Financial Viability of Residential On-grid Solar PV Systems in India

Renewable energy sources are expected to play a significant role in resolving India’s increasing energy demand. With increasing concerns over climate change and the concepts of sustainability, the need for renewable energy sources that also promise higher incentives for customers become vital. This research work determines the profitability of residential on-grid solar systems in India by conducting a cost benefit analysis using Net present value (NPV) and Payback Period (PBP) as the primary indicators. The impacts of Maintenance costs, Net metering incentives (NMI) and Subsidies on NPV and PBP are studied later in this paper. Annual income generation using feed-in-tariffs (FiT’s) have also been discussed. Conclusions along with Policy recommendations for improving profitability thereby making on-grid residential solar energy more lucrative have been put up in the last sections of this research paper.