This guide is for households and buyers who want to set a solar budget and compare complete vendor quotes.
Home solar system cost by size
Use these figures to set a budget, not to accept or reject a vendor on price alone. They are broad planning estimates for a standard residential on-grid installation before central subsidy and without a battery. In other words, this is a solar rooftop cost per kW guide, not a fixed quotation.
| System | Typical roof area | Planning range | Central subsidy, standard states* |
|---|---|---|---|
| 1 kW | 80 to 100 sq ft | ₹65,000 to ₹85,000 | Up to ₹30,000 |
| 2 kW | 160 to 200 sq ft | ₹1.20 to ₹1.60 lakh | Up to ₹60,000 |
| 3 kW | 240 to 300 sq ft | ₹1.80 to ₹2.40 lakh | Up to ₹78,000 |
| 5 kW | 400 to 500 sq ft | ₹2.90 to ₹3.90 lakh | Up to ₹78,000 |
| 10 kW | 800 to 1,000 sq ft | ₹5.50 to ₹7.50 lakh | Up to ₹78,000 |
*For an eligible household using a registered vendor and compliant equipment under PM Surya Ghar. Special category states have higher rates. Confirm the amount shown in your National Portal application.
What the installed price should cover
A usable quote is more than a panel price. Ask for a line item split covering modules, inverter, module mounting structure, DC and AC cables, protection boxes, earthing, lightning protection where required, transport, installation, testing and portal support.
Roof height, weak slabs, elevated structures, long cable runs and difficult access can add cost. Meter charges and application fees depend on local rules. A battery is normally separate. A 5 kWh lithium battery can add roughly ₹1.0 to ₹1.5 lakh, depending on chemistry, usable capacity, power rating and warranty.
On-grid, hybrid or off-grid?
On-grid
Lowest upfront cost. Uses the grid when solar is unavailable. Standard systems shut down during a power cut.
Hybrid
Adds backup capability and a compatible battery. Costs more and needs careful load planning.
Off-grid
Useful where grid supply is absent or poor. Battery sizing drives cost and maintenance.
How the central subsidy changes the cost
Under the published PM Surya Ghar guidelines, standard-state support is ₹30,000 per kW for the first 2 kW and ₹18,000 for the next 1 kW. There is no extra central subsidy above 3 kW for an individual household. The usual maximum is ₹78,000.
Special category states and territories use ₹33,000 per kW for the first 2 kW and ₹19,800 for the next 1 kW, up to ₹85,800. The listed group includes Uttarakhand, Himachal Pradesh, Jammu and Kashmir, Ladakh, the North Eastern states including Sikkim, Andaman and Nicobar Islands, and Lakshadweep.
Commercial and industrial connections do not receive this residential central assistance. A battery does not increase the subsidy because the calculation uses solar module DC capacity.
How to compare a solar system quotation
- Match the exact module make, model, wattage and quantity.
- Check inverter make, capacity, phase and warranty.
- Ask for the proposed layout and shade assessment.
- Write down generation assumptions. A guaranteed daily number is a warning sign.
- Confirm taxes, net meter work, structure type and civil work.
- For subsidy, verify the vendor on the National Portal before paying.
- Keep payment milestones tied to equipment delivery, commissioning and documents.
Use the SolarCost.in calculator to test the quotation against your bill and roof area.
Choose capacity from units, not the bill amount
A high bill does not always mean you need a large solar system. Fixed charges, arrears and tariff slabs can increase the rupee amount without increasing energy use. Collect 12 months of bills and add the kWh units. Then compare that annual use with a location-specific generation estimate.
As a first planning check, 1 kW of well-sited rooftop solar often produces about 1,300 to 1,600 kWh in a year in India. Weather, shade, direction, module temperature and system losses can move the result. A household using 4,500 kWh a year may start by studying a system near 3 kW, then adjust for roof limits and local export rules.
| System size | Typical use case | Panels at 500 W each | Clear roof planning area |
|---|---|---|---|
| 1 kW | Light use or a small household | 2 | 80 to 100 sq ft |
| 2 kW | Small home with moderate use | 4 | 160 to 200 sq ft |
| 3 kW | Common family-home range | 6 | 240 to 300 sq ft |
| 5 kW | Larger home or heavier daytime use | 10 | 400 to 500 sq ft |
| 10 kW | Large home, housing common load or small business | 20 | 800 to 1,000 sq ft |
Panel count changes with module wattage. Roof area also needs access gaps and space around water tanks, parapets and shaded zones. Air conditioners do not determine solar size on their own. Their running hours, star rating, temperature setting and time of use matter.
