Solar power systems in India have the potential to cut down on monthly energy expenditure for homes, farmhouses and enterprises. But customers must be prepared to pay for solar items, mounting components and labour as part of the installation cost, which may be a little high upfront. Home solar power prices scheduled for 2024 can be affected by many things, so it is important that we know them.

We all need to understand how much home solar power systems cost as they will reduce our electricity bills as well as increase the value of properties. The time taken to recover this amount paid depends mainly on the electricity rates charged by different suppliers as per the size of a person’s home and the payment mode used among other factors. Solar panels are being widely installed across India due to the concerns of environmental degradation caused by the combustion of fossil fuels as well as independence from external sources.

What is Home Solar Power?

Setting up a solar panel for home solar power

Home solar power refers to a residential energy system where electricity is generated from solar panels, inverters, and battery storage. The panels can be monocrystalline, polycrystalline, or thin film modules. Inverters convert DC produced by solar panels into ACs used in homes.

Some systems also have batteries to store excess power. Such systems reduce dependence on the grid, lower energy bills, and promote sustainability. To assess solar options, knowledge about these parts is essential.

Factors Affecting home solar power price

From 2024, installing a home solar power system in India can cost ₹. 1.5 lakh or even more; however, some people spend only ₹. 50 thousand on this installation.

Cost Breakdown:

Solar Panel Cost: Polycrystalline and thin film options cost less per watt than high-efficiency monocrystalline panels. The average cost of a kilowatt solar panel is Rs 37,500 to Rs 42,000. Larger systems make more power but cost more while smaller systems are cheaper.

Installation Cost: Costs vary due to permissions, inspections, complexity of the project and local labour rates. Usually, this means anywhere between 20k – 100k INR including everything like equipment for the job!

Inverter: Depending on the type and capacity a micro-inverter can cost between 20k-80k INR which is more expensive than a string inverter.

Battery Storage: Energy storage through batteries starts at around Rs 20,000 but can go up to over a lakh depending on capacity and brand name.

Ground-mounted vs. rooftop systems: Ground-mounted installations usually cost between 10K-50K INR compared to rooftop setup costs.

Government incentives: Federal tax credits and local municipal subsidies offered by state governments can save you money! Subsidy schemes in India cover up to seventy percent (70%) of the total expenses incurred under solar rooftop projects implemented across the country by central government agencies like MNRE. Quality of components Investing in better parts may increase your price by ten percent (10%), twenty percent (20%) or even thirty percent (30%), but it will improve performance and will last longer!

Sunlight-dense areas: Places that get a lot of sunlight have cheaper installation rates because they produce energy more efficiently than anywhere else!

How Much Does It Cost to Install Solar Panels at Home?

Want to know how much it would cost to install solar panels? Each solar energy system is unique as it depends on the type of structure, roof specifications, shading and utility requirements. The average cost of installing solar panels on homes in India is Rs 1,89,000 – 2,15,000 for a 3kWp solar system. In India, per watt price for solar panel can range between Rs 75 to Rs 85.

Below is a table that shows the estimated range of solar panel installation costs per kWh across different sizes of systems in India:

Solar System Size Price Range (Estimated)

1kW Solar System ₹. 75,000 – 85,000

2kW Solar System ₹. 1,50,000 – 1,70,000

3kW Solar System ₹. 1,89,000 – 2,15,000

4kW Solar System ₹. 2,52,000 – 2,85,600

5kW Solar System ₹. 3,15,000 – 3,57,000

10kW Solar System ₹. 5,31,000 – 6,07,000

Thumbs up towards a solar panel for providing home solar power

Before switching to solar energy, it is important to think about how various factors may affect your finances over time. These factors include your electricity bill, location-specific considerations, the type of equipment used, and government incentives.

Here are some key steps that will enable you to estimate the savings relative to the cost of installing solar panels within a 25-year period, which is considered the average life span for most systems.

Solar Panel Installation Cost Per KWH in India

Absolutely! Here is a table showing the estimated cost per watt for installing solar systems of different sizes:

System Capacity Approx. Installation Cost per Watt (in Rs)

1 KW ₹. 60 – 70

5 KW ₹. 60 – 80

10 KW ₹. 55 – 70

15 KW ₹. 60

20 KW ₹. 58

25 KW ₹. 55

50 KW ₹. 58

100 KW ₹. 61

250 KW ₹. 48

500 KW ₹. 47

1 MW ₹. 50

(Reminder: These costs are examples and may vary due to location, component quality, and difficulty of installation.)

Calculating Savings Based on Solar Panel Prices for Homes in India

Solar panels generate clean power from the sun, reducing your reliance on the grid and potentially lowering or eliminating your monthly electricity bill. The greater your electric bill, the more you can save with solar installation. Keep in mind that electricity rates and usage vary, affecting your potential savings.

More sunlight means greater energy generation. In India, many areas receive 3 to 5 peak sun hours daily. Your solar system’s output also depends on roof type, orientation, and shading. High-efficiency panels can still perform well under less-than-ideal conditions.

The cost of solar panel installation includes panels and related components. While the initial investment is significant, maintenance costs are minimal over the system’s 25-year lifespan. An average 5kW residential solar system costs ₹. 3,15,000 to 3,57,000, excluding government subsidies and incentives. Calculate your daily energy needs to choose a system that meets your requirements.

Advantages of the Government Solar Subsidy Scheme for Homes

MNRE’s Rooftop Solar Programme Phase-2 has fixed subsidies to persuade homeowners and housing societies to adopt solar power on their rooftops. The National Portal for Rooftop Solar makes the subsidy process faster and easier by providing details of eligibility, approved solar models and their manufacturers as well as listed installation-vendors.

The subsidy for rooftop solar systems with a capacity of up to 3 kW is Rs 18,000 per kWh. For systems with a capacity of more than 3 kW and up to 10 kW, the charge is Rs 9,000 per kWh and for systems above 10 kW, it is Rs 1,17,000. RWAs/GHSs provide a subsidy of Rs 9,000 per kWh for common facilities up to 500 kW up to 10 kW per household (including individual rooftop plants installed by residents).