Buysolar

EMI of solar loan less than Electricity bill in India

Lets take example of 2kWp Solar System generating 240 units per month for a consumer having electricity bill of Rs. 1600/month.

Off-grid solar with battery backup of 8 units/day:

  • Capital Cost- Rs. 2,20,000
  • Down-payment-Rs. 55,000
  • Loan Amount-Rs. 1,65,000
  • Loan tenure: 7 years
  • Interest: base rate+ 1.75% = 8.5+1.75 =10.25%
  • EMI: Rs.2761 >>> 1600

On grid solar with net metering:

  • Capital Cost- Rs. 1,30,000
  • Down-payment-Rs. 32,500
  • Loan Amount-Rs. 97,500
  • Loan tenure: 7 years
  • Interest: base rate+ 1.75% = 8.5+1.75 =10.25%
  • EMI: Rs.1631 ~ 1600

Net metering is allowed in Rajasthan, Gujarat, Madhya Pradesh, Uttar Pradesh, Maharashtra, Delhi, Telangana, Andhra Pradesh, Karnataka, Tamilnadu, Kerala, Punjab, Uttarakhand, chhattisgarh, Pudducherry

In nutshell,

In the regions permitting on grid solar with net metering,

EMI of solar equipment loan comes out to be equal or less than the electricity utility bill for

consumers having Rs. 7 & above as electricity billing rate (electricity bill/ consumed units*)

*Consumed units in your last month’s bill is the difference in meter reading between last 2 months.

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