Rooftop Solar Panel Installation Cost in India in 2024 [Detailed Price Chart]
Do you know this? By installing a 3 kW rooftop solar panel, you can generate 300 units of free solar electricity per month. Our finance minister Nirmala Sitaraman shared this statement during the interim budget meeting for 2024 – 2025.
In fact, you can generate more than that because you can generate around 4 units of electricity per day with a 1 KW solar system, making 360 units/month with a 3 KW solar system.
In this blog, you will learn about the solar panel installation cost in detail. It will also give you an idea of how much you will have to bear after the government solar subsidy.
Average Cost of On-Grid Solar Panel Installation in 2024
Follow this table to get a glance at the on-grid solar panel installation cost in 2024:
| Rooftop Solar Capacity | Installation Cost |
|---|---|
| 1 kW | Rs.90,000 - Rs.1,30,000 |
| 2 kW | Rs.1,40,000 - Rs.1,80,000 |
| 3 kW | Rs.1,90,000 - Rs.2,30,000 |
| 4 kW | Rs.2,40,000 - Rs.2,80,000 |
| 5 kW | Rs.2,90,000 - Rs.3,30,000 |
| 6 kW | Rs.3,40,000 - Rs.3,80,000 |
| 8 kW | Rs.4,40,000 - Rs.4,80,000 | 10 kW | Rs.5,40,000 - Rs.5,80,000 |
Solar Panel Installation Cost Breakdown
A grid-tie 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:
Cost of Solar Panels
Solar panels are one of the main components of every rooftop solar system. The price of a solar panel depends on its type and efficiency. If you are looking for high efficiency, you have you will have to buy a technologically advanced solar panel and pay more for it.
Below is the list of the type of panels, their efficiency and cost:
| Type Of Panels | Efficiency | Per Watt Cost (Rs.) | Total Cost |
|---|---|---|---|
| Poly PERC | 13% - 17% | 17 - 20 | Rs.6,600 (330W) |
| Mono PERC | 20% - 21% | 20 - 24 | Rs.13,000 (560W) |
| Half-Cut Mono PERC | 21% - 22% | 22 - 25 | Rs.14,800 (550W) |
| N-Type TOPCon | 22% - 23% | 28 -32 | Rs.17,000 (590W) |
Cost of Solar Inverter
The solar system generates direct current (DC) electricity. But, the home appliances run only on alternating current (AC). A solar inverter converts DC electricity into AC output.
Here is a table mentioning the capacity-wise price of solar inverters:
| Inverter Capacity | Cost |
|---|---|
| 1 kW | ₹13,500 |
| 2 kW | ₹17,000 |
| 3 kW | ₹17,500 |
| 5 kW | ₹29,000 |
| 10 kW | ₹48,000 |
*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.
Cost of AC-DB DC-DB Boxes
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.
Cost of Mounting Structure
The mounting structure or panel stand is another important solar installation accessory. Some people usually choose a poor-quality structure to save some money. But remember, this stand helps to support the solar panels for a lifetime. Any negligence may 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 your rooftop solar plant is as follows:
| Rooftop Solar Capacity | Cost of Mounting Structure |
|---|---|
| 1 kW | ₹8,000 |
| 2 kW | ₹16,000 |
| 3 kW | ₹24,000 |
| 4 kW | ₹32,000 |
| 5 kW | ₹40,000 |
| 6 kW | ₹48,000 |
| 8 kW | ₹64,000 |
| 10 kW | ₹80,000 |
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.
Cost of AMC
After installing a solar panel, annual maintenance is very important. This helps to slow down the degradation of your solar panel and maintain the efficiency of panels.
Vendors will insist you opt-in for a solar annual maintenance contract (AMC); it may cost between Rs.1,500 – Rs.3,000 per kW.
Cost of Other Components
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.
Below we have given a table detailing solar panel installation cost in India for a system with 3KW capacity.
