Solar Panel Installation Cost in India – Before & After Subsidy

solar panel installation cost

Solar Panel Installation Cost in India – Before & After Subsidy

Do you know? A 3 kW rooftop solar system can generate over 350 units of solar electricity monthly.  It means most households can enjoy 100% free electricity with a 3 kW system!  

If a solar system meets all the power requirements, the only charge a customer would pay would be the fixed charge or demand charge for maintaining the electricity connection.

In this blog, you will learn about the solar panel installation cost in detail. We have also covered the cost you will have to bear after the PM Surya Ghar subsidy.

Rooftop Solar Panel Installation Cost With & Without Subsidy


The government has allocated over Rs. 75,000 crore for PM-Surya Ghar Muft Bijli Yojana (PM-SGMBY). You can get a subsidy of up to Rs. 78,000 under the scheme.

Follow this table to compare the solar panel installation cost with and without government subsidies:

Rooftop Solar Capacity

Installation Cost without Subsidy


Installation Cost with Subsidy

1 kW

Rs.90,000 to  Rs.1,30,000


Rs.60,000 to Rs.1,00,000

2 kW

Rs.1,40,000 to Rs.1,80,000


Rs.80,000 to Rs.1,20,000

3 kW

Rs.1,90,000 to Rs.2,30,000


Rs.1,12,000 to Rs.1,52,000

4 kW

Rs.2,40,000 to Rs.2,80,000


Rs.1,62,000 to Rs.2,02,000

5 kW

Rs.2,90,000 to Rs.3,30,000


Rs.2,12,000 to Rs.2,52,000

6 kW

Rs.3,40,000 to Rs.3,80,000


Rs.2,62,000 to Rs.3,02,000

8 kW

Rs.4,40,000 to Rs.4,80,000


Rs.3,62,000 to Rs.4,02,000

10 kW

Rs.5,40,000 to Rs.5,80,000


Rs.4,62,000 to Rs.5,02,000

Items Included in Cost of Grid-Tie Solar Panel Installation

A grid-tied solar system consists of various components like panels, inverters, mounting structures, etc. The home solar installation cost depends on all these items as mentioned below:

1. Cost of Solar Panels


The price of solar panels varies according to 2 factors:

  1. Technology 
  2. Whether the panels are DCR-Certified

In the following table, you can find the prices of solar panels according to their type and whether they are DCR or non-DCR:

Solar Panel Types

Per Watt Price (Non-DCR)

Module Price (Non-DCR)

Per Watt Price (DCR)

Module Price (DCR)

Mono-PERC Half Cut (550 Wp)

Rs. 20/Watt

Rs.11,000 – Rs. 12,000

Rs. 23/Watt

Rs.12,500 – Rs. 13500

Mono-PERC Half Cut Bifacial (550 Wp)

Rs. 22/Watt

Rs. 12,000 – Rs.13,000

Rs. 25/Watt

Rs. 14,000 – Rs. 15000

TOPCon Bifacial (N Type) (570 Wp)

Rs. 24/Watt

Rs.14,000 – Rs. 15,000

Rs. 27/Watt

Rs.15,500 – Rs. 16,000

Want to learn about the best solar panels in India? Check out our blog on the topic.

2. Cost of Solar Inverter


On grid inverter

A solar system generates Direct Current (DC). However, home appliances run only on Alternating Current (AC). A solar inverter converts the DC into AC.

Here is a table mentioning the capacity-wise price of solar inverters:

Inverter Capacity


1 kW*


2 kW


3 kW


5 kW


10 kW


*Note: Most of the top-quality manufacturers do not sell 1 kW solar inverters. So, even if you install a 1 kW solar plant, you may have to install a 2 kW or 3 kW solar inverter from a trusted brand.

3. Cost of AC-DB DC-DB Boxes


ac db box

The AC Distribution Board (AC-DB) helps to distribute the electricity from a solar inverter to an AC load system via an energy meter. A DC Distribution Board (DC-DB) helps to link the output power of solar panels to the input of your solar inverter.

The cost of a 32AMP 320V Three Phase ACDB box is around Rs.3,200. On the other hand, the cost of a 3 IN 3 OUT DCDB box is approx Rs.3,700.

4. Cost of Mounting Structure


solar panel structure

The mounting structure or panel stand is another important solar installation accessory. But remember, this stand helps to support the solar panels for a lifetime. Any negligence in selecting or installing the mounting structure can lead to a huge loss in critical situations like storms or heavy rainfall.

In India, the standard cost of mounting structures with zinc aluminium magnesium steel channels is around Rs.8 per watt. Therefore, the cost of the mounting structure for rooftop solar plant is as follows:

Rooftop Solar Capacity

Cost of Mounting Structure 

1 kW


2 kW


3 kW


4 kW


5 kW


6 kW


8 kW


10 kW


To learn about different varieties of mounting structures, you can read our blog on mounting structures for solar panels.


5. Solar Installation Charge


Your solar vendor takes an installation charge for their service. For the initial setup of your solar system, you will have to bear around Rs.10,000 – Rs.30,000 as a solar panel installation charge to the vendor.

The installation charges can go up or down based on the complexity of your solar system’s structure.

6. Cost of AMC


Your solar system must be serviced regularly to ensure its performance and longevity. You can sign an annual maintenance contract (AMC) for regular evaluation of your solar system. To know more, you can check my page on Solar annual maintenance contract (AMC).

