Do businesses get a government subsidy (CFA) for commercial solar?

No. Central Financial Assistance (subsidy) applies only to residential rooftop solar under PM Surya Ghar. Commercial and industrial rooftop solar gets no CFA. Instead, a business benefits from 40% accelerated depreciation, full GST input credit, and 60–90% lower electricity bills.

What is accelerated depreciation on commercial solar?

A solar power plant is depreciated at 40% in its first year under Section 32 of the Income Tax Act (versus about 15% for normal equipment), reducing the company's taxable profit. Manufacturers can claim an additional 20% in year one. If the plant is used for under 180 days in the financial year, only half the depreciation is allowed that year, and companies under MAT do not get an immediate cash benefit.

How much GST is charged on solar panels?

Solar PV modules are taxed at 5% (effective 22 September 2025). A GST-registered business claims full input tax credit against its output GST, so the net GST cost is effectively zero. Standalone inverters, mounting structures and civil works may attract 18%, also creditable for GSTIN holders.

What is the payback period for commercial rooftop solar?

For a business with good daytime load, typical simple payback is about 3 to 4 years against a 25-year asset life, with an IRR of roughly 15–25%. Payback stretches to about 4–5 years for companies under MAT, or where most generation is exported rather than self-consumed.

Home › Commercial Solar › Tax Benefits & Payback

Solar for your business · Telangana & Andhra Pradesh

Your business gets no solar subsidy. It gets something worth far more.

Government subsidy (CFA) is for homes — not companies. What a business gets instead is a 40% first-year tax write-off, near-zero GST after input credit, and power bills cut 60–90%. On most rooftops that pays for itself in about 3–4 years, then generates near-free power for two decades.

40%

Year-1 depreciation write-off

₹0

Net GST cost (after input credit)

60–90%

Lower electricity bills

What your company actually saves

Accelerated Depreciation · Section 32

Write off 40% in Year 1

A solar plant depreciates at 40% in its first year (vs 15% for normal equipment) — a direct cut to your taxable profit.

₹1 Cr plant → ~₹10 L tax saved

Yr-1: ₹40 L depreciation × ~25% tax. Manufacturers add 20% (→ 60% Yr-1). Commission before ~3 Oct for the full year; after that it's half.

GST · Input Tax Credit

Effectively zero GST

Solar modules are taxed at just 5% (since 22 Sep 2025). A GST-registered business claims full input credit against its output GST.

Net GST cost ≈ ₹0

Standalone inverters / mounting structures / civil are 18% — also creditable for GSTIN holders.

Electricity Bill

60–90% cheaper power

Generate your own daytime power and offset the most expensive commercial units; export the surplus under net metering.

Cut the biggest fixed cost you have

Actual reduction depends on your load profile, roof area and DISCOM tariff.

The Economics

~3–4 year payback

Tax write-off + GST credit + bill savings together recover the cost fast — against a 25-year asset life.

IRR typically 15–25%

Every year after payback is near-free electricity for your operations.

A 100 kWp rooftop, in numbers

✎ Tailor it to a clientEdit these inputs — the table recalculates. The printed PDF reflects your values.

System size (kWp)

Cost (₹ / watt)

Tariff (₹ / unit)

Tax rate (%)

O&M (₹ / W / yr)

Client is under MAT (zeroes Year-1 tax shield → carried as MAT credit)

⚡ Your electricity savingsat ₹8.5/unit commercial tariff · 100 kWp

~400

units / day

~12,167

units / month

~₹1,03,417

saved / month

≈ ~₹12,41,000/year in electricity you stop paying for — before the tax write-off below. Actual generation varies with roof, shading & season.

Illustrative — 100 kWp commercial rooftopIndicative figures · your actuals depend on roof, tariff & tax position

System cost (approx.)₹45,00,000

Year-1 depreciation (40%)₹18,00,000

Year-1 tax saved (25%)₹4,50,000

GST paid → input creditFully recovered

Annual generation~1,46,000 units

Annual bill saving (@ ₹8.5/unit)~₹12,41,000

Less: O&M (₹0.5/W/yr)−₹50,000

Net annual saving~₹11,91,000

Simple payback~3.4 years

Want a bill-based estimate instead? Try our Solar ROI Calculator, or see sizing & pricing on Commercial Solar Solutions.

50 · 100 · 150 kW — at a glance

System	Cost @ ₹45/W	Annual generation	Year-1 tax saved †	Annual bill saving	Payback

† Year-1 tax saved assumes a 25% rate & full-year depreciation — ₹0 the first year if under MAT, halves if commissioned after ~3 Oct. GST (5% on modules) is fully recovered as input credit → net GST ≈ ₹0. The tariff & tax-rate inputs above drive this table.

What we won't put on this page (because it isn't true for business):

✗ No CFA / government subsidy for commercial or industrial rooftop — that's residential-only (PM Surya Ghar). ✗ No Section 80-IA tax holiday — it sunset on 31 Mar 2017. We'd rather you trust our numbers than chase ones that don't exist. The depreciation + GST credit above already beat the residential subsidy several times over.

Why Sri Ishaan Solar

2017

Installing since

500+ KW

Commissioned

100+

Installations

End-to-end

EPC + DISCOM approvals

TGREDCO-empanelled EPC. We handle the full job — structural survey, design, supply, installation, net-metering & DISCOM sanction, and after-sales — and we hand your CA a clean depreciation & GST file so the tax benefits above are actually claimed. Offices in Hyderabad · Suryapet · Khammam.

Book a free rooftop assessment & savings estimate

We'll size your system, project the tax write-off and bill savings, and give you a payback figure for your building — no obligation.

+91 78424 61888 WhatsApp for an estimate info@sriishaansolar.com

TGREDCO TSRE260936 GSTIN 36AFXFS2132K1ZG Udyam UDYAM-TS-09-0245830 LLPIN ACW-7397

Disclaimer: Figures are indicative and for illustration only. Accelerated depreciation benefit depends on your company's tax position and does not reduce Minimum Alternate Tax (MAT) liability — confirm with your Chartered Accountant. GST rate of 5% applies to solar PV modules (effective 22 Sep 2025); inverters, mounting structures and civil works may attract 18%. Generation, tariff and payback vary by site. This is not tax advice.