Solar Panel Cost in India (2026 Guide): Price Breakdown, Subsidy & Local Insights

India’s solar sector continues to expand at record speed in 2026, driven by ambitious renewable energy targets and a massive utility-scale project pipeline. While domestic manufacturing capacity is growing rapidly under the Make in India and ALMM initiatives, imports of solar cells and modules remain a critical part of the supply chain.

Solar Imports Trend: 2025 to Early 2026

In the first half of 2025, India imported 44.6 GW of solar modules and cells, with solar cells accounting for nearly two-thirds of total imports. This trend continued into early 2026 as developers rushed to secure supplies for large-scale solar parks and rooftop installations scheduled between 2025 and 2027, when India has a confirmed project pipeline of over 180 GW.

Domestic Manufacturing vs Imports in 2026

By 2026, India’s solar module manufacturing capacity has crossed 100 GW, with several giga-factories becoming operational. However, solar cell capacity remains comparatively lower, which explains the continued inflow of imported cells. Government policies such as ALMM, customs duties, and production-linked incentives (PLI) are gradually reducing import dependence, but imports are still essential to meet short-term demand.

Latest Solar Panel Cost in India (2026)

Despite strong demand and policy changes, solar panel prices in India remain competitive in 2026.

Average Solar Panel & System Cost (2026)

• Solar panel price: ₹22 – ₹45 per watt (depending on technology)

• 1 kW solar system cost: ₹65,000 – ₹90,000

• 3 kW solar system price: ₹1.8 – ₹2.7 lakh

• 5 kW solar system cost: ₹2.8 – ₹4.0 lakh

Prices vary based on panel type (Mono PERC, TOPCon, bifacial), inverter quality, mounting structure, and location. Residential rooftop systems may cost slightly more in metro cities like Mumbai, while large commercial projects benefit from economies of scale.

With electricity prices rising every year, solar energy has become one of the smartest long-term investments for Indian homes and businesses. One of the most common questions people ask is: “How much does a solar panel cost in India?”

In this detailed guide, we break down solar panel prices in India, system-wise costs, government subsidies, and city-specific pricing insights for Mumbai and Maharashtra, helping you make an informed decision in 2026.

Average Solar Panel Cost in India (Per kW)

The cost of a solar panel system in India is generally calculated per kilowatt (kW) and depends on system type, panel technology, inverter quality, and installation location.

Approximate Solar Panel Cost in India (2026)

• 1 kW solar system cost in India: ₹60,000 – ₹85,000

• 3 kW solar system price India: ₹1.8 – ₹2.5 lakh

• 5 kW solar panel cost India: ₹3 – ₹4 lakh

• 10 kW solar system cost India: ₹6 – ₹8 lakh

These prices may vary based on on-grid, off-grid, or hybrid solar systems.

Types of Solar Systems & Their Costs

1. On-Grid Solar System Cost (Most Popular)

An on-grid system connects directly to the electricity grid and works with net metering.

• Cost: ₹55,000 – ₹75,000 per kW

• Best for: Homes, apartments, offices

• Subsidy available: Yes

This is the most cost-effective option for residential rooftop solar in Mumbai and Maharashtra.

2. Off-Grid Solar System Cost

Off-grid systems include batteries for backup power.

• Cost: ₹85,000 – ₹1.2 lakh per kW

• Battery cost: ₹15,000 – ₹25,000 per kWh

• Best for: Rural areas, frequent power cuts

3. Hybrid Solar System Cost

Hybrid systems combine grid connectivity with battery backup.

• Cost: ₹90,000 – ₹1.3 lakh per kW

• Best for: Homes needing backup + savings

Solar Panel Cost by Panel Type

Different solar technologies impact both price and performance.

• Monocrystalline solar panels:

  Higher efficiency, premium pricing

• Polycrystalline solar panels:

  Affordable, slightly lower efficiency

• Bifacial & TOPCon panels:

  Higher output, suitable for commercial use

  
  

In metro cities like Mumbai, monocrystalline panels are preferred due to space efficiency.

Solar Panel Cost in Mumbai & Maharashtra (Local Insight)

If you’re searching for solar panel cost in Mumbai or solar system price in Maharashtra, expect slightly higher pricing due to:

• High-quality mounting structures

• Coastal corrosion protection

• Skilled EPC installation standards

Local Price Range:

• Residential solar panel cost in Mumbai: ₹65,000 – ₹80,000 per kW

• Commercial solar panel price Maharashtra: ₹50,000 – ₹65,000 per kW

Government Solar Subsidy in India & Maharashtra

The Indian government promotes rooftop solar through subsidies under the MNRE rooftop solar scheme.

Residential Subsidy (2026 Expected)

• Up to 3 kW: ~40% subsidy

• 3–10 kW: ~20% subsidy

This significantly reduces the on-grid solar system cost with subsidy, especially for homeowners in Maharashtra.

Note: Subsidy is available only for residential on-grid solar systems installed through approved vendors.

Net Metering Benefits & Savings

With net metering, excess solar power is exported to the grid, reducing electricity bills.

Key Benefits:

• Monthly bill reduction up to 90%

• Faster return on investment (ROI)

• Lifelong savings for 25+ years

Net metering policies in Maharashtra are governed by MSEDCL, Tata Power, BEST, and Adani Electricity, depending on your location.

What This Means for Solar Buyers

In 2026, solar remains one of the best long-term investments in India. Even with partial import dependence, falling technology costs, government subsidies, and net metering benefits ensure strong returns for homeowners and businesses alike.