Total Estimated Cost of Installing a 3KW Solar System
Follow this chart to understand the total estimated cost of installing an on-grid 3 kW solar system:
| Name of the Item | Estimated Price |
|---|---|
| Half-Cut Mono PERC Solar Panels (6 pieces) | ₹89,000 |
| 3 kW Solar Inverter | ₹23,000 |
| AC-DB Box | ₹3,200 |
| DC-DB Box | ₹3,700 |
| Array Junction Box | ₹3,000 |
| Mounting Structure | ₹24,000 |
| Wire | ₹5,000 |
| Lightning Arrestor | ₹7,500 |
| Other Components | ₹10,000 |
| Installation Charges | ₹22,200 |
| Total | ₹1,90,400 |
Do you think this installation cost is a bit high?- Don’t worry Indian Government has launched the PM Surya Ghar Scheme to support you financially for rooftop solar panel installation.
Rooftop Solar Panel Installation Cost After Subsidy
The cabinet has approved PM-Surya Ghar Muft Bijli Yojana (PM-SGMBY) and allocated more than Rs.75,000 crore. Under this, the central government will provide financial assistance to 1 crore households for new rooftop solar installations with subsidies.
From 15th February 2024 onwards, for a 1 kW rooftop solar system, the subsidy is Rs.30,000. For 2 kW, it is Rs.60,000 and for 3 kW it is 78,000. Even if you install more than a 3 kW rooftop solar system, you will receive a maximum subsidy of Rs.78,000.
Follow this table to compare the solar panel installation cost without government subsidies and with government subsidies:
| Rooftop Solar Capacity | Installation Cost - Without Subsidy | Subsidy | Installation Cost - With Subsidy |
|---|---|---|---|
| 1 kW | Rs.90,000 | Rs.30,000 | Rs.60,000 |
| 2 kW | Rs.1,40,000 | Rs.60,000 | Rs.80,000 |
| 3 kW | Rs.1,90,000 | Rs.78,000 | Rs.1,12,000 |
| 4 kW | Rs.2,40,000 | Rs.78,000 | Rs.1,62,000 |
| 5 kW | Rs.2,90,000 | Rs.78,000 | Rs.2,12,000 |
| 6 kW | Rs.3,40,000 | Rs.78,000 | Rs.2,62,000 |
| 8 kW | Rs.4,40,000 | Rs.78,000 | Rs.3,62,000 |
| 10 kW | Rs.5,40,000 | Rs.78,000 | Rs.4,62,000 |
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:
Solar Panel Company
The first thing that influences your solar panel cost is the company you choose for solar panel installation. All the things like prices of the components, annual maintenance costs, installation charges, add-ons, etc. vary between different companies.
Example –
Follow this table to understand the prices of different companies in India:
| Company Name | Product Name | Price |
|---|---|---|
| Waaree | 540Wp 144 Cells Mono PERC | Rs.13,000 |
| Vikram Solar | 540W Mono Perc Half Cut Solar Panel | Rs.14,500 |
| Adani Power | 540Wp Half cut mono perc solar panel | Rs.16,000 |
| N-Type Loom Solar | SHARK 550 Watt - Mono Perc Half Cut | Rs.17,500 |
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.
Efficiency of Solar Panels
The efficiency of a solar panel directly affects the cost of a panel. How?- Follow this table to learn about it:
| Type of Panels | Efficiency | Per Watt Cost |
|---|---|---|
| Poly PERC | 13% - 17% | Rs.17 - 20 |
| Mono PERC | 20% - 21% | Rs.20 - 24 |
| Half-Cut Mono PERC | 21% - 22% | Rs.22 - 25 |
| TOPCon | 22% - 23% | Rs.28 - 32 |
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.
Our platform can help you get solar installation quotations from multiple reliable and DISCOM-registered vendors near your locations.
FAQs of Rooftop Solar Panel Installation Cost
What is the cost of a 1 kW rooftop solar system in India?
The cost of a 1 kW solar panel in India is around Rs.90,000. However, it can vary based on the components of your solar system like- solar planes, inverters, other components, installation charges, annual maintenance costs, etc.
What is the yearly maintenance cost of a rooftop solar system?
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.
What is the solar subsidy for 2024?
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.
What is the new solar scheme in the budget?
PM-Surya Ghar Muft Bijli Yojana is the new solar scheme as announced in the interim budget of 2024-2025. Recently, the cabinet has approved it and allocated Rs.75,021 crore for solar subsidy.
