Business Opportunities in Solar Rooftop and Power Plants

Published On: August 2, 2025

India’s push towards a green energy future opens up immense business opportunities in the solar power sector, particularly for entrepreneurs in Jammu & Kashmir and other high-solar-potential regions. With a national goal of achieving 500 GW of non-fossil fuel energy by 2030, solar energy is set to play a dominant role.

If you’re looking to invest in a sustainable business with long-term profitability, setting up solar rooftop systems or solar power plants could be your gateway to success. From reducing operational costs to earning passive income, here’s how you can turn sunshine into profit.

Why Solar Power is the Future of Business in India

India’s geography offers abundant sunlight across most of its regions, making it ideal for solar energy production. With advancements in technology and significant drops in panel costs, solar installations have become more affordable and scalable for both commercial and residential uses.

How Businesses Can Use Solar Rooftop Systems in India

Solar rooftop systems are gaining popularity across industries—from IT hubs and malls to hospitals and manufacturing units. Here are several compelling reasons to consider them for your business:

1. Slash Your Electricity Bills

By installing a solar rooftop system, businesses can generate their own electricity and drastically reduce power expenses. High-energy-consuming businesses can save lakhs annually by reducing their dependence on the grid.

2. Leverage Government Subsidies and Tax Benefits

The Indian government actively promotes solar adoption through incentives like:

Central Financial Assistance (CFA): Offers subsidies for rooftop solar system installations.
Accelerated Depreciation: Allows businesses to deduct up to 40% of the system cost in the first year itself, resulting in huge tax savings.
State-Specific Schemes: States like Jammu & Kashmir, Gujarat, Tamil Nadu, and Delhi offer additional financial incentives.

3. Build a Green Business Image

Installing a solar energy system aligns your brand with environmental responsibility. This not only boosts your CSR initiatives but also resonates with eco-conscious consumers and investors.

4. Gain Energy Independence

With a rooftop solar system, you’re no longer at the mercy of fluctuating power tariffs or unexpected outages. Uninterrupted power supply is especially valuable for businesses like hospitals, data centers, and IT companies.

Can You Earn from a Solar Rooftop System?

Absolutely! Rooftop solar systems aren’t just for savings—they can generate active and passive income through various models.

1. Net Metering

With net metering, businesses can sell unused electricity back to the grid and earn credits on their power bills. During low-consumption periods, this can even result in a net profit.

2. Feed-In Tariffs

Some states offer feed-in tariff schemes, where businesses receive fixed payments per unit of electricity produced—regardless of how much they consume. This creates a consistent revenue stream.

3. Power Purchase Agreements (PPAs)

You can sign PPAs with third parties, supplying them solar power at pre-agreed rates. This is especially effective if your business generates more power than it uses.

4. Rooftop Leasing

Got extra rooftop space? Lease it to solar developers who install their own systems. You’ll earn rental income while possibly negotiating for discounted electricity rates.

Using Solar Power Plants for Additional Revenue

If you own land or have the capacity for a large-scale solar installation, solar power plants offer a much bigger revenue potential.

1. Utility-Scale Power Generation

Set up a utility-scale solar plant and sell electricity directly to distribution companies or via power exchanges. States like Rajasthan, Gujarat, and Maharashtra offer favorable conditions for such investments.

2. Supplying Commercial and Industrial Clients

Big industries prefer sourcing power from renewable sources to meet ESG goals. You can offer dedicated solar energy supply contracts to these clients, earning stable monthly revenue.

3. Energy-as-a-Service (EaaS)

With this model, you set up a plant and sell power to multiple clients under long-term contracts. Think of it as renting out electricity. It ensures predictable cash flows over the life of the plant.

Can Solar Energy Be a Profitable Business in India?

Yes, but like any business, success depends on strategy and execution. Here’s what you must evaluate:

1. Choose the Right Location

Sunlight exposure varies across India. Select areas with high solar irradiance like:

Rajasthan
Gujarat
Jammu region
Southern states like Tamil Nadu and Karnataka

2. Understand Regulatory Frameworks

Solar policies differ across states. Learn about:

Net metering rules
Feed-in tariffs
Renewable Energy Certificates (RECs)
Open access provisions

States with favorable regulations can enhance your ROI significantly.

3. Plan Investment and Payback Period

Though the initial cost of solar setups can be high, the payback period typically ranges from 5 to 7 years. Post that, the majority of the energy generated is profit.

4. Analyze Market Demand and Buyer Potential

Look for:

Long-term PPAs with industrial buyers
Tie-ups with commercial complexes
Participation in state solar tenders

Understanding the demand-supply dynamics will help you stay competitive.

5. Explore Financing and Partnerships

Partner with:

Banks offering solar loans
Solar EPC contractors for installation
Fintech platforms offering innovative financing like solar leases or community solar models

These arrangements lower your upfront costs and speed up your path to profitability.

Whether you’re a startup, an industrialist, or a landowner, solar energy in India presents a golden business opportunity. From cutting operational costs and earning incentives to generating long-term passive income, solar rooftops and power plants can transform your financial future.

With government backing, evolving technologies, and increasing awareness around clean energy, now is the perfect time to invest in solar energy and build a green business empire.