1. What is ROI for Solar Power Plant?

ROI (Return on Investment) measures the profitability of a solar power plant investment in India. It calculates the percentage return on the initial investment based on annual savings generated.

2. How Does the Calculator Work?

The calculator uses the ROI formula:

Where:

• \( Savings \) — Annual savings generated (₹)
• \( Cost \) — Initial investment cost (₹)

Explanation: The equation calculates the percentage return on investment by comparing the net gain (savings minus cost) to the initial investment.

3. Importance of ROI Calculation

Details: ROI calculation is crucial for evaluating the financial viability of solar power plant investments, comparing different investment options, and making informed financial decisions.

4. Using the Calculator

Tips: Enter annual savings in ₹, initial cost in ₹. Both values must be valid (cost > 0, savings >= 0).

5. Frequently Asked Questions (FAQ)

Q1: What is a good ROI for solar power plants in India?
A: Typically, ROI above 15-20% is considered good for solar investments in India, though this may vary based on specific project conditions.

Q2: How long does it take to achieve positive ROI?
A: Most solar power plants in India achieve payback in 5-7 years, with positive ROI continuing for the system's lifespan (25+ years).

Q3: What factors affect solar power plant ROI?
A: Key factors include installation cost, government subsidies, electricity rates, solar irradiation, maintenance costs, and system efficiency.

Q4: Are there tax benefits included in ROI calculation?
A: Yes, various tax benefits, accelerated depreciation, and government incentives should be considered in comprehensive ROI calculations.

Q5: Should maintenance costs be included in savings calculation?
A: Yes, net savings should account for all operational and maintenance costs to get accurate ROI figures.