Solar System Cost in India 2026: 3kW 5kW 10kW- Area,Units, ROI

Solar adoption in India is growing rapidly as homeowners look for long-term savings, protection from rising electricity prices, and clean energy solutions. Among all residential capacities, 3kW, 5kW, and 10kW solar systems have become the most popular choices because they perfectly match the energy needs of small, medium, and large households. These systems offer the ideal balance of affordability, efficiency, and power output, making them suitable for most Indian rooftops.

As a trusted and MNRE-approved solar company, ReNovaPulse Energy helps homeowners choose the right system, provides professional installation support, and assists with subsidy documentation. Whether you are planning to install a 3kW, 5kW, or 10kW solar system, this guide ensures you make an informed and cost-effective decision for your home.

Ultimate Guide to Solar System Types, Prices, Subsidy Benefits & More in India (2026)

As electricity costs continue rising and environmental awareness grows, solar energy has become one of the smartest investments for Indian households. From cutting your monthly bills to earning through net-metering, rooftop solar systems are transforming how homes use power. In this guide, we’ll decode everything you need to know — from solar system types and prices to subsidy benefits, daily power generation, and area requirements.

By Type: Solar System

1. What Are the Main Solar System Types?

When planning a solar installation, choosing the right system type is crucial. Here are the three main categories:

On-Grid Solar System

An on-grid solar setup connects directly to the grid. It doesn’t require batteries and uses net-metering to send excess electricity to the grid, reducing your bills even further. It’s the most popular choice for homes with stable grid availability.

Off-Grid Solar System

Off-grid systems are ideal for homes with frequent power cuts or where grid access is unreliable. These require battery storage so you can use solar power even when it’s dark or cloudy.

Hybrid Solar System

Hybrid systems combine the benefits of on-grid and off-grid systems. They connect to the grid and include battery backup. This means uninterrupted power and reduced dependency on the grid — though at a higher cost.

Solar System Prices in India (2026)

Solar system prices vary greatly based on the type (on-grid vs hybrid vs off-grid), quality of panels, inverter technology, and installation. Here’s a snapshot of typical price ranges in India

3kW Solar System – Price, Units, Area & Subsidy

A 3kW solar system is perfect for small to medium-sized homes and usually offsets a large portion of your electricity consumption.

Estimated Price (Before Subsidy):

• On-Grid: ₹1.69 lakh – ₹2.0 lakh approx.

• Off-Grid: ₹2.2 lakh – ₹2.5 lakh approx.

• Hybrid: ₹2.5 lakh – ₹2.8 lakh approx.

Net Price After Subsidy

The Indian Government’s rooftop solar subsidy can cover nearly 40% of system cost (up to a 3kW limit) — bringing the net price down to roughly ₹90,000 – ₹1.1 lakh for on-grid systems.

Daily & Annual Power Generation

A 3kW system in India typically generates around 350–450 units per month, or roughly 4,200–5,400 units per year, depending on sunlight exposure and panel quality.

Area Required

A 3kW setup usually requires approximately 200–250 sq. ft of shadow-free rooftop space.

5kW Solar System – Price, Units, Area & Subsidy

A 5kW solar system is ideal for medium to large homes — especially those running multiple air-conditioners, water heaters, and heavy appliances.

Price Range (Before Subsidy)

1. On-Grid: ~₹2.5 lakh – ₹2.9 lakh

2. Off-Grid: ~₹3.5 lakh – ₹4.2 lakh

3. Hybrid: ~₹4.4 lakh – ₹5.2 lakh

Subsidy Note

For residential solar under the rooftop subsidy scheme, the maximum central subsidy is capped at around ₹78,000 and applies up to 3kW capacity — meaning only part of a 5kW system qualifies directly for subsidy.

Net Price After Subsidy (Indicative)

For an on-grid 5kW system, net prices commonly fall between ₹1.9 lakh and ₹2.1 lakh after subsidy.

Daily Generation

A 5kW system in India can produce between 20–25 units (kWh) per day, totalling around 600–750 units per month in ideal conditions.

Area Required

A 5kW plant usually occupies about 350–420 sq. ft of space — enough for 10–12 high-efficiency solar panels.

Solar System Prices in India With Subsidy (2026)

In India, government subsidies for rooftop solar installations are provided under schemes like the PM Suryaghar Muft Bijli Yojana and related state incentives. Here’s how they help:

Central Financial Assistance (CFA)

• Solar systems up to 3kW qualify for up to 40% subsidy of benchmark costs.

• For systems above 3kW (like 5kW), subsidy applies only on the first 3kW portion.

State-Level Subsidies

Several states add additional incentives on top of the central subsidy, further reducing installation costs.

For example:

• Some states offer additional financial support to specific consumer categories (e.g., low income, SC/ST households) making solar setups even more affordable.

Result:Taking these subsidies into account, a well-planned 3kW or 5kW system could effectively cost 30–45% less than its pre-subsidy price.

Solar Panel Cost & Solar Panel Price (Breaking Down the Components)

The solar panel price forms a big chunk of your system cost. On average:

• Solar Panels (3kW): ₹60,000 – ₹90,000

• Inverter + Accessories: ₹15,000 – ₹40,000

• Mounting & Installation: ₹10,000 – ₹25,000

This means a basic 3kW solar system can start much lower than older pricing, especially with GST reductions and competitive vendor pricing.

Key Benefits of Installing Solar in India

Slash Electricity Bills

By generating your own power, many homeowners reduce their monthly bills dramatically — sometimes to nearly zero with net-metering.

Subsidy Savings

Government subsidies significantly reduce upfront investment, making solar systems affordable for middle-class families.

Earn Through Net-Metering

Surplus electricity exported to the grid earns credits on your electricity bill — higher tariffs in some states make solar even more profitable.

Clean & Sustainable

Solar energy reduces carbon footprint and dependence on fossil fuels — a win for households and the planet.

Final Thoughts: Choosing the Right System in 2026

• Small family / moderate usage: A 3kW on-grid solar system often makes the most financial sense — lower cost, good subsidy, strong payback.

  
  

• Larger households / high usage: A 5kW setup delivers greater daily generation and offsets most of your electricity needs — especially with net-metering.

  
  

• Unstable power or backup requirement: Consider hybrid systems with battery backup if reliability is a priority.

Before you install, always compare quotes from multiple vendors, check warranty terms, and confirm subsidy procedures with your DISCOM.

Why Choose ReNovaPusle Energy?

ReNovapulse Energy has been one of India’s trusted solar companies since 2021, delivering high-quality, MNRE-approved solar products and PAN-India installations. With years of expertise in both residential and commercial rooftop projects, the company ensures transparent pricing, reliable workmanship, and long-term customer support. Their trained engineers follow strict safety and quality standards to maximize performance and ROI.

Also ReNova Solar provides complete site inspection, installation, and subsidy assistance, making the entire process smooth and hassle-free for homeowners looking to switch to clean energy.

We offer both CAPEX (ownership-based) and OPEX (pay-as-you-go/zero upfront cost) models, helping clients adopt solar energy with maximum financial flexibility.Specialists in Commercial & Industrial solar projects, powering businesses with reliable, scalable clean energy.