Hi, I’m Karan. I enjoy analyzing startup go-to-market strategies and calculating returns. While reviewing the business plan for SundayGrid, I identified a key flaw in their value proposition. I am posting it here and not on linkedin as I want them to correct this than to defame a brand which is onto something nice.
SundayGrid allows users to buy virtual solar shares, effectively letting them offset their electricity bills. However, after evaluating the ROI based on their current pricing, here are my findings:
To save ₹6,000 per month, a user needs to invest approximately ₹4,00,000 in the virtual solar space. Over a 10-year PPA (based on SundayGrid’s latest offering), the user would receive around ₹7,20,000 in electricity credits.
On the other hand, if the same ₹4,00,000 were invested in a large-cap mutual fund with a modest return of 10% per annum over 10 years, the investment would grow to approximately ₹10,38,000. After accounting for long-term capital gains tax at 12.5%, the user would still retain around ₹9,78,000.
This results in a potential opportunity loss of ₹2,58,000 if the user chooses to invest in SundayGrid instead of mutual funds.
Note: This comparison does not include benefits like tax harvesting, which could further improve mutual fund returns by reducing the overall tax burden.
Would love to hear your insights @NithinKamath
Comparing the savings you can make to potential stock market returns (which isn’t guaranteed btw).
. Stock market returns are indeed not guaranteed. But that’s exactly the point — if an investment with moderate risk and better historical returns still outperforms a “savings” product like this, it raises questions.