Solar energy is an excellent way to reduce electricity bills and contribute to a sustainable environment. With government subsidies like the PM Surya Ghar Muft Bijli Yojana (PMSGMBY), installing solar panels in India has become more affordable. This guide explores solar panel installation costs in India, both with and without government subsidies.
What is the Cost of On-Grid Solar Panel Installation?
The PMSGMBY scheme provides subsidies of up to Rs. 78,000 to encourage solar adoption. Here is a detailed on-grid solar panel installation cost comparison:
Rooftop Solar Capacity
Installation Cost without Subsidy (Rs.)
Subsidy (Rs.)
Installation Cost with Subsidy (Rs.)
1 kW
90,000 to 1,30,000
30,000
60,000 to 100,000
2 kW
1,40,000 to 1,80,000
60,000
80,000 to 120,000
3 kW
1,90,000 to 2,30,000
78,000
1,12,000 to 1,52,000
4 kW
240,000 to 2,80,000
78,000
1,62,000 to 2,02,000
6 kW
3,40,000 to 3,80,000
78,000
2,62,000 to 3,02,000
10 kW
5,40,000 to 5,80,000
78,000
4,62,000 to 5,02,000
What is the Cost of Off-Grid Solar Systems Installation?
Off-grid solar systems are an alternative to on-grid systems, providing independence from the utility grid. These systems typically cost more due to the inclusion of battery storage, which allows for energy storage. Here’s a cost breakdown for off-grid systems:
For 2 kW solar panel systems, the installation cost is between 1,75,000 to 2,25,000
For 3 kW solar systems, the installation cost is between 2,37,500 to 2,87,500
For 5 kW solar panel systems, the installation cost is between 3,62,500 to 4,12,500
For 8 kW solar panel systems, the installation cost is between 5,50,000 to 6,00,000
For 10 kW solar panel systems, the installation cost is between 6,75,000 to 7,25,000
It is important to note that the solar subsidy under PMSGMBY only applies to on-grid solar systems, not off-grid ones.
What are the Cost of Key Solar Components for Solar System?
Installing a solar panel system involves several components, each contributing to the overall cost. Understanding these components helps in making informed decisions.
Solar Panels
Solar panels are the primary component of the solar system, converting sunlight into electrical energy. Major types of solar panels include Mono-PERC Half Cut, Mono-PERC Half Cut Bifacial, and TOPCon Bifacial.
Price: The price of Mono-PERC Half Cut panels ranges from Rs. 20 to 23/Watt, and the cost for one 550 Wp module is approximately Rs. 11,000 to Rs. 13,500. TOPCon Bifacial panels, which are more efficient, cost between Rs. 24 and 27/Watt, with a single panel price ranging from Rs. 14,000 to Rs. 16,000. If your energy requirement stays lower than 150 units per month, you have to install 2 such solar panels where the solar capacity will be 1 kW. Here, you may like to know about 1 kilowatt solar panel price.
Solar Inverter
The solar inverter is essential for converting the DC electricity generated by solar panels into AC electricity, which is used by household appliances.
Price: The cost varies with capacity. A 1 kW inverter costs around Rs. 13,500, while larger capacities like 10 kW can go up to Rs. 48,000. Notably, high-quality manufacturers might not offer 1 kW inverters, necessitating the use of 2 kW or 3 kW inverters even for smaller systems.
AC-DB and DC-DB Boxes
The Alternating Current Distribution Box (AC-DB) and Direct Current Distribution box (DC-DB) are crucial for the distribution of electricity within the solar system.
Price: AC-DB Box costs Rs. 3,200- Rs. 3,500 and DC-DB Box costs Rs. 3,700 – Rs. 4,000.
Mounting Structure
It provides support for solar panels, crucial for stability in adverse weather conditions such as storms or heavy rainfall. There are different types of mounting structure for solar panel. Make sure you choose one that is most suitable for you.
Price: The cost of mounting structures made from zinc aluminium magnesium steel channels is about Rs. 8/Watt. For a 1 kW system, the cost is approximately Rs. 8,000, scaling up to Rs. 80,000 for a 10 kW system.
Installation Charges
Installation charges cover the service provided by the vendor for setting up the solar system. These charges can vary based on the complexity of the installation.
Price: Installation charge stays between Rs. 10,000 to 30,000.
Annual Maintenance Contract (AMC)
An AMC ensures regular servicing and maintenance of the solar system, which is crucial for its optimal performance and longevity.
Price: AMC costs range from Rs. 1,500 to 3,000 per kW annually.
Other Components
Other essential components include wires (both DC and AC), array junction boxes, lightning arrestors and earthing kits. These accessories ensure the proper functioning and safety of the solar system.
Price: These components can cost between Rs. 15,000 and 25,000.
If you are interested in solar energy adoption, you should know that Das Energie Private Limited connects you with registered vendors who send you detailed solar installation quotations. Suppose you need a 3kW solar panel system. They provide free multiple quotations which include 3 kilowatt solar panel system price and the cost breakdown of each component, giving you a clear picture of the total cost.
Additional Considerations for Solar Panel Installation
Here are some factors that you need to consider before solar system installation:
Government Incentives: The Indian government has allocated over Rs. 75,000 crore for the PMSGMBY scheme, providing up to Rs. 78,000 in subsidies for solar installations. This significantly reduces the upfront cost, making solar energy more accessible to a broader population.
Energy Savings: Households can generate enough electricity to meet their daily needs, translating into substantial savings on electricity bills. For instance, a 5 kilowatt solar panel system generates over 600-750 units monthly and can lead to 100% free electricity. If your electricity consumption is around 600-750, you can install a 5 kW system. In this regard, you may like to know about the 5 kW solar panel price.
Environmental Impact: Beyond financial savings, solar energy reduces carbon footprints, contributing to a cleaner and greener environment. It is a step towards energy independence and sustainability.
Technological Advances: The solar industry is continuously evolving, with innovations like bifacial panels and HJT technology being the latest developments. Keeping abreast of these developments can help in making better investment decisions.
Vendor Selection: Choose a reliable DISCOM-empanelled vendor for installation. Ensure they provide complete post-installation support, including AMC options, to maintain the system’s efficiency.
Long-term Investment: While the initial cost may seem high, solar panels typically have a lifespan of 25 years, ensuring long-term returns on investment.
Installing solar panels is a wise investment for reducing electricity bills and promoting sustainable energy. The solar panel installation cost can be significantly reduced with government subsidies. This makes solar energy more accessible to households.
