Solar Panel Installation Cost in India (2025) | Full Guide
With rising electricity costs and climate awareness, thousands of Indian households and businesses are switching to solar energy in 2025. But one common question remains:
“How much does it cost to install solar panels in India in 2025?”
In this blog, we break down everything you need to know about solar panel prices, installation charges, and how you can reduce your cost using subsidies and smart choices.
Average Cost of Solar Panel Installation in India (2025)
As of 2025, the average cost of solar panel installation in India is approximately:
Solar Panel Installation Cost (2025)
for residential rooftop systems
for a standard 3kW system
for a 5kW system (suitable for most homes)
These prices are before subsidies and vary based on panel type, location, and installer.
What Affects Solar Panel Installation Cost?
Here are the main factors that determine the total cost:
1. System Size (Capacity in kW)
Larger systems cost more but offer higher savings and better returns.
2. Type of Solar Panels
Mono PERC (High Efficiency) – Slightly more expensive, better for small rooftops
Polycrystalline (Affordable) – Budget-friendly, needs more space
3. With or Without Battery
Grid-tied Systems: Cheaper, no batteries required
Hybrid/Off-grid Systems: Higher cost due to battery storage
4. Inverter & Other Equipment
High-quality inverters and structures add to cost but improve performance and durability.
5. Installation & Service Charges
Costs vary based on location, type of roof, wiring needs, and installer expertise.
Cost Breakdown of a 3kW Rooftop Solar System (2025)
| Component | Estimated Cost (₹) |
|---|---|
| Solar Panels | ₹90,000 |
| Inverter | ₹30,000 |
| Mounting Structure | ₹15,000 |
| Cables & Accessories | ₹10,000 |
| Installation & Labor | ₹20,000 |
| Total | ₹1.6 – 2.1 Lakhs |
Government Subsidy on Solar in India (2025)
The Indian government offers subsidies up to 40% for residential solar systems under the National Rooftop Solar Portal.
| System Size | Subsidy Rate |
|---|---|
| Up to 3kW | 40% |
| 3kW – 10kW | 20% (for extra kW) |
| Above 10kW | No subsidy |
Tips to Reduce Solar Installation Cost
Choose grid-tied systems if you don’t need backup power
- Opt for high-efficiency mono panels for small rooftops
- Compare multiple installers for quotes and warranty
- Leverage government subsidies and EMI options
Frequently Asked Questions (FAQs)
1. What is the ROI of a solar system in 2025?
Most homeowners recover their investment in 4 to 6 years through electricity savings.
2. Can I install solar panels without subsidy?
Yes, but applying for subsidy can reduce your upfront cost by 30%–40%.
3. Is solar cheaper than electricity in India?
Yes. Solar is cheaper in the long term, offering free power for over 25 years.