Thinking About Solar? Here's the Real Solar Panel Cost for Home You Should Know
Many people in Kerala switch to solar in 2025 due to understanding the benefits of solar energy. But there are some people who still have confusion about installing solar panels in their homes. The main reasons people switch to solar energy are the increasing electricity bill, its environmental benefits, reliable energy sources, low maintenance, and long-term investment. More than that, the government offers subsidies for rooftop solar panels, which reduce the solar panel cost for homes.
In this blog, let's discuss factors that influence solar panel costs for homes, how to make the most out of their solar panel investment, and factors considered beyond installation cost. By reading this, you will get a clear idea about solar panel cost for home. This will help people who still have doubts about installing solar panels.
What You Pay For and What You Save On?
Now let’s see the solar panel installation cost. The total solar panel cost for home in India mainly depends on,
- System size
- Panel type
- Installation complexity
- Location
Hidden cost:
Solar Panel Installation Cost Revealed
Solar panel size | Cost by system size (Approx) |
---|---|
1 kW Solar panel | Rs. 75,000–85,000 |
2 kW Solar panel | Rs. 1,50,000–1,70,000 |
3 kW Solar panel | Rs. 1,89,000–2,15,000 |
4 kW Solar panel | Rs. 2,52,000–2,85,600 |
5 kW Solar panel | Rs. 3,15,000–3,57,000 |
10 kW Solar panel | Rs. 5,31,000–6,07,000 |
Note: The unit for measuring the size of a solar panel system is kilowatts (kW). kW stands for kilowatt, the unit of measurement for power.
1kW = 1,000 watts
A gigawatt is a unit of power equal to one billion (109) watts. It's used to measure the output of large power plants and energy systems.
But there are some factors that affect these costs that are:
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How much shade the roof receives
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The shape and condition of the roof
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Type of electricity service
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Agreement for maintenance and care (AMC)
Additional Note: Solar panel systems are of three types on-grid, off-grid, and hybrid.
On-Grid
On-grid systems, also known as grid-tied solar systems, are connected to your local utility grid. These systems do not require any batteries as they are connected to the grid for power storage and distribution. A net meter that is connected to a utility grid and inverter, which allows excess energy to pass to the utility grid. This on-grid system is mainly suitable for customers with steady grid power and minimal power outages. It is not only used for homes but also used in educational institutions, industrial units, and commercial establishments as their main source of power.
Off-Grid
As the name suggests, off-grid solar systems aren't tied to any grid; they have a battery that stores the power generated by the solar panel. It is good for when the utility grid is expensive and inaccessible. It makes you completely independent from the electrical grid; hence, it is best for remote areas. However, the disadvantages are high initial cost, you should be careful that you get sufficient power during low sunlight and limited energy generation.
Hybrid
A hybrid solar panel is a solar panel system that contains solar panels, a hybrid inverter, and a battery to ensure an uninterrupted energy solution. You can store the excess power in the batteries, which can be used later. This will help to provide a continuous supply of electricity, even in the power outages.
Financing Your Solar System: Options That Make Solar Affordable
Finance options for solar systems in India are bank loans, EMI, NBFCs, and government. You will get loan options like rooftop solar loans, solar loans from banks, loans from an NBFC, and loans from IREDA.
Hidden Savings: You can reduce appliance wear due to a consistent power supply.
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Choosing the Right Solar System for Maximum Returns
By considering some factors, you can choose the right solar system that offers maximum returns. The factors are:
Energy needs
The electricity that your household uses.
Panel efficiency
The percentage of sunlight that a solar panel converts into usable energy.
Roof space
The roof space needs solar panels
Panel type
Whether the panel is monocrystalline, polycrystalline, or thin-film panels.

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Monocrystalline:
Monocrystalline panels are a variety of PV panels. It is made from a single silicon crystal. Hence, it allows electricity to flow more efficiently. These are the most efficient (15-24%) and provide over 300 watts of power capacity. Moreover, these panels are highly durable solar panel and also the most expensive. -
Polycrystalline:
These panels are less efficient and affordable than monocrystalline panels. Polycrystalline are made from several parts of silicon panels and are less efficient and affordable than monocrystalline panels. It is also known as multi-crystalline solar panels. They produce less waste, and they can tolerate temperatures between -40 °C and 85 °C. The required space for these panels is more than monocrystalline. -
Thin-film:
These are less efficient and affordable. If you wish to mount them on curved or movable surfaces, this is a fantastic option. It is made by depositing a thin layer of photovoltaic material onto a substrate, and it is a flexible, lightweight, and thin solar cell. These thin films are used in portable devices and building-integrated photovolatics. The working of thin films is similar to monocrystalline and polycrystalline panels. -
Bifacial: Bifacial bifacial solar panels absorb sunlight from both sides and help with shading issues. It is made of tempered glass and monocrystalline cells. The use of these types of panels provides many benefits, including increased energy production, longer lifespan, weather resistance, and performance in reflective environments. Due to the technology used in it, it is more expensive than other traditional solar panels.
