Electricity bills are rising every year, and power shortages are still common in many parts of India. At the same time, the government is actively pushing clean energy adoption to reduce dependency on fossil fuels. This is why more homeowners are now considering solar panels as a smart way to cut bills and generate their own power.
But before installing, one of the most common questions is: “What is the solar panel price for a home in India in 2025?” Closely followed by, “How much does solar panel installation cost, including subsidy and labour?”
In simple terms, the average solar panel installation cost in India for homes ranges between ₹70,000 – ₹1,20,000 per kW in 2025. With government subsidies, the price can drop by 20–40%, making solar much more affordable than before.
Real-world cost examples for small homes, villas, and apartments
Payback period and savings estimate
By the end of this post, you’ll have a clear idea of how much to budget for solar panel installation in India in 2025, and whether it’s worth the investment for your home.
Solar Panel Installation Cost in India 2025 – Quick Overview
When planning solar for your home in 2025, the first question is always about cost. On average, the solar panel price for homes in India ranges between ₹70,000–₹1,20,000 per kW (without subsidy). With the central government’s rooftop solar subsidy, this comes down to about ₹50,000–₹90,000 per kW, depending on the brand, location, and system type.
To put this into perspective:
A small 1 kW setup (enough to run basic lights, fans, and a TV) will cost around ₹50,000–₹90,000 after subsidy.
A mid-sized 3 kW system (ideal for a 2–3 BHK family) costs ₹1.5–₹2.7 lakh after subsidy.
A larger 5 kW system (sufficient to power appliances, including ACs, in bigger homes) costs ₹2.5–₹4.5 lakh after subsidy.
The subsidy is available only for residential rooftop installations and not for commercial setups. We’ll cover the subsidy in detail later in this guide, but this quick estimate gives you a fair idea of what to budget for.
For a deeper breakdown across 1 kW to 10 kW solar systems, see the detailed cost table below.
Solar Panel Cost per kW in India (2025)
The total installation cost depends on system size. Larger systems benefit from economies of scale, the cost per kW goes down as the capacity increases. Below is an approximate cost table for common system sizes in Indian homes (1–10 kW).
System Size
Ideal For
Approx. Cost (Without Subsidy)
Approx. Cost (With Subsidy)
Units Generated per Month*
1 kW
Small homes (basic lighting & fans)
₹70,000 – ₹1,20,000
₹50,000 – ₹90,000
110–150 units
2 kW
1–2 BHK homes
₹1.3 – ₹2.3 lakh
₹1.0 – ₹1.7 lakh
220–300 units
3 kW
2–3 BHK homes
₹2.0 – ₹3.2 lakh
₹1.5 – ₹2.7 lakh
330–450 units
5 kW
3–4 BHK homes (with ACs, pumps)
₹3.5 – ₹5.5 lakh
₹2.5 – ₹4.5 lakh
550–750 units
10 kW
Large houses, villas, small apartments
₹7.0 – ₹11.0 lakh
₹5.5 – ₹9.0 lakh
1,100–1,500 units
Monthly units are based on an average of 4 to 5 hours of effective sunlight per day. For most Indian households, a 3 to 5 kW solar system is the sweet spot, balancing affordability, power generation, and subsidy benefits.
Please also note that these are indicative 2025 costs and can vary by city, brand, roof type, and whether you choose on-grid or hybrid systems. Prices may vary based on state, installer, and equipment type (on-grid vs hybrid vs off-grid). Subsidy is available only for residential rooftop solar up to 10 kW under the PM Surya Ghar scheme in 2025.
Cost Breakdown of Solar Panel Installation in India
When planning solar installation, it’s important to understand where your money goes. The total solar panel installation cost in India isn’t just the price of panels, it also includes the inverter, mounting structure, wiring, labour, and sometimes a battery.
Here’s a detailed breakdown for you:
1. Solar Panels (Mono vs Poly)
Polycrystalline panels – ₹25 – ₹35 per watt (1 kW = ₹25,000 – ₹35,000) More affordable, slightly less efficient (15–17%).
Monocrystalline panels – ₹30 – ₹45 per watt (1 kW = ₹30,000 – ₹45,000) Higher efficiency (18–21%), works better in low-light/compact roof space.
For homes, monocrystalline panels are preferred in 2025 due to higher efficiency, though polycrystalline remains a budget-friendly option.
2. Solar Inverter Cost
String inverters (most common): ₹20,000 – ₹40,000 per kW
The inverter converts DC (from panels) to AC (usable in your home). While string inverters are cost-effective, micro-inverters allow better performance monitoring and higher efficiency, especially if parts of your roof get shaded.
3. Battery (Optional)
Adding a battery makes your system off-grid or hybrid, allowing backup power during outages.
