With rising electricity bills and increasing awareness about clean energy, solar power is booming in India. But before installing, the first question homeowners ask is:
👉 “How much do solar panels cost in India?”
The cost depends on several factors — panel type, capacity, brand, and installation. Thanks to government subsidies, prices have become more affordable than ever in 2025.
In this guide, we’ll cover:
- Current price of solar panels (per watt)
- System-wise cost (1kW to 10kW)
- Subsidy benefits
- Factors affecting cost
- FAQs to help you plan better
🔹 Average Solar Panel Cost in India (2025)
In 2025, the average cost of solar panels in India ranges between ₹25 to ₹35 per watt.
This means:
- A 1kW system costs ₹25,000 – ₹35,000 (panels only)
- A full rooftop solar system (with inverter, wiring, installation) costs more
👉 Actual system cost: ₹50,000 – ₹70,000 per kW (before subsidy)
🔹 Solar System Cost in India (2025)
Here’s the estimated cost for common system sizes:
| System Size | Avg. Cost (Before Subsidy) | Approx. Units/Day | Suitable For |
|---|---|---|---|
| 1 kW | ₹50,000 – ₹70,000 | 4 units/day | 1BHK, small homes |
| 2 kW | ₹1,00,000 – ₹1,40,000 | 8 units/day | 2BHK homes |
| 3 kW | ₹1,50,000 – ₹2,10,000 | 12 units/day | 3BHK homes |
| 5 kW | ₹2,50,000 – ₹3,50,000 | 20 units/day | Villas, small shops |
| 10 kW | ₹5,00,000 – ₹7,00,000 | 40 units/day | Large houses, offices |
👉 With subsidy, the cost reduces by 20–40% (for residential systems).
🔹 Cost of Different Types of Solar Panels
- Monocrystalline Panels (Premium)
- Cost: ₹30–₹35 per watt
- Higher efficiency (18–22%)
- Compact, long-lasting
- Polycrystalline Panels (Budget-friendly)
- Cost: ₹25–₹30 per watt
- Efficiency (15–17%)
- Requires more space
- Thin Film Panels
- Rare in India, ~₹25 per watt
- Flexible, but lower lifespan
👉 In 2025, most households prefer monocrystalline panels for better efficiency.
🔹 On-Grid vs Off-Grid Solar Cost
- On-Grid System (with Net Metering)
- Cost: ₹50,000 – ₹70,000 per kW
- Cheapest option
- No battery required
- Off-Grid System (with Battery Backup)
- Cost: ₹80,000 – ₹1,20,000 per kW
- Useful in areas with frequent power cuts
- Expensive due to batteries
- Hybrid System (Grid + Battery)
- Cost: ₹1,00,000+ per kW
- Ensures 24/7 power
- Best of both worlds
🔹 Government Subsidy on Solar Panels (2025)
Under the PM Surya Ghar Muft Bijli Yojana, the government provides subsidies for residential rooftop solar.
- Up to 2 kW: 60% subsidy
- 3–10 kW: 40% subsidy
- 10 kW+: No subsidy
👉 Example:
- A 3 kW system costing ₹1.8 lakh
- Subsidy ~₹70,000
- Net cost = ₹1.1 lakh
This makes solar much more affordable in 2025.
🔹 Factors Affecting Solar Panel Cost
- System Size – Larger systems cost more, but per kW cost reduces.
- Type of Panels – Monocrystalline > Polycrystalline in price.
- Inverter Type – String inverters are cheaper, hybrid inverters cost more.
- Battery Backup – Increases cost by 40–50%.
- Installation & Structure – Tilt angle, rooftop type affect cost.
- Location – Transport & labor charges vary city to city.
🔹 Cost Recovery (Return on Investment)
- Payback period in India: 3–5 years (with subsidy)
- Lifespan: 25+ years
- After payback, electricity is almost free
Example:
- 5 kW system = ₹2.5–3.5 lakh
- Monthly savings = ₹5,000–₹6,000
- Payback in ~4 years
- Total lifetime savings = ₹15–20 lakh
🔹 FAQs
Q1: What is the cost of a 1 kW solar panel in India?
👉 Around ₹50,000 – ₹70,000 (including inverter & installation).
Q2: How much does a 3 kW solar system cost in India in 2025?
👉 ₹1.5–2.1 lakh before subsidy; ~₹1.1 lakh after subsidy.
Q3: Which type of solar panel is cheapest?
👉 Polycrystalline panels are cheaper, but less efficient than monocrystalline.
Q4: Do I need batteries with solar panels?
👉 Only for off-grid or hybrid systems. On-grid systems don’t need batteries.
Q5: How much subsidy can I get for solar in India?
👉 Up to 60% for 2 kW, and 40% for 3–10 kW systems (residential only).
Q6: Does the solar panel price include installation?
👉 Usually yes, but confirm with your installer. Batteries are extra.
Q7: What is the lifetime cost benefit of solar?
👉 A 5 kW system saves ~₹15–20 lakh over 25 years.
🔹 Conclusion
So, how much do solar panels cost in India in 2025?
👉 On average, ₹25–₹35 per watt, or ₹50,000 – ₹70,000 per kW system (before subsidy).
With subsidies and falling prices, solar has become affordable for every household. If you plan smartly, your solar investment will pay for itself in 3–5 years and provide nearly free electricity for the next 20+ years.
The future of power in India is solar energy, and now is the best time to switch.
