Why This Matters in 2025
India has crossed 89.7 GW of solar capacity by Q1 2025, including about 1 GW rooftop systems, highlighting national momentum toward clean energy adoption. Rooftop solar continues to deliver strong returns, especially in sun-rich states like Andhra Pradesh and Telangana, where electricity tariffs are high and state/local incentives are accessible.
Andhra Pradesh & Telangana Solar Overview
As of late 2022, Andhra Pradesh hosted around 4,257 MW of installed capacity, while Telangana had approximately 3,953 MW—with significant utility-scale and floating installations like the 100 MW NTPC floating plant at Ramagundam
Plans are underway to expand: AP aims to add 10,050 MW on marginal lands, while Telangana targets 5,000 MW by 2022–23 timelines
These ensure robust net‑metering infrastructure and faster incentive processing (Telangana processes subsidy claims within 30 days)
Estimated ROI & Payback (2025)
Based on current tariffs (~₹7‑9/unit), solar output, and subsidy levels, here’s what typical users can expect:
| User Type | Typical System Size | Estimated Cost (after subsidy) | Annual Savings | Payback Period | Approx ROI Year 10 |
|---|---|---|---|---|---|
| Residential | 3 kW (~360 units/month generation) | Rs1.3–1.5 L in Hyderabad area | Rs30,000–₹40,000 | ~3–4 years (2–3 yrs possible) | ~200–300% |
| Commercial Small Business | 5–10 kW | Rs1.8–3 L net cost | Rs50,000–75,000+ | ~3–5 years | ~150–250% |
| Utility‑Scale / Institutional | MW scale | Rs4–5 Cr per MW | Rs3–4/unit generation cost vs Rs8–12 grid | ~3–4 years | Very high (>250%) |
Residential and commercial benefit more due to subsidies, net‑metering and state incentives like Telangana’s fast rebate processing and accelerated depreciation (40% in year one, 60% overall) for solar assets
Key Factors Driving ROI in AP & Telangana
High solar irradiation ensures consistent generation in both states.
Rising grid tariffs (Rs7–9/unit) significantly accelerate solar payback
Subsidies & incentives: Central schemes cover up to Rs60 k–78 k per household; states provide top‑ups and quick processing as in Telangana
Depreciation benefits cut tax liabilities for commercial setups
Net‑metering & export profits for excess generation, especially critical in high irrigation/farm usage areas.
How to Maximise Returns in 2025
- Choose proper system size (e.g. 3 kW for households, 5–10 kW for small businesses) based on consumption data and roof capacity.
- Stack all available incentives—central subsidy, state subsidy, and tax depreciation where applicable.
- Monitor performance and maintain systems—clean panels quarterly, check inverters, track output.
- Leverage net‑metering effectively by optimizing export and carry‑forward credit use.
- Consult certified, local installers who navigate permits and utility approvals efficiently.
FAQ’s
1: What is the payback period for rooftop solar in Andhra Pradesh and Telangana in 2025?
Residential users can expect 3–4 years, with strong cases reaching 2–3 years, depending on subsidy, solar access, and power tariffs
2: How much return (ROI) should I expect after 10 years?
Typical solar systems yield 200–300% ROI by year 10, especially where net‑metering credits are optimized.
3: What incentives apply in Telangana?
Telangana provides subsidies up to Rs78 k for residential installations, processes claims within 30 days, plus accelerated depreciation (40% first year) for commercial installations
4: Does solar ROI vary between AP and Telangana?
Marginal differences exist, but both states enjoy abundant sunlight, similar tariff levels, and state-backed incentives—ROI remains strong in both.
5: Can small businesses and institutions benefit?
Yes—by tapping depreciation benefits, subsidies, and net‑metering, businesses see ROI in 3–5 years with strong long‑term savings.