Lead-acid batteries: ₹8,000 – ₹12,000 per kWh (lower lifespan, cheaper)
A 5 kWh lithium-ion battery can cost around ₹1.2 – ₹1.5 lakh, which is a major cost addition. For most homes with a reliable grid supply, a grid-tied solar system without a battery is more cost-effective.
4. Mounting Structure, Wiring & Labour
Mounting structure: ₹5,000 – ₹10,000 per kW (depends on roof type: flat, tin shed, RCC)
Wiring, junction boxes, protection devices: ₹10,000 – ₹20,000 per kW
Labour & installation charges: ₹7,000 – ₹15,000 per kW
This part ensures your system is safely fixed, properly wired, and compliant with DISCOM/grid standards.
So, while the solar panel price per kW forms the biggest chunk of your investment, don’t overlook the inverter, labour, and mounting costs, which together can add 30–40% to the final bill. If you choose to add a battery, the total cost can nearly double, but it also provides energy independence.
Solar Panel Subsidy in India (2025) – Central & State Schemes
One of the biggest advantages of going solar in India today is the availability of government subsidies. In 2025, both the Central Government (through MNRE – Ministry of New and Renewable Energy) and several state governments are offering financial incentives to encourage rooftop solar adoption. These subsidies can reduce your upfront solar panel installation cost by 20 to 40%.
Central Government Subsidy (Rooftop Solar Programme Phase II)
Applicable for residential rooftop solar systems only (not commercial/industrial). Subsidy is credited directly into the homeowner’s bank account after installation and DISCOM approval.
Typical rates in 2025:
Up to 3 kW system → ₹14,588 per kW subsidy
3 kW – 10 kW system → ₹14,588 per kW for the first 3 kW + ₹7,294 per kW beyond that
Above 10 kW system → Capped at ₹94,822 total
Example: A 5 kW rooftop system costing ₹3 lakh could receive about ₹65,000 subsidy, reducing the net cost to around ₹2.35 lakh.
State-Level Subsidy Additions
Several states in India (like Gujarat, Rajasthan, Haryana, and Delhi) offer extra subsidies or rebates on top of the MNRE scheme. These vary by state and can cover:
Additional per-kW subsidy (₹10,000–₹20,000 per kW in some states).
Net metering support (making it easier to sell excess power back to the grid).
Capital cost reductions for group housing societies/apartment complexes.
Since state policies change frequently, it’s best to check your DISCOM (distribution company) portal or state renewable energy development agency for the latest updates.
Key Points to Remember:
Subsidy applies only if you install solar panels through a DISCOM-empanelled vendor.
Systems with net metering are usually mandatory to qualify.
Commercial buildings, offices, and factories generally don’t get subsidies.
By leveraging the central subsidy and state-level incentives, homeowners can save ₹50,000 to ₹1.5 lakh on their solar panel installation in 2025. This makes solar power not just an eco-friendly choice but also a financially smart one.
Factors Affecting Solar Panel Installation Cost in India
Even though solar panel price per kW looks straightforward, the final installation cost depends on several practical factors. Understanding these helps you budget better and avoid surprises.
1. Roof Type & Space Availability
Flat RCC roofs are easiest for installation, with standard mounting structures.
Sloped/tiled roofs may need custom mounting, which increases cost.
As a rule of thumb, you need 100 sq ft of shadow-free roof space per 1 kW.
2. Location & Sunlight Hours
Cities with high solar radiation (e.g., Rajasthan, Gujarat, Telangana) generate more units per kW, improving ROI.
Cloudy or coastal regions may require slightly larger systems to achieve the same output.
3. Brand & Equipment Quality
Tier-1 solar panels (Adani, Vikram, Tata, Waaree) cost more but last 25+ years.
Inverters and batteries from premium brands add to upfront costs but ensure reliability.
4. Grid Type – On-Grid vs Off-Grid vs Hybrid
On-Grid: Cheaper, no batteries; feeds excess power to DISCOM.
Off-Grid: Costlier, requires batteries for backup.
Hybrid: Combines both; higher cost but offers best flexibility.
5. Storage & Battery Backup
Battery-based systems can add ₹15,000–₹20,000 per kWh of storage.
Example: A 5 kW system with 10 kWh battery backup may cost ₹1.5–2 lakh extra compared to on-grid.
6. Labour & Installation Charges
Typically ₹5,000 – ₹20,000 per kW, depending on city, roof type, and wiring complexity.
Metro cities usually charge more than tier-2/tier-3 towns.
While the upfront solar panel installation cost in India depends on these factors, most homeowners recover the investment within 4 to 7 years through savings on electricity bills
Real-World Examples: Cost of Solar Panels for Different Home Types
To make things practical, let’s look at how much a solar setup could cost for different types of Indian households in 2025.
