Let us calculate NPV$,$ IRR AND Payback period for below example$-200$kw Grid Connected Rooftop Solar PV Plant could generate $1500$kwh power per annum.

Expected to save Rs$.1400$per kwh$,$leading to annual savings of Rs$.21,00,000.$

The plant would reduce CO$2$emissions by $146$tons annually.

Maximum degradation of $1\%$per year, with a project life of $25$years$.$

Operating and maintenance cost at $1\%$of total cost, increasing by $5\%$annually $.$ Investment Required as below$-$

Total project cost: Rs$.84,00,000($Rs$.42$per watt$).$

Financing: $3$:$7$equity to debt ratio.

Rs$.29,00,000$from owned funds and remaining from a bank loan at $11\mathrm{.}20\%$interest for $5$years$.$

Depreciation using the written$-$down value method, with a salvage value of Rs$.84,000$at the end of the project life.

Applicable tax rate: $30\mathrm{.}98\%$