Commercial Solar Cost in India: 2026 Guide

Direct answer

Commercial rooftop solar in India costs about Rs 23,000 per kW at 100 kW and Rs 22,000 per kW at 500 kW for a qualifying CAPEX project on Sun Wave Technologies' reference pricing — ex-GST, turnkey, final price set by site survey and engineering scope. A business that cannot or prefers not to invest capital can buy the same power under RESCO/OPEX at zero upfront cost, typically paying a per-unit rate below the grid tariff. At industrial tariffs of Rs 7-10 per unit, CAPEX projects pay back in roughly 2-4 years with accelerated depreciation, making commercial solar one of the highest-return capital deployments available to Indian businesses in 2026.

TL;DR: CAPEX reference Rs 23,000/kW at 100 kW, Rs 22,000/kW at 500 kW (ex-GST) | RESCO alternative: zero upfront, pay per unit below grid tariff | payback 2-4 years with 40% AD | no central C&I subsidy — the real benefits are tax-side | final price always follows the site survey.

"How much does commercial solar cost" is the first question every factory owner, warehouse operator, and facilities head asks — and the honest answer has three layers: the turnkey price per kW, the commercial model that determines who pays it, and the effective cost after tax benefits. This guide covers all three for system sizes from 100 kW to 1 MW and beyond, for buyers in Delhi-NCR, Haryana, Rajasthan, Uttar Pradesh, and West Bengal.

Cost by system size

Sun Wave's reference pricing falls per kW as scale rises — the same fixed costs (design, approvals, mobilisation) spread over more capacity, and equipment pricing improves at volume. Intermediate capacities are priced progressively between these points.

Intermediate capacities are priced progressively by project scale — the 250 kW figure above is an interpolation within the reference band, not a quoted rate. For size-specific deep dives, see the 100 kW system cost guide and the 1 MW solar plant cost guide.

The three ways to pay for commercial solar

The turnkey price is only one of three commercial paths. Which one you take determines your upfront cost, your per-unit economics, and who owns the asset.

CAPEX: own the asset

You pay the turnkey price, own the plant, and capture 100% of the savings plus the tax benefits (40% accelerated depreciation, GST input credit where applicable). Highest lifetime value, highest capital requirement. For the ownership-economics detail, see our CAPEX vs OPEX vs Open Access comparison.

RESCO/OPEX: zero upfront

A developer finances, builds, and owns the plant on your roof; you buy the generated power at a contracted rate below your grid tariff. No capital outlay, no asset on your books, savings from day one — but you forgo depreciation benefits and long-run absolute savings. Our RESCO/OPEX model guide covers contract terms, exit clauses, and buyout provisions.

Open Access: off-site power

For loads beyond what the roof can serve, open-access solar procures power from an off-site plant through the grid. The landed cost is the PPA rate plus state-specific wheeling, transmission, and cross-subsidy charges. Start with our open-access framework guide and the state-by-state charges comparison.

Effective cost after tax benefits

For tax-paying C&I buyers, the sticker price is not the effective price. Two mechanisms reduce it:

1. 40% accelerated depreciation (Section 32(1)(iia)) — a Year-1 deduction that, at a 25-30% tax rate, recovers roughly 10-12% of system cost as tax saving in the first year. Interaction with the Section 115BAA regime matters — see our AD vs 115BAA guide.
2. GST treatment — 5% on solar modules post-September 2025, with input-credit flow for GST-registered businesses on eligible items. Our GST and tax-benefits guide for industrial solar details the mechanics.

Illustrative planning figures — your tariff, load profile, and tax position move the result.

What moves commercial solar pricing

Payback by tariff band

Tariff is the single biggest driver of how fast commercial solar pays for itself:

Every rupee of tariff shortens payback; FY27 tariff hikes across multiple states are pushing C&I tariffs higher, which improves solar economics further — see our FY27 tariff-hikes analysis.

Regional cost context (Sun Wave service area)

Sun Wave delivers CAPEX and RESCO projects across Delhi-NCR, Haryana, Rajasthan, Uttar Pradesh, and West Bengal. Local tariff and net-metering context by region: Faridabad, Gurugram, Noida, Jaipur, Kolkata/West Bengal.

Frequently Asked Questions

How much does commercial solar cost in India per kW?

About Rs 23,000 per kW at 100 kW and Rs 22,000 per kW at 500 kW for a qualifying CAPEX rooftop project on Sun Wave's reference pricing, excluding GST. Intermediate sizes are priced progressively by scale; the final price follows the site survey and agreed engineering scope.

Is there a government subsidy on commercial solar in India?

No. Central financial assistance under PM Surya Ghar is residential-only. Commercial and industrial buyers instead get 40% accelerated depreciation under Section 32 and GST input credit where applicable — for tax-paying businesses these typically exceed the residential subsidy in value. See our commercial solar subsidy guide.

What is the cheapest way to get commercial solar?

By total spend, RESCO/OPEX — zero upfront, you pay per unit consumed. By lifetime cost per unit, CAPEX ownership once payback completes, after which power is essentially free for 20+ years. The right choice depends on your capital position and tax status, not on the sticker price.

How much does a 500 kW commercial solar system cost in India?

About Rs 1.1 crore ex-GST on the Rs 22,000/kW reference for a qualifying CAPEX rooftop project. Generation runs ~7-7.5 lakh units a year in North India, and post-tax payback at Rs 8/unit tariffs is roughly 2 years for a tax-taking business.

Does commercial solar really pay back in 2-4 years?

For a tax-paying business at Rs 7-10/unit tariffs with strong daytime load, yes — 40% accelerated depreciation compresses payback from ~3-5 years simple to ~2-4 years. Without tax benefits, or at very low tariffs, payback stretches longer. Every rupee of grid tariff shortens it.

What is the difference between CAPEX and RESCO solar cost?

In CAPEX you pay the full system price and own the asset; in RESCO a developer owns it and you pay a per-unit PPA rate below your grid tariff. CAPEX wins on 25-year lifetime value; RESCO wins on upfront capital and operational simplicity.

How many units does commercial solar generate per kW?

In North India, roughly 1,400-1,500 kWh per kW per year (4-4.5 units per kW per day averaged). See our units-per-kW guide for North Indian cities for city-level figures.

Is commercial solar cheaper than grid electricity?

After payback, dramatically — the marginal cost of a self-consumed solar unit is near zero while grid tariffs keep rising 5-8% a year. Before payback, the effective cost per unit (system price spread over lifetime generation) typically lands at Rs 2.5-4/unit against grid tariffs of Rs 7-10/unit.

Sources

• Sun Wave Technologies reference pricing for qualifying CAPEX rooftop projects — Faridabad industrial solar page (Rs 23,000/kW at 100 kW, Rs 22,000/kW at 500 kW, ex-GST, verified September 2026)
• Income Tax Act Section 32(1)(iia) — accelerated depreciation
• GST Council 56th meeting outcomes on solar GST rates (September 2025)
• State net-metering regulations for DISCOM-specific rules (linked in text)