Vendors will insist you opt-in for a solar AMC ; it may cost between Rs.1,500 – Rs.3,000 per kW.

7. Cost of Other Components


Lightning arrestor earthing kit array junction box

The other components of a solar system include wires, array junction boxes, lightning arrestors, earthing kits, and other solar installation accessories.

Solar wires are the medium to transfer electricity from solar panels to the inverter. You will have to buy two types of wire: DC wire, and AC wire. Lightning arrestors and earthing kits save your on-grid solar system from thunder or lightning.

The cost of all these components can be between Rs.15,000 – Rs.25,000 based on the selection.

A 3 kW solar system can generate 360 to 450 units of electricity monthly. For most Indian households, a 3 kW solar system is perfect for reducing electricity bills. That is why we will consider a 3 kW solar system to illustrate how to calculate the price of a solar system.

Estimated Cost of Installing an On-Grid 3 kW Solar System


Follow this chart to understand the total estimated cost of installing an on-grid 3 kW solar system:

Follow this chart to understand the total estimated cost of installing an on-grid 3 kW solar system:

Solar System Component


3 kW Mono PERC Half Cut Solar Panels (DCR)

Rs. 75,000 to Rs. 81,000

Solar Inverter

Rs. 27,000 to Rs. 29,000


Rs.3,000 to Rs. 4,000


Rs.3,000 to Rs. 4,000


Rs. 5,000 to Rs. 6,000

Mounting Structure

Rs. 23,000 to Rs. 23,500

Lightning Arrester

Rs. 2,000 to Rs. 2,500

Installation Charge

Rs. 10,000 to Rs.30,000

AC Wire

Rs. 5,000 to Rs. 5,500 /295 feet

DC Wire

Rs. 800 to Rs. 900 /49 feet

Other Components

Rs. 36,200 to Rs. 43,600

Total Cost

Rs. 1,90,000 to Rs. 2,30,000

Cost After PM Surya Ghar Subsidy

Rs. 1,12,000 to Rs. 1,52,000

To delve deeper into the cost of installing a 3 kW solar system, read our blog on 3 kW solar system price.

If you want a solar system which generates over 600 units of electricity monthly, you can check out the 5 kW solar system cost.

If you want to install a solar system of a lower capacity, you can check the 1 kW solar system price.

We have started Das Energie Private Limited to make the process of installing a solar system hassle-free. Our platform has made the solar installation business transparent. You can compare quotes and even receive guidance for solar installation to reap the benefits of solar electricity.

Factors Influencing the Rooftop Solar Panel Installation Cost


Here are the factors that influence the cost of rooftop solar panel installation in India in 2024:

1. Solar Panel Company


Solar panel prices vary across manufacturing companies.

To explain how panel prices vary across brands, here is a comparison of prices of non-DCR panels of 540 to 550 W.

Follow this table to understand the prices of different companies in India:

Company Name Product Name Price
Waaree 540Wp 144 Cells Mono PERC Rs.15,500
Vikram Solar 540W Mono Perc Half Cut Solar Panel Rs.14,000
Adani Power 540Wp Half cut mono perc solar panel Rs.16,000
Loom Solar SHARK 550 Watt - Mono Perc Half Cut Rs.13,500

2. DCR vs non-DCR


DCR stands for Domestic Content Requirement. A panel is DCR-certified if its solar cells are sourced from and manufactured in India. On the other hand, non-DCR panels have solar cells of foreign origin.

DCR panels are expensive compared to non-DCR panels. For example, mono-PERC half cut DCR panels cost Rs.23/Watt and non-DCR panels cost Rs. 20/Watt.

However, you will be eligible for PM Surya Ghar subsidy only if you use DCR-certified panels.

3. Type of Solar Panels


Type of Solar Panels

The panel type you choose to install on your rooftop is another main influencer of solar panel installation cost. If you choose Poly PERC solar panels, it will cost you around Rs.17 – 20 per watt. For Mono PERC panels, you have to pay Rs.20 – 24 per watt. If you want to install N-Type TOPCon panels, you have to pay Rs.23 – 28 per watt.

At this point, you have a detailed idea of your solar panel installation cost. Solar panel installation is not a matter of a few bucks. Therefore, you should not choose a solar vendor just for low prices. Ask for a rooftop solar installation quotation and check about the components they will use. You can also request quotations from different vendors to compare their prices, components, installation charges, etc. 

At Das Energie Private Limited, you can get competitive bids from vetted installers for installing your solar system. You can compare and choose the best options for free on our website.

FAQs of Rooftop Solar Panel Installation Cost

The cost of a 1 kW solar system is between Rs.90,000 to Rs. 1,30,000. It depends on the components of your solar system such as solar panels, solar inverter, installation charges, and other components.

The yearly maintenance cost of a rooftop solar system is approximately 1%-2% of your initial set-up cost. For a 3 kW solar panel, the cost ranges between Rs.1900-3800 per year.

The Indian government has announced a solar subsidy of up to Rs.78,000 under the scheme named PM-Surya Ghar Muft Bijli Yojana (PM-SGMBY). The scheme will cover new solar panel installation in 1 crore households.

Monthly, a 3 kW solar system can generate 360 to 540 units of electricity.

Some of the factors which affect the efficiency of a solar panel include the angle at which the sunlight falls on the panels, the temperature coefficient, and the type of panels used.

A solar system should last for 25 to 30 years. That’s why most solar panels have a performance warranty of 25-30 years.

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