Rooftop solar has emerged as a critical component of India’s renewable energy growth, particularly in the commercial and industrial (C&I) sectors. With declining solar module costs and supportive net metering policies in several states, businesses are increasingly exploring rooftop installations to reduce electricity costs and meet sustainability targets.

However, adoption has not been uniform across regions, and challenges related to policy, investment, and technical execution continue to influence deployment.

At a recent Mercom India C&I Clean Energy Meet session titled ‘Rooftop Solar – Harnessing the Green Route to Reducing Electricity Bills’ in Hyderabad, solar industry experts discussed state-level policy hurdles and financial incentives, offering valuable insights for businesses, policymakers, and households looking to invest in rooftop solar adoption.

The discussions focused on the practical considerations for rooftop solar projects, state-specific policy frameworks, and financial mechanisms to improve uptake, particularly among micro, small, and medium enterprises (MSMEs).

The panel featured Nandeesh Kumar H R, Director of Finance at Emmvee Photovoltaic Power, Seshagiri Meka, Managing Director at Winsol Cleantech, and Bharat Singh TN, Director of Sales and Marketing at Ningbo Deye New Energy.

Technology and End-to-End EPC Services

Kumar provided insights into rooftop solar from a manufacturer and a comprehensive engineering, procurement, and construction (EPC) service provider’s perspective. He emphasized that rooftop solar is not a short-term investment; installations typically have a lifespan of 25 years. Therefore, C&I units  must evaluate the long-term benefits and returns on capital expenditure (CAPEX) before committing to a project.

Emmvee provides end-to-end solutions, including rooftop solar system design, safety assessments, inverter selection, electrical integration, and regulatory approvals.

“The company’s in-house team ensures that all approvals are handled on behalf of the customer, enabling a seamless project delivery,” Kumar stated.

This approach ensures that businesses begin saving on electricity costs immediately upon commissioning, without the administrative or technical hurdles typically associated with solar installations.

Emmvee produces 2.5 GW of cells and 0.6 GW of modules annually, with a focus on high-quality polycrystalline modules. The bifacial TOPCon modules generate 6% to 8% more energy at no incremental cost compared to traditional modules, depending on regional solar irradiance.

“In South India, these modules can produce four to four and a half hours of daylight-equivalent energy, while in western India, average daylight production can reach six hours. The additional output represents a significant advantage for businesses looking to maximize returns on rooftop installations,” Kumar said.

Andhra Pradesh and Telangana

Meka provided a detailed perspective on Andhra Pradesh and Telangana. These states have rooftop net metering policies; however, the parameters differ. He said awareness around rooftop solar has increased significantly over the past few years, particularly among larger manufacturing industries in Hyderabad.

“While the majority of businesses recognize the benefits of rooftop solar, certain segments, such as pharmaceutical manufacturing units, are cautious due to safety concerns and operational risks. Other sectors, including cement and spinning industries, have been more proactive in adopting rooftop solutions,” he added.

In Andhra Pradesh, net metering was initially available up to 1 MW, but recent draft guidelines have proposed reducing the limit to 500 kW, while allowing net billing for systems up to 1 MW. Larger installations are still feasible under the Electricity Act 2003, which grants consumers the right to generate their own power on-site.

Meka noted that despite regulatory ambiguities, installations exceeding 1 MW have been executed, with some single-user projects reaching capacities of 10 MW to 15 MW. In Telangana, net metering currently allows installations up to 1 MW, with draft proposals aiming to reduce the limit to 500 kW.

Adoption Challenges for MSMEs

The panel addressed challenges for the MSME segment, which remains underpenetrated despite strong potential. Meka said the average rooftop installation capital expenditure (CAPEX) in this segment ranges between ₹5 million (~$56,627) and ₹10 million (~$113,254).

Many MSMEs hesitate to allocate substantial capital to solar projects, preferring to invest directly in core business operations offering immediate returns. Operational expenditure (OPEX)-based solutions, which allow businesses to pay for solar energy as a service rather than making upfront investments, are emerging as a viable option to improve adoption.

Financial institutions and solar service providers are exploring models that provide collateral-free loans covering up to 75% to 80% of project costs, although concerns persist about trade-offs between operational cash flow and investment in rooftop solar.

