Home Solar Panel System Installation Cost in India 2024

Consider home solar installation to reduce your monthly energy costs. Households, farmhouses and businesses with high electricity bills can save tens of thousands of rupees with the right solar power system size. However, customers must be prepared for the upfront solar panel installation cost in India. The initial solar investment comprises solar components, solar panel mounting modules, and labour costs. 

Homes with maximum solar access can recoup their solar system installation cost in 6-8 years. This payback period for solar energy systems depends on electricity costs, the home’s size, and the payment method.

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Average Cost of Solar Panel Installation for Home

Wonder how much it would cost to install solar panels? No two solar energy systems are built the same. A solar power system is custom designed depending on the type of structure, roof specifications, shading, and utility. Solar panel home installation costs a national average of Rs. 1,89,000 to Rs. 2,15,000 for a 3kW solar panel system. The per-watt price for solar panel systems can range from Rs. 75 to Rs. 85 in India. 

Below is a tabular representation of an estimated range of solar panel installation costs per kWh in India across different system sizes:

Solar System Size Price Range (Estimated)
1kW Solar System Rs. 75,000 – 85,000
2kW Solar System Rs. 1,50,000 – 1,70,000
3kW Solar System Rs. 1,89,000 – 2,15,000
4kW Solar System Rs. 2,52,000 – 2,85,600
5kW Solar System Rs. 3,15,000 – 3,57,000
10kW Solar System Rs. 5,31,000 – 6,07,000

Before transitioning to solar energy, it’s important to consider how different aspects can impact your wallet over time. These include your electric bill, location-specific factors, type of solar components, and government incentives. Here are the key steps that can help you determine your savings in relation to your solar installation cost across the average system lifespan of 25 years.

Calculating Savings in Relation to Solar Panels for Home Prices in India

  • Review Your Electric Bill

Commonly mounted on rooftops, solar panels utilize the sun’s energy to generate their own clean power. Households and businesses can rely on solar energy during the day to meet most of their power needs. As a result, solar system installation reduces your grid power withdrawals and can offset a significant part of your monthly electricity bill, if not eliminate it. 

The higher the electric bill, the greater the financial advantages of solar system installation for home. Note that the electric tariff rates and power usage – the main determinants of your electric costs – are volatile. 

The savings you can expect from solar panel installation in India can vary depending on the fluctuations in utility’s electricity prices. Similarly, changes in energy consumption also influence the amount of savings.

  • Evaluate Your Sunlight Exposure

More sun exposure means high energy generation. This increases your home’s potential to save with solar power installation. Many states in India receive 3 to 5 peak sun hours. In summer, India has the longest days with a high number of daylight hours. Your location’s average sun hours are a key factor in deciding how much solar power output you can get with solar installation in India.

In addition to the amount of sunlight received, your solar system’s energy output also depends on other factors. These are the roof type, its orientation toward the sun, and the shade it gets. With high-efficiency solar panel installation, you can receive considerable solar energy output despite unfavourable conditions, such as shading.

  • Estimate and Compare Solar Panel Cost in India

A large part of the cost of installing solar panels at home comes from purchasing solar panels and other related components. The minimal long-term costs of maintaining a solar PV system can compensate for the high initial investment. Modern solar energy systems are designed to last for 25 years with little cleaning and maintenance requirements. Very little change is observed in the solar energy output during the system’s lifespan.

When calculating the total solar panel installation price, figure out your average daily energy demand. Refer to the energy usage details provided on your monthly utility bill. Accordingly, pick a solar system size with an output capacity that matches your daily energy demand. 

An average residential 5kW solar system costs Rs. 63 to 71.4 per watt, which amounts to Rs. 3,15,000 – 3,57,000 with installation. This price range is before any government solar subsidies or other incentives.

  • Take Advantage of the Government Solar Subsidy Scheme

The Rooftop Solar Programme Phase – Ⅱ launched and further simplified by the MNRE encourages homeowners to make clean energy enhancements. For rooftop solar power plant installation, homeowners and housing societies are eligible to apply for a fixed solar subsidy aid.

The National Portal for Rooftop Solar makes the process of getting subsidy benefits simpler, faster, and more transparent. The portal provides complete information on eligibility criteria and the ALMM list of Approved Models and Manufacturers of Solar Photovoltaic Modules. You can also find the list of empanelled solar vendors for solar plant installation.

Rooftop Solar System Capacity Applicable Subsidy (₹)
Up to 3kW 18,000/kW
Above 3kW and up to 10kW 9,000/kW*
Above 10kW 1,17,000**
Resident Welfare Associations (RWA) / Group Housing Societies (GHS) Rs. 9,000/- per kW

For common facilities up to 500 kWp @ 10 kWp per house, with the upper limit being inclusive of individual rooftop plants already installed by individual residents in that GHS/RWA at the time of installation of RTS for common activity.

Note: *₹18,000/kW for the first 3 kW and ₹9,000/kW for the rest of the capacity up to 10kW.

