Financial Viability and Investment Analysis of Rooftop Solar Power in Maharashtra

Abstract

Rooftop solar is gaining attention in Maharashtra as a way to reduce power bills and support clean energy. Our survey found high awareness, but many hesitate due to high initial costs and confusing subsidy processes. People want easier loans, clear government support, and simpler procedures. Those who installed solar panels save money and recover costs in 4–8 years. Most agree it\'s a smart long-term investment. With better policies and awareness, adoption can grow rapidly across the state.

Introduction

India’s growing energy needs, environmental concerns, and reliance on fossil fuels have driven interest in renewable energy, with rooftop solar showing strong potential—especially in sunny Maharashtra. Rooftop solar offers cost savings, decentralization, and environmental benefits, but its financial viability depends on costs, subsidies, tariffs, and financing. Despite decreasing prices, adoption remains slow due to high upfront costs, complex subsidy procedures, and limited awareness.

Research Objectives:

The study investigates affordability, payback periods, financial returns, subsidy and net metering impacts, comparisons with other energy sources, barriers to adoption, and policy implications.

Literature Review Highlights:

• Rooftop solar is financially and environmentally promising but faces hurdles like unclear policies, financing gaps, and technical challenges.

• Government programs and falling panel costs have spurred growth, but issues like low awareness and complex procedures remain.

• Leasing and service-based models could lower upfront costs and share risks.

• Studies emphasize the need for improved policies, faster subsidy disbursement, and better financial incentives.

• Innovations like Building-Integrated Photovoltaics (BIPV) show additional potential but require policy support.

Survey Insights (Maharashtra):

• 65% see rooftop solar as financially viable.

• Typical system costs estimated at ?1–2 lakhs.

• Maintenance and financing options considered moderate.

• Main motivations: reducing electricity bills (40%) and environmental benefits (35%).

• Payback periods mostly 3–5 years.

• Net metering recognized but unevenly adopted.

• Policy and financial barriers persist despite tariff advantages.

• 98% agree adoption is growing but slow due to finance and regulatory issues.

Key Findings:

1. Awareness is relatively high but adoption is low.

2. High upfront costs deter especially middle-income groups.

3. Government subsidies help but face delays and complexity.

4. Users report payback periods of 4–8 years and significant savings.

5. Challenges include policy complexity, maintenance concerns, space constraints, and inconsistent implementation.

Conclusion

Rooftop solar is economically viable and environmentally essential, but its growth in Maharashtra is restrained by financial and regulatory factors. Recommendations include: 1) Simplify subsidy disbursement and net metering processes. 2) Expand access to low-interest loans and EMI options. 3) Launch awareness campaigns on financial and environmental benefits. 4) Encourage business models like PPAs and solar leasing to ease entry barriers. 5) Improve grid support and technical infrastructure. A. Final Thought With the right policy, financial, and awareness support, rooftop solar can become a mainstream solution in Maharashtra—reducing energy bills, supporting sustainability, and transforming the energy landscape.

References

[1] V. Tyagi, P. Dwivedi, A. Gupta, and A. K. Tripathi (2023), \"Developing Business Model Based on Product Service System Approach for Successful Implementation of Rooftop Solar PV Systems in India,\" Renewable and Sustainable Energy Reviews, Volume No. 128, Pages 109-123, https://doi.org/10.1016/j.rser.2023.109123. [2] S. K. Singh, A. K. Tripathi, and A. Kumar (2023), \"Cost Benefit Analysis of Adoption of Renewable Energy (Solar) in a Residential Building—A Case Study on Residential Apartment in Pune,\" Energy Reports, Volume No. 9, Pages 125-137, https://doi.org/10.1016/j.egyr.2023.01.045. [3] R. Sharma, S. K. Jain, and M. K. Sharma (2023), \"Combating Climate Change Through Renewable Sources of Electricity—A Review of Rooftop Solar Projects in India,\" Energy for Sustainable Development, Volume No. 74, Pages 132-144, https://doi.org/10.1016/j.esd.2023.03.003. [4] S. K. Singh, A. K. Tripathi, and S. K. Singh (2022), \"Role of Subsidies for PV Solar Installations in India: A Cost–Benefit Analysis,\" Renewable Energy, Volume No. 178, Pages 55–67, https://doi.org/10.1016/j.renene.2022.03.022. [5] A. Kumar, R. Singh, and S. S. Tiwari (2022), \"Emerging Technology Trends in the C&I Rooftop Solar Market in India: Case Study on Data Centre–Retrofit with BIPV by U-Solar,\" Renewable and Sustainable Energy Reviews, Volume No. 166, Pages 205–218, https://doi.org/10.1016/j.rser.2022.112484. [6] K. S. Vikas, P. S. Raghavan, and A. K. Gupta (2022), \"Perspective of New Distributed Grid-Connected Rooftop Solar Photovoltaic Power Generation Policy Interventions in India,\" Energy Policy, Volume No. 151, Pages 44–56, https://doi.org/10.1016/j.enpol.2022.112411. [7] A. S. Mishra, R. K. Tripathi, and M. S. Sharma (2018), \"Financial Analysis of Grid-Tied Rooftop Solar Photovoltaic System Employing Net Metering,\" Energy Reports, Volume No. 4, Pages 109–118, https://doi.org/10.1016/j.egyr.2018.01.014.

Copyright

Copyright © 2025 Mr. Sahil Kawle. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.