Solar Panel Installation Cost in India 2025
The cost of solar panel installation in India varies based on system size, panel type, location, and installer. Here's a complete cost breakdown for 2025.
Cost by System Size
| System Size | Total Cost (Before Subsidy) | After PM Surya Ghar Subsidy | Monthly Generation |
|---|---|---|---|
| 1 kW | ₹60,000–₹80,000 | ₹30,000–₹50,000 | 120–150 units |
| 2 kW | ₹1,20,000–₹1,50,000 | ₹60,000–₹90,000 | 240–300 units |
| 3 kW | ₹1,60,000–₹2,00,000 | ₹82,000–₹1,22,000 | 360–450 units |
| 5 kW | ₹2,50,000–₹3,20,000 | ₹1,50,000–₹2,20,000 | 600–750 units |
| 10 kW | ₹5,00,000–₹6,50,000 | ₹3,50,000–₹5,00,000 | 1200–1500 units |
PM Surya Ghar Yojana — Government Subsidy 2025
The Indian government provides significant subsidies under the PM Surya Ghar Muft Bijli Yojana scheme:
- Up to 2 kW: ₹30,000 per kW subsidy
- 2–3 kW: ₹18,000 per kW for additional capacity
- Above 3 kW: Maximum subsidy capped at ₹78,000
To claim the subsidy, you must install through an MNRE-approved vendor and apply on the national portal (pmsuryaghar.gov.in).
Cost Breakdown: What You're Paying For
- Solar Panels (40–50%): Monocrystalline panels cost more but give better efficiency
- Inverter (15–20%): String inverters vs micro-inverters
- Mounting Structure (10%): Rooftop mounting hardware
- Wiring & Electrical (10%): AC/DC cables, junction boxes
- Installation Labour (10–15%): Varies by city
- Net Meter & Permissions (5%): DISCOM fees
Return on Investment (ROI)
A 3 kW system in a city like Mumbai or Delhi typically pays back in 4–6 years and saves ₹15,000–₹25,000 per year on electricity bills.
How to Get the Best Price
- Get at least 3 quotes from verified installers
- Always check if the installer is MNRE-approved
- Verify panel brand and warranty (25-year performance guarantee)
- Ask about AMC (Annual Maintenance Contract) terms