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Updated July 2026

Solar Panel Cost Calculator

Estimate the real installation cost of a solar system in India: gross price per kW, PM Surya Ghar subsidy, net cost and your effective cost per unit over 25 years, from your bill or a system size.

Calculate Your Solar System Cost

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We convert your bill into monthly units using your city's typical tariff, then size the system.

Your Solar Cost Estimate

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estimated net cost after subsidy
System size–
Gross cost (before subsidy)–
Price per kW–
Subsidy (central + state)–
Estimated monthly generation–
Effective cost per unit (25 yrs)–
Estimator only: all figures are indicative planning estimates for India based on typical 2026 prices, city-level sun data and standard assumptions. Actual quotes, generation and savings vary by site, installer and DISCOM policy. Confirm final numbers with a certified installer before you commit.

Solar Panel Installation Cost in India by System Size (2026)

Residential on-grid solar installation cost in India is roughly ₹52,000 to ₹64,000 per kW in 2026, including panels, inverter, structure, wiring and installation. The table below shows indicative gross prices and the net cost after the central subsidy for the most common home system sizes.

System SizeGross CostCentral SubsidyNet Cost After Subsidy
1 kW₹55,000 – ₹65,000₹30,000₹25,000 – ₹35,000
2 kW₹1,10,000 – ₹1,30,000₹60,000₹50,000 – ₹70,000
3 kW₹1,56,600 – ₹1,91,400₹78,000₹78,600 – ₹1,13,400
5 kW₹2,75,000 – ₹3,25,000₹78,000₹1,97,000 – ₹2,47,000
10 kW₹5,50,000 – ₹6,50,000₹78,000₹4,72,000 – ₹5,72,000

State top-ups in Delhi, Uttar Pradesh and Assam reduce the net cost further. Check your exact benefit with the solar subsidy calculator.

What Decides the Cost of a Solar System

  • System type: on-grid is cheapest (~₹58,000/kW); hybrid adds a battery-ready inverter and storage (~₹72,000/kW); off-grid needs a full battery bank (~₹85,000/kW).
  • Panel technology: higher-wattage mono PERC and TOPCon modules cost a little more per watt but need fewer panels and less roof space.
  • Mounting structure: elevated or high-rise structures add ₹3,000 to ₹8,000 per kW over standard rooftop rails.
  • Wiring runs and roof condition: long DC runs, earthing and waterproofing can add real money on complex roofs. Size cables with the solar wire size calculator.
  • State and installer: competitive metros usually quote lower per-kW rates than remote locations.

Getting the Inputs Right Before You Trust the Number

Three inputs decide how close this estimate lands to your final quote, and each is easy to get slightly wrong:

  • Use a 12-month average bill, not last month's. Indian consumption swings 40 to 60% between summer and winter. A December bill undersizes the system and understates the cost; an averaged bill prices the system you will actually need. If you know your monthly units (kWh) from the bill, switch mental gears and size from units, which skips slab-tariff distortion entirely.
  • Pick the system type honestly. If your grid barely fails, on-grid at roughly ₹58,000 per kW is the right comparison. Choosing hybrid "just in case" adds about ₹14,000 per kW of battery-ready hardware that a stable-grid home may never use.
  • Select your real city, not the nearest metro. Sun hours change the recommended size: the same 400-unit home needs 3.5 kW in Indore but 4 kW in Mumbai, and that half kilowatt moves the bill by ₹25,000 to ₹30,000.

Worked Example: Pricing a Home in Indore

A family in Indore pays about ₹2,800 a month. At the city's ₹7 planning tariff that is roughly 400 units. With Indore's strong 5.2 peak sun hours, the calculator sizes a 3.5 kW on-grid system. Gross cost comes to ₹1.83 to ₹2.23 lakh, the central subsidy removes ₹78,000, and the net lands at ₹1.05 to ₹1.45 lakh. The system should generate about 437 units a month, slightly more than the family uses, which is deliberate headroom for summer. Their effective cost per unit over 25 years works out near ₹1.7, against the ₹7 they pay the DISCOM today.

Got Your Estimate? How to Compare Real Quotes Against It

Collect at least three quotes and compare them line by line, not by the bottom figure:

  • Module spec: wattage (540W+ is current), technology (mono PERC or TOPCon) and the product-plus-performance warranty years. A cheap quote often hides older 445W stock.
  • Inverter rating and type: matches your kW, and hybrid only if you asked for it.
  • Structure: galvanised iron versus aluminium, wind-speed rating, and elevation height. Elevated structures legitimately add ₹3,000 to ₹8,000 per kW.
  • Scope lines: DC cable lengths, earthing kit, lightning arrester, net-metering liaison and fees, and the first year of cleaning or AMC. "Extra as actuals" here is where cheap quotes recover margin.
  • Red flag: a turnkey quote more than 15% below this calculator's low band usually means component or scope cuts. Ask specifically what was removed.

