What Affects Solar Panel Prices in India?

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Published: 19 Sep, 2025 | By Solar

As we know by far that solar energy is not an alien concept in India anymore, everyone at least once has thought about installing it and whenever that thought surfaces, the first question that comes to mind is “how much will it cost?”. So let's start with…

What are factors that affect solar prices in India?

Honestly, that depends on many factors and cannot be the same for every one, not even for two people who live adjacent to each other.

Just as everybody needs a different car and the price of a car changes depending on the model, brand, and features, the cost of a solar system depends on its size, quality, and installation needs.

In this article, we will talk about all the factors affecting solar panel cost in India, how the solar panel price calculation in India works, and how solar panel cost is determined in India. We will also guide you on how to choose the best solar panels for your home or business, and why choosing a trusted company like Spectra Solar Power can help you save money in the long run.

1. Size of the Solar System (Capacity in kW)

The first and most important factor in rooftop solar panel installation cost is the size of the system. In India, solar capacity is measured in kilowatts (kW).

  • Small home systems: 1kW – 3kW
  • Medium home/business systems: 3kW – 5kW
  • Large home/commercial systems: 5kW and above

And for obvious reasons, the bigger the setup, the more it will cost but at the same time it will be producing more electricity for you. So that’s also not a bad thing.

2. Type of Solar System: On-Grid, Off-Grid, or Hybrid

The type of system you choose also changes the price.

  • On-Grid Solar System – Connected to the electricity grid, cheaper, and ideal for cities. You can sell excess power back to the grid (net metering).
  • Off-Grid Solar System – Works without the grid, uses batteries to store power. More expensive because of battery costs.
  • Hybrid Solar System – Combination of both; most expensive but also most flexible.

For example, if you choose an off grid solar system, you will pay extra for high-quality batteries, which can increase the price by 30–40%. You can get details comparison regarding On-Grid vs Off Grid vs Hybrid Solar System here.

3. Brand and Quality of Solar Panels

Like electronics, the brand matters a lot. Top brands solar often cost more but have higher efficiency and longer warranties.

If you are looking for the best solar panel for home price in India, you should not just look at price but also the panel’s lifespan and efficiency. Cheap panels may save you money now but might fail in a few years.

At Spectra Solar Power, we use only government-approved and BIS-certified panels so that you get high performance for 20–25 years.

4. Quality of Solar Inverter

The inverter is the brain of the solar system. It converts the DC electricity from your panels into AC electricity for your home.

Types of inverters:

  • String Inverter – More affordable, common for homes.
  • Micro Inverter – More expensive, but gives better performance for shaded roofs.
  • Hybrid Inverter – Works with both grid and batteries.

A high-quality inverter may increase the upfront price, but it ensures your system works smoothly without breakdowns.

5. Structure and Mounting Requirements

Every roof is different and so are their needs, if your roof is oddly shaped or not have proper sunlight, you are gonna need special tools and setup

In some cases, ground-mounted solar systems are installed, which also need stronger frames and more labor, increasing the price.

6. Location and Transportation

Where you live and how you get there matters a lot.

For example-

1- Best case scenario, you live in a city like Lucknow and there are cabs and easy transportation services and skilled professionals in almost every corner or at least reachable. You won’t have to worry much, and everything will be available at a cheaper cost.

Now imagine, you live in Mussorie, there are probably no skilled professionals near your house and even to get the system transported you, you need dedicated services and people. Leading to a higher cost.

And if the solar company needs to transport heavy panels and equipment over long distances, the cost will increase.

7. Government Subsidies and Policies

The best part about installing solar in India is the government solar subsidy. The Central Government’s Ministry of New and Renewable Energy - MNRE offers subsidies for rooftop solar installation

For residential on-grid systems, the subsidy (as of 2025) is:

  • Up to ₹30,000 per kW for the first 2 kW
  • ₹18,000 kW extra fixed for the 3 kW or more

And sometimes your state government gives you extra subsidies based on your state’s policies.

8. Type of Property – Residential or Commercial

Commercial properties need a larger investment in terms of setup as they require a larger one, but if calculated on an average or per kW it is usually cheaper than the residential setups.

9. Labor and Installation Charges

This is something one should not try to cut corners at. Because if your team is not skilled or professional enough, there could be issues in the later stages such as water leakage from drilling or loose wiring or simply low power output.

At Spectra Solar Power, installation is done by trained technicians following MNRE and DISCOM guidelines, ensuring safety and maximum efficiency.

10. Maintenance and After-Sales Service

Solar panels are very low maintenance, they won’t need much from you except occasional dusting or washing. But the batteries and other things need maintenance. It is also not that expensive and usually included in the packages provided by good companies

Choosing a company that offers free or low-cost AMC (Annual Maintenance Contract) will save you money later.

Example:

Let’s say you install a 3kW solar system then solar panel price calculation India for you would be:

  • Cost: Around ₹1.5 lakh (before subsidy).
  • Daily generation: 12–14 units.
  • Monthly generation: 360–420 units.
  • Electricity cost: ₹7 per unit.

That’s roughly ₹2,500–₹3,000 saved every month. In 5 years, you’ve saved ₹1.5–₹1.8 lakh, the same as the system cost. And the system will still run for another 20 years or more.

How to Reduce Your Solar Panel Installation Cost?

  • Go for the right size – Don’t oversize your system unnecessarily.
  • Choose high-efficiency panels – They produce more electricity in the same space.
  • Use government subsidies – Apply through the MNRE National Portal.
  • Select a trusted installer – Avoid rework and breakdown costs.

Why Choose Spectra Solar Power?

If you’re serious about saving money and switching to clean energy, Spectra Solar Power , offers:

  • Expert solar panel installation for homes of all sizes.
  • High-quality solar system for home with long warranties.
  • Affordable options to suit your budget.
  • Full support from consultation to subsidy claim.

Our goal is simple, to help families in smaller cities get reliable, low-cost electricity without the headache of dealing with complicated processes.

Final Words

So now that we know all the factors that affect you solar panel installation cost, it is also very important to remember that these can be controlled by just option or choosing a right company like Spectra Solar Power to deal with, so that they can guide you from start to finish, because with the right system, you’ll not only save on electricity bills but also contribute to a greener future.

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