Cost of Photovoltaic Panels: A Complete Price and Buyer Guide

The cost of photovoltaic panels is one of the first questions homeowners and businesses ask before switching to solar energy. While prices have dropped significantly recently, the final cost still depends on panel type, system size, installation method, and government subsidies.

In simple terms, photovoltaic (PV) panels convert sunlight into electricity using solar cells made of silicon. When combined with a solar power system, they help reduce electricity bills, lower carbon emissions, and provide long-term energy security.

This guide explains photovoltaic panel prices, cost breakdowns, and how to choose the right system without overpaying.

Could you please clarify what is meant by the “Cost of Photovoltaic Panels

The cost of photovoltaic panels usually includes:

• The cost of solar PV panels, either per watt or per kW, is typically included.
• Solar inverter cost
• Mounting structure & wiring
• Installation & labor charges
• There are also optional batteries available for off-grid or hybrid systems.

Many people confuse panel price with total system cost. Panels alone make up about 45–55% of the total solar panel installation cost.

Average Cost of Photovoltaic Panels in India (2025–26)

Here’s a realistic price range for residential rooftop solar systems before subsidy:

👉 After subsidies, prices can drop by 20–40% for residential systems.

Photovoltaic Panel Price Per Watt

If you’re buying PV panels only, pricing is usually quoted per watt:

• Polycrystalline panels: ₹18 – ₹24 per watt
• Monocrystalline / Mono PERC panels: ₹22 – ₹35 per watt
• N-Type / Bifacial panels: ₹28 – ₹45 per watt

High-efficiency panels cost more upfront but generate more electricity in less space.

Types of Photovoltaic Panels & Their Cost Impact

Choosing the right solar panel type directly affects your total cost.

1. Polycrystalline Solar Panels

• Lower upfront cost
• Slightly lower efficiency
• Suitable for budget installations

2. Monocrystalline (Mono PERC, Half-Cut)

• Higher efficiency
• Requires less rooftop space
• Best for homes with limited area

3. BIPV Solar Panels

• Integrated into buildings (roofs, glass, facades)
• Higher design flexibility
• Higher initial cost but aesthetic advantage

Component-Wise Cost Breakdown (3kW Example)

A typical 3kW solar power system cost breakdown looks like this:

• Solar panels: ₹75,000 – ₹120,000
• Solar inverter: ₹20,000 – ₹40,000
• Mounting & wiring: ₹15,000 – ₹25,000
• Installation & labor: ₹15,000 – ₹20,000

Advanced site surveys using drone aerial photography and drone 3D mapping can reduce design errors and improve system efficiency.

Government Subsidies & Their Impact on Cost

Government subsidies significantly reduce the cost of photovoltaic panels for homes.

• Up to 40% subsidy for small residential systems
• Available for on-grid rooftop solar
• Reduces payback period by 1–2 years

Always check local DISCOM rules and eligibility before installation.

Long-Term Savings & ROI

Solar is a long-term investment, not just an expense.

• Average system life: 25–30 years
• Payback period: 4–6 years
• Electricity savings: 70–100%
• Maintenance cost: Very low

After payback, electricity is virtually free for decades.

How to Reduce the Cost of Photovoltaic Panels

Smart buyers lower costs by:

• Choosing the correct system size
• Comparing quotes from multiple suppliers of solar panels
• Selecting high-quality but right-sized inverters
• Avoiding oversized battery storage unless needed
• Make sure to plan your site properly by conducting thermal and drone surveys.

Is the Cost of Photovoltaic Panels Worth It?

Yes—especially when you consider:

• Rising electricity tariffs
• Falling solar panel prices
• Government incentives
• Environmental benefits
• Increased property value

For most homeowners, installing solar panels today costs less than five years of electricity bills.

People Also Ask

1. What is the average cost of photovoltaic panels in India?
   The average cost ranges from ₹40,000 to ₹50,000 per kW for panels and ₹70,000 to ₹95,000 per kW for a complete installed system.
2. How much does a 3kW photovoltaic system cost?
   A 3kW system costs ₹1.2–2.7 lakh before subsidy and ₹85,000–1.2 lakh after subsidy.
3. Which photovoltaic panel type is best for homes?
   Monocrystalline (Mono PERC, half-cut) panels are best due to higher efficiency and space savings.
4. 4. What is the lifespan of photovoltaic panels?
   Most panels last 25–30 years with minimal performance loss.
5. Does the panel price include installation?
   Not always. Always confirm whether the quote includes the inverter, wiring, and labor.
6. Are photovoltaic panels expensive to maintain?
   No. Annual maintenance usually costs ₹2,000–₹5,000.
7. Do photovoltaic panels work during power cuts?
   On-grid systems do not. Hybrid or battery systems do.
8. How much space is required for 1 kW solar?
   The system requires approximately 80–100 sq. ft. of rooftop space that is free from shadows.
9. Can technology reduce installation errors?
   Yes. Aerial thermal imaging services and drone surveys improve accuracy.
10. Is now a good time to invest in photovoltaic panels?
    Yes. Prices are stable, subsidies are available, and electricity costs continue to rise.

Conclusion

Understanding the cost of photovoltaic panels helps you plan smarter, avoid overpaying, and maximize long-term savings. While upfront costs vary based on panel type, system size, and installation quality, solar energy remains one of the most reliable and cost-effective investments for homes and businesses.

With falling prices, better technology, and strong government support, installing photovoltaic panels today means locking in clean, affordable electricity for the next 25+ years—making solar not just an energy choice, but a future-proof financial decision.