How Much Do Solar Panels Cost in India? A State-Wise Price Comparison

The demand for renewable energy has been rising steadily, and India is at the forefront of this transformation. With growing awareness about sustainability, government subsidies, and falling equipment costs, more homeowners and businesses are turning to solar energy. However, before making the switch, it’s crucial to understand the solar panel price in India, which can vary depending on several factors, including the brand, capacity, installation location, and type of panel used. This article provides a detailed, state-wise comparison of solar panel costs in India to help you make an informed decision.

1. Understanding Solar Panel Costs in India

Before diving into state-wise pricing, let’s look at the general factors that influence the cost of solar panels:

a. Type of Solar Panel

• Monocrystalline Panels: Known for higher efficiency (18–22%), sleek appearance, and compact size. However, they are relatively expensive, priced between ₹25–₹35 per watt.

• Polycrystalline Panels: Slightly lower in efficiency (16–18%) but more affordable, usually costing ₹20–₹28 per watt.

• Thin-Film Panels: Lightweight and flexible, suitable for large-scale projects, costing around ₹22–₹32 per watt.

b. Capacity of the System

Solar systems are priced based on their power generation capacity — measured in kilowatts (kW). Residential solar setups typically range from 1 kW to 10 kW, while commercial or industrial installations go higher.

For example:

• 1 kW system – Ideal for small homes; generates about 4 units per day.

• 3–5 kW system – Suitable for medium to large households.

• 10 kW+ system – Common for businesses or large properties.

c. Type of System

• On-grid systems (connected to the electricity grid) are cheaper since they don’t need batteries — costing around ₹45,000–₹75,000 per kW.

• Off-grid systems (standalone with batteries) cost more — between ₹85,000–₹1,20,000 per kW.

• Hybrid systems combine both and are priced even higher.

2. Average Solar Panel Price in India (2025 Overview)

As of 2025, the average solar panel price in India falls in the range of ₹40,000 to ₹70,000 per kW for on-grid systems, excluding government subsidies. Here’s a general breakdown:

Note: Prices may vary based on location, brand, and installation complexity.

3. State-Wise Solar Panel Price Comparison

India’s vast geography means that solar panel prices differ across states due to labor costs, sunlight availability, local incentives, and logistics. Here’s a comparative overview:

a. Delhi

• Average Price: ₹42,000 – ₹65,000 per kW (on-grid)

• Highlights: High rooftop solar adoption under the Delhi Solar Policy; net metering available; 30–40% subsidy for residential users.

b. Maharashtra

• Average Price: ₹45,000 – ₹70,000 per kW

• Highlights: Strong solar infrastructure; state DISCOMs support rooftop installations; urban areas see slightly higher installation costs.

c. Gujarat

• Average Price: ₹40,000 – ₹60,000 per kW

• Highlights: One of India’s most solar-friendly states; Gujarat’s “Surya Urja Rooftop Yojana” offers substantial incentives, lowering costs further.

d. Rajasthan

• Average Price: ₹38,000 – ₹58,000 per kW

• Highlights: Abundant sunlight and favorable conditions make it among the cheapest states for solar panel installations.

e. Karnataka

• Average Price: ₹44,000 – ₹68,000 per kW

• Highlights: Net metering support and government rebates available; popular in Bengaluru and Mysuru.

f. Tamil Nadu

• Average Price: ₹45,000 – ₹70,000 per kW

• Highlights: Strong rooftop solar adoption; the Tamil Nadu Energy Development Agency (TEDA) supports household installations.

g. Telangana

• Average Price: ₹43,000 – ₹65,000 per kW

• Highlights: Excellent for both residential and industrial setups; simplified approval process for rooftop solar.

h. Kerala

• Average Price: ₹46,000 – ₹72,000 per kW

• Highlights: Heavy focus on residential rooftop programs like “Soura Scheme”; slightly higher due to humidity-resistant materials used.

i. Punjab & Haryana

• Average Price: ₹40,000 – ₹63,000 per kW

• Highlights: Strong agricultural adoption; state-level subsidies and net metering incentives reduce overall cost.

j. Uttar Pradesh

• Average Price: ₹45,000 – ₹68,000 per kW

• Highlights: Costs vary widely between urban and rural regions; the “Solar Rooftop Scheme” provides additional support.

4. Government Subsidies and Incentives (2025 Update)

The Government of India, under the Rooftop Solar Programme Phase-II, continues to promote renewable energy adoption through financial incentives.

Residential Subsidy Rates (as of 2025):

• Up to ₹18,000 per kW for systems up to 3 kW.

• Up to ₹9,000 per kW for systems between 3–10 kW.

• No subsidy for commercial or industrial installations.

This means that for a 3 kW residential system, you can save nearly ₹54,000 on your total installation cost.

Additionally, many states provide extra local subsidies or waivers on property tax and net metering charges, making solar even more affordable.

5. Payback Period and ROI

One of the biggest advantages of solar power is its high return on investment. On average, Indian households recover their solar installation cost in 4–6 years through electricity bill savings.

For example:

• A 3 kW system can save about ₹3,500–₹4,500 per month (depending on usage and tariff).

• With minimal maintenance and a lifespan of 20–25 years, you can enjoy free electricity for nearly two decades after the payback period.

7. Top Solar Panel Brands in India (2025)

When choosing solar panels, opt for reliable brands that offer long warranties and good efficiency rates. Popular names include:

• Citizen Solar Private Limited

• Tata Power Solar

• Loom Solar

• Waaree Energies

• Adani Solar

• Vikram Solar

• RenewSys

These companies provide panels ranging from ₹20 to ₹35 per watt, depending on the model and efficiency.

7. Key Takeaways

• The solar panel price in India varies from ₹38,000 to ₹72,000 per kW, depending on state, panel type, and installation.

• Government subsidies can reduce the total cost by up to 30–40% for residential users.

• Rajasthan and Gujarat offer the lowest average prices due to ideal sunlight and supportive policies.

• With rising electricity tariffs, solar energy is one of the most cost-effective and sustainable investments in 2025.

8. Final Thoughts

India’s solar revolution is gaining speed, and with favorable policies and competitive pricing, installing solar panels is more affordable than ever. Whether you live in Delhi, Gujarat, or Kerala, switching to solar power can significantly cut your electricity bills, enhance your property value, and help the environment.

If you’re considering a rooftop solar system, compare quotes from local installers, check for available subsidies, and choose a reputable brand. The future of energy in India is bright — and solar is leading the way.