Switching to solar energy has become one of the most valuable & rewarding investments for homeowners in India who are looking to significantly reduce their electricity bills and achieve greater energy independence.
The rising electricity prices & increasing environmental concerns make solar energy a highly appealing option. However, common question among homeowners is, how much do solar panels actually cost for a home in India?
In this comprehensive guide, we will explore the various factors influencing the price of solar panels for homes in India, solar panel cost per watt, including the initial cost of panels themselves, solar panel cost for 1, 2, 3, & 5 kw, the installation charges, available government subsidies and incentives & the overall return on investment.
We will also discuss whether installing solar panels is a smart financial decision for your home in the long run & how much you can potentially save on your electricity bills by making the switch to clean, renewable energy.
Also read: Solar Panel Calculator India
How Much Do Solar Panels Cost for a Home in India?
The cost of a home solar system in India depends on three key factors:
- System Size (kW Capacity): Larger systems generate more power but cost more.
- Type of Solar System: On-grid, off-grid, or hybrid systems have different pricing.
- Brand & Quality: Premium solar panels cost more but last longer & generate higher efficiency.
Average Cost of Solar Panels in India (2024-2025)
| Solar System Size | Average Cost (₹) Without Subsidy | After Subsidy (₹) Approx. |
|---|---|---|
| 1 kW | ₹60,000 – ₹75,000 | ₹40,000 – ₹50,000 |
| 2 kW | ₹1,20,000 – ₹1,50,000 | ₹80,000 – ₹1,00,000 |
| 3 kW | ₹1,80,000 – ₹2,25,000 | ₹1,20,000 – ₹1,50,000 |
| 5 kW | ₹3,00,000 – ₹3,75,000 | ₹2,00,000 – ₹2,50,000 |
| 10 kW | ₹6,00,000 – ₹7,50,000 | ₹4,00,000 – ₹5,00,000 |
Note: Prices vary based on location, brand, installation charges. Subsidies reduce the cost significantly.
Types of Solar Systems & Their Cost
On-Grid Solar System (Grid-Tied): Best for Savings
- Connected to the electricity grid.
- Excess power is sent to the grid via Net Metering.
- Lower initial cost since no batteries are needed.
Cost: ₹50,000 – ₹75,000 per kW (before subsidy)
Best for: Homes with stable grid power & high electricity bills.
Off-Grid Solar System: Best for Backup Power
- Works with batteries for backup.
- Not connected to the main grid.
- Higher cost due to battery storage.
Cost: ₹80,000 – ₹1,20,000 per kW (before subsidy)
Best for: Homes in rural areas with frequent power cuts.
Also read: Best Solar Pump Companies in India 2025
Hybrid Solar System: Best of Both Worlds
- Can work with both grid + battery storage.
- Expensive but provides backup power + net metering benefits.
Cost: ₹1,00,000 – ₹1,50,000 per kW (before subsidy)
Best for: Homes needing backup + grid connectivity.
Government Solar Subsidy in India (2024-2025)
The Indian government offers subsidies under the PM Surya Ghar: Muft Bijli Yojana to make solar panels affordable. Here’s how much you can save:
| System Size | Subsidy Amount |
|---|---|
| Up to 3 kW | ₹30,000 per kW |
| 4 kW – 10 kW | ₹18,000 per kW |
| Above 10 kW | ₹1,20,000 (fixed) |
Eligibility:
- The system must be installed by government approved vendor.
- Must be on-grid & connected through Net Metering.
- Homeowners must apply through the National Portal for Rooftop Solar.
How to Calculate Savings from Solar Panels?
A 5 kW solar system can generate about 20–25 units per day in India, saving ₹3,000 – ₹5,000 per month. Also, this solar panel calculator will help you in your journey.
Example: If your electricity bill is ₹5,000/month → You install a 5 kW on-grid solar system.
After switching to solar, your bill reduces to ₹500 – ₹1,000/month.
Annual Savings: ₹50,000 – ₹70,000.
ROI (Payback Period): 4-6 years (after which electricity is free for 20+ years!).
Factors That Affect Solar Panel Cost in India
- Location: Solar generation is higher in states like Rajasthan, Gujarat, Maharashtra due to more sunlight.
- Panel Efficiency: High-efficiency brands like Tata Power Solar, Waaree cost more but offer better performance.
- Installation & Wiring: Labor costs & wiring length add to overall pricing.
- Battery Storage (For Off-Grid Systems): Batteries can increase costs by ₹50,000 – ₹1,50,000.
Is Solar Worth It for Homes in India?
Yes! Solar panels in India are worth it in 2024-2025, especially with high electricity bills & government subsidies.
Low Maintenance: Requires minimal cleaning (once a month).
Huge Savings: Slash your electricity bills by 80-90%.
Government Support: Get up to ₹1,20,000 in subsidies.
Increases Property Value: Solar homes sell faster & at a premium.
Eco-Friendly Choice: Reduces carbon footprint & promotes clean energy.
Verdict: If you plan to stay in your home for 5+ years, solar is a smart investment with long-term savings.
How to Get Started with Solar in India?
- Calculate Your Electricity Usage: Check your monthly bill to determine the required solar system size.
- Choose a Reputable Solar Company.
- Apply for Government Subsidy: Register on https://pmsuryaghar.gov.in/
- Get Net Metering Approval: Required for on-grid solar systems.
- Install & Start Saving: Enjoy free electricity for 25+ years!
Final Thoughts: Should You Install Solar Panels in India?
If you’re tired of high electricity bills & want a sustainable energy solution, solar panels are a great investment. With affordable prices, government subsidies & long term benefits, installing a solar system in India can save you lakhs of rupees over time.
Key Takeaways:
✔ Solar panel cost in India: ₹60,000 – ₹75,000 per kW.
✔ Govt subsidy: Up to ₹1,20,000 on solar systems.
✔ Payback period: 4-6 years; savings continue for 20+ years.
✔ Best for: Homes with high electricity bills & sunlight exposure.
Hope it’s a good price