How Much is the Cost of Solar Panels in India

Solar energy has emerged as a promising alternative to conventional sources of electricity, offering numerous benefits such as reduced greenhouse gas emissions and energy independence. India, with its abundant sunlight, has embraced solar power as a vital component of its renewable energy strategy.

As a leading industrial solar panel company Rajkot, SS Solar System offers high-quality photovoltaic systems to meet the energy needs of various industries.

As the cost of solar panels plays a crucial role in determining the feasibility and adoption of solar energy systems, this essay aims to provide an in-depth analysis of the cost of solar panels in India.

It will examine the factors influencing the cost, historical trends, and the current scenario to gain insights into the affordability and potential of solar energy in the country.

How much solar panel cost in india

As of my knowledge cutoff in September 2021, the cost of solar panels in India can vary depending on various factors such as panel type, brand, capacity, and installation complexity. On average, the cost of solar panels in India ranges from INR 18 to INR 35 per watt.

To give you a better understanding, let's consider the cost of a residential solar system. For a residential solar system with a capacity of 3-5 kilowatt peak (kWp), the total cost, including installation and other associated expenses, would typically range between INR 1,00,000 to INR 2,50,000. It's important to note that these are average figures and can vary based on the specific requirements of the installation.

To provide a more recent estimate, I can share some general trends. It's important to note that these figures are approximate and can still vary based on specific circumstances and market conditions:

Residential Solar Panels:

For residential installations, the cost typically ranges from INR 40,000 to INR 60,000 per kilowatt (kW) capacity. This estimate includes the cost of solar panels, inverters, mounting structures, wiring, and installation.

Commercial/Industrial Solar Panels:

For larger-scale installations, such as commercial or industrial projects, the cost can vary depending on the capacity and specific requirements. On average, the cost for commercial solar installations can range from INR 30,000 to INR 50,000 per kW capacity.

It's important to consider that these costs are for the solar panels themselves and do not include additional expenses like inverters, mounting equipment, wiring, and installation. These components and services are necessary for a complete solar energy system.

Factors Influencing the Cost of Solar Panels:

How much is the cost of solar panels in India currently?

The cost can vary based on factors such as panel type, brand, capacity, and installation complexity. Several factors contribute to the cost of solar panels in India. These include:

Can How Much is the Cost of Solar Panels in India

Technological Advancements:

Over the years, there have been significant advancements in solar panel technologies, leading to increased efficiency and reduced manufacturing costs. Innovations such as thin-film solar cells, crystalline silicon, and multi-junction cells have contributed to the overall affordability of solar panels.

Also Read: How to Select the Best Solar EPC Company for Your Business

Economies of Scale:

As the solar industry in India has grown, the manufacturing capacity has increased, leading to economies of scale. Larger production volumes allow for cost reductions in manufacturing and installation processes, making solar panels more affordable.

Government Policies and Incentives:

The Indian government has implemented various policies and incentives to promote solar energy adoption. These include subsidies, tax benefits, net metering, and feed-in tariffs, which can significantly reduce the upfront cost of solar panels.

Quality and Brand:

The quality and brand of solar panels also impact their cost. High-quality panels often come with a higher price tag due to their better performance, longer lifespan, and reliability.

Historical Trends:

How much does a solar panel cost in india? The cost of solar panels in India has witnessed a substantial decline over the years. In 2010, the average cost per watt of solar panels was around INR 250. However, by 2020, the cost had dropped to approximately INR 20-30 per watt, marking a remarkable reduction.

This decline can be attributed to technological advancements, economies of scale, and government initiatives. As solar panel manufacturing has become more localized and efficient, the cost of importing panels has decreased, further contributing to the downward trend.

By choosing SS Solar System, an esteemed industrial solar panel company in Rajkot, businesses can harness the power of solar energy and contribute to a greener future.


The cost of solar panels in India has witnessed a remarkable decline over the years, making solar energy an increasingly affordable option for households, businesses, and the government.

Technological advancements, economies of scale, government policies, and incentives have all played significant roles in driving down the cost of solar panels.

With the current average cost ranging from INR 18 to INR 35 per watt, solar energy systems have become a viable and sustainable solution for meeting India's growing energy needs.

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