Solar Panel Installation Cost in India (2026)
Rooftop solar in India costs roughly ₹62,000 per kW installed, so a typical 3 kW home system comes to about ₹1,86,000 before any subsidy. Real quotes range from ₹45,000 to ₹85,000 per kW depending on panel efficiency, inverter brand and how much mounting structure your roof needs.
The PM Surya Ghar: Muft Bijli Yojana scheme then pays Central Financial Assistance straight into your bank account — ₹30,000 per kW for the first 2 kW and ₹18,000 for the third, capped at ₹78,000. That brings the same 3 kW system down to ₹1,08,000 net.
At that price a 3 kW system pays for itself in roughly 3 years on typical north and west Indian tariffs, and faster in Maharashtra & Goa where electricity is most expensive. Panels carry 25-year performance warranties, so the remaining two decades are saving rather than repayment. The calculator below runs these numbers against your own state tariff, roof and system size.
System Parameters & Location
Customize your home and roof details
📍 North & West (DL, RJ, GJ, HR) Solar Landscape
Data source: State DISCOM residential tariff schedules (CERC/SERC filings) & NIWE/PVGIS irradiance. Reflects residential billing averages.
Exceptional ROI in North & West (DL, RJ, GJ, HR)
Net profit after recovering total system cost
Outperforms standard 25-yr stock market & bond averages
~$7,934/mo reduction on utility bills
Want the full 25-year model in a spreadsheet? Download every year's production, savings and net position.
25-Year Cumulative Cash Flow & Payback Curve
Crosses zero line at year 4.4 — all years after are 100% pure profit
Itemized Incentives & Rebates (North & West (DL, RJ, GJ, HR))
Direct tax credits and regional incentives reducing your initial out-of-pocket investment
Central Financial Assistance paid directly to the homeowner's bank account: ₹30,000/kW for the first 2 kW, ₹18,000 for the 3rd kW, capped at ₹78,000 regardless of system size.
Official Program VerificationSurplus generation is credited against consumption at the retail DISCOM slab tariff under state net-metering regulations, with annual settlement of unused credit.
Official Program VerificationSolar modules and inverters attract a concessional GST rate rather than the standard 18%. Installer quotes are GST-inclusive, so this is reflected in the price rather than deducted separately.
Official Program VerificationCompare Verified Solar Quotes in North & West (DL, RJ, GJ, HR)
Local tariffs and roof geometry can alter your payback timeline by 1–2 years. Connect with certified, pre-screened local installers to lock in current 30% federal tax credit pricing.
How Solar ROI & Payback Periods are Calculated
Transparent, engineering-grade financial formulas using official India datasets
1. PM Surya Ghar: Muft Bijli Yojana
Central Financial Assistance is paid directly to your bank account: ₹30,000/kW for the first 2 kW, ₹18,000 for the 3rd kW, capped at ₹78,000 regardless of system size. Several states add their own subsidy on top, which is not included in this baseline model.
2. Peak Sun Hours & System Derating
Irradiance comes from NIWE and PVGIS datasets. Indian regions average 4.8–5.6 peak sun hours per day, after an 82% DC-to-AC derate and 0.5% annual panel degradation. High ambient temperature and dust soiling can reduce real-world yield further.
3. DISCOM Slab Tariffs & Net Metering
Rates reflect state DISCOM residential slab tariffs from SERC orders. Most states credit surplus generation at the retail tariff under net-metering regulations, with annual settlement — so a kilowatt-hour exported is worth the same as one consumed.
4. Breakeven / Payback Point
Your payback period is the point where avoided DISCOM billing equals your net cost after PM Surya Ghar assistance. Because the subsidy is capped at 3 kW, larger systems recover more slowly per rupee of capacity.
Solar panel cost by system size, after subsidy
The subsidy is capped at ₹78,000, so its value per kilowatt falls sharply above 3 kW.
| System | Cost before subsidy | PM Surya Ghar | Net cost | Subsidy per kW | Payback |
|---|---|---|---|---|---|
| 1 kW | ₹62,000 | ₹30,000 | ₹32,000 | ₹30,000 | 2.7 yr |
| 2 kW | ₹1,24,000 | ₹60,000 | ₹64,000 | ₹30,000 | 2.7 yr |
| 3 kW | ₹1,86,000 | ₹78,000 | ₹1,08,000 | ₹26,000 | 3 yr |
| 5 kW | ₹3,10,000 | ₹78,000 | ₹2,32,000 | ₹15,600 | 3.9 yr |
| 10 kW | ₹6,20,000 | ₹78,000 | ₹5,42,000 | ₹7,800 | 4.6 yr |
Modeled at ₹62/W installed, optimal shading, flat tariff baseline, north & west region.
Solar payback by state
DISCOM tariffs vary more than sunlight does, and tariff is what drives payback.
| Region | Tariff | Sun hrs/day | Net cost (3 kW) | Payback |
|---|---|---|---|---|
| East & North-East (WB, BR, OD, AS) | ₹7.60/kWh | 4.8 | ₹1,08,000 | 3.3 yrs |
| Maharashtra & Goa | ₹9.40/kWh | 5.1 | ₹1,08,000 | 2.5 yrs |
| North & West (DL, RJ, GJ, HR) | ₹7.10/kWh | 5.6 | ₹1,08,000 | 3 yrs |
| South (KA, TN, TS, AP, KL) | ₹8.20/kWh | 5.3 | ₹1,08,000 | 2.8 yrs |
Modeled at 3 kW, optimal shading, ₹62/W installed, flat tariff baseline. Figures come from the same dataset the calculator uses.
Frequently asked questions
How much does solar panel installation cost in India?
Around ₹62,000 per kW installed before subsidy, so a 3 kW rooftop system costs roughly ₹1,86,000. After PM Surya Ghar Central Financial Assistance of ₹78,000 the net cost falls to about ₹1,08,000. Installed prices range from ₹45,000 to ₹85,000 per kW depending on panel quality, inverter brand and structure height.
How much subsidy does PM Surya Ghar give?
₹30,000 per kW for the first 2 kW, ₹18,000 for the third kW, and nothing beyond that — capped at ₹78,000 regardless of system size. It is paid directly into your bank account after installation and DISCOM inspection, not deducted from the installer invoice.
What size solar system do I need for a home?
3 kW suits most Indian households using 300-400 units a month, and it is also the largest system the subsidy fully rewards. Above 3 kW you fund every additional kilowatt yourself, which is why subsidy per kW falls from ₹30,000 at 2 kW to ₹7,800 at 10 kW.
Is solar worth it in India?
Yes, on current tariffs. A 3 kW system pays back in roughly 3 years in most states and faster in Maharashtra where tariffs are highest. Panels are warranted for 25 years, so everything after payback is saving.
Do I need net metering?
Yes, to get value from surplus generation. Most Indian states credit exported units against consumption at the retail slab tariff under state net-metering regulations, with annual settlement. Your installer applies through the DISCOM as part of the PM Surya Ghar process.
How the subsidy actually gets paid
Eligibility, the National Portal application, empanelled vendors, DISCOM inspection and disbursal timing are covered separately.
Read the PM Surya Ghar guide →