
Executive Key Takeaways
- Commercial & Industrial units paying ₹8.50 to ₹12.00 per unit can generate solar power at ₹2.20 to ₹2.60 per unit.
- Typical payback period for a 100 kW – 1 MW industrial solar installation is 2.5 to 3.5 years.
- 40% Accelerated Depreciation (AD) under Section 32 of the Income Tax Act provides massive first-year tax savings.
- Zero production interruption with synchronized solar-diesel (DG-PV) fuel saver controllers.
The Rising Cost of Industrial Power in Tamil Nadu
With TANGEDCO revising HT (High Tension) and LT Commercial tariffs, businesses in Tamil Nadu are experiencing rising monthly operational expenditures. From textile mills in Tirupur and Coimbatore to automotive component factories in Sriperumbudur and Avadi, electricity represents 25% to 40% of total operating expenses.
Installing an on-site captive rooftop or ground-mounted solar plant allows business owners to hedge against future tariff hikes for the next 25 years.
Financial Modeling: 500 kW Industrial Rooftop Solar Case Study
Let us examine real-world performance metrics from a 500 kW captive industrial solar plant engineered by IVR Energy:
| Metric / Parameter | Value / Estimate |
|---|---|
| Total Installed Capacity | 500 kWp |
| Daily Generation (Average) | 2,000 – 2,200 kWh (Units) |
| Annual Generation | approx. 7,50,000 Units |
| Current Grid Tariff (HT Commercial) | ₹9.50 per Unit |
| Annual Grid Electricity Savings | ₹71,25,000 per Year |
| Total Project Investment (Turnkey EPC) | approx. ₹2.10 – ₹2.30 Crores |
| Simple Payback Period | 3.1 Years |
| 25-Year Internal Rate of Return (IRR) | 34.8% |
Tax Incentives: Accelerated Depreciation (AD)
Companies investing in solar energy assets are entitled to claim 40% Accelerated Depreciation (AD) under Section 32 of the Indian Income Tax Act in the very first year. For a profitable enterprise in the 25% or 30% corporate tax bracket, this reduces the effective capital outlay by nearly 10% to 12% immediately.
Zero Power Curtailment: DG-PV Hybrid Synchronization
Modern industrial setups cannot afford voltage fluctuations. IVR Energy integrates intelligent DG-PV synchronization controllers that dynamically regulate solar inverter output when running on diesel generators, ensuring zero reverse power flow into the genset while cutting diesel fuel consumption by up to 60%.

Written by IVR Energy Advisory
Industrial Solar EPC Division at IVR Energy
Table of Contents
Article Tags
#Industrial Solar#TANGEDCO HT Tariff#Accelerated Depreciation#1 MW Solar#Factory Rooftop
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Frequently Asked Questions
Can we install solar on metal sheet / PEB shed roofs?
Yes, IVR Energy uses non-penetrative aluminum rail-less clamps and SS304 fasteners designed specifically for trapezoidal and standing seam industrial metal roofs, preserving roof warranty and eliminating water leakage risks.
What is the required CEIG approval process for systems above 10 kW?
In Tamil Nadu, solar plants exceeding 10 kW require drawings and safety clearances from the Chief Electrical Inspectorate to Government (CEIG). IVR Energy handles all statutory drawings, earthing calculations, and CEIG inspection liaison.
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