Solar Panel Price Trends in India (2026)
One of the most common questions homeowners ask is: "What is the price of a 1kW solar panel system?". The answer involves two parts: the gross market price and the net price after government subsidy.
In 2026, the solar market has matured significantly. The days of expensive, inefficient Poly-crystalline panels are gone. The market is now dominated by Mono PERC half-cut cells and Bifacial capabilities, which offer higher efficiency even in low-light conditions.
Standard Market Rates (Before Subsidy)
While prices vary slightly by state and vendor brand (Tata Power, Adani, Waaree, etc.), the benchmark costs for a complete "On-Grid" system (including inverter, structure, lightning arrestor, Net Metering) are:
- 1 kW System: ₹ 60,000 - ₹ 70,000
- 2 kW System: ₹ 1,20,000 - ₹ 1,40,000
- 3 kW System: ₹ 1,80,000 - ₹ 2,00,000
- 5 kW System: ₹ 3,00,000 - ₹ 3,20,000
Note: The "Per kW" cost decreases as the system size increases due to economies of scale.
Impact of PM Surya Ghar Subsidy
The game-changer for residential solar is the Central Financial Assistance (CFA). For a typical 3kW system, the government provides a flat ₹78,000 subsidy.
This means if a vendor quotes you ₹1,80,000 for a 3kW system, you effectively pay only ₹1,02,000. This drastic reduction is why the ROI period has fallen to just 3-4 years.
Components of Cost
When you pay for a solar system, where does the money go?
- Solar Modules (50-55%): The panels themselves are the most expensive component.
- Inverter (20-25%): The "brain" of the system that converts DC to AC. High-quality inverters (like Growatt, GoodWe, Enphase) cost more but last longer.
- Balance of System (BOS) (10-15%): This includes the Galvanized Iron (GI) mounting structure, DC/AC cables, Earthing kit, and Lightning Arrestor(LA).
- Installation & Liasoning (10%): Labor charges for installation and the official paperwork with the DISCOM for net metering.
Frequently Asked Questions
1. Why do quotes vary between vendors?
Quality matters. A vendor using high-rise structures (to keep the roof usable) will charge more than one installing standard low-height structures. Similarly, using premium cables (Polycab/Havells) vs generic ones affects the price.
2. Are there hidden costs?
Usually, the vendor quote is inclusive. However, you might have to pay a small official fee to the DISCOM for the Net Meter application (varies by state, usually ₹500-₹2000). Also, if your existing meter box needs replacement, that might be extra.
3. Is battery cost included?
No. The prices mentioned above are for "On-Grid" (Grid-tied) systems which do not have batteries. If you want a "Hybrid" system with battery backup, add approx ₹15,000 - ₹20,000 per kWh of battery storage.
Conclusion
Solar is a capital-intensive asset, but it is one that pays for itself. By using this calculator, you get a realistic estimate of the investment required, helping you negotiate better with installers.