As the global focus on green energy intensifies, the spotlight on solar power, particularly rooftop panels, has grown brighter in Indian households. Despite the ambitious Pradhan Mantri Suryodaya Yojana’s goal to install solar panels in over 10 million households, progress has been modest, with only 700,000-800,000 households currently harnessing solar energy. Since 2016, India’s rooftop solar capacity has reached 2.7 GW, and the Ministry of New and Renewable Energy (MNRE) unveiled the Rooftop Solar Programme Phase-II in 2019, targeting 40 GW of rooftop solar.
Also Read: The Cost of Installing a Solar Power System in Kanpur, UP
The recent launch of the Pradhan Mantri Suryodaya Yojana aims to expedite solar energy adoption. However, challenges persist due to limited public awareness and the absence of easily accessible rooftop solar finance. Vikas Agarwal, Co-Founder and Chief Business Officer of Credit Fair, a fintech startup offering personal loans for rooftop solar setups, remains optimistic about increased demand with government support.
Despite hurdles, companies like Om Solar Solution have played a pivotal role, contributing to solar panel installation in India in numerous households. With approximately 7-8 lakh households currently equipped with solar power, the collective effort aligns with the government’s vision to reach one million residential rooftop solar installations nationwide in the next five years. During a global shift toward sustainable energy, this blog explores the rising demand for home solar panels in India, driven by environmental consciousness and the pursuit of energy independence. An in-depth analysis will unravel the factors influencing the solar panel installation cost for homes in 2024, providing readers with valuable insights into navigating this eco-friendly transition.
Understanding the Basics of Home Solar Panel Systems
Before we get into the financial implications, it’s important to understand the fundamental components of a home solar panel installation. A typical system consists of solar panels, inverters, mounting structures, wiring, and batteries (optional for energy storage). The number of solar panels and inverter capacity are determined by criteria such as the household’s energy requirements and the amount of rooftop space available.
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Solar Panels: Solar panels, commonly known as photovoltaic (PV) panels, are essential components of any solar power system. These panels are intended to capture and convert sunlight into electricity. In India, the market principally offers three types of solar panels: mono PERC, polycrystalline, and half-cut solar panels, which, because of their high efficiency, are more expensive.
Inverters: Inverters transform the direct current (DC) electricity generated by solar panels into alternating current (AC) that may be used in residences. There are various sorts of inverters, such as string inverters and microinverters. String inverters are inexpensive but have a single point of failure, whereas microinverters, while more expensive, provide superior performance, particularly in shaded locations.
Mounting Structures: Solar panels require a strong and secure mounting structure, which can be either ground or rooftop installed. The decision is based on criteria such as available space and local climate conditions. Adjustable mounts that optimize the angle of the panels for optimal sunshine exposure can increase the total cost.
Batteries (Optional): If you want to store excess energy created during the day for later use, batteries are an optional but important component. While batteries increase the upfront cost, they provide energy independence and resilience during power outages.
Factors Impacting Solar Panel Prices in India
Understanding the dynamics behind the significant variation in Solar Panel Installation Costs in India among different brands and vendors is crucial for those considering renewable energy solutions. Here, we dissect the key factors influencing the per-watt cost of solar panels:
Panel Efficiency
- Measurement of sunlight converted into electricity.
- Standard panels: 17% to 19%, premium panels: up to 21-22%.
- Higher efficiency correlates with increased electricity generation and price.
Panel Size/Capacity
- Available in capacities like 100W, 250W, 330W, 400W, etc.
- Economies of scale: Price per watt tends to decrease with larger panel sizes.
Type Of Solar Panels
I. Polycrystalline Silicon Solar Panels
- Traditional, common, blue-colored panels with slightly lower efficiency.
II. Monocrystalline PERC/Mono PERC Panels
- Advanced cell technology, black-colored, higher efficiency.
- 10-20% higher price per watt compared to polycrystalline panels.
III. Bifacial Solar Panels
- Solar cells on both sides for increased energy generation.
- Around 20-30% pricier than monocrystalline PERC panels.
Brand & Manufacturing Quality
- Tier 1 solar brands with the latest technology, superior components, and high automation.
- Better performance but 15-20% pricier than smaller brands.
India Vs Imported Solar Panels
- Imported panels, especially from China, are 10-15% cheaper due to a devalued currency and reduced shipping costs.
- Indian-made panels offer better quality control.
Government Import Duties
- Customs duty on imported solar panels in India to protect domestic manufacturers.
- Adds about 10% extra cost for imported panels.
- Duty rates have reduced over the years, contributing to lower prices.
