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Solar Payback & Lifetime ROI Calculator

Analyze the financial viability of installing a solar PV system. This tool projects the **payback period** (the time to break even) and your total **Return on Investment (ROI)** over the system's lifetime, accounting for rising electricity rates.

Investment and Usage Details

Total System Cost (After Incentives)

₹

System Annual Production (kWh)

Current Electricity Rate (₹/kWh)

₹

Annual Rate Increase (%)

%

Solar Energy Self-Consumed (%)

%

Export/Feed-in Rate (₹/kWh)

₹

Financial Outcomes (25-Year System Life)

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Payback Period (Years)

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Lifetime ROI (%)

₹0

Total Net Savings (25 Yrs)

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Understanding Your Solar Investment

An investment in solar panels is unique because the "return" comes in the form of **avoided costs** (the electricity you don't have to buy) and **direct income** (from exporting excess electricity back to the grid).

How is the Payback Period Calculated?

The Payback Period is the year when your cumulative savings equal your net system cost. Our calculator determines this by:

1. Calculating the **Annual Savings** by multiplying your system's production by your utility rate (for self-consumed energy) and the feed-in tariff (for exported energy).
2. Projecting these savings forward, applying the **Annual Rate Increase** to the utility rate each year. This is critical, as a typical 3-5% annual increase in electricity prices significantly shortens the payback time.
3. Tracking the year when the cumulative savings first exceed the initial investment cost.

Lifetime ROI Explained

The Lifetime ROI figure tells you the total percentage gain over the typical 25-year warranty life of a solar system. It is calculated as: $$ \text{Lifetime ROI}(\%) = \frac{(\text{Total Lifetime Savings} - \text{Initial Cost})}{\text{Initial Cost}} \times 100 $$ An ROI of 300% means that for every ₹1 invested, you received ₹3 back in net savings over 25 years. This often makes solar one of the most reliable and high-returning home improvements available.

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