Solar for small factories in Mohali's Industrial Area

A factory shed is close to an ideal place for solar: a large roof with nothing on it, machines that run through the working day, and no free units. Small and medium units in Mohali’s Industrial Area, and along the roads towards Zirakpur and Derabassi, can cut a large share of their daytime bill. But industrial tariffs in Punjab are lower than commercial ones, so the payback is a little longer, and time-of-day billing changes the arithmetic for larger connections. This guide sets it out.

What a factory pays PSPCL in 2026-27

Industrial connections are billed per kVAh under PSPCL’s schedule of tariff, by contract demand:

Fuel and power purchase adjustments come on top. A unit that uses power only between 10 pm and 6 am can opt for a night rate of ₹5.50 a kVAh, which suits night shifts but not solar.

Time-of-day billing for medium and large units

All MS and LS connections are billed on PSPCL’s time-of-day tariff. The daytime hours, 6 am to 6 pm, are charged at the normal rate all year. Between 16 June and 15 October, 6 pm to 10 pm costs ₹2.00 a kVAh more, and the night hours carry a rebate from mid-October to mid-June.

Under PSERC’s rules, a factory on time-of-day billing has its solar units set first against its use in the same time block, and any surplus is treated as made in the next lower-priced block. So solar takes out daytime units at the normal rate, but cannot offset the evening surcharge. For a single-shift factory that runs in daylight, that costs little, because most of its use is in the hours the panels produce.

What solar saves: two examples

These use PSPCL’s 2026-27 rates, our estimate of about 1,440 units per kW a year in Tricity, and a typical 2026 price of ₹45,000 to ₹60,000 per kW for a business system, including GST, counting energy charges only.

• A small unit on a 40 kVA SP connection, working a day shift. A 30 kW system makes about 3,600 units a month on average, taking out units charged at ₹5.70. That saves roughly ₹20,500 a month, or about ₹2.5 lakh a year. At ₹13.5 lakh to ₹18 lakh installed, it pays for itself in roughly 5.5 to 7.5 years.
• A medium unit on an 80 kVA MS connection. A 50 kW system makes about 72,000 units a year. At ₹5.83 each, that is roughly ₹4.2 lakh a year. At ₹22.5 lakh to ₹30 lakh installed, it pays for itself in roughly 5.5 to 7 years.

Our calculator gives the figure for your own bill:

Choosing the arrangement

PSERC’s rules give a factory three ways to connect a rooftop system:

• Net metering. Units the factory does not use are exported and set against later use within the October to September settlement year. Credit left at the end is paid at 75% of PSERC’s feed-in tariff, about ₹2.23 a unit in 2026-27. Systems can be up to the contract demand, with a cap of 500 kW.
• Behind the meter. Since April 2026, a factory can install a system that never exports, sized up to its sanctioned load or contract demand, with PSPCL’s prior approval and a generation meter. PSPCL has 15 days to grant technical clearance. Anything that does reach the grid is neither paid for nor credited, so the system must be designed not to export.
• Net billing, where exported units are valued at the feed-in tariff instead of being set against the units you buy, so for a factory each exported unit is worth less than under net metering.

For a factory whose machines use most of the output in daylight, net metering is usually the simpler choice, because Sundays and holidays still count.

Shed roofs, sizing and panels

• The roof. Metal sheet roofs take panels on rails clamped to the sheet profile, without drilling through the sheets where possible. The sheets and purlins must be in good condition and able to carry the load, and an old roof is best replaced before the panels go up.
• Size. Size to the daytime use across the year, allowing for Sundays and holidays, not to fill the roof. Our guide to increasing your sanctioned load explains the steps if the load needs raising.
• Panels. Business net-metering systems commissioned after 31 December 2026 need panels made with Indian cells. Our guide to DCR and non-DCR panels explains the rule.
• Tax. Solar plant has long been in the 40% depreciation block of the income-tax rules. Confirm the current treatment with your chartered accountant.
• Generators. An on-grid system switches off in a power cut. If a diesel generator runs often, ask for a controller that lets solar run alongside it without feeding power back into the generator.

Panchkula

Factories in Panchkula’s industrial area are on UHBVN. Connections up to 50 kW pay ₹6.45 to ₹6.80 a kVAh, and supply above 50 kW at 11 kV is ₹6.95 a kVAh with a fixed charge of ₹290 a kVA in 2026-27. Those higher rates shorten the payback compared with Punjab.

How we work with factories

We read twelve months of bills, including the time-of-day breakdown, walk the shed roof and check its condition, and size the system to the working pattern. Our guides to solar for hotels and restaurants and schools and coaching centres show the same approach for other businesses, and our commercial solar page covers business systems in general.

Common questions

What is the industrial electricity tariff in Punjab in 2026-27?

Per kVAh: ₹5.70 for small power up to 50 kVA, ₹5.83 for medium supply up to 100 kVA, and ₹5.90 for large supply up to 1,000 kVA, with fixed charges of ₹100, ₹130 and ₹210 a kVA. Medium and large units are billed on the time-of-day tariff.

How long does solar take to pay back for a factory in Mohali?

Roughly 5.5 to 7.5 years for a small or medium unit using most of the output in daylight, at 2026 prices and PSPCL's industrial rates. Commercial premises pay back faster because their rates are higher.

Can a factory install solar without exporting to the grid?

Yes. Since PSERC's amendment of April 2026, a system can be connected behind the meter, sized up to the sanctioned load or contract demand, with PSPCL's prior approval and a generation meter. Any power that reaches the grid is neither paid for nor credited.

Does solar reduce the evening peak surcharge for industry?

No. Under PSERC's rules, solar units are first set against use in the same time block, and surplus counts as made in the next lower-priced block, so daytime solar cannot offset the ₹2.00 a kVAh evening surcharge between 16 June and 15 October.