Rooftop Solar Cost in India: Price for 1 kW to 10 kW, Subsidy and Payback Explained
Quick answer: A typical on-grid home system in India costs roughly ₹55,000 to ₹80,000 per kW before subsidy, depending on brand, city and roof. Under the PM Surya Ghar scheme, eligible homes can get up to ₹78,000 in central subsidy for a 3 kW or larger system. Most homes recover their cost in about 3 to 6 years, and panels usually last 25 years or more. Always confirm current subsidy rules on the official portal before you sign.
Electricity bills keep going up, and rooftop solar has become one of the few home upgrades that can actually pay for itself. But the first question everyone asks is simple: how much will it cost me? The honest answer depends on the size of the system, the type of panels, your roof, and whether you claim the government subsidy. This guide walks you through each part so you can understand a quote line by line and compare installers properly.
1. How rooftop solar pricing works
Installers in India usually quote rooftop solar per kilowatt (kW) of panel capacity. A "3 kW system" means the panels together are rated at 3 kW. The price per kW includes several things:
- Solar panels (modules): usually 40–50% of the total cost.
- Inverter: converts the panels' DC power to AC power for your home. Roughly 15–20% of the cost.
- Mounting structure: the galvanised iron or aluminium frame that holds the panels on your roof.
- Balance of system: DC and AC cables, junction boxes, earthing, lightning arrester, breakers.
- Installation and labour.
- Net meter and DISCOM charges: in many states these are now low or waived for small home systems, but check your state.
- GST: charged on the system; your invoice should show it clearly.
Smaller systems cost more per kW because fixed costs like the inverter, design visit, paperwork and labour are spread over fewer panels. That is why a 1 kW system can look expensive per kW compared with a 5 kW system.
2. Typical price ranges by system size
The table below gives indicative ranges for good-quality on-grid home systems using domestic (DCR) panels, which are required for the central subsidy. Prices vary by city, brand, roof height, structure type and the season. Treat these as a starting point for comparing quotes, not as fixed rates.
| System size | Approx. price before subsidy | Roof area needed (shadow-free) | Average generation |
|---|---|---|---|
| 1 kW | ₹65,000 – ₹85,000 | about 100 sq ft | about 4 units/day |
| 2 kW | ₹1.2 – ₹1.6 lakh | about 200 sq ft | about 8 units/day |
| 3 kW | ₹1.7 – ₹2.3 lakh | about 300 sq ft | about 12 units/day |
| 5 kW | ₹2.7 – ₹3.6 lakh | about 500 sq ft | about 20 units/day |
| 10 kW | ₹5.0 – ₹6.8 lakh | about 1,000 sq ft | about 40 units/day |
A "unit" is one kilowatt-hour (kWh), the same unit on your electricity bill. In most parts of India, each kW of well-installed panels produces around 3.5 to 4.5 units per day on average across the year: more in summer and in sunny states like Rajasthan and Gujarat, less during the monsoon and in cloudy regions.
3. The PM Surya Ghar subsidy
The central government's PM Surya Ghar: Muft Bijli Yojana, launched in February 2024, gives Central Financial Assistance (CFA) to residential households for grid-connected rooftop solar. As per the scheme guidelines when this article was written:
| System capacity | Central subsidy |
|---|---|
| Up to 2 kW | ₹30,000 per kW |
| Additional capacity up to 3 kW | ₹18,000 for the third kW |
| Above 3 kW | Capped at ₹78,000 in total |
So a 1 kW system gets about ₹30,000, a 2 kW system about ₹60,000 and a 3 kW or larger system about ₹78,000. Some states add their own subsidy on top, so ask your installer and check your state nodal agency's website.
Key conditions to know
- The house must have its own grid-connected electricity connection.
- You apply on the official national portal, pmsuryaghar.gov.in, and choose a vendor registered for your DISCOM.
- Panels must be made in India with domestic cells (DCR modules) and listed under the government's approved list.
