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Maharashtra Solar Projects Continue to Deliver 3–4 Year Paybacks Despite Policy Changes

Solar projects in Maharashtra continue to offer strong financial returns even amid recent regulatory changes, with industry experts reporting payback periods of three to four years and internal rates of return exceeding 25%–26%. These returns remain significantly higher than those from many conventional investment avenues.

Among the various deployment models, rooftop solar systems are emerging as a preferred option for commercial and industrial (C&I) consumers due to their relatively lower capital requirements. Rooftop installations also eliminate the need for land acquisition and benefit from Maharashtra’s stable net-metering framework, making them especially attractive for businesses with underutilised roof space.

Industry experts advise that businesses planning to adopt solar should begin by closely analysing their electricity bills. Bhavya Master, Sales Lead (India) and Global Head of Marketing at Candi Solar, said that understanding load profiles, consumption patterns, and the proportion of power that can be offset by solar generation is essential before selecting a project structure.

Depending on operational constraints and available space, businesses can choose between rooftop and open-access solar solutions. Recent regulatory amendments in Maharashtra now allow interoperability between rooftop solar systems, open-access projects, and battery energy storage systems (BESS), providing greater flexibility for energy planning.

Factors Influencing Rooftop Solar Costs

Experts note that rooftop solar costs can vary widely because a typical system consists of nearly 300 individual components. Variations in pricing are driven by differences in equipment quality, safety infrastructure, mounting systems, and performance assurances.

Installers caution businesses against focusing solely on upfront costs. Instead, consumers are encouraged to evaluate long-term energy generation, performance guarantees, safety standards, serviceability, and operation and maintenance commitments when comparing project proposals.

Cost Savings Remain the Key Driver

Financial savings continue to be the primary factor influencing the choice between rooftop and open-access solar projects. At the same time, sustainability goals are playing an increasingly important role in adoption decisions.

Rounak Muthiyan, Founder and Director at Kalpa Power, noted that companies are now balancing economic benefits with environmental objectives. He said businesses are increasingly looking to reduce their carbon footprint while creating more sustainable operating environments.

While concerns were raised last year that proposed energy banking restrictions by the Maharashtra Electricity Regulatory Commission could slow solar adoption, developers indicate that project viability remains intact. According to Muthiyan, even without full banking benefits for around 14% of operational days, solar projects can still achieve payback periods of under three years while delivering IRRs above 25%–26%.

Flexible Financing Models Support Adoption

Businesses adopting rooftop or open-access solar systems can opt for either capital expenditure (CAPEX) or operational expenditure (OPEX) models. Under Candi Solar’s OPEX structure, customers enter into power purchase agreements with fixed tariffs and guaranteed generation levels.

Hybrid financing models are also gaining traction, combining elements of both CAPEX and OPEX. Master explained that under this structure, the solar asset remains on the consumer’s balance sheet, allowing access to benefits such as GST input credits and accelerated depreciation, while avoiding significant upfront investment. These models often result in lower levelised electricity costs compared to conventional PPAs.

Solar Plus Storage Gains Momentum

The integration of battery energy storage systems with solar projects is steadily increasing. Experts say solar-plus-storage solutions help address challenges such as backup power requirements, peak demand management, load balancing, and power quality issues.

Muthiyan added that commercial consumers adopting solar-plus-storage systems can achieve payback periods of as little as two years, while industrial users typically see returns within four years, further strengthening the business case for integrated clean energy solutions.