rooftop solar system. Various inverters are available in the market, offering differing efficiencies. Consumers should select inverters based on their specific requirements.

Installers state that a 1 MW rooftop solar system typically costs between ₹35 million (~$394,398) and ₹45 million (~$507,083).

In ideal conditions, installers report that a 1 MW rooftop project generates approximately 1.2 million to 1.7 million units annually, with a payback period of five years.

Addressing consumer concerns about varying quotes for rooftop solar projects, Semwal stated that solar pricing depends on factors such as project site and sizing, inverter type, risk factors, industry, and loan arrangements.

Raghunath said solar modules account for 65% to 70% of the cost, while the mounting structure accounts for 8% to 10%.

He said if the building’s structure is weak, it can increase the system’s cost by 4% to 5%. “Operations and maintenance costs and the cable costs also determine the pricing variations.”

Sharma highlighted that the use of battery energy storage systems (BESS) is rapidly growing, with many large businesses transitioning to storage systems. BESS helps consumers save on the expenses of running diesel generators. It also helps ensure greater power reliability in areas with high power outages.

She emphasized the importance of evaluating backup requirements, designing battery sizes based on customer needs, and assessing load profiles during the installation of hybrid inverters with storage solutions.

The benefits and requirements for installing rooftop solar systems were discussed at Mercom’s C&I Clean Energy Meet in Jaipur.

Mercom India hosts the C&I Clean Energy Meet series to bring together various stakeholders in the renewable energy value chain and address their concerns in transitioning to solar energy.

The next event will be held in Bhubaneshwar on November 14, 2025.

Contact us if you plan to install solar and need guidance or recommendations for vendors.

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