The Cost of Installing Rooftop Solar System in India

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With the growing emphasis on sustainable living and renewable energy sources, rooftop solar systems have emerged as the best energy alternative for homeowners in India. Not only do they offer environmental benefits by reducing carbon emissions, but they also provide significant financial savings in the long run. Scroll below to learn about the home solar panel installation cost and the monthly savings generated by your solar plant.

Components of a Rooftop Solar System and Cost Breakdown

The home solar installation cost in India can vary depending on factors such as system size, quality of components and installation complexity. Here’s a breakdown of typical expenses:

1. Solar Panels: These are the primary components responsible for capturing sunlight and converting it into electricity. The number and size of panels vary based on the energy requirements of the household and the type, of technology used.

Approx Price: Dependent on size and efficiency, typically ranging from Rs. 17 per kW to Rs. 30 per kW.

2. Inverter: Inverters play a vital role in converting the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity. High-quality inverters are essential for maximising energy conversion and system performance.

Approx Price: Varies depending on quality and capacity, generally around Rs. 24,000 to Rs. 50,000.

3. Mounting Structures: These structures provide support for solar panels, ensuring their stability and optimal positioning to maximise sunlight exposure.

Approx Price: Calculated based on wattage, typically around Rs. 8 per watt.

4. AC DB Box (up to 5KW): This box manages the alternating current (AC) connections in the system, ensuring safety and efficient distribution.

Approx Price: Costs in the range of Rs. 3000 – Rs. 4000.

5. DC DB Box (up to 5KW): Similar to the AC DB box, this box manages the direct current (DC) connections within the system.

Approx Price: Costs in the range of Rs. 3000 – Rs. 4000.

6. Lightning Arrester: Helps protect the home solar system from potential damage due to lightning strikes by safely diverting electric flow.

Approx Price: Costs between Rs. 2000 and Rs. 2500.

7. Array Junction Box: This box facilitates the connection between solar panels and the rest of the system, ensuring efficient power transfer.

Approx Price: Costs between Rs. 5000 – Rs. 6000.

8. Installation Charges: Professional installation by certified technicians is crucial for ensuring the proper setup and functionality of the solar system.

Approx Price: Typically ranges from Rs. 10,000 to Rs. 30,000.

9. Other Components: Various additional components, such as wiring, junction boxes, and connectors, are essential for the safe and efficient operation of the solar system.

Approx Price: Rs. 15,000 – Rs. 25,000.

10. AC Wire: Wiring for alternating current (AC) connections within the system.

Approx Price: Rs. 5000 – Rs. 5500 for 90 meters.

11. DC Wire: Wiring for direct current (DC) connections within the system. 

Approx Price: Rs. 800 – Rs. 900 for 15 meters.

Understanding the cost breakdown of these components is essential for estimating the total expenditure involved in installing solar panels for homes and ensuring optimal performance and efficiency.

Government Subsidy Programs

The Indian government offers various subsidy programs to promote the adoption of rooftop solar systems. One such initiative is the PM Surya Ghar Muft Bijli Yojana, which provides financial incentives to homeowners, thereby reducing the total payable home solar installation cost, making solar energy more accessible and affordable for households.

1 kW System:

• Installation Cost: Rs. 90,000 – Rs. 1,30,000
• Subsidy: Rs. 30,000
• Cost After Subsidy: Rs. 60,000 – Rs. 1,00,000

2 kW System:

• Installation Cost: Rs. 1,40,000 – Rs. 1,80,000
• Subsidy: Rs. 60,000
• Cost After Subsidy: Rs. 80,000 – Rs. 1,20,000

3 kW System:

• Installation Cost: Rs. 1,90,000 – Rs. 2,30,000
• Subsidy: Rs. 78,000
• Cost After Subsidy: Rs. 1,12,000 – Rs. 1,52,000

4 kW System:

• Installation Cost: Rs. 2,40,000 – Rs. 2,80,000
• Subsidy: Rs. 78,000
• Cost After Subsidy: Rs. 1,62,000 – Rs. 2,02,000

5 kW System:

• Installation Cost: Rs. 2,90,000 – Rs. 3,30,000
• Subsidy: Rs. 78,000
• Cost After Subsidy: Rs. 2,12,000 – Rs. 2,52,000

Calculating Return on Investment (ROI) for Solar System Installation

Determining the return on investment (ROI) for rooftop solar installations is essential for homeowners looking to assess the financial feasibility of such projects.

For instance, with a 1 kW solar plant generating 4 units of electricity daily and an annual output of 1460 units, the potential for savings is substantial. At an electricity rate of Rs. 8 per unit, the annual benefit amounts to Rs. 11,680. It will take approximately 5 years to recover their investment.

Moreover, with the PM Surya Ghar subsidy, the payback period is further reduced to 3 years and 2 months, making rooftop solar systems an attractive option for both financial savings and environmental sustainability.

Financing Options

In addition to subsidies, homeowners have access to various financing options to facilitate rooftop solar installations. Finding financing alternatives is essential, and institutions like the State Bank of India (SBI), Union Bank, and Canara Bank, among others, provide loans and microfinancing possibilities. For instance, SBI offers two loans of Rs 2 lakh and 6 lakh and net interest rates ranging from 7 % to 9.15 % respectively.

To explore further financing options, homeowners can visit the PM Surya Ghar portal. The process involves visiting the portal, clicking on ‘Financing Options,’ and then selecting the names of banks on the left side to view their loan offers.

Conclusion

Rooftop solar systems represent a sustainable and cost-effective solution for meeting the energy needs of households in India. By understanding the costs, subsidies, financing options and potential savings associated with solar installations, homeowners can make informed decisions that benefit both their wallets and the planet. Das Energie Private Limited has simplified this installation process by connecting you with vetted installers through their solar quotation process.