- After installation, the DISCOM inspects the system and installs the net meter. The subsidy is then credited to your bank account.
- Concessional, collateral-free loans are available through public sector banks for many applicants. Ask your bank for the current rate.
The scheme's target date and rules can change, so always read the latest details on the official portal rather than relying on what a salesperson says.
4. Worked example: a 3 kW system
Let us take a family in a city where they pay about ₹7 per unit on average and use around 350 units a month.
- System price (example): ₹2,00,000
- Central subsidy: ₹78,000
- Net cost to the family: ₹1,22,000
- Generation: about 12 units/day × 30 = 360 units/month, or roughly 4,300 units/year
- Bill saving: about 4,300 × ₹7 = ₹30,100 per year
- Simple payback: ₹1,22,000 ÷ ₹30,100 ≈ 4 years
After those 4 years, the electricity is nearly free for the remaining life of the panels, apart from small maintenance costs. Your real result depends on your tariff slab, how much of the solar power you use during the day, your state's net metering rules and how well the panels are kept clean.
5. What size system do you need?
Look at your last 12 electricity bills and find your average monthly units. Then use this simple rule:
System size (kW) ≈ average monthly units ÷ 120
For example, 360 units a month ÷ 120 = 3 kW. If you plan to buy an electric vehicle, add air conditioners or move to an induction cooktop, size up a little. Also check your sanctioned load: in many states the solar capacity cannot exceed it without applying for a load increase.
6. Panel and inverter choices that change the price
Panels
- Mono PERC: the common, proven choice for homes.
- TOPCon: newer technology with slightly higher efficiency and better performance in heat. Often a small premium.
- Bifacial: produce some power from the back side too; useful on elevated structures with a light-coloured roof underneath.
Higher-efficiency panels produce more power from the same roof area, which matters if your roof is small.
Inverters
- On-grid (string) inverter: standard for net-metered homes. It shuts off during power cuts for the safety of line workers.
- Hybrid inverter: works with batteries, so you get backup during power cuts. Costs more, and batteries add significantly more.
7. Hidden costs to ask about upfront
- Elevated structure: if you want to use the roof space underneath, a raised structure costs extra.
- Long cable runs: if the inverter is far from the panels or meter.
- Roof repairs or waterproofing before installation.
- Net meter cost and testing fees in your state.
- Annual maintenance contract (AMC) after the free service period.
- Monitoring: Wi-Fi monitoring may need a separate dongle.
A good installer lists all of these in the written quote. If a quote is much cheaper than others, ask exactly what is missing.
8. Warranties you should get in writing
| Component | Typical warranty to expect |
|---|---|
| Panels: product warranty | 10–12 years (some brands more) |
| Panels: performance warranty | 25–30 years, with a guaranteed minimum output |
| Inverter | 5–10 years depending on brand |
| Installation workmanship | Varies; ask for at least 5 years |
| Structure | Ask for rust protection details and the warranty period |
Make sure the warranty card names you as the customer and shows the panel serial numbers.
9. Maintenance costs
Solar panels have no moving parts, so maintenance is simple:
- Cleaning: rinse panels with plain water every 2–4 weeks, more often in dusty areas. Dust can reduce output noticeably.
- Annual check: tightening connections, checking earthing and the inverter.
- Inverter replacement: budget for one replacement during the system's life.
10. Is rooftop solar worth it for you?
Solar makes the most financial sense if:
- Your monthly bill is above roughly ₹1,500–2,000.
- You own the house and the roof gets sun for most of the day without shadows from trees, water tanks or taller buildings.
- You plan to stay in the house for at least 5 years.
It makes less sense if your roof is heavily shaded, you are renting, or your bill is very small because of low tariffs in your slab.
How to get the best price
- Get at least three written quotes for the same capacity and similar brands.
- Ask each installer for the panel make, model and wattage, inverter make and model, structure details and every extra charge.
- Check the installer's GST registration and whether they are a registered vendor for your DISCOM.
