MP vs. Gujarat: Which State Offers Better Solar ROI? (2025 Data Comparison)

For years, Gujarat has been the poster child for India's solar revolution, consistently leading in rooftop installations. But in 2025, the landscape is shifting. If you live in Madhya Pradesh (MP), new policies and local tariff structures are quietly turning the state into a solar goldmine.

At R-Solar, we believe in math, not marketing. We crunched the numbers to see how a standard 3kW household solar system performs in MP compared to the national leader, Gujarat. Here is the definitive ROI comparison.

The Tale of Two States: 2025 Scorecard

Both states benefit from the central PM Surya Ghar: Muft Bijli Yojana subsidy (₹78,000 for a 3kW system), but the real difference lies in state-specific policies: Net Metering Rates, Grid Tariffs, and Sunshine Hours.

1. The Cost of Power (Why MP Wins on Savings)

Solar ROI isn't just about how much energy you generate; it's about how much money you save by not paying the grid.

• Gujarat (GUVNL): The average residential tariff is roughly ₹5.50 - ₹6.50 per unit.
• Madhya Pradesh (MPMKVVCL / MPPKVVCL): Residential tariffs are higher, averaging ₹7.00 - ₹8.50 per unit for higher consumption slabs.

The Insight: Because electricity is more expensive in MP, every unit of solar power you generate saves you more money than it would in Gujarat. A homeowner in Indore saves approximately ₹1.50 more per unit than a homeowner in Surat.

2. Net Metering & Banking: The Hidden Rules

This is where the policy fine print matters.

• Gujarat: Highly favorable for industrial, but residential banking has a settlement rate typically lower than the retail tariff (APPC rates often apply for excess surplus).
• Madhya Pradesh: MP's net metering policy for residential consumers is robust. The "banking" of units allows you to carry forward excess generation to adjust against future bills within the financial year.

3. Solar Irradiation (The Nature Factor)

You can't legislate the sun, but you can measure it.

• Gujarat (Kutch/Saurashtra): Exceptional irradiation, averaging 5.5 - 6.0 kWh/m²/day.
• Madhya Pradesh (Malwa/Central): Very strong irradiation, averaging 5.2 - 5.8 kWh/m²/day.

The Verdict: While Gujarat has a slight natural edge, MP's central plateau (especially Indore, Ujjain, Bhopal) is one of the best solar-generating regions in India. The difference in generation is negligible (less than 5%) compared to the difference in savings.

The Payback Period Showdown (3kW System)

Let's look at the ROI calculation for a typical home consuming 400 units/month.

The Winner: Madhya Pradesh

While Gujarat has the volume, Madhya Pradesh offers a faster Return on Investment (ROI) for residential homeowners in 2025.

Thanks to higher grid tariffs, your solar system pays for itself nearly 6 months faster in MP than in Gujarat. Once that 2-year mark hits, you are essentially printing free money for the next 23 years of the panel's life.

Why Wait? The MP Advantage is Now.

For residents of Indore, Bhopal, and the wider MP region, the math is undeniable. You aren't just buying green energy; you are making one of the smartest financial investments available in the current market—beating FDs, Gold, and Mutual Funds in risk-free returns.

Don't let your roof sit idle while your neighbor in Gujarat gets all the glory.

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