Technical Considerations

Kumar stressed that performance and energy generation depend not only on high-quality modules but also on proper system design, inverter selection, and electrical integration.

Bifacial TOPCon modules, for instance, deliver additional energy with the same capital outlay, but optimal system performance requires careful assessment of rooftop orientation, shading, and structural capacity.

Meka added that selecting a reliable EPC partner is critical to addressing practical challenges such as roof leakages, safety, and ongoing maintenance. In regions like Hyderabad, where industrial rooftops vary in design and structural robustness, these factors become important for ensuring long-term project viability.

Inverters

About the critical role of inverters in rooftop solar systems, Bharat Singh TN, Director of Sales and Marketing at Ningbo Deye New Energy, explained that inverters function as the heart of a solar project.

“Modules generate electricity in DC, but the inverter converts it to AC for consumption. Essentially, the load distribution, conversion, and efficiency of the entire system depend on the inverter,” he said.

Singh elaborated that inverter selection is not just about the brand; it involves evaluating technology compatibility, research and development (R&D) strength, after-sales service, and availability of spares.

He highlighted the evolution of inverters in India over the past decade. Initially, European brands dominated, but high costs limited adoption. With the entry of Chinese and now “Make in India” inverters, affordability and accessibility have improved, making rooftop solar financially viable to more people.

Singh emphasized that for consumers, the primary checklist should include:

• R&D and technology match: The inverter should match the module technology, whether it is bifacial TOPCon, heterojunction, or other advanced modules.
• Service network: Reliable service is critical. Deye has set up 12 service centers across India to handle EPC and end-user queries.
• Availability and stock points: Quick replacement is essential. Brands must maintain stock points within a reasonable distance from project sites.

Singh noted that hybrid inverters are particularly important as global markets increasingly mandate solar plus storage for supply chain sustainability. “Now India is not just selling goods in India but also exporting. It is mandatory for industries to have solar plus storage to sell to the global market.”

He added that the services and after-sales support are crucial considerations.

Financial Benefits

About the savings and payback periods for rooftop solar in Hyderabad, Meka said the decrease in costs has enabled a generation of 1.5 million units per annum for a ₹30 million (~$339,907.2) investment. At a grid tariff of ₹8 (~$0.09)/kWh, the cash inflow from savings alone is nearly ₹12 million (~$135,892.8)/year.

Accelerated depreciation benefits add another layer. With a 60% depreciation allowance under a 30% tax shield, first-year tax savings can reach ₹1.8 million (~$20,383.68). By combining tax savings and cash inflows, industries can realize additional benefits of ₹2.4 million (~$27,178.24), reducing the effective payback period to less than two and a half years.

Notably, this does not require substantial loans or collateral, and the system continues to generate returns for 20 to 25 years.

Meka added that demonstrating these concrete savings helps convince finance teams and decision-makers. “We look at two aspects: the customer profile and their core competence. For energy-intensive industries, rooftop solar directly reduces production costs per unit. For smaller units, like a 500-employee pharma company, we may propose OPEX-based solutions emphasizing sustainability metrics rather than immediate cost savings.”

Batteries and Hybrid Solutions

As C&I consumers increasingly look to replace diesel generators, solar-plus-storage systems are emerging as the preferred solution.

Singh detailed Deye’s offerings, ranging from 50 kW to 1 MW systems for commercial users, and utility-scale BESS containers up to 8 MW.

He explained, “These hybrid systems act as ‘green generators,’ replacing diesel, reducing carbon emissions, and providing cost savings. They are intelligent enough to detect grid outages, automatically switch to battery power, and store excess solar generation for later use.”

Singh also clarified cost structures: a 500 kW battery system costs roughly ₹4 million (~$45,418.68), including battery and battery management systems, with the power conversion system adding ₹5 million (~$56,773.35) per watt peak. He emphasized that these systems are solution-driven rather than product-driven. They are customized based on the specific industry, load, and usage patterns of each consumer.

Mercom India hosts a multicity ‘C&I Clean Energy Meet’ series designed to provide C&I energy buyers with the knowledge and tools they need to adopt clean energy solutions and lower their power costs. The next Clean Energy Meet event will be held in Jaipur on September 19, 2025.