"My roof has space for 5kW, so I should install 5kW, right?" We hear this almost every day at R-Solar. It sounds logical—more panels mean more power, and more power means more savings. But in Madhya Pradesh's net metering landscape, this logic is often a ₹50,000 mistake.
Oversizing your solar system is one of the most common errors homeowners make. Unlike a car, where having extra horsepower is fun, having extra solar capacity can be a financial waste if your state's policy doesn't reward it. Here is why bigger isn't always better, and how to find your "Goldilocks" number.
The "Use It or Lose It" Reality
In many states, including MP, the net metering rules are generous but specific. You can "bank" your excess energy to use later in the year, but at the end of the financial year (March 31st), the settlement for any remaining surplus credits is often paid at a much lower rate than what you pay for electricity.
- Buying Power (What you save): ~₹8.00 per unit.
- Selling Surplus (What DISCOM pays): ~₹3.00 - ₹3.50 per unit (APPC rate).
Case Study: The Sharma vs. The Gupta Family (Indore)
Let's look at two real scenarios we encountered in Indore (names changed for privacy).
Scenario A: The Sharmas
The "Max Out" Approach
- Avg Bill: ₹3,500/mo (400 units)
- Decision: 5 kW System
- Cost: ~₹2.1 Lakhs
- Result: Saves ₹3,500 bill + gets ~₹7,000/year from DISCOM for excess.
- ROI Time: ~4.5 Years
Scenario B: The Guptas
The "Right Size" Approach
- Avg Bill: ₹3,500/mo (400 units)
- Decision: 3.3 kW System
- Cost: ~₹1.6 Lakhs (Saved ₹50k upfront)
- Result: Saves ₹3,500 bill. Zero wasted investment.
- ROI Time: ~3.5 Years
The Winner: The Guptas saved ₹50,000 instantly by not buying panels they didn't need, and they achieved the exact same bill reduction (zero bill) as the Sharmas.
When Should You Actually Go Bigger?
We aren't saying you should never go big. You should consider a larger system (4-5 kW+) if:
- EV Plans: You plan to buy an Electric Vehicle in the next 1-2 years (this will add ~200-300 units/month).
- AC Addiction: You plan to install new Air Conditioners that will run all day.
- Future Expansion: You are adding a floor or a home office.
The R-Solar Audit: Don't Guess, Calculate.
At R-Solar, we don't just look at your roof; we look at your last 12 months of electricity bills. We analyze your peak summer load vs. your winter lows to design a system that maximizes your savings, not our sales.
Stop guessing. Save that ₹50,000 for something else.
About the Author
R-Solar Editorial Team
R-Solar is India's leading solar platform, dedicated to simplifying the transition to renewable energy for homeowners and businesses across Madhya Pradesh.
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