How much would rooftop solar cost?
On average, 1 kWp (kilowatt peak) of solar panels needs about 100 square feet of available roof area. A 1 kWp system typically costs ₹65,000 to ₹85,000 before subsidy, depending on the quality and technology of solar panels, materials used, AMC coverage, and the services and documentation offered by the installation partner. Per-kW cost generally decreases as system size increases, since fixed costs (labor, wiring, inverter setup) are spread across more capacity.
Cost of a rooftop solar system depends on the following factors:
- Plant size
- Type of panels
- Inverter brand & quality
- Backup required (on-grid, off-grid, or hybrid — see how rooftop solar works)
- Subsidy applicable
- State norms with respect to net metering
- Installer experience & reliability
- Add-on services
- Guarantee and warranty offered
How the PM Surya Ghar subsidy is calculated
The central government's PM Surya Ghar: Muft Bijli Yojana subsidy is structured in tiers, not as a flat percentage:
- ₹30,000 per kW for the first 2 kW of capacity
- ₹18,000 per kW for the third kW
- Capped at ₹78,000 for any system of 3 kW or above, regardless of how much larger the system is
This is why the subsidy amount in the table below stops increasing past 3 kWp — a 10 kWp system receives the same ₹78,000 central subsidy as a 3 kWp system, since the subsidy is only calculated on the first 3 kW of residential capacity.
State-level top-up subsidies
Several states add a further subsidy on top of the central PM Surya Ghar amount. The table below illustrates this using Uttar Pradesh (₹15,000/kW, capped at ₹30,000 for 3 kW+) as an example — but this is not the only state with a top-up. Delhi, for instance, offers an additional ₹30,000 for systems of 3 kW and above under the Delhi Solar Policy 2023, bringing the combined subsidy to ₹1,08,000. See the Delhi rooftop solar guide for city-specific pricing, DISCOM details, and the exact subsidy process.
Cost of rooftop solar in India
| Plant Size | Residential Cost | Central Subsidy | Cost (after Central Subsidy) | State Subsidy (UP example) | Net Cost (UP example) |
|---|---|---|---|---|---|
| 1kWp | ~₹80T | ₹30T | ~₹50T | ₹15T | ~₹35T |
| 2kWp | ~₹1.4L | ₹60T | ~₹80T | ₹30T | ~₹50T |
| 3kWp | ~₹2.15L | ₹78T | ~₹1.27L | ₹30T | ~₹97T |
| 4kWp | ~₹2.6L | ₹78T | ~₹1.82L | ₹30T | ~₹1.52L |
| 5kWp | ~₹3.25L | ₹78T | ~₹2.47L | ₹30T | ~₹2.17L |
| 6kWp | ~₹3.9L | ₹78T | ~₹3.12L | ₹30T | ~₹2.82L |
| 7kWp | ~₹4.55L | ₹78T | ~₹3.77L | ₹30T | ~₹3.47L |
| 8kWp | ~₹5.2L | ₹78T | ~₹4.42L | ₹30T | ~₹4.12L |
| 9kWp | ~₹5.85L | ₹78T | ~₹5.07L | ₹30T | ~₹4.77L |
| 10kWp | ~₹6.5L | ₹78T | ~₹5.72L | ₹30T | ~₹5.42L |
| 11kWp | ~₹7.15L | ₹78T | ~₹6.37L | ₹30T | ~₹6.07L |
| 12kWp | ~₹7.8L | ₹78T | ~₹7.02L | ₹30T | ~₹6.72L |
| 13kWp | ~₹8.45L | ₹78T | ~₹7.67L | ₹30T | ~₹7.37L |
| 14kWp | ~₹9.1L | ₹78T | ~₹8.32L | ₹30T | ~₹8.02L |
| 15kWp | ~₹9.75L | ₹78T | ~₹8.97L | ₹30T | ~₹8.67L |
~ represents the maximum cost. T = thousand, L = lakh.
Frequently asked questions
How much does a 3kW rooftop solar system cost in India?
A 3 kWp system typically costs around ₹2.15 lakh before subsidy. After the ₹78,000 central PM Surya Ghar subsidy, the cost drops to roughly ₹1.27 lakh, and further with any applicable state-level top-up (for example, ₹30,000 in Uttar Pradesh or Delhi), bringing net cost down to under ₹1 lakh in many states.
What is the maximum central subsidy available for rooftop solar?
The PM Surya Ghar Muft Bijli Yojana caps the central subsidy at ₹78,000, for any residential system of 3 kW capacity or above. Smaller systems receive proportionally less: ₹30,000/kW for the first 2 kW and ₹18,000/kW for the third kW.
Does the solar subsidy differ by state?
Yes. The ₹78,000 central subsidy is the same nationwide, but several states add their own top-up on top of it. Uttar Pradesh and Delhi, for example, each add up to ₹30,000 for systems of 3 kW and above, while coverage and amounts vary elsewhere — check your state's solar policy for exact figures.
Why doesn't the subsidy keep increasing for systems larger than 3 kW?
Because the PM Surya Ghar central subsidy is capped at 3 kW of capacity per residential connection. A 10 kW system still only receives ₹78,000 in central subsidy — the same amount as a 3 kW system — since additional capacity beyond 3 kW isn't subsidized at the central level.
Does solar cost per kW decrease for larger systems?
Yes, generally. Fixed costs like labor, wiring, and inverter setup are spread across more capacity in larger systems, so the effective ₹/kW cost tends to be lower for bigger installations compared to a 1 kW system.
Start your journey with an expert team near you!
Helping homeowners on their solar journey!
Have a suggestion for this page? Suggest Edits