There is no denying that solar energy is the future of power in India, but its cost and prices remain a concern for the people. Being a renewable form of energy, solar power is good for the planet; it is clean, and more importantly, it does not pollute or lead to waste, as in the case of oil or coal energy. However, there are still a lot of questions surrounding the use of solar energy – how does it work, how to go about installing it, and more importantly, how much does it cost to buy, install, and maintain. Here, we will look at the last aspect – namely, the solar power cost in India. For an average 1-3 BHK home, you can expect to pay anywhere between Rs. 1,50,000 to Rs. 2,00,000 and more – depending on several factors.
Solar Energy System Components
Before diving into the price of solar power, we must consider the critical requirements of a solar power system for home. If you are looking to go green and harness the power of the sun, this is what you will need:
- Solar Panels
- Battery
- Solar Inverter
- Panel Stand
- Installation Accessories
These requirements will also depend on whether you want to go for an off-grid system (completely independent) or an on-grid/grid-tie system.
In the first case, you will need a battery to store extra energy in the case of cloudy days/night times when there is not enough sun to power the home. On the other hand, with grid-tie systems, you do not need a battery – whenever the solar cells are not working or underproducing – whether it is due to rain or night or whatever reason, you will draw in the needed energy from the utility power grid. Similarly, the extra output from the solar panels is sent to the grid, which is then adjusted in your monthly bill. Check out the differences between on-grid and off-grid solar systems for more information.
Calculating power requirements
You will need to identify the power requirements, that is, how big of a system you need for your home.
The best way to go about it is by looking at your highest monthly electricity bill and using it as a point of reference. Alternatively, you can use our solar power calculator for a quick estimation.
For example, if you consume 100 units a month on average, that is 100 kWh of electricity, your daily requirement works out to approximately 3.4 units or 3,400 watts-hour per day.
In this case, a 1 kW solar system featuring two solar panels of 440W rating each, in an area with average direct sunlight of 6 hours, will produce approximately 5.2 kW of power. It means you will meet your daily requirement and still have additional power remaining that can be stored in the battery or sent to the grid.
Hence, the more your requirements, the more panels you will need.
Cost of Solar Energy
All right, you now know what your monthly power requirement is. Next, let’s look at the cost of individual components and the end price you will need to pay to set up a solar power system.
Solar panels price
Depending on the make and model, you will find different kinds of solar panels in the market, manufacturer, material, efficiency, and structure. The prices vary across the spectrum. Quite likely, you will have three types of panels to choose from:
- Monocrystalline solar panels
- Polycrystalline solar panels
- Bifacial solar panels
The cost will vary for all three, but you can expect them to be around Rs. 30 to Rs. 70 per watt. Your solar panels for a 1 kW system will cost around Rs. 30,000 to Rs. 70,000.
Solar inverters cost
Solar inverters are essential; they convert the direct current (DC) generated from the solar panels into alternating current (AC), which is required for all practical applications. Depending on your system’s size, the price will vary from Rs. 7,000 for a basic model to Rs. 1,30,000 for an inverter with a higher power rating.
Generally speaking, solar inverters for on-grid systems will be cheaper than off-grid ones as the latter requires more maintenance.
Solar batteries price
If you are running an off-grid system, solar batteries are much needed to store the extra energy and supply power when the panels are not producing electricity.
One of the significant price differences between off-grid and on-grid systems is these deep cycle batteries; for residential purposes, you may need a single or double battery – it also depends on your overall requirement. As a result, the price may vary between Rs. 10,000 to Rs. 40,000 and more.
Panel stands, accessories, and other charges
Finally, you need panel stands to mount your rooftop solar panels. In addition, you will need equipment like a net meter for Net Metering, a charge controller, ACDB (alternative current distribution box), DCDB (direct current distribution box), lightning arresters, earthing kit, wires, connectors, thimble, and labour costs and installation charges.
Within labour costs, things like site survey, civil work, installation, cleaning, the connection of inverters and batteries to the panels, setting up the metering system, and everything else is taken care of. So for a 1 kW system, this can go vary from Rs 15,000 to Rs. 20,000 or even more.
With that in mind, we have mentioned below tentative costs for solar power installation in India. These costs are more on the ‘upper limit’, and the actual price may be on the lower end. This is because the prices take everything needed for solar energy production at your home.
| On-Grid System | Off-Grid System | Hybrid System | |
| 1 kW | Rs. 60,000 – Rs. 1,00,000 | Rs. 85,000 – Rs. 1,25,000 | Rs. 1,50,000 – Rs. 1,80,000 |
| 2 kW | Rs. 1,20,000 – Rs. 1, 55,000 | Rs. 1,60,000 – Rs. 2,00,000 | Rs. 2,00,000 – Rs. 2,20,000 |
| 3 kW | Rs. 1,60,000 – Rs. 1,85,000 | Rs. 2,50,000 – Rs. 2,80,000 | Rs. 3,00,000 – Rs. 3,20,000 |
| 5 kW | Rs. 2,70,000 – Rs. 3,20,000 | Rs. 3,50,000 – Rs. 4,10,000 | Rs. 4,20,000 – Rs. 4,50,000 |
Solar Power Subsidies
Thanks to the government’s push toward green energy, it is possible to get subsidies on solar power costs in India and avail a discount on your final costs. Do note that:
- The subsidies are available only on on-grid solar systems
- They vary from state to state
- The percentage discount depends on your system’s power rating
- The grants can be applied through the respective state’s electricity distribution company (DISCOM)
- The panels must be manufactured in India
For more information, you can visit our dedicated page on solar power subsidies in India.
Parting Thoughts
Compared to the rest of the world – specially developed countries in the West – the cost of solar power installation in India is incredibly cheap. It is an upfront investment that pays for itself in time with savings on electricity bills, availing government subsidies, and net metering. But more than that, you are weaning away from the harmful coal and gas energy that contributes to global warming, climate crisis, and polluting the planet. By going green, you are investing in a cleaner future for your children – which, we believe – is worth it.