The rooftop solar cost per kW in India in 2026 is roughly ₹45,000 to ₹85,000 for a residential on-grid system before subsidy, so a typical 3 kW home system lands around ₹1.5–2.25 lakh, or about ₹72,000–₹1.47 lakh after the ₹78,000 PM Surya Ghar subsidy. Below is a size-by-size price table and a clear breakdown of what pushes a quote up or down.
All prices in this guide are indicative, compiled from published 2026 installer and manufacturer price guides, and checked against official subsidy and GST rules as of September 2026. Your actual quote will depend on your roof, your state, your DISCOM and the equipment you choose.
Rooftop solar cost per kW in India: the quick answer
For a grid-connected (on-grid) home system with a net meter, the price per kW falls as the system gets bigger. A few costs are fixed no matter the size: the site survey, DISCOM paperwork, the net meter, earthing, lightning protection and the installation crew's visit. On a 1 kW system those fixed costs are spread over just one kilowatt, so the per-kW figure is highest. This is why the installed 1kw solar panel price looks expensive next to a 3 kW or 5 kW quote.
- 1 kW: about ₹70,000–₹1,05,000 per kW
- 2–3 kW: about ₹50,000–₹85,000 per kW
- 5–10 kW: about ₹45,000–₹70,000 per kW
These figures are the total installed price, including modules, inverter, mounting structure, cabling, protection devices, installation and GST. Hybrid and off-grid systems with batteries cost much more, as covered further down.
Solar system price with subsidy: 1 kW to 10 kW table
This table uses the central PM Surya Ghar subsidy for individual households. It does not include state top-up subsidies, which some states offer on top of the central amount.
| System size | Indicative installed cost (on-grid, before subsidy) | Central subsidy (PM Surya Ghar) | Indicative net cost to household |
|---|---|---|---|
| 1 kW | ₹70,000 – ₹1,05,000 | ₹30,000 | ₹40,000 – ₹75,000 |
| 2 kW | ₹1,10,000 – ₹1,70,000 | ₹60,000 | ₹50,000 – ₹1,10,000 |
| 3 kW | ₹1,50,000 – ₹2,25,000 | ₹78,000 | ₹72,000 – ₹1,47,000 |
| 4 kW | ₹1,95,000 – ₹2,85,000 | ₹78,000 | ₹1,17,000 – ₹2,07,000 |
| 5 kW | ₹2,40,000 – ₹3,50,000 | ₹78,000 | ₹1,62,000 – ₹2,72,000 |
| 10 kW | ₹4,50,000 – ₹6,50,000 | ₹78,000 | ₹3,72,000 – ₹5,72,000 |
Two things stand out. First, the 3kw solar system price gives the best subsidy per rupee spent, because the ₹78,000 cap is reached at 3 kW. Second, the 5kw solar system price after subsidy is not much better per kW than paying full price, because kilowatts 4 and 5 get no central subsidy. Choose size based on consumption, not on the subsidy. Our guide on sizing a system from your electricity bill shows how.
How the PM Surya Ghar subsidy changes the net price
Under PM Surya Ghar: Muft Bijli Yojana, the central subsidy (called CFA) covers 60% of the system cost for the first 2 kW and 40% for the portion between 2 and 3 kW. The Cabinet release states this works out to ₹30,000 for 1 kW, ₹60,000 for 2 kW and ₹78,000 for 3 kW or more, at benchmark prices. The subsidy is calculated on these fixed amounts, not on the price your installer charges. So a more expensive quote does not earn a bigger subsidy.
Points to keep in mind as of September 2026:
- The cap is ₹78,000 per household. Anything above 3 kW is paid in full by the customer.
- The scheme runs until 31 March 2027, per MNRE's May 2026 statement. Watch for updates after that date.
- Loans are available. The Cabinet release mentioned collateral-free loans of around 7% for home systems up to 3 kW. Rates can change, so confirm with the bank.
- State top-ups vary. Some states add their own subsidy. Check your state nodal agency or DISCOM.
For eligibility, documents and the application steps, see our PM Surya Ghar subsidy guide.
What drives the price per kW
Two quotes for the same 3 kW system can be ₹50,000 apart. Most of the gap comes from the factors below.
DCR vs non-DCR modules
When people search for the solar panel price in India, they usually find module-only prices per watt. Modules are the biggest single item in a home system, but they are only part of the installed cost per kW. DCR (Domestic Content Requirement) modules use Indian-made cells and modules. You need them to claim the PM Surya Ghar subsidy. Industry price surveys from early 2026 put DCR modules at roughly ₹22–26 per watt, against about ₹14–15 per watt for non-DCR modules with imported cells. On a 3 kW system, a gap of ₹8–11 per watt adds up to about ₹24,000–₹33,000. That is still well below the ₹78,000 subsidy, so for subsidised homes DCR is the obvious choice.
