Your electricity bill keeps climbing. Rooftop solar keeps getting cheaper.
In 2026, a home solar system in India can cost less than a good second-hand car, and the government pays part of it.
But the numbers are confusing. Quotes range widely, the subsidy has rules, and some “free electricity” claims skip the fine print.
This guide covers solar panel cost in India, explains every cost factor in plain language, and shows exactly how the PM Surya Ghar subsidy works.
It also gives a step-by-step buying process, a payback calculation, and fixes for common problems.
How we picked: this guide is based on published pricing pages, MNRE scheme details and 2026 installer and review coverage. It is not an installer quote. Prices are typical ranges checked on 28 September 2026 and vary by city, roof and vendor.
Is Rooftop Solar Actually Worth It in India?
For most homes with a grid connection and a usable roof, yes.
Residential electricity tariffs have risen by roughly 20 to 40 percent in most states between 2020 and 2026, according to one 2026 guide.
Reported payback for a subsidised home system is typically about 3 to 5 years. Panels are usually warranted for many years, so the savings continue long after that.
Solar makes the most sense when:
- You own the house and have shadow-free roof space.
- Your monthly bill is high enough to justify the system.
- You use most of your power in the daytime, or can export surplus to the grid.
When to be careful: shaded roofs, rented homes, very low bills, or roofs due for repair.
How Much Does a Solar System Cost in India? (Reported Ranges, 28 September 2026)
| System Size | Typical Home | Cost Before Subsidy | Central Subsidy | Approx. Net Cost |
|---|---|---|---|---|
| 1 kW | Small home, low bill | ₹55,000 to ₹75,000 | ₹30,000 | ₹25,000 to ₹45,000 |
| 2 kW | Small family home | About ₹1.1 to ₹1.5 lakh (estimate) | ₹60,000 | About ₹50,000 to ₹90,000 (estimate) |
| 3 kW | Most common home size | ₹1.65 to ₹2.25 lakh | ₹78,000 | ₹87,000 to ₹1.47 lakh |
| 5 kW | Larger home, AC-heavy use | ₹2.8 to ₹3.8 lakh | ₹78,000 | ₹2.02 to ₹3.02 lakh |
| 10 kW | Very large home | Around ₹6.5 lakh | ₹78,000 | Around ₹5.7 lakh (estimate) |
The 2 kW and 10 kW rows are our estimates from the per-kW range and the subsidy rules. The other rows are reported ranges from 2026 cost guides. Sources differ by a few tens of thousands of rupees, so treat them as a guide.
Rule of thumb: a complete on-grid rooftop system is commonly reported at ₹55,000 to ₹85,000 per kW before subsidy, and about ₹55 to ₹75 per watt in several guides. A quote near ₹60 per watt (for example ₹1.8 lakh for 3 kW) is described as competitive.
Step-by-Step: How to Buy Rooftop Solar
- Check your electricity bill. Note your monthly units and your sanctioned load. For the subsidy, your residential connection generally needs to be 10 kW or below.
- Pick a system size. A 3 kW system typically generates roughly 250 to 300 or more units a month, depending on location and sunshine.
- Check your roof. Look for shadow-free area, strength and direction. Note any water tank, staircase or tree shading.
- Choose a subsidy-eligible route. Use an MNRE-empanelled vendor, as only they can submit the commissioning report needed to claim the subsidy.
- Get three quotes. Compare price per watt, brand, warranty, and what is included.
- Confirm the equipment is compliant. Panels should meet the DCR (made-in-India cells) rule, and equipment should be on the ALMM list.
- Register on the national portal. Apply at pmsuryaghar.gov.in using your consumer number and required documents.
- Get the installation done and inspected. The DISCOM installs the net meter and commissions the system.
- Claim the subsidy. It is paid directly to your bank account by DBT after commissioning. Reported end-to-end timelines are about 45 to 90 days.