Why two quotes for the same kW can differ
Module and inverter choice matter, but the structure and site can change the price just as much. A low RCC roof with short cable runs is simpler than a tall metal shed or an elevated structure built above a terrace. Coastal corrosion protection, high wind design, waterproofing and difficult material access also add work.
Ask vendors to price these items separately
- Solar modules, including make, model, wattage and quantity
- Inverter, monitoring device and any backup output
- Mounting structure, fasteners, coating and structure height
- DC and AC cable lengths, connectors and cable route
- Earthing, surge protection, isolators and lightning protection where required
- Civil work, waterproofing, scaffolding, transport and lifting
- Application support, inspection, meter work and taxes
- Workmanship warranty and maintenance duties
A price per square foot is not a sound way to compare solar systems. Solar capacity is sold in kW, while roof area is a design limit. A vendor who quotes only a panel price has not quoted a working power plant.
Grid, hybrid and off-grid costs are not comparable
An on-grid quote normally excludes battery backup. A hybrid system needs a compatible inverter, battery, protection and a planned backup circuit. An off-grid system must cover low-sun periods and can need a much larger battery. Compare systems with the same operating purpose before judging price.
Budget for the years after installation
Panels commonly carry long performance warranties, but other parts can need attention sooner. Allow for safe cleaning where the site is dusty, periodic electrical checks, monitoring repairs and possible inverter work during the project life. A battery has its own cycle and capacity limits.
Solar panels do not stop working on their twenty-fifth anniversary. Output usually declines gradually. At that point, inspect generation, insulation, connectors, structure and inverter condition. Continue using a safe system if it still performs well. Replace or repower only after checking the technical and financial case.
Insurance is worth asking about for a costly system, especially where storms, flood, theft or business interruption are material risks. Read exclusions for rooftop equipment and notify the insurer if the building policy requires it.
How to test an after-subsidy price
Start with the complete price before subsidy. Subtract only the assistance that the live portal shows for your eligible application. Then add any excluded meter, civil or finance cost. This avoids a common sales trick where a low headline price hides missing equipment or assumes a subsidy that has not been approved.
For a 3 kW home system, compare the quote with the PM Surya Ghar application guide. For a system with storage, price the solar plant and battery separately. Use the savings guide to check whether the annual generation and tariff assumptions support the promised payback.
Common questions
Is ₹78,000 available for every 3 kW system?
No. It is the standard-state central subsidy for an eligible residential installation that follows PM Surya Ghar rules. The final amount and eligibility appear in the National Portal process.
Does a more expensive panel increase the subsidy?
No. The central amount is linked to eligible system capacity and the scheme rate, not the vendor quote.
Can a shop or factory claim the household subsidy?
No. The published central assistance covered here is for eligible residential connections and qualifying common facilities of housing societies.
What is the cost of a solar system for home in India?
A standard residential on-grid installation often needs a planning budget of about ₹65,000 to ₹85,000 per kW before subsidy. Roof work, equipment, structure, city and meter requirements can move the final price.
How much does a 1 kW solar system cost in India?
A 1 kW standard residential on-grid installation often needs a planning budget of about ₹65,000 to ₹85,000 before subsidy. Roof work, equipment, structure, city and meter requirements can move the final price.
What is the price of a 3 kW solar system with a battery?
Price the solar plant and storage separately. A 3 kW on-grid system may fall near ₹1.80 to ₹2.40 lakh before subsidy. A 5 kWh lithium battery package can add roughly ₹1.0 to ₹1.5 lakh, plus any hybrid inverter or wiring changes.
Can a 3 kW system run two air conditioners?
Solar capacity alone cannot answer this. Check each AC input power, whether they run together, other household loads, daytime solar output and whether the system is on grid or supplying a backup circuit.
Is a cheaper per-watt quote always better?
No. Check the exact models, structure, protections, cable lengths, warranties, taxes, approvals and excluded work. A low price can reflect a smaller scope rather than better value.
Does solar cost depend on roof area?
Roof area limits the size and layout, but vendors should not price the plant only per square foot. Capacity, equipment and site work drive the installed cost.
Official sources
Rules and portal processes can change. Check these sources before committing money.
About the editorial team
The SolarCost.in Editorial Team checks official rules, public data, calculations, source dates and plain language. The team is independent of installers, vendors and lenders. It does not install solar or sell customer leads, and it does not provide engineering, legal or financial advice. Read our editorial policy or report a correction.