Solar for Commercial Properties: ROI, Tax Benefits, and Long-Term Gains
Cut energy costs and boost profits. Learn how solar for commercial use delivers high ROI, tax advantages, and sustainable growth for your business.
It started with a conversation over rising electricity bills. Mr. Patel, the owner of a medium-sized textile unit in Gujarat, was looking for ways to reduce his overheads. He explored cost-cutting options, reviewed energy-efficient equipment, and finally, one of his friends asked a simple question—“Why haven’t you tried solar?”
That single suggestion transformed his business's energy outlook.
If you're a business owner like Mr. Patel, wondering whether solar for commercial use is worth the investment, this blog will guide you through the benefits—especially in terms of ROI, tax incentives, and long-term gains.
The Rise of Solar for Commercial Use in India
India's solar sector has grown rapidly, but it's not just homeowners who are adopting clean energy. Commercial and industrial players are increasingly realizing the long-term value of going solar. From manufacturing plants and retail outlets to hospitals and schools, solar for commercial purposes is becoming a strategic investment.
Ganesh Green Bharat Limited has witnessed this shift firsthand. With years of expertise in installing solar panels across Gujarat and beyond, we've seen how solar for commercial properties leads to reduced costs, environmental impact, and even reputational boosts.
Understanding the ROI of Solar for Commercial Properties
Let’s address the big question—what’s the return on investment (ROI)?
1. Immediate Reduction in Electricity Bills
Once installed, solar panels can reduce your electricity bills by up to 60%–90%, depending on usage and system size. Businesses with high daytime power needs (which matches peak solar generation) benefit even more.
For example, a commercial unit spending ₹2 lakhs a month on electricity could save over ₹1.2 lakhs monthly after switching to solar. That's over ₹14 lakhs annually.
2. Break-even in 3 to 5 Years
The average payback period for a solar system in India ranges from 3 to 5 years. After that, the electricity generated is virtually free for the next 20+ years. The internal rate of return (IRR) on such investments often exceeds 15%–20%, beating many traditional financial instruments.
3. Increased Asset Value
Installing solar can enhance your property’s value. For rented commercial spaces, it can be a unique selling point. For owned properties, it boosts valuation and reduces operational liabilities.
Tax Benefits That Make Solar for Commercial Even Smarter
Investing in solar doesn’t just save you money on power—it also comes with attractive tax benefits that improve your ROI even further.
1. Accelerated Depreciation
Under the Income Tax Act, businesses can claim 40% depreciation (as of recent updates) on solar energy systems in the first year itself. This means reduced taxable income and more money in your hands.
Let’s say you install a ₹20 lakh solar system. You can claim ₹8 lakh as depreciation in the first year alone—translating to massive savings on income tax.
2. GST Input Credit
Businesses registered under GST can avail input tax credit on the GST paid during the solar panel purchase and installation. It’s yet another way solar improves your financials.
3. State and Central Subsidies
While subsidies for commercial solar installations are limited compared to residential, some states offer net metering incentives and performance-linked benefits. Ganesh Green Bharat Limited can help you navigate these to get the most out of your investment.
Long-Term Gains of Going Solar
Choosing solar for commercial purposes isn’t just about saving in the short term—it’s a long-term business strategy with multiple advantages:
1. Energy Independence
Energy price fluctuations are common, especially with coal and fossil fuel dependence. Solar allows you to lock in your energy costs for decades, offering predictability in financial planning.
2. Green Branding
Customers and clients today care about sustainability. By showcasing your business as eco-conscious, you build a stronger brand image. This is especially important for export-oriented businesses or those working with global partners, where ESG (Environmental, Social, Governance) compliance is becoming a key requirement.
3. Low Maintenance and High Reliability
Modern solar panels require minimal maintenance and come with warranties of up to 25 years. Ganesh Green Bharat Limited uses only top-tier panels and inverters, ensuring your system works efficiently with negligible downtime.
4. Scalability
Solar systems are modular—you can start with a setup that covers 30% of your energy needs and scale up to 100% over time. This flexibility helps businesses adopt solar without disrupting operations or budgets.
Real-World Impact: A Ganesh Green Bharat Limited Case Study
One of our recent commercial projects involved installing a 100kW rooftop solar system for a dairy processing unit in Ranchi. Their average monthly bill dropped from ₹1.6 lakhs to just under ₹40,000. The client recovered their investment in under 4 years and is now considering expansion to power their cold storage facility.
More than the numbers, it was the sense of control over energy costs that excited the business owners. That’s the true power of solar for commercial use—it gives you back control.
Why Ganesh Green Bharat Limited?
We’re not just solar installers—we’re clean energy partners. From site inspection and subsidy guidance to high-quality installation and post-sale support, we handle everything. We believe that every commercial property—whether it’s a warehouse, office, school, or mall—deserves access to reliable, clean, and affordable solar power.
Final Thoughts
Mr. Patel isn’t just saving money now—he’s reinvesting those savings into expanding his business. That’s the ripple effect of solar. With high ROI, smart tax savings, and long-term peace of mind, solar for commercial properties is more than a trend—it’s the future.
So, are you ready to make the switch?
🌞 Let’s Power Your Business with the Sun.
Reach out to Ganesh Green Bharat Limited today for a free commercial solar consultation.
📞 Contact us at +91 951 951 8 951
🌐 Visit: www.ganeshgreen.com