Commercial Solar Panel Cost in India: Things You Should Know

When researching the commercial solar panel cost, you should also understand how a solar panel generates electricity. PV cells in a solar panel are made of silicon. When the panel receives sunlight, the light particles get trapped in the thin silicon cells. This causes electrons to be knocked out of the silicon atoms. The electrons move and create a photovoltaic charge that generates DC electricity, which then gets converted into usable AC electricity.

If you want to know more about commercial solar panel cost and the subsidy available in India, dig in deeper.

Types of Commercial Solar Panels

When planning for a commercial solar installation, you should keep in mind that commercial solar panel cost varies depending on the type of solar panels you use. The two most commonly used solar panels in PV systems are discussed below:

  • Monocrystalline solar panels

Monocrystalline solar panels are produced using a single silicon crystal; hence, the name. They are known for their black colour and high efficiency. 

Mono panels have a lifespan of 25 years and a high-efficiency range of 19-20% due to the low-temperature coefficient of 0.35% per degree Celsius. Besides, the annual degradation rate of these panels is just 0.5% per year. 

The monocrystalline commercial solar panel cost is Rs. 31-32 per watt.

  • Polycrystalline solar panels 

Also called multicrystalline panels, polycrystalline panels are cheaper than mono panels. However, they have a lower efficiency rate of 16-17%. They also have a degradation rate of 0.7% per year, which is higher than for mono panels.

Notably, the polycrystalline commercial solar panel cost is around Rs. Rs. 25.5 per watt.

Types of solar systems available

There are three types of solar systems available that you should be aware of. These include

  • On-Grid Solar System: This is the most popular option. It is connected to the grid and doesn’t have a battery. It requires less maintenance and is more economical. Also, subsidies (under specific conditions) are offered only for on-grid rooftop solar installations.
  • Off-Grid Solar System: This type of solar system is mostly used in rural areas. It comes with solar batteries to store energy for later use. It’s an independent solar plant since it’s not connected to the grid. But because of the batteries involved, it’s expensive.
  • Hybrid Solar System: This system has the features of both on-grid and off-grid solar plants. It uses battery backup and is also connected to the grid. Although it tackles the issue of power outages, the involvement of batteries again makes it an expensive option. 

Cost of commercial solar panels with subsidy

Here is a bonus section to walk you through the subsidy on solar panels depending on the size of the solar panels. But first, you must remember that a subsidy is only given against L1 (discovered) rates in India. Here are the details:

  • – Homeowners receive a 40% subsidy on L1 rates for solar systems between 1 kW to 3 kW
  • – Homeowners receive a 20% subsidy on L1 rates for solar systems above 3 kW and up to 10 kW
  • – Housing societies receive a 20% subsidy on L1 rates for solar systems up to 500 kW
  • – Commercial solar installation for buildings and industries does not get any subsidy at all.

It should be noted that the cost of commercial solar installation includes all charges ranging from procurement of materials, materials themselves (panels, mounting structures,  inverter, AC and DC cables, AC and DC combiner boxes, conduit trays, earthing wires, and lightning arrester), installation, as well as a 5-year post-installation AMC contract. 

Pricing of Commercial Solar Panels

Here is an in-depth section about the prices of commercial solar panels corresponding to different sizes:

#1. Price of 1kW Solar system

A 1 kW solar system produces around four units of electricity per day, 120 units of electricity per year, and 1440 units of electricity per year 

The commercial solar panel cost of a 1 kW solar system ranges from Rs. 45,000 to Rs. 70,000 without subsidy.

#2. Price of 2 kW Solar system

A 2 kW solar system produces eight units of electricity per day and is suitable for domestic use. Households that consume approximately 220-240 units of electricity per month should go for this system. 

The commercial solar panel cost of a 2 kW solar system ranges from Rs. 90,000 to Rs. 1,40,000 without subsidy.

#3. Price of 3 kW Solar system

A 3 kW solar system produces around 12 units of electricity a day and about 360 units a month. Therefore, it is a good option for an average-sized family of three to four members.

The commercial solar panel cost of a 3 kW solar system ranges from Rs. 1,35,000 to Rs. 2,10,000 without subsidy.

#4. Price of 4 kW Solar system

A 4 kW solar panel generates 16 units of electricity and averages around 480 units per month.

The commercial solar panel cost of a 4 kW solar system ranges from Rs. 1,80,000 to Rs. 2,80,000 without subsidy.

#5. Price of 5 kW Solar system

A 5 kW solar system is ideal for powering homes, small offices, and shops. A 5 kW system can operate multiple household appliances at once. It can generate about 20 units of electricity daily, around 600 units every month, and about 7200 units a year.

The commercial solar panel cost of a 5 kW solar system ranges from Rs. 2,25,000 to Rs. 3,50,000 without subsidy.

#6. Price of 10 kW Solar system

Under ideal conditions, a 10 kW solar system produces 40 units of electricity per day, around 2200 units per month, and 14,400 units annually. It can power large households, commercial shops, offices, and even factories. 

The commercial solar panel cost of a 10 kW solar system ranges from Rs.4,50,000 to Rs. 7,00,000 without subsidy.

#7. Price of 300 W Solar Panel

A 300 W solar panel is great for portable power generation in an RV. It can power household appliances like vacuum cleaners, LED lights, etc. 

The commercial solar panel cost of a 300-watt mono panel ranges from Rs. 8100 to Rs. 9900, while the cost of a 300-watt poly panel for a  commercial solar installation ranges from Rs. 6885 to Rs. 8145.

#8. Price of 400 W Solar Panel

The commercial solar panel cost of a 400-watt mono solar panel ranges from Rs. 10,800 to Rs. 13,200.

The price of a 400-watt poly solar panel ranges between Rs. 9180 to Rs. 11,220. 

Conclusion

The cost of solar panels with and without subsidy differs. Calculate the rates accordingly to know how much a solar panel installation would cost you. This guide on commercial solar panel cost should help you make an informed decision.

FAQ

1. What is the cost of a 1 KW solar system?

The cost of a 1 kW solar system ranges from Rs. 45000 to Rs. 70000. The price varies according to the type and model of the panel, the brand, and even the value-added services you’ve purchased.

2. How much subsidy will I get for a home solar system between 1 – 3 kW?

You are eligible for a 40% subsidy on L1 rates for the installation of a solar system up to 3 KW if you’re an individual homeowner.

3. Does the solar panel installation cover all costs?

Yes, the solar installation cost includes all charges ranging from procurement of materials to installing the system, and after-installation services too.