Solar & Green Energy ROI & Accelerated Depreciation (40%) Calculator
What is the real payback and 25-year electricity savings of a commercial solar installation with Section 32 40% Accelerated Depreciation?
Financial Inputs
Peak DC capacity of the rooftop or ground-mount solar system.
All-inclusive cost of solar modules, inverters, mounting structures, and net-metering synchronization.
Per-unit power cost currently paid on state DISCOM electricity bills.
Average solar irradiation yield in India (typically 1,350 to 1,500 kWh/kWp/year).
Income Tax Act Section 32 permissible accelerated depreciation for renewable energy assets.
Net Payback Period
A
Annual Electricity Bill Savings
33,25,000
Year 1 Tax Shield Cash Savings
11,32,650
Key Financial Takeaways
- A 250 kW solar installation generates ~3,50,000 units annually, slashing power bills by ₹33,25,000/year. Section 32 Accelerated Depreciation (40%) saves ₹11,32,650 in Year 1 corporate taxes, accelerating net capital payback to just 3.2 years. Estimated 25-year lifecycle savings: ₹7,03,50,714.
Frequently Asked Questions
Can manufacturing MSMEs claim 40% Accelerated Depreciation in Year 1?
Yes. Under Section 32 of the Income Tax Act, commercial and industrial enterprises installing solar rooftop plants can claim 40% accelerated depreciation in the first year (or 20% if commissioned for under 180 days in the financial year). This provides a massive upfront cash tax reduction.
Calculators on this platform provide indicative mathematical estimations based on industry-standard financial appraisal models (including Tandon Committee Method II, Nayak Turnover Method, and standard compound amortisation).
They do not constitute a formal facility sanction, credit commitment, or legal advisory from SME PAISA or any partner banking/NBFC institution. Final terms, interest margins, security stipulations, and credit sanctions remain strictly subject to formal credit appraisal, audited balance sheet verification, CMA Data assessment, and risk committee approval by institutional lenders.
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