How Much Does Solar Panel Installation Cost In India 2022: Key Factors

A thunderstorm finds its way to your city and the wind speed crosses 100 kmph – what happens to your solar system? 

Multiple shadows from surrounding structures keep lurking over the solar panels – what of the solar power generation then? 

These aren’t unlikely situations at all. Interestingly, they can all be taken care of if the solar system is installed in the right way. Which brings us to a couple of the most sought-after questions – what is the solar panel installation cost? And most importantly, what factors affect the cost of installing solar panels for home? 

Find yourself in the league of people with such questions? If so, this in-depth post will walk you through every single thing you need to know about solar power systems, their components, the solar panel installation cost, and a lot more.

Dive in!

Solar energy system and its components: what are the types of solar panel systems?

A solar energy system or a solar panel system is an arrangement of different components in a specific order that aids the generation of solar power and its safe supply to run household appliances. 

A solar system is primarily of three types: on-grid, off-grid, and hybrid. 

  • On-grid solar panel systems are connected to the grid. They do not have batteries.
  • – Off-grid solar panel systems have batteries. They are not connected to the grid.
  • – Hybrid solar panel systems have batteries and are connected to the grid as well.

Out of all these types, it’s the on-grid solar system that’s most widely used for residential installations in India.

That said, let’s now walk you through the different components of a solar energy system. It will also clear your concept about solar panel installation cost and why it varies. 

A solar system is made up of:

  • – Solar panels
  • – Mounting structures 
  • – Solar inverter
  • – AC and DC combiner boxes
  • – AC and DC cables
  • – Solar accessories (conduit trays or conduit pipes, earthing cables, lightning arrester, and MC4 connectors)

Let us understand the individual role of each of these components and how they affect the overall solar installation cost. 

#1. Solar Panels

Also known as solar modules, it’s the solar panels that capture sunlight and transform it into electric current. The current they produce is in the form of DC power. 

They’re of the following three types:

  1. Polycrystalline solar panels: These are made up of multiple crystals of silicon and their efficiency ranges between 16% to 17%. The current market rate of poly panels is approximately Rs. 25.5/watt.
  2. Monocrystalline solar panels: These are made up of one single crystal of silicon and their efficiency ranges between 19% to 21%. The current market rate of mono panels is approximately Rs. 31/watt.
  3. Bifacial solar panels: These are made of mono cells on the front as well as the rear side. Hence, they’re the most efficient and the most expensive types. Their efficiency rate is up to 22%. The current market rate of bifacial panels is approximately Rs. 32.5/watt. 

Please note: The prices of solar panels/watt can slightly vary from state to state. 

There’s also another type i.e. the thin-film panel. Its efficiency is relatively low. Hence, it’s not very commonly used in solar systems in India. 

#2. Mounting structures 

The first component in line is the mounting structures. Solar panels are installed on top of them. They are categorized into two major types: 

  • – Hot-dip galvanized steel mounting structures for an RCC rooftop
  • – Aluminum rail mounting structures for a metallic sheet rooftop

Usually, a 6 to 8 ft. mounting structure is preferred for an RCC rooftop. The taller the mounting structure, the fewer the chances of shadows falling on top of the panels. 

Mounting structures should be able to withstand high wind speeds for the panels to remain unaffected by storms. The best-in-class are the pre-fabricated mounting structures. 

Did you know? Solar panels in India should be South-facing because the South direction receives the maximum sunlight. The mounting structures should offer the panels an ideal tilt angle of 10 degrees in South India. The tilt angle keeps on increasing as you move towards the North. 

Needless to say, the quality of mounting structures (their tilt as well as their height) affect the solar panel installation cost. 

#3. Solar Inverter

Without a solar inverter, your solar system will be useless; it won’t be a practical model – why? Well, that’s because it’s the solar inverter that converts DC power into alternating current (AC). Household appliances can run only on AC current. 

The two most popular types of solar inverters are string inverters and micro-inverters. The latter is the latest technology and more expensive. So, the type of inverter you choose will again affect the solar system installation cost. 

#4. DC and AC combiner boxes

DC cables carrying the DC current have to be isolated in a DC combiner box. 

Bear in mind that the DC cables could be carrying a voltage of even 1000 volts. Hence, isolation is mandatory. Only MC4 connectors are used for this purpose. 

AC cables carrying the AC current have to be isolated in an AC combiner box. This is important in order to offer the necessary protection from electrical surges. 

The cable length could vary greatly depending on the height of the building. A three storey home will require more than twice the cable as a single storey home. Hence, the solar panel installation cost will vary accordingly. 

