Source: https://awesomecalcs.com/irr-calculator/solar-plant-10l-8-years
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# IRR of a ₹10 Lakh Solar Plant Investment (8 Years)

> A rooftop solar plant costs ₹10 lakh upfront and saves ₹1.8 lakh per year in electricity bills. Find the Internal Rate of Return on this investment.

Interactive calculator: https://awesomecalcs.com/irr-calculator/solar-plant-10l-8-years

Keywords: solar plant IRR 10 lakh 8 years, rooftop solar investment IRR calculator India, solar panel 10 lakh return on investment, IRR solar energy 1.8 lakh annual savings, solar plant 10 lakh electricity savings payback IRR

## Scenario inputs

```json
{
  "inputs": {
    "cashFlows": [
      {
        "period": 0,
        "amount": -1000000
      },
      {
        "period": 1,
        "amount": 180000
      },
      {
        "period": 2,
        "amount": 180000
      },
      {
        "period": 3,
        "amount": 185000
      },
      {
        "period": 4,
        "amount": 185000
      },
      {
        "period": 5,
        "amount": 190000
      },
      {
        "period": 6,
        "amount": 190000
      },
      {
        "period": 7,
        "amount": 190000
      },
      {
        "period": 8,
        "amount": 190000
      }
    ],
    "hurdleRate": 10
  }
}
```

## Frequently asked questions

### Is 10% hurdle rate appropriate for a solar investment in India?

Yes. Most Indian retail investors benchmark against FD rates (6-7%) or debt fund returns (7-8%). A 10% hurdle rate is a reasonable cost-of-capital proxy for a funded project. If the IRR exceeds 10%, the solar plant beats a typical debt instrument.

### What happens if electricity savings increase by 5% per year?

If savings grow at 5% annually from ₹1.8 lakh in year 1, year 8 savings reach about ₹2.45 lakh. This increases the IRR meaningfully. Adjust the cash flows in the full calculator to model escalating savings.