Comprehending these variables related to solar panel installation cost enables customers to make well-informed decisions, striking a balance between cost, efficiency, and brand reputation while seeking out sustainable energy options.
Government Subsidies and Incentives for Solar Panels in India
To boost the widespread adoption of solar energy, the Indian government has introduced multiple subsidy and incentive programs. Here, we outline the key schemes:
Central Financial Assistance (CFA) | |
| Provided by | Ministry of New and Renewable Energy (MNRE) |
| Eligible Systems | Rooftop solar systems for homes and institutions |
| Subsidy Amount | Varies based on system capacity and location |
| Up to 3 kW: ₹14,588/kW (most regions) or ₹17,662/kW (North Eastern/UTs/Hilly States) | |
| 3 kW to 10 kW: Combination of the lower rate for the initial 3 kW and a lower rate for the remaining capacity | |
| Above 10 kW: A fixed sum of ₹1,14,803 (North Eastern/UTs/Hilly States) or ₹94,822 (most regions) | |
| Application Process | Through the online portal (solarrooftop.gov.in) or DISCOMs |
| Benefits | lowers the initial cost of installing a solar system, increasing its affordability |
| Production Linked Incentive (PLI) Scheme | |
| Focus | Encourage local manufacturing of high-efficiency solar modules |
| Benefits | Offers financial incentives to domestic manufacturers based on sales of eligible solar modules |
| Other Incentives | |
| Net Metering | Allows excess solar energy generated to be credited against your electricity bill |
| Loans and Tax Benefits | Numerous funding and tax deduction programs are available. |
| Resources for Further Information | |
| National Portal for Rooftop Solar | https://solarrooftop.gov.in/ |
| MNRE Website | https://mnre.gov.in/ |
| State-specific DISCOM Websites | Each state has its own Electricity Distribution Company (DISCOM) website with information on local solar programs and incentives |
Things to keep in mind
- Specific subsidy amounts and eligibility conditions may vary over time.
- Application methods and requirements can differ depending on the program and area.
- You should speak with qualified solar installation companies or MNRE officials for the most up-to-date information and guidance on how to profit from these incentives.
- By taking advantage of these government-backed programs, you can considerably lower the cost of installing a solar panel system while also enjoying the benefits of clean, renewable energy in your home or company.
Installed cost of rooftop solar power plant
The total cost of installing solar panels in India might differ greatly depending on numerous factors, including
- System size: The larger the system (measured in kilowatts or kW), the higher the initial investment. However, you’ll create more electricity, which may offset the expense over time.
- Panel type: Monocrystalline panels are typically the most efficient and expensive. Polycrystalline panels are slightly less efficient but more inexpensive.
- Brand and quality: Choosing reputable brands and high-quality components may increase the initial cost, but it ensures superior performance and longevity.
- Location: Certain states and regions in India provide more subsidies or incentives for solar installations, lowering the overall cost.
- Additional features: Including battery storage, powerful inverters, or smart monitoring systems will raise the cost.
Here’s an estimate of the overall solar panel installation cost per kWh in India for different system sizes in India, excluding subsidies.
| System Size | Estimated Cost Range |
| 1 kW system | ₹50,000 – ₹80,000 |
| 3 kW system | ₹1,50,000 – ₹2,00,000 |
| 5 kW system | ₹2,50,000 – ₹3,50,000 |
| 10 kW system | ₹5,00,000 – ₹7,00,000 |
| Additional Costs | Estimated Range |
| Site Assessment and Design | ₹5,000 – ₹10,000 |
| Permits and Approvals | ₹2,000 – ₹5,000 |
| Maintenance and Monitoring | ₹5,000 – ₹10,000 per year |
Note: These figures are estimates, and actual costs may vary. Consult a licensed solar installer to get a personalized quotation depending on your exact requirements and area.
Conclusion
We need to know in this article how much solar panel installation will cost in India in 2024. Installing a solar system at home is worthwhile if you pay high energy bills in your area, and it’s even more beneficial while the solar subsidy program is in effect. Long-term, solar energy is cheaper and better for the environment than other options, even with a significant upfront cost. With a net-metered solar system, your monthly utility costs should be significantly reduced.
Also Read: Haryana Solar Panel Prices with Subsidy: Affordable Renewable Energy Solutions
It’s crucial to use the ALMM list when buying solar components to purchase made-in-India solar panels and be eligible for subsidies. Are you unable to afford solar system installation for home up-front? Om Solar Solution may assist you in switching to solar power at a far lower cost by offering leasing solutions. Therefore, before making selections, speak with local solar providers and obtain comprehensive prices.