The main difference between monocrystalline and polycrystalline is the type of silicon solar cell they use.
Additional Tip:
Choose high-efficiency solar panels that will save money on your electricity bills and generate more electricity.
The Average Solar Panel Installation Cost in India Based on Panel Types
Capacity | Monocrystalline (₹ per watt) | Polycrystalline (₹ per watt) | Thin Film (₹ per watt) | Bifacial (₹ per watt) |
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100 kW | ₹24 to ₹25 per watt | ₹28 to ₹32 per watt | ₹22 to ₹26 per watt | ₹25 per watt |
200 kW | ₹24 to ₹25 per watt | ₹29 to ₹31 per watt | ₹22 to ₹25 per watt | ₹25 per watt |
300 kW | ₹24 per watt | ₹28 to ₹29 per watt | ₹21 to ₹24 per watt | ₹25 per watt |
400 kW | ₹24 per watt | ₹27 to ₹29 per watt | ₹21 to ₹23 per watt | ₹25 per watt |
500 kW | ₹24 per watt | ₹27 per watt | 21 to ₹23 per watt | ₹25 per watt |
1 MW | ₹24 per watt | ₹27 per watt | ₹20 to ₹22 per watt | ₹25 per watt |
GEPS Pricing of Commercial and Industrial Solar Panel Installation
In India, the typical cost is around 1,60,000 per kilowatt. At GEPS, we offer competitive pricing for both commercial and industrial solar panel installation without compromising on quality. The pricing is generally based on size, location, installation complexity, and government subsidies available. And we also help to get government incentives easily and quickly. At GEPS, we also provide complete installation and maintenance services, ensuring that your solar investment delivers long-term benefits. Contact us today to discuss your specific needs and receive a customized quote.
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System size: The solar system size you need.
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Storage: Whether it needs to integrate an energy storage system.
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Warranty:The duration of the warranty on the panels and components.
Additional Tip:
To maximize solar energy potential, optimize the orientation and angle of the panels
Also, cleaning your panels and free of debris, avoiding shading, and installing energy-efficient appliances also help to maximize your solar energy.
By considering these, you can choose the right solar system for maximum returns in your home.
Government Incentives
The Indian government offers a variety of incentives for solar panel installation cost. These subsidies, tax benefits, and net metering policies make solar energy more affordable and accessible; moreover, they encourage the use of renewable energy.
Subsidies
PM Surya Ghar Muft Bijili Yojana: This benefit will get to the citizens of the country. 1 crore households will get 300 units of free electricity every month. This will help 1 crore families to save 15,000 crore yearly. By selling surplus power to KSEB, you can earn money.
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1 kW: Rs 30,000
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2 kW: Rs 60,000
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3 kW or higher:Rs 78,000
Note: Solar panel systems are of two types on-grid and off-grid. But you will get subsidies for only on-grid solar systems.
Solar Panel Cost After Subsidy
System Capacity | Estimated Price Range (INR) | Subsidy Applicable (INR) | Price After Subsidy (INR) |
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2 kW | ₹1,50,000 – ₹1,60,000 | 60,000 | 90,000 - 100000 |
3 kW | ₹2,10,000 – ₹2,30,000 | 78,000 | 1,32,000 - 1,52,000 |
4 kW | Rs. 2,52,000–2,85,600 | 78,000 | 2,32000 - 207000 |
5 kW | ₹3,10,000 – ₹3,30,000 | 78,000 | 232000 - 2,52000 |
10 kW | ₹3,10,000 – ₹3,30,000 | 78,000 | 4,72000 - 5,22000 |
To know more about PM Surya Ghar Muft Bijili Yojana: https://gepsenergy.com/blog/pm-surya-ghar-muft-bijli-yojana.html
Tax Benefits
Accelerated depreciation: A tax benefit that enables investors to depreciate solar panels faster than traditional plants.
Conclusion
The purchase of solar panels is an important step towards energy independence for the home, helping the homeowner to insulate themselves from rising electricity costs and uncertain power outages. Also, with advances in solar technology like high-efficiency panels, smart inverters, and real-time monitoring apps, the opportunity for optimizing your energy consumption has never been greater.
GEPS Energy is committed to making this transition easy and rewarding. They don't just install solar systems; they partner with you on a journey toward a brighter, greener future. From helping you choose the ideal solar solution to guiding you through subsidy applications and ensuring advanced after-installation support, our mission is to maximize the value you derive from your solar investment.
FAQ
2 kW: ₹85,000–₹1,00,000
3 kW: ₹1,30,000–₹1,50,000
5 kW: ₹2,45,000–₹2,60,000
The solar panel installation cost as well as the quality of the panels and other components may affect the final cost.