The cheaper non-DCR option is also closing for net-metered homes. MNRE requires net-metering projects to use cells from ALMM List-II (Indian cell makers). A July 2026 order allows net-metering projects to be commissioned without meeting this rule only until 31 December 2026. After that date, expect most on-grid home systems to cost about the same as a DCR system.
Module technology: mono PERC, TOPCon, bifacial
Mono PERC is the older, cheaper option. TOPCon modules are more efficient and usually lose less output in heat, and they now make up much of new DCR supply. Bifacial modules also collect light reflected onto their back side. That helps most on elevated structures over a light-coloured roof and adds little on a low, flat mount. Higher efficiency matters most when roof space is tight, because you get more kW from the same area.
Inverter type and brand tier
An on-grid string inverter is the standard choice for homes. Price varies by brand tier, warranty length (5 years vs 10 years), monitoring features and whether the unit is single-phase or three-phase. Most 5–10 kW homes have a three-phase supply, and three-phase inverters cost more. Microinverters and optimisers cost more again and are mainly used on shaded or split roofs.
Mounting structure and height
A standard low structure on an RCC roof is the cheapest. Many customers want an elevated structure so they can still use the terrace underneath, and the extra steel, galvanising and wind loading design can add a noticeable amount per kW. Tin-shed roofs, sloped tiles and high-wind coastal areas also change the structure cost. Always ask for structure height, steel type and coating thickness in writing.
Cabling distance and electrical balance of system
If the inverter sits far from the array, or the meter room is several floors down, you need longer and thicker DC and AC cables to keep losses low. Add earthing pits, lightning arrestor, DC and AC distribution boxes and surge protection. These are small line items, but cutting corners here causes most long-term failures.
Net meter and DISCOM charges
Every DISCOM sets its own application fee, meter cost, meter testing charge and any connection upgrade charges. The same system can have a few thousand rupees of difference in paperwork and metering cost from one state to the next. Check your DISCOM's current schedule of charges. Our net metering process guide covers the steps and documents.
GST on solar systems (changed in September 2025)
Following the GST Council's 56th meeting, GST on solar power generating systems and PV modules fell from 12% to 5%, effective 22 September 2025. When a system is supplied along with installation, 70% of the total price is treated as goods and taxed at 5%, and 30% is treated as services and taxed at 18%. That is an effective rate of about 8.9%, down from about 13.8% before the cut. PIB estimated the change would make a typical 3 kW home system cheaper by about ₹9,000–10,500.
Installer margin, service and warranty
A lower quote sometimes leaves out things a customer only notices later: free cleaning visits, annual maintenance, remote monitoring, help with subsidy follow-up, or a workmanship warranty. Installers who handle the full DISCOM and portal process, and who come back when something fails, price that service in. That is fair, but the quote should say so.
On-grid vs hybrid vs off-grid solar system price
The on grid solar system price is the lowest because there is no battery. The grid acts as your storage through net metering. Adding batteries changes the cost a lot:
- On-grid: the prices in the table above. Eligible for PM Surya Ghar. No backup during a power cut, because the inverter shuts down for grid safety.
- Hybrid: solar plus a battery plus a grid connection. Published 2026 price guides commonly show hybrid systems costing around 40–70% more than on-grid for the same panel capacity, depending mostly on battery size. MNRE has allowed hybrid inverters under PM Surya Ghar, but the subsidy is still calculated on solar capacity up to 3 kW. It does not grow when you add a battery.
- Off-grid: no grid connection. It needs a larger battery bank and is usually the most expensive per kW. It does not qualify for the PM Surya Ghar subsidy, which is only for grid-connected rooftop systems.
Lithium (LFP) battery prices in 2026 guides vary widely, from about ₹12,000 to ₹30,000 per kWh depending on brand, warranty and whether the battery management system and cabinet are included. Lead-acid is cheaper upfront but needs replacing much sooner.
Payback and ROI: how to work it out
Payback is simple arithmetic: net cost divided by yearly savings. The inputs are what matter.
Example (illustrative, not a quote): a 3 kW on-grid system with a gross price of ₹1,90,000.
- Net cost after central subsidy: ₹1,90,000 − ₹78,000 = ₹1,12,000.
- Assumed generation: 4 units per kW per day × 3 kW × 365 days = 4,380 units a year. This is a typical planning figure. Actual generation depends on location, tilt, shading and dust.
