Solar Panel Cost in India | Types & Benefits (2025 List)

Switching to solar energy is one of the best investments you can make today. Not only does it reduce your electricity bills, but it also contributes to a greener environment. The average solar panel cost in India is around ₹45,000 to ₹85,000 per kilowatt (kW), or ₹2.40 to ₹3.60 per watt.

However, many homeowners and businesses hesitate to install solar panels due to concerns about solar costs.

Factors affecting the solar panel cost in India

The total cost of the solar panel system depends on many factors:

Types of Solar Panel

There are various types of solar panels:

Monocrystalline Panel - High efficiency but expensive.

Polycrystalline Panel - Cheap but slightly less effective.

Thin film Panel - Shorter warranties & lifespan.

Bifacial Panel - Double-sided light absorption & Improved performance in low-light condition.

TopCon Panel - Low degradation, low-temperature sensitivity & low-light performance.

System size

The size of your solar system determines how much power it can generate. General housing capacity:

1 kw - Suitable for small homes (cost: ₹ 60,000 - ₹ 80,000 *)

3 kW ideal for medium-sized houses (cost: 1,50 000- ₹ 1,80 000 *)

5 kw - best for big homes or businesses (cost: ₹ 2,50,000 - ₹ 3,50,000 *)

Types of Solar System

There are mainly 3 types of solar systems:

On-Grid

An on-grid solar system is connected to the main electricity grid. It generates solar power and feeds excess energy back to the grid, often earning credits through net metering. This system is cost-effective but does not provide power during outages.

Off-Grid

An off-grid solar system operates independently from the electricity grid. It includes batteries to store energy, ensuring power availability even during nighttime or cloudy days. This system is ideal for remote areas but comes with a higher initial cost due to battery storage.

Hybrid

A hybrid solar system combines on-grid and off-grid features, using both solar panels and battery storage while staying connected to the grid. It ensures continuous power supply by using stored energy during outages and selling excess power to the grid.

Battery Storage

If you choose an off-grid solar system, you need batteries to store excess power.

Lead-acid battery masters but maintenance requires.

Lithium-ion battery - Expensive but prolonged

Battery Cost Area: ₹ 15,000 - ₹ 50,000* per unit

Cost of Installation and Maintenance

Establishment cost: ₹ 5,000 - 25,000* (different in place and complexity basis)

Annual maintenance: ₹ 2,000 - ₹ 5,000* per year

Estimated Solar Panel Costs in India

System Size	On-Grid System (₹)	Off-Grid System (₹)	Hybrid System (₹)
1 kW	60,000 – 80,000	70,000 – 1,00,000	1,00,000 – 1,50,000
3 kW	1,50,000 – 1,80,000	2,00,000 – 2,50,000	2,50,000 – 3,50,000
5 kW	2,50,000 – 3,50,000	3,50,000 – 4,50,000	4,50,000 – 5,50,000
10 kW	5,00,000 – 6,00,000	7,00,000 – 9,00,000	9,00,000 – 12,00,000

Government Subsidies & Incentives (2025)

To promote solar energy, the Indian Government offers:

Subsidies

• Up to 60% subsidy for systems up to 2 kW.

• Up to 40% subsidy for 2-3 kW systems.

• Fixed subsidy of INR 78,000 for systems larger than 3 kW.

Benefits

• Free electricity for households that consume up to 300 units per month.

• Additional income from surplus power.

• Significant reduction in energy costs.

How to apply for a subsidy?

Visit the National Portal for Rooftop Solar (https://solarrooftop.gov.in/) and register your solar installation.

How to Choose the Right Solar Panel System for Your Home?

For Small Homes (1–2 BHK) – 1 kW system (On-grid)

For Medium Homes (3–4 BHK) – 3 kW system (On-grid or Hybrid)

For Large Homes/Businesses – 5 kW+ system (Hybrid or Off-grid for backup)

Is Solar Worth the Investment?

A solar panel system pays for itself in 5–7 years through electricity bill savings. After that, you enjoy free electricity for 20+ years!

• Lower electricity bills.

• Increases property value.

• Reduces carbon footprint.

• Government incentives reduce initial costs.

Final Thoughts

The solar panel cost in India depends on its size, kind, and further functions like batteries. However, with government subsidies and long-time period savings, investing in solar is a clever monetary and environmental decision.

If you’re considering installing solar panels, ReNova Pulse Energy gives a unfastened consultation to help you pick out the best system to your needs. Get in touch these days and begin your sun journey!🌞⚡

Email us at: info@renovapulseenergy.com

*Prices are approximate and actual pricing would differ based on client requirements and material cost.