How a Small Business Cut 40% of Its Electricity Bill with Net Metering

Rising energy prices continue to challenge small and medium businesses across India, directly affecting profitability and operational efficiency. Many business owners are now turning to solar energy as a long-term solution to reduce overhead costs. One inspiring example is a small manufacturing business that successfully reduced its monthly electricity expenses by 40% through a smart rooftop solar installation supported by Net Metering. This real-world case study demonstrates how businesses can achieve substantial savings while contributing to environmental sustainability.

The Energy Challenge for Small Businesses

For small enterprises—such as workshops, retail stores, fabrication units, and service centers—electricity represents one of the highest recurring costs. Frequent tariff hikes, demand charges, and unpredictable consumption patterns make budgeting difficult. Businesses operating machinery, air conditioning, and lighting during peak hours face even higher operational expenses.

To address these challenges, renewable energy solutions such as rooftop solar are becoming increasingly attractive. Installing solar allows businesses to generate their own power, reduce dependence on the grid, and maintain stable long-term energy costs without large recurring payments.

How Solar Helped a Business Reduce Electricity Costs

A local manufacturing unit in Maharashtra with a monthly electricity bill averaging ₹28,000 decided to install a 15 kW rooftop solar system. The system generated enough power to support day-to-day production equipment, lighting, and cooling needs. The solar energy produced during the day was consumed immediately, while excess power was exported, reducing net electricity consumption.

Key Achievements After Installation

• Monthly bill reduced from ₹28,000 to ₹17,000

• Annual savings reached nearly ₹1,30,000

• Payback period estimated at 3.5–4 years

• System life: 25+ years

The reduction in power costs enabled the business to reinvest in new equipment and increase productivity without increasing operational spending.

Installation Steps Followed

1. Energy Audit – Load requirement and monthly usage were assessed to determine solar capacity.

2. Roof Suitability Check – Engineers inspected structural strength, orientation, and shadow-free area.

3. System Design & Panel Selection – Tier-1 solar panels and an on-grid inverter were chosen for maximum efficiency.

4. Government Application & Meter Approval – Documentation submitted to DISCOM for meter replacement and policy approval.

5. Installation & Wiring – Panels mounted, connected to inverter, and integrated with existing power system.

6. Testing & Commissioning – Final inspection completed before connecting the system to the grid.

Within just two weeks, the system began producing power and credits started appearing on the business’s electricity bill.

Cost Savings Breakdown

Thanks to lower operational costs, the business expects to grow its workforce and expand production capacity without increasing its power budget.

Environmental Impact

• Reduced carbon emissions: approx. 17 tonnes of CO₂ saved annually

• Reduced dependence on fossil-fuel electricity

• Supports India’s renewable energy mission and sustainability targets

• Clean and silent power generation compared to diesel generators

Conclusion

Rooftop solar combined with grid credit policies is transforming the way small businesses manage electricity expenses. This case clearly demonstrates that even modest installations can deliver meaningful savings, improved stability, and long-term financial resilience. Beyond economic gains, solar adoption supports environmental responsibility and sustainable growth.