#5. Solar accessories

Furthermore, the AC and DC cables are properly fitted inside conduit pipes for the safe transmission of electric current. This factor again influences the solar panel installation price. 

That’s not all:

  • – There’s a lightning arrester that should stand at a height of at least 1 meter above the panels. 
  • – Earthing rods have to be spaced 2 to 3 meters apart. 

When so many intricate components come into the picture – and are arranged in a specific manner – the solar panel installation cost will certainly be affected. 

What is the solar panel installation cost in india?

Solar panel installation cost depends on the following factors:

  1. Project capacity
  2. Type of installation (height of the building and locality)
  3. The type of panels, inverters, and mounting structures
  4. The length of cables 

Since there are so many factors involved, it should be well clear that the solar panel installation cost will vary from project to project. 

The overall solar panel installation cost range in India without a subsidy is:

  • – A 1 KW solar system: ₹70,000 to ₹1,10,000
  • – A 2 KW solar system: ₹1,40,000 to ₹1,80,000
  • – A 3 KW solar system: ₹1,80,000 to ₹2,40,000
  • – A 4 KW solar system: ₹2,40,000 to ₹3,20,000
  • – A 5 KW solar system: ₹3,00,000 to ₹4,00,000
  • – A 10 KW solar system: ₹6,00,000 to ₹8,00,000
Please note: 
  • – The above-mentioned cost to install solar panels on house does not include any value-added service that you might purchase. 
  • – The solar power installation cost would also vary according to the AMC contract you choose. 
  • – Always discuss these specifics with the vendor before making a purchase so that you know the exact solar panel installation cost you will have to pay. 

Are there any additional charges – what are the factors that affect the solar panel installation cost?

Yes, as already stated, installing solar panels on roof cost will not be the same for everyone. Here’s a quick recap of the factors that affect solar installation cost:

  • – Project capacity
  • – Value-added services
  • – Locality 
  • – Length of cables used
  • – Type of solar panel and inverter you buy
  • – The type of mounting structures used
  • – The size of the mounting structures 
  • – Height of the building 

Please note: The net meter commissioning and testing cost is not included in the solar panel installation cost. The vendor does not pay for it, the consumer does. It is paid directly to the Discom (the electricity supply company).

What is the scope of a solar installer in India?

Solar installation companies are responsible for:

  • – Rooftop inspection
  • – Locating the ideal area for the installation
  • – Suggesting the type and size of the module 
  • – Suggesting the type of inverter
  • – Suggesting the type of mounting structure
  • – Solar panel installation 
  • – Inverter wiring
  • – Battery wiring (if the solar system is off-grid or hybrid)
  • – Earthing 
  • – Providing an annual maintenance contract (AMC)

Why Choose SolarSquare?

When you choose SolarSquare, our team will be committed to offering you:

  • – The best services 
  • – A transparent quotation on the solar panel installation cost that you will have to bear

Register with us to learn more about solar power installation cost in India in 2022. 


There are many factors that affect solar panel installation cost. We hope our genuine initiative to guide you through all those factors helped clear your doubts. 

Going solar is the need of the hour. The government also offers a subsidy on the installation of rooftop solar systems at homes and housing societies. You must go solar while there’s still a chance to get financial help from the government. 


1. How much does solar panel installation cost?

The exact solar panel installation cost in India depends on many factors, such as:

  • – The project capacity
  • – Your choice of solar panels
  • – Your choice of solar inverter
  • – The length of wiring cables used 
  • – Value-added services that you purchase
  • – The AMC contract you buy
  • – The type and size of mounting structures 
  • – The height of the building

An approximate solar panel installation cost in India falls between Rs. 45,000 to Rs. 70,000. 

2. How to install solar panels at home?

Installing solar panels at home is best left in the hands of installation experts at SolarSquare. 

Here’s how our experts approach the installation of solar panels on a rooftop:

  • – They carry out a rooftop inspection to find out the shadow-free area available and the type of rooftop (RCC or metallic sheet).
  • – They calculate the tilt angle according to the latitude of the place where you reside so that the panels receive maximum sunlight between 9 AM to 4 PM.
  • – They suggest the right type of solar modules (panels) and solar inverters that would be able to meet your power requirements.
  • – They assemble all the components to install the solar system. 
  • – They help out with the net metering process and commissioning of the solar system.
3. Which state has the lowest rate of solar panel installation?

Solar panel installation cost across all states varies. However, the cost variation is more dependent on the size of the solar system, the subsidy, the length of cables, the value-added services, the size of mounting structures, the type of inverter, and the type of module rather than a specific state or city.