Example 1: Small 2 BHK Home (Monthly Bill ~₹2,500)
System Size Needed: 2 kW
Estimated Cost (before subsidy): ₹1.3 to 1.5 lakh
After Central Subsidy (₹30,000 for 2 kW): ₹1 to 1.2 lakh
Monthly Savings: ~₹2,000
Payback Period: 4 to 5 years
Example 2: 3 BHK Urban Home (Monthly Bill ~₹4,500 to ₹5,000)
System Size Needed: 4 to 5 kW
Estimated Cost (before subsidy): ₹2.5 to 3 lakh
After Subsidy (₹78,000 for 5 kW): ~₹1.7 to 2.2 lakh
Monthly Savings: ~₹4,000
Payback Period: 5 to 6 years
Example 3: Larger Villa or Joint Family House (Monthly Bill ~₹8,000 to ₹10,000)
System Size Needed: 8 to 10 kW
Estimated Cost (before subsidy): ₹4.5 to 6 lakh
Subsidy Applicability: Central subsidy capped at 10 kW (₹1.08 lakh).
Net Cost After Subsidy: ~₹3.5 to 5 lakh
Monthly Savings: ~₹8,000
Payback Period: 5 to 7 years
Whether you live in Delhi, Patna, Bangalore, or any other city, the cost depends less on your location and more on your monthly electricity bill and roof size. That’s why the easiest way to plan is to calculate your average monthly usage, then match it with the right solar system size.
Maintenance & Payback of Solar Panels in India
One of the biggest advantages of installing solar panels at home is that they require very little maintenance. Unlike other household systems, once installed, solar panels can last 20 to 25 years with minimal upkeep. Here’s what you should know:
Annual Maintenance Needs
Panel Cleaning: Solar panels need to be cleaned 2 to 3 times a year to remove dust, bird droppings, and pollution deposits. In cities with heavy dust (Delhi, Jaipur), monthly cleaning may be better.
Inspection: Check for wiring wear-and-tear, loose connections, or shading issues once a year.
Inverter Maintenance: Solar inverters typically last 8 to 10 years, after which they may need replacement. Cost: ₹20,000 to ₹40,000 depending on system size.
Battery Replacement (if used): In off-grid systems, batteries may need replacement every 5 to 7 years.
Payback Period & ROI
Homes with ₹3,000 to 5,000 monthly bills: Payback in 4 to 6 years.
Larger households (₹8,000+ bills): Payback in 5 to 7 years.
Commercial setups: ROI can be even faster (3 to 5 years), thanks to higher consumption and tax benefits.
After the payback period, the electricity generated is essentially free for the rest of the panel’s lifespan, making solar one of the smartest long-term investments for Indian homes.
Just like solar panels, other eco-friendly solutions, such as rainwater harvesting, can further cut utility costs and make your home more sustainable. If you’re exploring more ways to build a cost-efficient and sustainable home, you may also like our detailed guide on Rainwater Harvesting Cost in India.
FAQs on Solar Panel Installation Cost in India
1. How much electricity does a 1 kW solar panel system generate monthly?
On average, a 1 kW system produces 120 to 140 units per month in India (assuming 4 to 5 hours of daily sunshine).
2. Can I run an AC on solar power?
Yes. A 1.5-ton AC consumes about 1.5 units per hour. To run it comfortably, you’ll need at least a 3 to 5 kW solar system depending on usage hours.
3. What is the average life of solar panels?
Most branded solar panels last 20 to 25 years, with efficiency dropping gradually after 15 years.
4. Do solar panels work during monsoon or cloudy days?
Yes, but output reduces by 30 to 40%. Grid-tied systems draw backup from the grid during low production days.
5. How often do I need to clean solar panels?
For most cities, 2 to 3 times a year is sufficient. In dust-prone areas, monthly cleaning ensures higher efficiency.
6. Is subsidy available on solar panels in 2025?
Yes. Under the PM Surya Ghar: Muft Bijli Yojana, households installing rooftop solar can get up to 40% subsidy on system cost (subject to capacity and eligibility).
Final Thoughts
Switching to solar energy is not just about lowering your electricity bills, it’s about future-proofing your home against rising energy costs and contributing to a greener planet. While the upfront solar panel installation cost in India may feel high, subsidies and long-term savings make it a smart investment.
At Houseyog, we regularly publish detailed Construction Cost Guides to help homeowners make informed decisions. If you are planning a solar installation or any home construction project, feel free to contact usfor expert guidance.
And if you found this guide helpful, do share it with your friends, neighbours, or anyone considering solar for their home, it could save them thousands in the long run!