- Assumed tariff you avoid paying: ₹7 per unit. Yearly saving: 4,380 × ₹7 = ₹30,660.
- Simple payback: ₹1,12,000 ÷ ₹30,660 ≈ 3.7 years. Simple yearly return: ₹30,660 ÷ ₹1,12,000 ≈ 27%.
Now change one input. If the tariff you avoid is ₹5 per unit instead of ₹7, the yearly saving drops to ₹21,900 and payback stretches to about 5.1 years. That is why the same system pays back faster for a home in a high tariff slab than for a low-consumption home.
This simple method leaves out a few things: slow module degradation over the years, a probable inverter replacement during the system's life, cleaning and maintenance costs, and how your DISCOM settles surplus units under net metering. For a customer proposal, show these assumptions openly rather than quoting a single headline payback figure.
How installers should present price to a customer
Homeowners searching for solar panel cost for home usually compare two or three quotes on WhatsApp. The installer whose quote is easiest to understand often wins. A clear quote includes:
- Module make, wattage, technology (TOPCon or mono PERC) and DCR status
- Inverter make, capacity, phase and warranty
- Structure type, height, steel and coating
- Cable lengths or an allowance, plus the list of protection devices
- Net meter and DISCOM charges, shown separately
- GST shown clearly under the 70:30 split
- Gross price, subsidy, net price and the payback assumptions
- What service and warranty is included, and for how long
Our rooftop solar quotation format gives a ready checklist. Proposal tools like PitchSun can build this breakdown, including subsidy and payback, into a mobile proposal you can share with the customer on WhatsApp.
Frequently asked questions
What is the rooftop solar cost per kW in India in 2026?
For a residential on-grid system, installed prices are commonly quoted between about ₹45,000 and ₹85,000 per kW before subsidy, as of September 2026. Small 1 kW systems cost more per kW, and larger 5–10 kW systems cost less per kW. These are indicative market ranges, not official prices.
What is the 3 kW solar system price after subsidy?
A 3 kW on-grid system is commonly quoted at roughly ₹1.5 lakh to ₹2.25 lakh before subsidy. After the PM Surya Ghar central subsidy of ₹78,000, the indicative net cost is about ₹72,000 to ₹1.47 lakh, plus any state top-up where available.
Does a 5 kW or 10 kW system get more subsidy than a 3 kW system?
No. The central PM Surya Ghar subsidy for a household is capped at ₹78,000, which is reached at 3 kW. A 5 kW or 10 kW home system gets the same ₹78,000 central subsidy, so the extra capacity is paid for in full.
How much GST is charged on a rooftop solar system?
Since 22 September 2025, solar power generating systems attract 5% GST instead of 12%. When supplied with installation, 70% of the contract value is treated as goods at 5% and 30% as services at 18%, which works out to an effective rate of about 8.9%.
Can I get the PM Surya Ghar subsidy on a hybrid solar system with battery?
The subsidy is for grid-connected rooftop solar, and MNRE has allowed hybrid inverters under the scheme. The subsidy is calculated on the solar panel capacity (capped at 3 kW), not on the battery, and pure off-grid systems do not qualify. Confirm with your DISCOM before buying.
What is the payback period of rooftop solar in India?
For a subsidised 3 kW on-grid system, payback often falls in the range of about 4 to 6 years, depending on your net cost, how much sunlight your location gets and the tariff you avoid. Homes in higher tariff slabs recover their cost faster.
Sources
- PIB — Cabinet approves PM-Surya Ghar: Muft Bijli Yojana for installing rooftop solar in one crore households (Feb 2024)
- MNRE — Guidelines for PM-Surya Ghar: Muft Bijli Yojana
- MNRE — PM Surya Ghar National Portal for Rooftop Solar
- PIB — GST on renewable energy devices rationalised to 5% (17 Sep 2025)
- CBIC — Notification No. 9/2025-Integrated Tax (Rate), Schedule I, S. No. 437 (70:30 valuation for solar systems)
- PIB — No blanket extension of ALMM List-II beyond 1st June 2026 (25 May 2026)
- MNRE — O.M. dated 18 July 2026: limited window till 31.12.2026 for net-metering projects under ALMM List-II
- Saur Energy — Hybrid inverters allowed under PM Surya Ghar scheme: MNRE (Sep 2024)
- Vikram Solar — Solar panel installation cost per kW in India, 2026 (indicative market prices)
- Kondaas — On-grid vs off-grid vs hybrid solar cost guide, 2026 (indicative market prices)
- Heaven Green Energy — DCR vs non-DCR solar panels: price gap (early 2026 survey)