Squeezing Value: How Indians Redefine ROI in Solar Adoption

Solar energy has been a hot topic in India for years now, attracting big players like Tata and Mahindra to invest in its promise. It’s not just about the technology—it’s about the people.

My fascination with this sector goes beyond the panels and batteries. It lies in understanding why Indian consumers adopt residential solar setups and what drives their decisions.

Having worked on marketing projects in this space, I’ve had the privilege of speaking with business leaders about government subsidies, consumer insights, and the policy ecosystem. Yet, despite all this, one question has always eluded me:

What truly motivates the Indian consumer to go solar?

Lately, spending time in tier 2 and tier 3 cities has offered me a fresh perspective. These are the potential hotspots for solar adoption, filled with value-driven, ROI-conscious consumers. To explore the "pulse" of this market, I didn’t dive into formal research or equations. Instead, I opted for free-flowing conversations with two very different consumers:

A top-tier businessman from a tier 3 city, renowned for his sharp financial acumen.

A semi-skilled worker earning ₹40,000 a month, part of a household with a total income under ₹1 lakh.

Both had installed solar setups at home, but their motivations turned out to be surprisingly similar. Here’s what I learned:

The Common Threads Driving Solar Adoption

• Keeping up with the neighbors - Both mentioned that they decided to go solar after their neighbors installed panels. This aligns with what every marketer in the solar space has told me: peer influence reigns supreme. The classic Indian mindset of “if they have it, why shouldn’t we?” is alive and well.

• The power of word-of-mouth - Both consumers spent months—3 to 6, in fact—talking to neighbors, relatives, and friends before making the leap. This reiterates the point that in India, decisions, especially big-ticket ones, are seldom rushed. Trust and testimonials are everything.

• Government subsidies seal the deal - Both households leveraged government subsidies to offset upfront costs. The subsidy policies, designed to make solar more accessible, seem to be working effectively.

• The ROI conundrum - While both consumers acknowledged the potential for drastically reduced electricity bills, they also admitted they weren’t entirely convinced about the ROI. Questions about maintenance costs, panel lifespan, and other uncertainties loomed large despite the flashy calculators and assurances from sellers.

The Real "Why": A Surprising Twist on Value

I couldn’t resist asking the golden question: “Does the ROI work for you? Are you getting your money’s worth?”

Their responses revealed an unexpected behavior beneath the surface:

The businessman, who once rationed the use of ACs and geysers in his home, now uses them freely.The worker, who never had an AC, bought one on EMI after getting solar panels.

With a broad grin, both answered:

“Ab to AC aur geyser full-time chalu rehta hai—bill toh aana hi nahi.” (Now the AC and geyser are on full-time—there’s no electricity bill, after all.)

The Insight

Indians are value seekers—this is well understood. But here’s the twist: when they are unsure about the value of their purchase, they will actively squeeze every ounce of value out of it, even if it leads to waste or overconsumption.

In this case, solar wasn’t just about saving money or the environment; it became a tool to extract maximum lifestyle benefits, guilt-free. This behavioral insight has far-reaching implications for marketers in categories where ROI isn’t immediately clear. If you can’t convince the Indian consumer that they’re getting great value, they’ll create it for themselves—whether by increasing usage, adding aspirational upgrades, or finding new ways to justify their decision.

For businesses, the takeaway is simple: don’t just sell the product; sell the lifestyle or aspirational benefits it unlocks. Solar isn’t just a way to lower bills—it’s a gateway to comfort, convenience, and modern living.

Originally published on Marketing Mediator on Linkedin