The convenience of having lower electricity bills has certainly made many people curious about the solar panel installation process in 2025. Given the rising grid-based power tariffs and improved government support, rooftop solar is now easier to access than before.
If you are unsure about the real costs, hidden charges, and subsidies, then you are at the right place.
Keep reading as we explore the actual solar panel installation cost, subsidy benefits, factors influencing pricing, and other valuable tips to save on your electricity bills.
Average Solar Panel Installation Cost in India 2025
The total price of solar panel installation highly depends upon the equipment quality, system size, and installation location. Below is an average cost range for installing standard on-grid rooftop systems in 2025.
| System Size | Cost Before Subsidy | Subsidy (PM Surya Ghar) | Net Cost After Subsidy |
| 1 kW | ₹55,000 to ₹75,000 | ₹30,000 | ₹25,000 to ₹45,000 |
| 3 kW | ₹1,60,000 to ₹2,10,000 | ₹78,000 | ₹82,000 to ₹1,32,000 |
| 5 kW | ₹2,50,000 to ₹3,00,000 | ₹78,000 | ₹1,72,000 to ₹2,22,000 |
Our in-house team of solar panel experts can derive an accurate investment estimate by visiting your place, understanding your location, system size needs, and other factors.
What Factors Drive Up Solar Installation Costs in 2025?
The total cost of installing rooftop solar varies from one home location to another. It depends upon the type of equipment selected and the exact installation conditions as examined at the site.
Knowing these factors in advance will let you understand the pricing clearly and then plan your budget without confusion.
Panel Type (Mono PERC vs Polycrystalline)
Solar panels are mainly available as Mono PERC and polycrystalline types.
Mono PERC panels help generate more power using less roof space and can work efficiently even in low sunlight conditions. Given its operational efficiency, they usually cost more.
Polycrystalline panels, on the other hand, are slightly less efficient, yet they are more affordable and widely used. The type of panel you choose plays a direct role in determining the final solar panel installation cost in your home.
Inverter, Batteries, and Labor Charges
The inverter is one important part of a solar system that converts solar power into usable electricity.
Standard on-grid inverters are more affordable, while the hybrid inverters cost more, given their ability to support battery connection.
Batteries can increase the investment cost further, yet they act as a solid power backup. Labour charges vary based on roof structure, height, and safety needs during installation.
By determining the system size, roof type, and component choice, our solar experts will help you avoid facing unnecessary costs during installation.
PM Surya Ghar Subsidy: How Much Can You Save in 2026?
The PM Surya Ghar Muft Bijli Yojana is a central government scheme that helps residential homeowners reduce the investment cost of rooftop solar.
The scheme has been designed to make solar power more affordable for all, easier to adopt, especially for households with regular electricity usage.
Through this scheme,
- You can apply for the maximum subsidy capped at ₹78,000.
- The desired amount will be credited directly to your bank account.
- You can significantly reduce the solar panel installation price, especially for 1 kW and 3 kW systems.
The subsidy amount is determined based on the size of the solar system that you have installed on your residential roof spaces. The subsidy benefit is applicable only for grid-connected residential systems and not for commercial properties.
The major aim of this subsidy scheme is to reduce the overall price of solar panel installation, making the initial investment lower for homeowners.
Our in-house team of experts will help in the subsidy documentation process and net-metering approval process to receive the desired subsidy benefit through this scheme.
Step-by-Step Cost Calculator for Your Home
You can easily estimate the price of solar panel installation by following these steps:
- Match usage with system size (Example: 1 kW = 120 to 125 units/month)
- Multiply it by the average per kW price
- Subtract the applicable subsidy following the subsidy scheme you are approved for
- Add meter and inspection charges, if applicable
- Check your monthly electricity units
By visiting your place, our solar experts can calculate your grid electricity usage readings and determine the installation cost, given your solar power usage dependency.
Hidden Costs and Savings Tips for 2025 Installs
While planning a rooftop solar system installation in your home, some costs might often be overlooked during the initial discussion.
These may include additional wiring, net-meter installation charges, or minor roof reinforcement, if the structure needs extra support.
Site inspection and approval fees can also add to the final amount. As a homeowner, you must check eligibility under the solar subsidy scheme in Kerala, as local rules and approval can affect installation timelines and expenses.
To reduce overall installation cost, it is better to hire services from approved installers in the first place.
Avoid adding batteries unless backup is crucial, and clarify warranty and service terms in advance.
Careful planning done with the help of experts will let you avoid unexpected expenses and ensure a smoother solar installation experience.
Conclusion
Determining the real costs of solar panel installation helps homeowners make informed decisions about rooftop solar. When subsidy, system size, and installation factors are calculated accurately, solar becomes a stable long-term investment.
At Alternative Energy Corporation (Aeco Solar), the best solar company in Kerala, we ensure compliance, safety, and a smooth solar panel installation experience through our in-house team of solar experts.
We follow approved standards and installation practices, helping you quickly adopt solar power with clarity and confidence.
We are one phone call away to clear your solar panel installation and subsidy-related queries.
Solar Panel Cost 2026 FAQs
For residential systems, it ranges from ₹55,000 to ₹75,000 per kW before subsidy.
After subsidy, a 3 kW system may cost between ₹82,000 and ₹1.32 lakh.
Kerala mainly follows the central scheme, with limited state-level additions in specific cases.
Only residential homeowners with grid-connected rooftops are eligible.
Yes. Subsidy increases up to 3 kW and then remains capped.
Yes. Net-metering is required for on-grid systems to export excess power.
No. The scheme is only for residential installations.
Look for MNRE approval, local service support, and clear documentation. At Aeco Solar, we have the most experienced team to handle your solar panel installation, maintenance, and subsidy application process.
