Solar ROI in Punjab: Payback by Monthly Units
Payback for Punjab homes at different usage levels, worked out from the current PSPCL tariff and the PM Surya Ghar subsidy.
Updated 10 August 2026
A line like “solar pays back in 5 years” could be about any home. Payback depends on how much you use, the system that suits that use, and the subsidy that applies to it. This is what it looks like when worked out from the current PSPCL tariff.
Payback at different usage levels
| Units a month | Recommended system | Net cost after subsidy | Payback |
|---|---|---|---|
| 400 | 3 kW | ₹1,00,000 to 1,18,000 | 2.3 to 2.7 years |
| 600 | 4 kW | ₹1,36,000 to 1,57,000 | 2.2 to 2.5 years |
| 900 | 8 kW | ₹2,80,000 to 3,16,000 | 3.1 to 3.5 years |
| 1500 | 10 kW | ₹3,52,000 to 3,95,000 | 3.6 to 4.1 years |
Two things stand out. Payback moves with your usage and with the system size that suits it. And none of these figures assumes anything about your roof, shading or exact panel model, which is why each result is given as a range.
Why payback improves, then levels off
As usage rises, so does the bill being avoided. The recommended system also steps up in fixed sizes, though, and each step costs more. Payback improves as a given system gets used more fully, then resets when the next size up is needed. That is why we size to your bill instead of to “the biggest system your roof can hold”. An oversized system adds cost that takes longer to earn back, so payback gets worse.
What the 25-year number includes
A system keeps generating for decades after it has paid for itself. Our 25-year saving figure rests on two assumptions, and we show both. One is a 3% yearly rise in the PSPCL tariff, since published rates go up over time. The other is a 0.5% yearly decline in panel output; all panels degrade slowly, and our figure is a general industry assumption that isn’t specific to UTL panels. Both appear on every calculator result, because a big number with hidden assumptions is exactly what makes a calculator hard to trust.
Work out your own payback
Averages and worked examples help you get your bearings, but base the decision on your own figures. Enter your own bill in the calculator for your system size, net cost and payback. If you are under Punjab’s 300-unit free-usage line, it will tell you plainly that solar won’t pay for itself.
Questions we are asked
What is a realistic payback period for solar in Punjab?
It depends on your usage. For a general-category home using over 300 units a month, payback is commonly 2 to 5 years, and it gets faster the higher your usage is within a given system's capacity. See the worked table above.
Does the subsidy change the payback period?
Yes. It reduces the amount you need to recover without changing your annual saving, so a bigger subsidy on the same saving means a shorter payback.
What happens to savings after the panels degrade over the years?
Panels lose a small percentage of output each year, and our estimates assume 0.5%. With a rising tariff, the 25-year saving is still substantial even as generation slowly declines, and the calculator's 25-year figure already allows for both.