Quick Answer: On-grid solar system prices in India typically start at around ₹45,000–₹70,000 for a 1 kW residential installation and ₹2.5–₹3.25 lakh for a 5 kW system. A 10 kW residential system can cost approximately ₹3.5–₹6.5 lakh. Eligible households can receive a central subsidy of up to ₹78,000 under PM Surya Ghar. These are indicative prices; your final cost depends on the equipment, roof conditions, installation requirements and applicable subsidy.
Planning an on-grid solar installation starts with two questions: how much electricity does your property use, and how much will the system cost? In India, residential rooftop solar prices vary with system capacity, equipment, roof conditions and installation requirements. Below, we break down prices by capacity, explain how government subsidies affect the upfront cost, and cover the factors to check before requesting a quotation.
On-Grid Solar System Price in India by Capacity (2026)
On-grid solar system prices increase with capacity, although the cost per kW can decrease as fixed installation and equipment costs are spread across a larger system. The table below gives indicative residential rooftop prices to help you estimate your budget.
| Capacity | Typical Use Case | Approx. installed price | Central subsidy for eligible homes | Approx. price after subsidy |
|---|---|---|---|---|
| 1kW | Basic household electricity needs | ₹45,000–₹70,000 | ₹30,000 | ₹15,000–₹40,000 |
| 2kW | Small household with everyday appliances | ₹90,000–₹1.35 lakh | ₹60,000 | ₹30,000–₹75,000 |
| 3kW | Typical household with moderate consumption | ₹1.5–₹1.9 lakh | ₹78,000 | ₹72,000–₹1.12 lakh |
| 4kW | Household with higher daytime consumption | ₹2–₹2.6 lakh | ₹78,000 | ₹1.22–₹1.82 lakh |
| 5kW | Larger household or home with substantial daytime loads | ₹2.5–₹3.25 lakh | ₹78,000 | ₹1.72–₹2.47 lakh |
| 10kW | Large home or small commercial property | ₹4.5–₹6.5 lakh | ₹78,000, if eligible | ₹3.72–₹5.72 lakh |
1kW and 2kW On-Grid Solar System Price
A 1 kW on-grid solar system in India can cost approximately ₹45,000–₹70,000 before subsidy. A 2 kW system may cost around ₹90,000–₹1.35 lakh. These smaller installations can suit households with relatively low electricity consumption, although the right capacity depends on the appliances used and their daily running hours.
Under PM Surya Ghar, eligible households can receive a central subsidy of ₹30,000 for a 1 kW system or ₹60,000 for a 2 kW system. This can bring the estimated upfront cost down to ₹15,000–₹40,000 for 1 kW and ₹30,000–₹75,000 for 2 kW, based on the price ranges above.
4kW and 5kW On-Grid Solar System Price
A 4 kW on-grid solar system may cost approximately ₹2–₹2.6 lakh before subsidy, while a 5 kW system may cost ₹2.5–₹3.25 lakh. These capacities can suit households with higher electricity consumption, including homes that use air conditioners alongside other appliances.
Eligible households can receive a central subsidy of up to ₹78,000 under PM Surya Ghar. Because the subsidy is capped at 3 kW, a 5 kW system does not receive a larger central subsidy than an eligible 3 kW system. Roof type, mounting structure, inverter selection and electrical work can affect the final quotation.
10kW On-Grid Solar System Price
A 10 kW residential rooftop solar system can cost approximately ₹4.5–₹6.5 lakh before subsidy. For eligible residential installations, the central PM Surya Ghar subsidy remains capped at ₹78,000, bringing the indicative cost after subsidy to ₹3.72–₹5.72 lakh.
A 10 kW installation may suit a large household with substantial daytime electricity consumption. It can also be considered for some small commercial properties, but the connection type, electricity consumption pattern and project requirements should be checked before selecting a system.
20kW On-Grid Solar System Price (Commercial/Industrial)
A 20 kW on-grid solar system for a commercial property requires a project-specific estimate. For initial budgeting, a broad planning range of ₹7.6–₹11 lakh can be considered using indicative commercial rooftop rates of ₹38,000–₹55,000 per kW. This is a calculated estimate, not a verified 20 kW quotation.
The final price depends on roof condition, structural requirements, inverter configuration, electrical integration and the scope of the EPC contract. Commercial buyers should also confirm whether the quotation includes GST, metering-related work, approvals and monitoring.
What Determines On-Grid Solar System Cost
The on-grid solar system cost depends on the equipment selected and the work required at the installation site. These are the main factors that can change your quotation:
-
Solar panels: Panel technology, wattage, manufacturer and applicable domestic-content requirements can affect the price.
-
Inverter: Capacity, brand, warranty and system configuration influence equipment costs.
-
Mounting structure: RCC rooftops, metal-sheet roofs and ground-mounted installations require different mounting arrangements and structural considerations.
-
Electrical work: Cabling, earthing, protection equipment and integration with the property's electrical system affect the project scope.
-
Subsidy eligibility: Eligible residential households may receive assistance under PM Surya Ghar. Agricultural projects may qualify for support under applicable PM-KUSUM components, subject to their specific conditions.
