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Rooftop Solar for Shops and Small Offices

How shops, clinics and small offices can plan rooftop solar: daytime load, tariff, sanctioned load, DISCOM approval and rented-roof questions.

Rooftop Solar for Shops and Small Offices
Rohit Nishad

By Rohit Nishad, Co-founder, Surya Udyan
· 8 min read

  • Shops and offices use most of their power in daytime, which matches solar generation well.
  • Commercial connections do not get the residential PM Surya Ghar subsidy, so base the decision on bill savings and payback.
  • Check your sanctioned load, tariff category and DISCOM approval before sizing the system.
  • Rented premises need written permission from the owner and a clear agreement about who owns the system.

Why shops and offices suit solar

A home often uses most of its power in the evening, after sunset. A shop or office uses it differently. Lights, fans, computers, printers, billing machines, refrigerators and air conditioners run mostly between 9 am and 7 pm, which overlaps well with the hours when panels produce the most. Power used straight from the panels saves the most, since it needs no battery and loses very little on the way.

Small businesses in Basti, Gorakhpur, Ayodhya and nearby towns often look at rooftop solar to control a rising monthly bill. Commercial tariffs are generally higher per unit than domestic tariffs, so every unit you generate and use replaces a more expensive unit from the grid. The exact rate depends on your tariff category and the current UPERC order, so read your own bill rather than relying on a general figure.

This article is general information for owners of shops, clinics, small offices, workshops and showrooms. It is not tax, legal or financial advice, and figures on tariffs and policy change, so confirm current details with your DISCOM and your accountant.

Start with your bills and your sanctioned load

Gather the last twelve electricity bills. Look at four things on each: units consumed, the tariff category, the fixed or demand charge and the sanctioned load in kilowatts. Units tell you how much energy you use. The sanctioned load is the maximum your connection is approved for, and it limits the solar capacity that can be connected under net metering rules.

Plot or list the units month by month. Many businesses see summer peaks because of cooling and quieter winter months. If your shop closes during certain seasons, such as a wedding-season business, the pattern may look very different from an office. A solar system sized on your average daytime use will usually give the best return, while one sized to cover your highest month may produce surplus in quieter months.

Also check whether your meter is single phase or three phase. Many small shops run on single phase, while workshops, clinics with equipment and larger showrooms often use three phase. This affects the inverter type and the cost.

  • Collect 12 months of bills and note units, tariff category, fixed charges and sanctioned load.
  • Note the hours your business actually runs and which loads run at night.
  • Confirm single phase or three phase supply.
  • Ask the installer to show savings against your actual bills, not a generic estimate.

The residential subsidy does not apply

The central subsidy under PM Surya Ghar: Muft Bijli Yojana is meant for residential households. Shops, offices and other commercial connections are not eligible for it, even when the building is also the owner's home. If an installer promises the household subsidy on a commercial meter, ask them to show the rule in writing from the official portal.

Without a subsidy, the business case rests on bill savings and the payback period. Payback depends on system cost, your tariff and how much of the generated energy you use. Our guide on how to calculate solar payback walks through the method with an example. Be wary of any quotation that states a payback without showing the numbers behind it.

Tax treatment is a separate question. Rules on depreciation and deductions for renewable energy equipment have changed over the years. Ask your chartered accountant what applies to your business this year not the installer, who is not responsible for your tax position.

How big a system should you install

A practical approach is to size the system for your daytime consumption on working days, subject to roof area and sanctioned load. As a rough rule, one kilowatt of solar in Uttar Pradesh generates in the region of 4 to 5 units a day on average across the year, though it varies by season, shade and cleanliness. A shop that uses around 600 units a month, mostly in daytime, might look at a system somewhere near 4 to 5 kW, subject to a proper survey.

Do not oversize in the hope of selling surplus. Under net metering, surplus units are credited against future consumption, but the rules on settlement and the value of credit differ from retail rates and can change. Sizing to your own use gives the most predictable result.