- Track your generation. Check your bill and app to make sure the system performs as promised.
Solar Cost Factors Explained
1. System Size (kW)
System size is the biggest cost driver. One kilowatt (kW) of solar needs roughly 8 to 10 square metres of shadow-free roof.
Larger systems have a lower price per kW, but the subsidy stops growing after 3 kW.
Tip: 3 kW is often called the sweet spot because it is the smallest size that unlocks the full ₹78,000 subsidy.
2. Panel Type and Price
Panels are roughly 40 to 50 percent of the total system cost. Reported panel-only prices for August 2026 (before GST) are:
- PERC: about ₹24 to ₹32 per watt.
- TOPCon: about ₹28 to ₹36 per watt.
- HJT (premium): about ₹38 to ₹55 per watt.
Monocrystalline panels dominate about 80 percent of Indian home installations because they give more power per square foot.
3. Inverter
The inverter converts solar DC power into household AC power. It is the part most likely to be replaced during the system’s life.
For subsidy claims, the inverter must also be ALMM-listed. A non-listed inverter is one of the avoidable reasons claims fail.
4. Mounting Structure
Standard structures are included in most quotes. Elevated or tilted structures for sloped, shaded or multi-storey roofs add roughly ₹3,000 to ₹5,000 per kW, according to one guide.
5. On-Grid vs Off-Grid vs Hybrid
- On-grid: connected to the DISCOM with net metering. Cheapest and subsidy-eligible.
- Off-grid: uses batteries and works without the grid. Costs more and is not covered by the residential subsidy.
- Hybrid: grid plus batteries. Adds battery cost and is not the subsidy route.
The PM Surya Ghar subsidy is available only for residential on-grid rooftop systems.
6. Net Metering
Net metering lets you send surplus power to the grid and receive credit. Your meter records both import and export.
Rules and export rates vary by state, so ask your vendor and DISCOM.
7. Installation, Wiring and Approvals
Installation, cabling, earthing, protection devices, meter fees and paperwork are part of a proper quote. Ask for a written line-by-line list.
8. Warranty and Service
Look at the panel performance warranty, the product warranty, the inverter warranty and the installer’s service commitment.
Budget note: Tier-1 manufacturers reportedly cost 10 to 15 percent more but offer better warranties.
9. Roof Type and Height
Multi-storey buildings, difficult access and unusual roofs add cost. A flat concrete roof is the simplest and cheapest.
10. Financing
Collateral-free solar loans starting from about 7 percent interest per year are reported for systems up to 3 kW under the scheme.
11. Location and Sunshine
Sunny states generate more per kW. Rajasthan, Gujarat, Maharashtra and Tamil Nadu are among the states performing well on installations.
12. State Subsidies
As of 2026, 14 states and union territories are listed as offering extra state-level support on top of the central subsidy, according to one guide. In one example, ₹78,000 central plus ₹45,000 state adds up to ₹1,23,000.
Some north-eastern states offer very high combined support. Check your state’s nodal agency for current terms.
How the PM Surya Ghar Subsidy Works
| System Size | Central Subsidy |
|---|---|
| 1 kW | ₹30,000 |
| 2 kW | ₹60,000 |
| 3 kW and above (residential) | ₹78,000 (maximum) |
The rule in plain terms: ₹30,000 per kW for the first 2 kW, then ₹18,000 for the third kW, capped at ₹78,000. Going above 3 kW does not increase the subsidy.
Key conditions:
- Residential, grid-connected systems only. Commercial and industrial buildings are not eligible.
- Use an MNRE-empanelled vendor.
- Panels must be DCR compliant, and equipment must be ALMM-listed.
- The subsidy is paid by DBT after DISCOM commissioning.
- It is calculated on MNRE benchmark costs, not on what you actually paid.
Timing: the scheme targets one crore households by March 2027, and reviews say the offer closes when the budget or the deadline runs out. One 2026 report counted about 47 lakh households solarised by 18 July 2026, so do not assume it will stay open indefinitely. Confirm the current status on the official portal before you commit.
