What are solar panel subsidies?

Solar panel subsidies refer to financial incentives given by central and state governments in India to increase adoption of photovoltaic (PV) solar power systems. They are usually provided as: 1) Capital Subsidies: Direct upfront incentives on the initial purchase and installation costs of solar panels and related components.

How to make solar panels cost more affordable in India?

The Indian government offers substantial subsidies to make solar panel cost in India for home installations more affordable: *The subsidy amount is fixed for rooftop solar systems of 3 kW and above capacity.

How much does a 3 kW solar panel cost in India?

Apply via the National Portal for Rooftop Solar. Let’s say you install a 3 kW system at ₹1.8 lakh (after subsidy): Check warranties on panels and inverters (25 years panel, 5–10 years inverters). How much does a 1 kW solar panel cost in India? ₹60,000 to ₹75,000 on average, including installation.

How much will solar panels cost in India in 2025?

In 2025, Indian homeowners are experiencing more competitive pricing due to improved manufacturing capabilities and government incentives. The average cost of solar panel installation for home systems typically ranges from ₹75,000 for basic 1kW systems to over ₹6 lakh for comprehensive 10kW installations.

Can I get solar subsidy if I install off-grid or hybrid solar system?

If you want to install Off-grid or hybrid solar system then you will not become the beneficiaries of solar subsidy. In the below table, we discussed about only On-Grid solar panel system in which you can apply for the subsidy to the government.

How does a solar subsidy work?

When combined with central assistance, the total subsidy grant can cover 40-60% of the initial solar system cost depending on your location. This significantly accelerates return on investment for solar power. Here is a quick snapshot of solar panel rates across states for a 3 kw residential system along with applicable subsidy benefits: Rajasthan