How Much Does Solar Panel Installation Cost in India 2025

Solar Panel installation has always been regarded as something good to have but never a necessity. However, as India and its people grow and lifestyle changes occur, the demand for electricity is also increasing. The electricity tariff isn't reducing anytime soon, and what better way than solar panels to access the free electricity from the sun?

In this blog, we will understand, how much solar panels cost in India in the most common type i.e. On-Grid type of installation. We will also understand what are the factors that affect the solar panel cost in a residential solar installation.

When you plan to install a solar plant for your residence or office, you will definitely get some quotations from some vendors. You might come across some technical terms and hence this blog will help you to understand some common terms associated with solar panel cost and help you choose the correct solar plant and the vendor

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Factors affecting cost of solar panel installation:

• System Size: Depending on your electricity consumption, the size of the solar plant will be determined upon which the cost will depend.
• Brand and Quality: Since the solar plant is supposed to last for 25 years, brand and quality play a huge role. The brand of solar panels, inverters, cables, and other equipment may seem expensive at first. However, over time, this investment makes sense and saves you money in the long run. Hence, investing in good quality and reputed brands is recommended also considering the solar plant is a outdoor installation exposed to all weather conditions.
• Customization: In case, you need some customization say an elevated structure or the roof is non-unform and requires multiple structures, then the cost will also vary.
• Government Subsidies: The Indian government offers subsidies under the PM-Surya Ghar Muft Bijlee yojana as of today which can also reduce the solar panel installation cost significantly. You can find out more on PM-Surya Ghar Yojana.

1. Solar Panels

Without a doubt, solar panel cost forms the largest chunk of the total cost of installing solar. The cost depends on the type of solar panel installed.

Polycrystalline solar panels: Made from multiple silicon crystals, a quotation with polycrystalline solar panels will be less than the one with monocrystalline panels.

Monocrystalline solar panels:   In the case of Monocrystalline (made of a single ingot), you might get a bigger solar plant with monocrystalline solar panels as they typically come with higher efficiency and rating/wattage. Moreover, technologies like PERC that improve efficiency are often integrated with monocrystalline solar panels.

In case, you are looking at Bi-facial panels, then the cost would definitely be higher, but you do get benefit in terms of increased solar generation and aesthetics.

2. Solar Mounting structure

Mounting structures can be of different types depending on the roof type and need. Hence solar cost per kW will be dependent on the type of structure installed.

For RCC roofs/Terrace

Fixed Mount - The most common one can be the fixed mount with foundation blocks with a height of up to 1 m. This is typically a standard proposition and the vendor won't charge any premium on this. Ensure the structures are hot-dipped galvanized iron.

Elevated- If you want the structure to be elevated up to a height of say 3m, well enough for you to comfortably walk and make a sit-out space or a gardening area. Now, elevated structures usually need to be customized and would cost more compared to the regular fixed mount structure. Ensure the structure is either hot-dipped galvanized iron or epoxy-painted.

Ballast type – In this type of structure, heavy dead weights in the form of blocks will be placed to hold the structure with no drilling on the roof. Incase, you do not wish the structure to affect the roof in any way then this solution is perfect for you. Having said that this solution might be costlier compared to the regular fixed mount structure.

3. Inverter

The Inverter is an important component in the solar plant that converts DC power from solar panels into AC power that can be directly used by all our appliances. Inverters also form a good portion of the cost of solar panel installation.

Multi-MPPT String inverters: In most cases, you will be recommended with a string inverter which is also a standard offering.

Microinverters: Microinverters are recommended in case of shadow issues and for better performance. However, microinverters at a significantly higher cost compared to string inverters.

4. Other Components

The cost of solar panel installation is largely based on the above three components the solar panels, inverter & structure. However, a solar plant is a combination of many components put together.

Other components include:

• DC Combiner Box and AC Distribution Box
• AC and DC Cables – Cable trays, pipes and accessories.
• Earthing System – Lightening arrestor and Chemical earthing pits
• Generation meter and Net Meter
• Remote monitoring system
• Labels and Signages

Some optional or need basis components also include

• Safety lines
• Cleaning system
• Weather sensors

5. Liaisoning and Government approvals

Apart from the cost for components, there are some fees associated with net metering applications and the installation of DISCOM-certified Net Meter. This Net Meter will replace the existing meter in your home or office and record the export and import of electricity. Readings from this meter will be reflected in your monthly electricity bill and that's where you will be able to see the energy and cost savings.

6. Installation cost

Generally, the vendor or the EPC company you will choose performs all the tasks related to the solar plant, including design, procurement, installation, commissioning, coordinating with DISCOM agencies and even facilitating subsidy for you. Hence there would be a fee associated with the installation.

7. Finally, how much does a solar plant cost in India?

All of these costs sum up to the cost of solar panel installation in India.  The Below table gives you an idea of the cost that you budget for your installation. However, as we saw in the above sections, depending on the type of solar panels, inverter, structure, system size, type of roof, etc. the cost may vary.

If you are planning for a residential solar plant in India, you can definitely avail the PM- Surya Ghar Muft Bijli Yojana that provides subsidy directly to your bank accounts

• Rs. 30,000/- per kW up to 2 kW
• Rs. 18,000/- per kW for additional capacity upto 3 kW
• Total Subsidy for systems larger than 3 kW capped at Rs 78,000

You can check our blog on how to avail the PM- Surya Ghar Muft Bijli yojana subsidy  and cost for 1kW and 5kW solar plant with subsidy.

Here is the approximate cost of solar panel installation(Without Subsidy):

8. With Aerem

Solar panel installation can sound overwhelming sometimes and it is a onetime big purchase, hence you need a trusted partner. At Aerem, we are not just providing solar loans, but also have developed a network of highly skilled 2000+ installers and EPC companies. Also, with Aerem you get a complete digital journey right from financing to remote monitoring with our proprietary App.

You can reach out to us at  +91 9875756060 or write to us connect@aerem.co for any queries on the cost of solar panel or general queries on solar installation.

FAQs

How much money can I save on electricity bill using solar?

Savings depends on your electricity consumption and the installed solar plant capacity; however, you can save up to 90% on your electricity bills by installing solar.

Are there additional costs associated with solar panel home installation?

Yes, there can be some additional costs associated with solar panel installation. Please ask your installer/EPC company to specify the costs if included in the quotation. Additional costs could be:

• Net Meter and related fees and Liaisoning
• Annual Maintenance contract (1-yearcomplimentary AMC is ideal)
• Operation and Maintenance costs
• Any roof maintenance before installation

Can we run a Con solar power?

Yes, all existing appliances in your home or office are compatible with solar.

Are there government subsidies available for solar installations?

Yes, you can avail subsidy through the PM- Surya Ghar Muft Bijli Yojana for your residential solar installation.

How much does a 1kW solar panel system cost in India? 

The cost of a1kW solar panel system in India varies based on factors like the type of panels and additional accessories. On average, it can range from ₹60,000 to ₹80,000.Here is the cost breakup for 1 kW solar plant based on average cost of individual components.

Do solar panel costs include installation charges? 

Most installers/EPC companies include the installation charges in the quotation.

Is loan available for available for solar panel installations? 

Yes, solar loans can be easily availed through various banks or through a solar financing company like Aerem, which offers collateral free easy loans.