Solar System Price in India: A Complete Guide
Solar system price in India depends on capacity, type (on-grid, off-grid, or hybrid), and components like panels, inverters, and batteries. On average, the cost ranges from ₹45,000 to ₹80,000 per kW, with subsidies reducing prices further. A 3 kW rooftop solar system typically costs around ₹1.3–₹1.6 lakh before subsidy.
The average solar system price in India ranges from ₹45,000 to ₹80,000 per kW depending on size, type, and components. With government subsidies, you can reduce your cost by up to ₹78,000 for residential rooftop systems.”
Introduction: Why Knowing the Solar System Price Matters
As electricity costs rise across India, solar energy systems are becoming the go-to solution for affordable and sustainable power. Whether you’re a homeowner, business Whether you’re a homeowner, business owner, or part of a housing society, understanding the solar system price helps you make an informed investment.
A well-planned solar system installation can reduce your monthly electricity bill by up to 90%, generate clean power, and provide returns for 25+ years. With government subsidies, the solar system price has become more affordable than ever.
What Is a Solar System?
A solar power system converts sunlight into electricity through solar PV panels and supporting equipment. It includes:
- Solar Panels: Capture sunlight and generate DC power.
- Solar Inverter: Converts DC to AC for running appliances.
- Mounting Structure: Holds panels at the right angle.
- Solar Batteries (for off-grid systems): Store energy for use at night or during power cuts.
- Cables & Accessories: Connect and distribute electricity safely.
Types of Solar Systems and Their Prices
a) On-Grid Solar System (Grid-Tied)
This is the most popular system in India. It connects to the main electricity grid, allowing you to export excess energy via net metering.
- 1 kW system: ₹55,000 – ₹75,000
- 3 kW system: ₹1,20,000 – ₹1,60,000
- 5 kW system: ₹200,000 – ₹280,000
- 10 kW system: ₹400,000 – ₹550,000
These systems are most suitable for urban homes that have reliable grid connections.
b) Off-Grid Solar System
An off-grid system works independently using batteries to store power. This system is particularly suitable for regions that experience frequent power outages.
- 1 kW system: ₹70,000 – ₹110,000
- 3 kW system: ₹1,80,000 – ₹2,50,000
- 5 kW system: ₹300,000 – ₹450,000
This system is particularly suitable for rural or remote areas that lack grid supply.
c) Hybrid Solar System
This combines the benefits of both on-grid and off-grid systems. It connects to the grid but also has a battery backup.
- 1 kW system: ₹85,000 – ₹125,000
- 3 kW system: ₹200,000 – ₹280,000
- 5 kW system: ₹3,20,000 – ₹4,80,000
Solar energy systems should be considered best for homes or businesses that need reliable backup power and grid benefits.
Factors Affecting Solar System Price
The solar system price in India varies based on several key factors:
- System Capacity (kW): Larger systems cost more but reduce per-unit costs.
- Type of Panels: Monocrystalline panels cost more but offer higher efficiency.
- Inverter Type: String inverters are cheaper than microinverters.
- Battery Storage: Off-grid systems require batteries, increasing total cost.
- Mounting Type: Both elevated and ground-mount systems incur additional costs.
- Location: Labor and logistics costs vary by For specific module costs, please check the section on [solar electric panel for home].
Solar System Price Breakdown by Size
| System Size (kW) | Average Price (₹) | Ideal For | Energy Output (Units/Year) |
|---|---|---|---|
| 1 kW | ₹55,000 – ₹80,000 | Small homes | 1,400 |
| 2 kW | ₹110,000 – ₹140,000 | 2–3 BHK | 2,800 |
| 3 kW | ₹130,000 – ₹160,000 | 3–4 BHK | 4,200 |
| 5 kW | ₹200,000 – ₹280,000 | Large homes | 7,000 |
| 10 kW | ₹380,000 – ₹550,000 | Villas or offices | 14,000 |
💡 Pro Tip: Use your monthly power bill to calculate your system size—divide your monthly consumption (in units) by 120 to get an approximate kW requirement.