Illustrative sizing example (assumptions only; confirm with a site survey)
Monthly useMostly usedIndicative system sizeComment
200 to 300 unitsDaytime1.5 to 2 kWSmall shop with fans, lights and a fridge
400 to 600 unitsDaytime3 to 5 kWShop with an air conditioner or small office
800 to 1,200 unitsDaytime6 to 9 kWClinic, showroom or workshop; often three phase
AnyMostly nightNeeds a closer lookWithout a battery, solar may not match the load

On-grid, hybrid or battery backup

Most shops choose an on-grid system, because it is the least costly and needs no battery. Panels feed your shop first, and any extra goes to the grid through the net meter. The limitation is that a plain on-grid inverter shuts down during a power cut for safety reasons, so solar alone will not keep the shop running when the grid is off.

If outages are frequent and the shop loses sales or stock during them, consider a hybrid inverter with a battery sized for essential loads such as lights, billing counters, a fridge and fans. The battery adds cost and needs replacement after some years, so decide from facts: how often the power goes, for how long, and what each cut costs you. Our article on battery sizing for hybrid systems explains the arithmetic.

Permissions, net metering and the DISCOM

Commercial rooftop systems connected to the grid need approval from the local DISCOM, typically through the Uttar Pradesh net metering process. The documents commonly include a recent bill, an ID of the connection holder, a site plan or roof ownership proof and the technical details of the system. Your installer may handle the paperwork, but you remain the applicant, so keep copies.

The DISCOM inspects the installation and replaces or reprograms the meter before the system is switched on. Do not run a grid-connected system without approval. It is unsafe for line staff and can lead to penalties. Our net metering application checklist for Uttar Pradesh lists documents and steps in more detail.

  • Keep copies of the application, approval letter, meter details and commissioning report.
  • Confirm the timeline and who follows up with the DISCOM.
  • Never operate the system before the net meter is installed and approval is given.

Rented premises and shared buildings

Many small businesses operate from rented shops where the roof belongs to the landlord or is shared with other floors. In that case you need written permission from the owner before any work starts. Agree on who owns the system, who pays for it, what happens if the lease ends and whether the equipment can be removed.

If the lease is short, a solar investment that pays back in several years may not make sense. A longer lease, a landlord who shares the investment or a clear agreement on transferring the system can change that. Put every understanding in writing, because verbal promises are hard to enforce later.

In a multi-storey building, check whether the roof is common property of a society or association. They may have rules on roof use, structure and appearance.

Maintenance, cleaning and warranties

Dust, bird droppings and construction work nearby can reduce output noticeably, especially near roads and markets. Plan regular cleaning, often every two to four weeks in dusty seasons, using soft water and a soft brush without harsh chemicals. Our guide on cleaning panels in dusty regions covers the details.

Ask for warranty terms in writing. Panels often carry a product warranty and a separate performance warranty over 25 years, inverters commonly five to ten years, and the installer should give a workmanship warranty. Keep all invoices, serial numbers and the commissioning report in one folder, as you will need them for any claim.

How to compare quotations

Ask at least two or three installers for written proposals, and compare them line by line. The cheapest quotation is not always the best if it uses weaker structures, skips earthing or leaves out paperwork. Look at the brand and model of panels and inverter, the structure material, the cable quality, the earthing and lightning arrester, the scope of net metering support and the warranty. Our article on common mistakes when buying rooftop solar lists traps to avoid.

A reliable installer visits your shop, measures the roof, studies your bills and explains savings with assumptions you can check. For a site visit and a written quotation for your shop or office, use the quotation form on our home page and we will call you back.

FAQ

Do shops get a subsidy for rooftop solar?
The central PM Surya Ghar subsidy is for residential households and does not apply to commercial connections. Judge a shop project on bill savings and payback, and check any state or other scheme on the official portals.
Will solar keep my shop running during a power cut?
A plain on-grid system switches off during a grid outage for safety. To run during cuts you need a hybrid inverter with a battery, which adds cost.
How much solar does a small shop need?
It depends on daytime units used, sanctioned load and roof area. A shop using 400 to 600 units a month, mostly in daytime, may look at roughly 3 to 5 kW, but a site survey must confirm this.
Can I install solar on a rented shop?
Only with the owner's written permission and a clear agreement on ownership and what happens when the lease ends. A short lease may make the investment hard to justify.
Does a commercial solar system need DISCOM approval?
Yes, for a grid-connected system. Apply through the net metering process and do not switch on before inspection and meter installation.

Sources and official links

Figures in this article are general and may change. See our disclaimer, or contact us for a quotation specific to your site.