The mounting structure can be a significant cost factor. A standard RCC rooftop and a metal-sheet roof may require different installation methods, while an older roof may need repairs or reinforcement before installation.
Prices can also vary by location and installer. For commercial and industrial projects in Gujarat, compare quotations based on the complete scope of work, including electrical integration, metering requirements and applicable approvals, rather than comparing the headline price alone.
Budget Insight: The mounting structure cost can shift noticeably between a flat RCC rooftop and a sloped tin shed roof, since tin sheds often need additional reinforcement before panels go up.
Price also varies by state and installer. Gujarat-based industrial and commercial buyers should compare installers on net metering approval experience, not just quoted price, since delays in approval can postpone when a system actually starts offsetting bills.
How to Choose the Right System Size for Your Load
The right system size is determined by your daily electricity consumption, not by budget alone. A 2 kw on grid solar system suits small homes running basic appliances without heavy AC load, while larger families or AC-heavy households need to size up.
To map your load to a system size:
-
List the appliances you use regularly and check their power ratings.
-
Estimate how many hours each appliance runs per day.
-
Calculate the approximate daily consumption in watt-hours and convert it to kilowatt-hours (kWh).
-
Compare that consumption with the expected generation of different system capacities in your location.
-
Check whether your roof has enough usable, relatively shade-free area for the proposed installation.
Air conditioners can significantly increase household electricity consumption, but the right system size depends on their actual energy use, alongside the rest of the household load. If you run multiple ACs or have high daytime consumption, compare larger capacities before finalizing a quotation.
Commercial and industrial buyers should review their electricity bills and load profile before selecting a system. This helps match the proposed capacity to actual consumption and the property's grid connection.
Expert Advice: Air conditioners are the single biggest factor pushing households from a 2kW or 4kW system up to 5kW or higher, since even a single 1.5-ton AC can consume a large share of daily generation during peak summer months.
If your household runs two ACs, a home office, and standard appliances, a 5kW or 10kW system is usually a closer fit than anything smaller. Industrial and institutional buyers with higher daytime load should request a load audit before finalizing capacity.
On-Grid Solar for Homes vs Industrial Rooftop vs Ground Mounted EPC
Residential on-grid solar, industrial rooftop solar and ground-mounted solar projects differ in capacity, installation requirements and project scope.
-
Residential rooftop solar: Usually installed on homes, with system size determined by household consumption, roof space and connection requirements.
-
Industrial rooftop solar: Installed on factories, warehouses and other commercial properties. Costs depend on plant capacity, roof structure, electrical integration and the required approvals.
-
Ground-mounted solar EPC: Installed on available land when rooftop space is insufficient or a ground-mounted project better suits the property's energy requirements. Site preparation, civil work, cabling and grid connectivity can affect the total investment.
For a closer look at large-scale project economics, see our guide to 1 MW solar power plant costs in India, which covers capital cost and return on investment for industrial-scale installations.
The scope of ongoing operations also differs by project. Residential systems may require relatively simple routine maintenance, while industrial and ground-mounted projects may benefit from formal operations and maintenance (O&M) contracts and generation monitoring.
Government Schemes That Cut Your Price (PM Surya Ghar, KUSUM)
Government assistance can reduce the upfront cost of eligible solar installations, but the amount depends on the scheme and the type of project.
Under PM Surya Ghar: Muft Bijli Yojana, eligible residential households can receive central financial assistance of:
-
₹30,000 for a 1 kW system
-
₹60,000 for a 2 kW system
-
₹78,000 for a system of 3 kW or more
The central subsidy is capped at ₹78,000. Installing a larger residential system does not increase this cap. Applicants should check the current scheme guidelines, eligible equipment and vendor requirements before proceeding.
PM-KUSUM covers specific agricultural solar applications, including eligible solar pumps and decentralized solar power projects. It is not a blanket subsidy for every farmer installing an on-grid rooftop system. Eligibility and financial assistance depend on the relevant scheme component and implementation arrangements.
For grid-connected rooftop solar, confirm the applicable DISCOM process, feasibility requirements, metering arrangements and commissioning documentation with your installer before signing the contract. These requirements can affect project timelines and the completion of subsidy formalities.
Net Metering, O&M, and SCADA Monitoring. What Happens After Installation
After installation, the system's metering arrangements, maintenance requirements and monitoring options affect how it operates over time.
Net metering: Where applicable, net metering records electricity exported to the grid and allows it to be credited according to the relevant utility's rules. Confirm the metering arrangement and approval requirements for your connection.
Operations and maintenance (O&M): Maintenance can include panel cleaning, inverter checks, inspections and fault resolution. Commercial and industrial buyers should clarify whether routine maintenance and repairs are included in the EPC contract or billed separately.
SCADA monitoring: Supervisory Control and Data Acquisition (SCADA) systems provide detailed generation and equipment data, particularly useful for larger industrial installations. The monitoring solution should match the plant's size and operational requirements.
When comparing industrial or ground-mounted EPC proposals, check which metering, maintenance and monitoring services are included in the quoted price and which carry additional charges. Our 10-point checklist for choosing a solar EPC company in Gujarat can help you assess the scope of a proposal.
You can also request a site assessment from Raycal Power for a capacity recommendation and a quotation based on your actual requirements.