(*Note: All costs mentioned above are estimates and can change with time.)
Solar Subsidy in India (2025 Update)
The Government of India offers a subsidy under the PM Surya Ghar Muft Bijli Yojana for residential rooftop solar systems.
Current Subsidy Rates:
- Up to 3 kW – 60% subsidy
- Between 3 and 10 kW – 40% subsidy
Example:
A 3 kW system costing ₹150,000 will get a subsidy of ₹78,000, reducing your net price to ₹72,000 only!
Cost of Solar System Installation
The installation cost of a solar system typically accounts for 10–15% of the total price.
It includes:
- Mounting structures
- Electrical wiring and junction boxes
- Labor charges
- Safety testing and commissioning
How to Choose the Right Solar System for Your Home
When deciding on the best solar setup, consider:
- Electricity usage: Check your average monthly consumption.
- Available roof area: Each kW requires ~100 sq. ft. of shade-free space.
- Type of connection: Go for on-grid if your area has stable electricity.
- Budget: Account for maintenance and future battery replacement.
Consult MNRE-approved vendors for the most accurate estimate.
Benefits of Installing a Solar System
- Reduced Electricity Bills: Save up to ₹2–3 lakh over 25 years.
- Energy Independence: No more dependency on unreliable grids.
- Government Subsidy: Reduce upfront costs with state and central subsidies.
- Increased Property Value: Solar homes attract premium resale value.
- Eco-Friendly Power: Lower carbon emissions and environmental impact.
- Long-Term ROI: Systems pay for themselves within 4–5 years.
Solar System Price Comparison – Before vs After Subsidy
| System Size | Price Before Subsidy (₹) | Subsidy (₹) | Final Price (₹) |
|---|---|---|---|
| 1 kW | ₹70,000 | ₹30,000 | ₹40,000 |
| 2 kW | ₹120,000 | ₹60,000 | ₹60,000 |
| 3 kW | ₹150,000 | ₹78,000 | ₹72,000 |
| 5 kW | ₹260,000 | ₹78,000 | ₹182,000 |
| 10 kW | ₹490,000 | ₹78,000 | ₹412,000 |
(*Note: All costs mentioned above are estimates and can change with time.)
People Also Ask (FAQs)
Q1. What is the average solar system price in India?
The average solar system price ranges from ₹45,000 to ₹80,000 per kW depending on the type and brand.
Q2. How much does a 3kW solar system cost?
A 3kW system costs between ₹1.3 and ₹1.6 lakh before subsidy and around ₹72,000 after subsidy.
Q3. How much area is required for a 1kW solar system?
About 100 sq. ft. of rooftop space is needed for 1 kW capacity.
Q4. What are the types of solar systems?
There are three types of solar systems: on-grid, off-grid, and hybrid.
Q5. What is the life of a solar system?
Solar panels last 25–30 years, while inverters need replacement every 10–12 years.
Q6. Can I power my entire home with solar?
Yes. A 5–10 kW system can power most medium-to-large homes in India.
Q7. Is maintenance expensive?
Not at all. Cleaning panels monthly and annual inspection costs ₹2,000–₹3,000 per year.
Q8. How long does installation take?
Typically 3–7 days depending on system size and weather.
Q9. Can I obtain a loan for a solar system?
Yes. Many banks and NBFCs offer simple EMI options for residential solar installations.
Q10. Which is the best type of solar panel for home use?
Monocrystalline panels—they offer high efficiency and compact design.
Final Thoughts
Investing in solar is not just an environmental choice—it’s a financially smart decision. With prices falling and subsidies increasing, the solar system price in India has become more accessible for homeowners and businesses alike.
By partnering with a trusted solar panel manufacturer company in India and choosing certified installers, you can enjoy 25+ years of energy savings and sustainability.
Switch to solar today—power your home, save money, and contribute to a greener tomorrow.
(*Note: All costs mentioned above are estimates and can change with time.)