Payback Calculation: A Worked Example
This example uses assumptions, so replace them with your own numbers.
| Item | Assumption |
|---|---|
| System | 3 kW on-grid |
| Net cost after subsidy | ₹1,20,000 |
| Monthly generation | About 300 units (typical range 250 to 300+) |
| Yearly generation | About 3,600 units |
| Tariff you avoid | ₹7 per unit (varies widely by state and slab) |
| Yearly saving | About ₹25,200 |
| Payback | About 4.8 years |
That lines up with reported paybacks of 3 to 5 years. If your tariff is higher, payback is faster. If your roof is shaded or your generation is lower, payback is slower.
Price Comparison: Where and How You Buy
| Route | Price Behavior | Good For | Watch Out For |
|---|---|---|---|
| Local MNRE-empanelled installer | Competitive, negotiable | Most homeowners | Check reviews and past installs |
| Large solar brand or EPC company | Often higher, with better warranty and service | Buyers wanting after-sales support | Compare per-watt price |
| Marketplace or lead-generation sites | Quotes vary | Comparing options quickly | Verify the vendor’s empanelment yourself |
| Bank-financed package | Loan at low interest | Those who cannot pay upfront | Check total interest and fees |
| Unofficial or cheap non-empanelled vendor | Lowest price | No one who wants the subsidy | Subsidy can be denied |
Step-by-Step: How to Compare Solar Quotes
- Convert every quote to price per watt. Total price divided by system watts.
- Check what is included. Panels, inverter, structure, wiring, net meter fees, approvals and installation.
- Check brands and models. Names such as Adani Solar, Tata Power Solar, Waaree, Vikram Solar and Luminous appear in 2026 coverage. Verify the exact models and warranties.
- Check the subsidy paperwork. The vendor should confirm empanelment, DCR panels and an ALMM-listed inverter.
- Ask about GST and extra charges so the final price is clear.
- Compare warranties and who handles service.
- Ask for a generation estimate in units per month, and how they calculated it.
- Get payment milestones in writing. Avoid paying everything upfront.
Best Solar Setup by Use Case
For Small Homes with Low Bills
1 kW or 2 kW. The net cost is low, and the subsidy covers a large share.
For Typical Middle-Class Homes
3 kW. It unlocks the full ₹78,000 subsidy and matches most household usage.
For AC-Heavy Homes
5 kW. The subsidy is still capped at ₹78,000, so the extra cost is paid at full price. Make sure the extra generation matches your usage.
For Homes With Frequent Power Cuts
On-grid systems shut down during a grid outage for safety. If backup matters, ask about hybrid options and check the added battery cost.
For Tight Budgets
Start with 1 kW or 2 kW, use the low-interest scheme loan if available, and check for your state’s extra subsidy.
For Rented Homes
Get the owner’s consent first. Because the system is fixed to the roof, payback may not work if you move within a few years.
Common Problems and Their Solutions
Problem: The Quote Looks Too Cheap
Cause: Low-quality components, non-empanelled vendor, or missing items.
Solution: Compare per-watt price, check the component list and confirm the vendor is MNRE-empanelled.
Problem: The Subsidy Was Not Paid
Cause: Non-compliant panels or inverter, a name mismatch, or a missed portal step.
Solution: Confirm DCR and ALMM compliance before buying, match names across documents, and follow up with the vendor and portal.
Problem: My Bill Did Not Drop as Much as Promised
Cause: Shading, dust, high night-time use, or an oversized promise.
Solution: Clean panels regularly, check the generation app, and compare real units generated with the estimate.
Problem: Net Meter Delay
Cause: DISCOM processing time.
Solution: Ask your vendor to track the application, and keep copies of every document.
Problem: The Inverter Failed
Cause: Inverters are the most replaceable part.
