It makes sense to evaluate your upfront system cost by converting it into Rs/ kWh (per unit cost) also known as levellized cost. That helps you compare the cost of your solar power with that from the grid.
Illustration for an average residential customer in Delhi:
A 2kW Solar PV system costs around Rs 1.4 lacs and has a life of at least 25 years with low recurring costs. This translates to a per unit levellized cost of Rs7 – 8 /kWh for the next 25 years
Lets compare this with the cost of grid power. The discom charges him slab-wise but on an average he pays Rs 7.3/kWh. And this price keeps increasing by about 5% per annum, which means you may be paying Rs 24.7/kWh at the end of 25 years. This translates to a per unit levellized cost of approx. Rs 10 – 11/kWh when compared with the 25 year life of Solar PV system.