**The subsidy amount is fixed for rooftop solar systems above 10kW capacity.

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What is a Solar Energy System?

A solar energy system is made up of 3 main components that decide the type and working of your framework:

  • Solar Panel
  • Solar Inverter
  • Solar Battery

Solar Panel

The answer to the question from our friends aviator-app.inWhat is the cost of installing solar panels?” depends on the solar panel size you choose. The solar panel output is measured in wattage, which is crucial in dictating the cost of solar panel installation for home. On average, consumers opt for solar panel wattage ratings between 250 and 400 watts.

The standard cost of solar panels is Rs. 40,000 (or between 36,000 to 44,000), determined by type and model. You can choose from monocrystalline, polycrystalline, and bifacial solar panels. 

  • Monocrystalline Solar Panels: With a high-efficiency rating of 17% to 22%, monocrystalline solar panels come with a heavy price tag. The average cost of this solar panel type is Rs. 43 to Rs. 63 per watt. Outfitting a solar energy system with mono panels costs higher and promises increased energy output per square foot area.
  • Polycrystalline Solar Panels: Polycrystalline-based PV panels have a low per-panel manufacturing cost, making them the most affordable option for consumers. Although less efficient (15% to 17%) than mono panels, poly panels cost Rs. 30 to Rs. 36 per watt. Outfitting a solar energy system using poly solar panels is a budget-friendly option for consumers.
  • Bifacial Solar Panels: If you want maximum energy output from your solar panel installation, consider bifacial solar panels. A bifacial solar panel has solar cells on both its front and back sides, enabling it to generate high amounts of solar electricity. With an efficiency rating of 20% and higher, bifacial solar panels cost Rs. 37 to Rs. 52 per watt.

Solar Inverter

A solar inverter is an important piece of equipment in a functional solar energy system. This device converts direct current (DC) electricity generated by solar panels into alternating current (AC) electricity. Only AC electricity is suitable for running homes and businesses. Wonder how much it costs to install an inverter? The size of a solar inverter depends on the solar system size. The solar inverters’ cost increases as the solar power installation gets bigger.

Solar Battery

Consumers choose to integrate solar batteries into solar power plant installations to increase the reliability of their solar systems. Since solar panels become inactive during the night hours, the energy stored in solar batteries can enable you to meet your power needs. With a solar panel + battery system, you can avoid unpredictable grid outages and ensure a 24/7 power supply.


If you pay high energy rates in your region, it’s worth installing a solar system at home, even more so while the solar subsidy scheme is in place. Although the initial investment is considerable, solar is good for the environment and your wallet in the long run. You can expect a much lower monthly utility bill with a net-metered solar system. 

If you decide to purchase the different solar components, it’s important to refer to the ALMM list to buy made-in-India solar panels if you wish to avail subsidy. Are you not ready to pay the upfront cost of solar system installation for home? Many solar companies offer leasing options to help you make a much more affordable switch to solar. Therefore, talk to different solar vendors and get detailed quotes before making decisions.

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Frequently Asked Questions

How much would it cost to install solar panels? 

Several factors influence the solar system installation cost. For a basic 1 kilowatt solar system, the initial installation costs start from Rs. 75,000 and go higher based on the type of solar components and the mounting module used. The different factors to consider include the following:

  • The project capacity (solar system size)
  • Type of solar panels (mono, poly, and bifacial panels)
  • Type of solar inverter
  • Balance of Solar PV Systems (installation accessories)
  • Value-added services that you purchase (such as Solar monitoring system)
  • The AMC contract you buy (i.e., the annual maintenance service package)
  • The type and size of solar panel mounting structure
  • The height of the building

Which state has the lowest solar panel installation cost in India?

The factors influencing the home solar installation cost vary across all states. The cost variation largely depends on solar system size, labour costs, the size of mounting structures, and the type of solar components.

How much can you save on utility costs using solar?

Considering that you pick the right system size, you can save up to 90% on your energy with solar panel installation. However, know that there will be seasonal impacts on your savings. The winter season and rainy days influence the performance of your solar panels. During spring and summer, you are likely to see maximum energy output and, therefore, savings. A solar installer can help you track your monthly energy output and savings using smart monitoring systems.

How many solar panels are required in a solar energy system?

The number of solar panels needed impacts solar power plant installation costs. On average, most homes need between 10 to 20 panels to meet their power demand completely. When shopping for solar panels, consider the wattage rating. Solar panels of higher wattage reduce the number of solar panels needed to put together a solar system.

Are there additional costs associated with solar panel home installation?

In addition to the obvious expenses, installing and maintaining a home solar energy system involves other costs. The common costs that consumers must keep in mind when planning for solar panel installation in India include:

  • Net metering costs
  • Solar inverter and battery replacement costs (post the warranty period)
  • Solar panel cleaning costs
  • AMC maintenance costs
  • Roof repair costs (recommended before solar panel installation)
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