Solution: Check the inverter warranty length and service response time before you buy.
Problem: Power Goes Out but Solar Does Not Work
Cause: On-grid systems switch off during outages.
Solution: Add a hybrid inverter and battery if backup matters, and budget for the extra cost.
Problem: The Roof Is Too Small
Cause: Limited shadow-free space.
Solution: Choose a higher-efficiency panel to fit more power, or install a smaller system.
Problem: Panels Are Dirty or Shaded
Cause: Dust, bird droppings, or tree and building shade.
Solution: Clean regularly with water and a soft brush, trim trees, and ask your installer to check shading.
Problem: Loan Terms Are Confusing
Cause: Different banks offer different rates and fees.
Solution: Compare interest, fees and tenure, and check the scheme loans for systems up to 3 kW.
Problem: I Am Worried About Missing the Subsidy Window
Cause: The scheme is time-bound and budget-linked.
Solution: Check the official portal for current status, and begin the application early.
Solar Maintenance Guide
- Clean the panels every few weeks, more often in dusty areas.
- Clean in the early morning or evening when the panels are cool.
- Use water and a soft brush or cloth, never harsh chemicals.
- Check for shade from new trees or buildings.
- Watch the generation app and note any sudden drop.
- Book a yearly service check for wiring, structure and inverter.
Solar Buying Checklist
- I own the roof or have the owner’s written consent.
- I know my monthly units and sanctioned load.
- The vendor is MNRE-empanelled.
- Panels are DCR compliant and the inverter is ALMM-listed.
- I compared at least three quotes by price per watt.
- The quote lists every component, warranty and approval fee.
- I understand how the subsidy is paid and how long it takes.
- I know how net metering works in my state.
- I checked for any extra state subsidy.
- I have a payment plan tied to milestones.
Frequently Asked Questions
1. How much does a 3 kW solar system cost in India?
Reported ranges are roughly ₹1.65 to ₹2.25 lakh before subsidy. After the ₹78,000 subsidy, the net cost is commonly reported between about ₹87,000 and ₹1.47 lakh.
2. How much is the government subsidy?
₹30,000 for 1 kW, ₹60,000 for 2 kW and ₹78,000 for 3 kW or more under PM Surya Ghar.
3. Do I get more subsidy for a 5 kW system?
No. The central subsidy stays capped at ₹78,000 above 3 kW.
4. What is the payback period?
About 3 to 5 years for typical subsidised home systems, depending on your tariff and generation.
5. How many solar panels do I need?
A 5 kW system typically needs about 12 to 15 panels, depending on panel wattage.
6. Can I get a loan?
Collateral-free loans from about 7 percent interest are reported for residential systems up to 3 kW.
7. Is the subsidy available for commercial buildings?
No. It applies to residential consumers only.
8. What is DCR and ALMM?
DCR requires panels with cells made in India. ALMM is the approved list of manufacturers for equipment used in subsidised projects.
9. Will solar work during a power cut?
Standard on-grid systems shut down during a grid outage. You need a hybrid setup with batteries for backup.
10. How long does the subsidy take to arrive?
End-to-end timelines of about 45 to 90 days are reported, paid by DBT after commissioning.
11. Is the scheme still open?
It targets March 2027 and depends on the budget, so check the official portal for the current status.
12. Can I sell extra power?
Yes, through net metering with your DISCOM. Rates and rules vary by state.
Bottom Line
Rooftop solar in India in 2026 is one of the few home upgrades that can pay for itself in a few years.
For most homes, a 3 kW on-grid system is the sweet spot, with a net cost of roughly ₹1 lakh to ₹1.5 lakh after the ₹78,000 subsidy.
Compare quotes by price per watt, use only an MNRE-empanelled vendor, and confirm DCR and ALMM compliance so your subsidy is not blocked.
Check the live scheme status and your state’s extra subsidy before you commit, and you will end up with a system that cuts your bill for years.