- Ask for 3 recent customers you can call or visit.
- Pay in stages linked to delivery and installation, never 100% upfront.
On PeopleList you can compare solar installers whose phone numbers, GST registration and offices have been checked by our team, with the date of each check shown on the listing.
11. How net metering affects your savings
With net metering, the solar power you do not use during the day is exported to the grid, and the meter records it. At the end of the billing cycle, the DISCOM nets your imports against your exports. This matters for savings because most families use more electricity in the evening and at night, when the panels are not producing. Without net metering, much of the daytime solar power would be wasted.
A few details vary from state to state and are worth asking your installer and DISCOM about:
- Settlement period: whether surplus units carry forward month to month and how any leftover surplus is settled at the end of the year.
- Export rate: if you export more than you import over a year, the rate paid for surplus units is often lower than the rate you pay to buy power.
- Fixed charges: the fixed or demand charges on your bill usually continue even if your energy charge becomes zero.
- Capacity limits: rules on how large a system you can install relative to your sanctioned load or connected load.
Because of fixed charges and evening usage, it is more accurate to say solar can greatly reduce your bill than to promise a "zero bill" in every month.
12. Tariff slabs: why savings differ between families
Most states charge more per unit as your monthly consumption rises. If your usage is in a high slab, solar first removes the most expensive units from your bill, so the saving per unit is higher. If your usage is low and you are in the cheapest slab, the saving per unit is lower and payback takes longer. Before you decide on a size, look at the slab rates on your bill and ask the installer to calculate savings using your actual slab, not a flat average rate.
13. Financing options
You do not have to pay the full amount from savings. Common options include:
- Bank loans under the scheme: public sector banks offer loans for residential rooftop solar, often with low collateral requirements for small systems. The subsidy, when credited, can be used to reduce the loan.
- Personal loans or credit card EMIs: usually more expensive; compare interest carefully.
- Installer EMI plans: some installers tie up with lenders. Read the interest rate and processing fees, and make sure the loan is with a regulated bank or NBFC.
A simple test: if the monthly EMI is close to or lower than the expected monthly saving on your bill, the system can pay for itself from day one.
14. Costs over 25 years
To see the full picture, think about the lifetime of the system rather than only the first year:
| Item | When | What to plan |
|---|---|---|
| Initial system cost minus subsidy | Year 0 | Largest cost; compare quotes carefully |
| Cleaning | Every few weeks | Do it yourself or include in AMC |
| Annual maintenance contract | After free period | Modest yearly cost; optional but useful |
| Inverter replacement | Once in the system's life, typically | Set aside money from your savings |
| Panel output decline | Gradual every year | Covered by the performance warranty within limits |
Even after these costs, a well-installed system in a sunny location usually saves several times its net cost over its life.
15. Mistakes that make solar more expensive
- Choosing only on price: a cheap structure that rusts or a poorly sealed roof can cost more to fix than you saved.
- Ignoring shade: even partial shade from a water tank in the afternoon can reduce output significantly.
- Oversizing beyond your use: extra units exported may earn a low rate, stretching payback.
- Skipping the subsidy process: installing first and applying later can mean losing the subsidy.
- No monitoring: without checking generation, a fault can go unnoticed for months.
Frequently asked questions
Does solar work during a power cut?
A normal on-grid system shuts down during a power cut for safety. You need a hybrid inverter with batteries for backup.
How many years do solar panels last?
Good panels typically keep producing for 25 years or more, with a slow decline in output each year that is covered by the performance warranty.
Can I get the subsidy if I have already installed solar?
Generally the subsidy applies when you apply through the portal and install through the scheme process. Check the portal's current rules before installing.
Is a 1 kW system worth it?
It can be, especially with the subsidy, if your monthly use is around 100–150 units. If you use more, a larger system usually gives better value per kW.
Prices, subsidy amounts and rules in this guide are indicative and were current to the best of our knowledge when written. Always confirm the latest details on official government portals and with your DISCOM before making a decision.
