Installing a solar system at home lets you generate clean energy. It helps reduce your electricity bills and supports India’s mission for a greener future. But how much does it really cost? Here’s a complete guide with the latest information for 2025, written in simple English.
1. Why Cost Matters
Knowing the cost helps you plan better. It also tells you whether solar is a smart investment for your home. A clear cost breakdown helps you choose the right system and installer.
2. Price Ranges for Home Solar Systems
The cost depends on the size of the system and the quality of the parts. Typical price ranges for 2025 are:
- 1 kW system: ₹45,000 to ₹75,000
- 3 kW system: ₹1.9 lakh to ₹2.4 lakh before subsidy
- 5 kW system: ₹3.15 lakh to ₹3.57 lakh (₹63 to ₹71 per watt)
- 7–10 kW systems: ₹4 lakh to ₹4.6 lakh, depending on the state
You can install a home solar system from ₹1.5 lakh to ₹5 lakh or more, based on features and location.
3. Cost Breakdown
Here’s what makes up the total cost of a solar system:
- Solar panels: ₹37,500 to ₹42,000 per kW
- Inverter: ₹20,000 to ₹80,000 (depending on type)
- Mounting structures: ₹10,000 to ₹50,000
- Battery (optional): ₹20,000 to ₹1 lakh or more
- Wiring and accessories: ₹10,000 to ₹20,000
- Installation and labor: ₹10,000 to ₹1 lakh (based on complexity)
Higher-quality components may cost more but often last longer and work better.
4. Cost Per Watt and Subsidies
The average cost per watt for home solar is now between ₹45 and ₹70. This depends on the panel type:
- Monocrystalline: ₹60 to ₹70 per watt
- Polycrystalline: ₹55 to ₹65 per watt
- Bifacial: ₹70 to ₹75 per watt
The Indian government provides subsidies under the PM Surya Ghar scheme:
- ₹30,000 per kW for the first 2 kW
- ₹18,000 for the third kW
- Total maximum subsidy: ₹78,000
With the subsidy, a 3 kW system may drop from ₹2 lakh to ₹1.2–1.3 lakh.
More details: PM Surya Ghar Yojana official site
Also Read Why Smart Indian Businesses Are Going Solar in 2025
5. Sample Costs After Subsidy
| System Size | Cost Before Subsidy | Subsidy | Final Cost |
|---|---|---|---|
| 1 kW | ₹45,000–₹75,000 | ₹30,000 | ₹15,000–₹45,000 |
| 3 kW | ₹1.9–2.4 lakh | ₹78,000 | ₹1.12–1.62 lakh |
| 5 kW | ₹3.15–3.57 lakh | ₹78,000 | ₹2.37–2.79 lakh |
| 7 kW | ₹4.2–5.4 lakh | ₹78,000 | ₹3.42–4.62 lakh |
In some cases like Amethi, with state and CSR support, households paid as little as ₹5,000 for 1 kW systems.
6. Why Prices Vary by Location
Here are some reasons why costs change across India:
- Local labor charges
- Availability of solar parts
- Roof size and condition
- State-wise subsidy support
- Extra features like batteries or smart inverters
- Net-metering policies of the state DISCOM
Some states like Maharashtra offer extra subsidies for certain communities.
7. Financing and Returns
Many banks and solar companies offer easy EMI and loan options. Some offer zero-down payment plans where you only pay for electricity used.
Most home systems recover their cost in 3 to 6 years. After that, your electricity is almost free for another 15–20 years.
8. Extra Costs to Consider
Don’t forget to plan for:
- Annual maintenance cost
- Net metering approval fees
- Rooftop strengthening (if needed)
- Replacement of inverter after 10 years
- Battery replacement (if installed)
These costs are small but important for long-term savings.
9. Total Savings Over Time
A 3 kW system can generate around 4,000 units per year. At ₹8 per unit, this saves you ₹32,000 per year. Over 25 years, this adds up to ₹8 lakh in savings.
FAQs
Q. What is the cheapest solar system I can install?
A. With subsidies, a 1 kW system can cost between ₹15,000 and ₹45,000.
Q. What is the cost of a 5 kW solar system?
A. Without subsidy: ₹3.15–₹3.57 lakh. With subsidy: around ₹2.4–₹2.8 lakh.
Q. Is battery storage needed?
A. Not always. Grid-tied systems don’t need batteries. If you want backup during power cuts, then add a battery.
Q. Do solar prices change by state?
A. Yes. Some states offer extra benefits, and local labor charges also affect prices.
Q. How much rooftop space do I need?
A. 1 kW solar requires around 80–100 sq ft. A 5 kW system will need 400–500 sq ft.
Q. Are solar systems worth the investment?
A. Yes. You save on power bills, and systems last 25+ years. The money you save over time is much more than what you invest.
Conclusion
The average cost of a residential solar system in India varies from ₹45,000 for basic 1 kW systems to ₹5 lakh for large 7–10 kW systems. Government subsidies make it affordable for most families. Many states offer extra support as well.
Before installing, check:
- Your monthly power usage
- Rooftop space
- Available budget and subsidy eligibility
- Trusted local installers
- Net-metering policies
- Financing options
Once installed, solar power gives you years of savings and peace of mind. It’s a smart choice for a cleaner, greener, and more energy-independent future.
Author- Ayush