Once a quote is shortlisted, check the financing maths in the solar loan EMI calculator and confirm the benefit stack in the subsidy calculator before signing.

Common Mistakes When Estimating Solar System Cost

  • Comparing a net quote against a gross quote. Some vendors quote after subsidy, some before. Always compare gross to gross; the subsidy is yours either way.
  • Assuming per-kW price is flat. Small 1 to 2 kW systems cost more per kW than 5 kW ones because fixed costs (net metering, structure mobilisation) spread over fewer kilowatts.
  • Ignoring net-metering charges. Application fees, meter cost and security deposit vary by DISCOM and can add ₹2,000 to ₹10,000 outside the vendor quote.
  • Sizing from a winter bill. The most expensive mistake: a system 1 kW too small saves nothing on the summer units you still buy at the top slab rate.
  • Forgetting the meter room to roof distance. Long cable runs on large plots add real copper cost; flag it to the vendor before they visit.

How This Solar Panel Cost Calculator Works

The calculator sizes your system from your bill (or takes your chosen kW), applies indicative 2026 per-kW rates with a ±10% range, deducts the central and state subsidy, and then spreads the lifetime spend over 25 years of degraded generation to give an effective cost per unit.

Gross cost = System kW × Rate per kW (on-grid ₹58,000 / hybrid ₹72,000 / off-grid ₹85,000)
Net cost = Gross cost − Central subsidy − State top-up
Cost per unit = (Net cost + 25-yr maintenance + inverter replacement) ÷ 25-yr generation

Assumptions

  • Per-kW rates: on-grid ₹58,000, hybrid ₹72,000, off-grid ₹85,000, all ±10%
  • Subsidy: ₹30,000 (1 kW), ₹60,000 (2 kW), ₹78,000 cap (3 kW+); zero for off-grid
  • Maintenance: ~1% of gross cost per year; one inverter replacement (~10%) in 25 years
  • Generation: city peak sun hours × 0.8 performance ratio, 0.5%/yr degradation

Want the full picture with savings and payback too? Run the solar calculator for India on the homepage, or jump to the solar savings and payback calculator.

Solar Panel Cost Calculator: Frequently Asked Questions

How much does a 1kW solar panel system cost in India?+
A 1 kW on-grid solar system costs about ₹55,000 to ₹65,000 gross in 2026. After the central subsidy of ₹30,000, the net cost comes to roughly ₹25,000 to ₹35,000. Hybrid and off-grid versions cost more because of the battery.
What is the price of a 3kW solar system after subsidy?+
A 3 kW on-grid system costs about ₹1.57 to ₹1.91 lakh gross. With the full ₹78,000 central subsidy, the net price drops to roughly ₹79,000 to ₹1.13 lakh. States like Delhi, Uttar Pradesh and Assam add a further top-up.
What is the solar installation cost per kW in 2026?+
Indicative rates are about ₹58,000 per kW for on-grid, ₹72,000 per kW for hybrid and ₹85,000 per kW for off-grid systems, each with a ±10% range depending on components, structure and location. Larger systems usually get slightly better per-kW pricing.
Does this estimate include installation charges?+
Yes. The per-kW rates used here are turnkey figures covering panels, inverter, mounting structure, wiring, earthing and standard installation. Site-specific extras like elevated structures or long cable runs can add to the final quote.
What is the effective cost per unit of solar power?+
Spreading the net system cost plus maintenance over 25 years of generation, rooftop solar in India typically works out to ₹1.5 to ₹3 per unit. That compares with grid tariffs of ₹6 to ₹10 per unit in most states, which is why payback is fast.
Why do hybrid and off-grid systems cost more?+
Both need batteries and a more capable inverter. A hybrid system adds storage for power cuts while staying grid-connected, and an off-grid system must carry your entire load, so its battery bank and panel array are sized larger. Off-grid systems also get no central subsidy.
Is the government subsidy included in this calculator?+
Yes. The calculator deducts the central residential subsidy of up to ₹30,000 for 1 kW, ₹60,000 for 2 kW and ₹78,000 for 3 kW and above, plus known state top-ups, for on-grid and hybrid systems. Off-grid systems are not eligible, so their subsidy shows as zero.
Is solar power cheaper than grid electricity in India?+
Substantially. Spread over 25 years, rooftop solar works out to ₹1.5 to ₹3 per unit after subsidy, while residential grid tariffs run ₹6 to ₹10 and rise about 5% a year. The gap is the reason payback takes only 3 to 6 years.
How much does a 2kW solar system cost?+
About ₹1.10 to ₹1.30 lakh gross for on-grid in 2026. The central subsidy of ₹60,000 brings the net cost to roughly ₹50,000 to ₹70,000. It suits homes with bills around ₹1,400 to ₹2,200 a month.

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