Installation Costs of Solar Panels for Homes in India 2024

Are you exploring options like solar panels for homes near me to make your living space more sustainable? Because you have heard a lot about it in the market, it's no wonder! In India, whenever something new hits the market, the first question that we tend to wonder is the cost. How much will it cost? What will we need to pay? Will the government provide any benefits? How long will it take to see a return? What are the real benefits of doing this? And so on. 

Don't worry! You are not alone in having these questions. We all grew up with this mindset, and it's completely natural to think things through. Let's explore solar panels for homes more.

Many assume that homes of similar size will need similar-sized solar systems. However, the size of a home doesn't actually decide if a solar system will work or how big it should be. Instead, it depends on how much electricity the household uses and how much of that energy they want covered by solar.

It's hard to give an exact cost for a solar setup based on the size of your home because many factors affect the final price. In this blog, we will look at the calculation of savings from solar panels for homes and explore solar panel costs in India.

How to Calculate Savings from Solar Panels for Homes in India

1. Check Your Electric Bill

Solar panels for homes, usually installed on rooftops, use sunlight to produce clean energy for your home. During the day, solar power can cover most of your electricity needs, which helps reduce your monthly electricity bill. The higher your electric bill, the more you can save by using solar energy.

Remember, electric rates and power usage can change, so your savings from solar panels may vary depending on electricity prices and how much power you use.

2. Consider Your Sunlight Exposure

The amount of sunlight your home’s rooftop receives directly impacts the energy your solar panels can generate, which increases your savings. In many parts of India, regions typically enjoy between 3 to 5 peak sunlight hours each day, especially during the summer months when the days are longest.

Your home's sun exposure plays a crucial role in determining how much energy your solar panels can produce. However, factors such as the type of roof, its orientation towards the sun, and any shading can also influence the amount of energy generated. Even in less-than-ideal conditions, high-efficiency solar panels are made to perform well and still generate significant energy.

3. Estimate and Compare Solar Panel Costs in India

The primary cost of installing solar panels for homes is the purchase of the panels and related equipment. Although the upfront cost can be significant, the long-term maintenance of a solar system is quite affordable. Most solar systems are made to last for about 25 years, with minimal cleaning and maintenance required.

To estimate your installation costs, start by reviewing your daily energy consumption on your electric bill. It will help you determine the size of the solar system you need. For example, a 5kW system typically costs between ₹3,15,000 and ₹3,57,000, including installation, before applying any government subsidies.

4. Use the Government Solar Subsidy Scheme

The government's Phase II Rooftop Solar Programme, managed by MNRE, offers subsidies to make solar energy more affordable for homeowners. You can apply for solar panel subsidies through the National Portal for Rooftop Solar, which has all the details on eligibility and approved solar panel vendors.

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How Much Solar Panels Does a 1,000-sq-ft Indian House Need?

For a typical 1,000-square-foot home in India, a solar power system between 3 kW and 5 kW is usually sufficient to meet the energy needs. However, the actual power requirement depends more on the household’s energy consumption, not just the size of the house. Let's take a closer look at the factors involved:

1. Energy Consumption Estimate

A 1,000-square-foot home in India typically uses between 150 to 250 kWh of electricity each month. It varies based on the number of people living in the house, the appliances they use, and their daily routines. Over a year, this would be around 1,800 to 3,000 kWh.

2. Required Solar Power System

To match the energy usage, a solar panel system can be used in the following ways:

• 3 kW System:

  • Ideal for homes using about 150 to 200 kWh per month.
  • It can generate 12-15 kWh per day under good conditions.
  • It usually requires 10-12 solar panels.

• 4 kW System:

  • Suitable for homes using 200 to 250 kWh per month.
  • It can produce 16-20 kWh per day.
  • Typically needs 13-16 solar panels.

• 5 kW System:

  • Best for homes with higher usage (250-300 kWh per month).
  • It generates 20-25 kWh of electricity daily.
  • A setup for this system includes 15-20 solar panels.

3. Breaking Down the Costs

In 2024, the cost of installing a solar panel system in India ranges from INR 1.5 lakh to INR 5 lakh or more. Here's how the costs are divided:

• Solar Panels: Monocrystalline panels are more expensive but efficient. The cost for 1 kW of solar panels can range from INR 37,500 to INR 42,000, depending on the type.
   
• Inverters: Inverters vary in price, with micro-inverters being more expensive than string inverters. Prices range from INR 20,000 to INR 80,000.
   
• Mounting Structures: Ground-mounted systems cost more than rooftop systems, with prices between INR 10,000 and INR 50,000, depending on the complexity of the setup.
   
• Optional Batteries: Adding batteries increases the cost. They can range from INR 20,000 to INR 1 lakh or more, depending on the brand and capacity.
   
• Component Quality: Higher quality components may cost 10-30% more but can last longer and perform better.
   
• Government Subsidies: The government offers subsidies that can lower installation costs. The solar rooftop subsidy scheme can cover a significant portion of the total cost, varying by region.
   
• Installation Charges: These cover labor and equipment costs, ranging from INR 20,000 to INR 1 lakh, depending on the system’s complexity.

Solar Panel Price for Home in India with Subsidy (2024)

The table below shows the price of solar panels price list in India after considering government subsidies:

The above breakdown helps you understand how much solar power a 1,000-sq-ft house in India might need and the associated costs.