Electricity tariffs in Indian states like UP and Maharashtra will soon have a 15-20% tariff hike. It is just a matter of time before the entire country will be paying substantially more for electricity.
In such a situation, installing rooftop solar at homes is necessary. Although delaying it is against time, you need to know all the details about the solar panel for home price.
Only when you know the installation cost can you calculate the returns you will get on your investment.
Does it pique your interest? If yes, this post will be a delightful read. By the end of this post, you will know everything about the solar panel for home price – cost with and without a subsidy, return on investment, break-even period, and more.
Dive in to decode the price of solar installation in India like never before!
How much money is required to install solar at homes?
Solar panel for home price depends on many factors. It can vary based on which panels you choose and the inverter type. Even the space on your roof and the electricity tariff per unit in your state/ city will affect the installation cost.
Since most of these specifics rest with you, it is hard to give one number – one size does not fit all. But there is a price range within which you can install rooftop solar at your home.
Here is the range of the solar panel for home price at your disposal.
- 1 KW ₹70,000 to ₹1,10,000
- 2 KW: ₹1,40,000 to ₹1,80,000
- 3 KW: ₹1,80,000 to ₹2,40,000
- 4 KW: ₹2,40,000 to ₹3,20,000
- 5 KW: ₹3,00,000 to ₹4,00,000
- 10 KW: ₹6,00,000 to ₹8,00,000
If this price range discourages you from going solar, you are deciding to give up too early. This cost is going to be very petty in the long run.
Besides, if you are eligible to get a subsidy, the solar panel for home price will reduce significantly.
Before we walk you through the installation cost and savings, we are enlisting the eligibility criteria.
- The system should be on-grid
- The panels should be made within the country
- The panels should also comply with every specification enlisted by ALMM
- If the system is being installed for commercial purposes, the subsidy cannot be claimed
- Homeowners and housing societies get a subsidy
- Subsidy for homes is capped at 10 KW
That said, here is a table on the subsidy rates offered by the Indian government under the national subsidy scheme (known as Direct Benefit Transfer).
| Plant Capacity | Applicable Subsidy |
| Up to 3kW | ₹14,588/- per kW |
| Above 3kW and up to 10kW | ₹14,588/kW for the first 3kW; thereafter, ₹7294/kW |
| Above 10kW | ₹94,822 fixed |
Based on these numbers, we have deduced the solar panel for home price after you get a subsidy.
Here is the final graph.
| System’s capacity | Price without subsidy | Subsidy offered | Price after subsidy |
| 1 KW | ₹70,000 to ₹1,10,000 | ₹14,588 | ₹55,412 to ₹95,412 |
| 2 KW | ₹1,40,000 to ₹1,80,000 | ₹29,176 | ₹1,10,824 to ₹1,50,824 |
| 3 KW | ₹1,80,000 to ₹2,40,000 | ₹43,764 | ₹1,36,236 to ₹1,96,236 |
| 4 KW | ₹2,40,000 to ₹3,20,000 | ₹51,058 | ₹1,88,942 to ₹2,68,942 |
| 5 KW | ₹3,00,000 to ₹4,00,000 | ₹58,352 | ₹2,41,648 to ₹3,41,648 |
| 10 KW | ₹6,00,000 to ₹8,00,000 | ₹94,822 | ₹5,05,178 to ₹7,05,178 |
How much can you save by installing solar?
You know the solar panel for home price with and without subsidy now. But it can still be quite a task to deduce savings from solar since every house has different requirements, even if the house size is the same – the rooftop space can differ, and even the number of appliances being used can vary.
Therefore, only that system that can generate the energy you use yearly on average can fulfil your energy requirements.
Without keeping you guessing, we are enlisting an example to help you deduce the savings after you install solar, read more.
- Suppose the current electricity tariff in your state is Rs 8
- You consume approximately 7,200 units of electricity in a year (aka 600 units/ month)
- Your monthly bill must be around Rs. 4,800 (600 x 8)
Every kW solar system can generate four electricity units daily when the conditions are ideal.
Since you require 7200 units/ year, a 5 kW system is correct (7200 units divided by 365 days).
Paying Rs 4,800 a month without solar means paying around 57,000 rupees in electricity bills in a year.
Now, solar systems can last for 25 years. It might make you think you can save 14-15 lakh rupees within 25 years. But electricity tariffs increase by 4% to 6% every year. Thus, the actual savings will be significantly higher than 14-15 lakhs in a span of 25 years.
What is the break-even period?
You know the solar panel for home price, the subsidy offered, and the savings you can expect from solar. It is time we also resolve a connecting question –what is the break-even period?
The savings in 25 years are undoubtedly very high, but the break-even period matters a lot too.
The initial cost of installing an on-grid rooftop system is recovered within 4 to 6 years. And for the next two decades, you will get free electricity from solar. Even if your consumption increases in future, solar is scalable.
Conclusion:
Solar panel for home price is a justified investment. Rather than paying tens of lakhs of rupees on electricity bills in a span of 25 years, installing rooftop solar for home is better. It will offer massive savings.
Rooftop solar will slash your electricity bill by more than 90%. Although we cannot give you an exact figure since multiple factors influence the final solar panel for home price, there is a price range. Have a look.
- 1 KW ₹70,000 to ₹1,10,000
- 2 KW: ₹1,40,000 to ₹1,80,000
- 3 KW: ₹1,80,000 to ₹2,40,000
- 4 KW: ₹2,40,000 to ₹3,20,000
- 5 KW: ₹3,00,000 to ₹4,00,000
- 10 KW: ₹6,00,000 to ₹8,00,000
