Solar power installation price does not depend only on installing solar panels; when we install solar systems at homes or offices, many important components are used, and different charges are included. Therefore, to understand the total cost, one has to look not only at the price of the solar panel. The complete solar system cost includes expenses like solar panels, an inverter, a mounting structure, wiring, and installation charges. With the help of the PM Surya Ghar Muft Bijli Yojana, the solar system cost of the homeowner also gets reduced. An average cost of a 5 kW solar system is covered in the payback period of approx. 3-4 years.
The electricity bill in India is increasing day by day; hence, today many homeowners are considering solar power as an affordable alternative. This guide for 2026 will explain all the questions related to solar panel installation, like solar system pricing, what a solar power installation price depends on, how much a 5 kW solar system costs, and government solar subsidies.
What is the solar power installation cost?
Solar power installation cost means the expense of installing a solar installation along with the equipment required to properly use it. A complete solar installation generally includes these components.
Solar Panels
Solar Inverter
Mounting Structure
DCDB & ACDB
Earthing & Safety Equipment
Installation & Labour
Electrical Protection Devices
Net metering related work, where applicable
Therefore, whenever you get a quotation for solar panel installation, do not check only the price of the solar panel but also check the price of other components.
On what factors does solar power installation price depend?
Solar system capacity:
The cost depends primarily on the capacity of the solar power system.
1 kW
2 kW
3 kW
4 kW
5 kW
6 kW
7 kW
8 kW
9 kW
10 kW
Solar panel quality:
Different types and qualities of solar panels are available in the market. Different brands of solar panels are available, like Adani panels, Waaree solar panels, Tata solar panels, and many more from different companies. The price of solar panels depends on their quality, including factors such as efficiency, technology, and warranty.
Solar Inverter:
The solar inverter plays the main role in the solar system, which converts the DC electricity of the solar panel into AC, which is used in the appliances of our house. Solar inverters also come in different types and come in different brands. Depending on your system, an on-grid, off-grid, or hybrid inverter is installed. In this, an off-grid and hybrid inverter is more costly as compared to an on-grid inverter.
Installation Requirements:
If the rooftop is simple and installation is easy, the cost can be relatively straightforward.
But if on the rooftop.
Shading is happening.
There are multiple floors.
Cable distance is too much.
Special mounting structure required
Roof access is difficult.
It is possible that installation costs may increase.
How much does a 5kw solar system cost?
If you want to install a 5 kW solar system, the first question is what will be the cost of the 5 kW solar system. Which systems are on-grid systems, off-grid systems, and hybrid systems? And how much subsidy will I get under the PM Surya Muft Bijli Yojana? Generally, a properly sized 5 kW rooftop solar system in Noida generates approximately 20 units. Actual generation depends on location, weather, rooftop direction, and shading. And the subsidy is Rs 1,08,000, 78,000 from the central government and 30,000 from the state government.
To say it in simple language, if the AC, fridge, washing machine, TV, and other electrical appliances are running regularly in your house, then a 5 kW solar system can be a strong option for you.
5 kW on-grid solar system
The purpose of an on-grid solar system is to reduce the bill; if your electricity bill is 4000 to 5000, then your bill will be reduced by 90%. On-grid systems: normally these components are used. Solar panel, on-grid inverter, structure, wiring, and net meter.
5 kW off-grid solar system
The main purpose of an off-grid solar system is that it is mostly installed where there is no electricity connection because it generates electricity itself. No subsidy is provided in the off-grid system. Basically, the components included here are a solar panel, an off-grid inverter, a battery, a structure, and wiring.
5kw hybrid solar system
If the purpose of a hybrid solar system is to reduce the electricity bill, then it should also provide battery backup. The main components used are solar panels, a hybrid inverter, a battery, a structure, wiring, and net metering.
Important Factors Affecting Solar Power Installation Price
If you are checking the quotation of solar installation, then you must check this factor.
Panel brand & technology
If you look at the low-price panel, then you can look at the quality and long-term performance and warranty of the solar panel.
Inverter quality
The inverter is the main part of the solar system, which converts DC current into AC; hence, it is very important to check the quality of the inverter.
Mounting structure
It is very important to have a strong mounting structure to hold the solar panels securely on the rooftop.
Wiring & safety
It is very important to pay proper attention to the wiring because if the quality of the wiring is not good, then the solar system will not work and there is a chance of an accident.
Labour & installation
This also affects installation charges and how much labour is required to install.
How much subsidy is provided under the PM Surya Ghar free electricity scheme?
|
Load |
Central Government | State Government |
Total Subsidy |
|
1KW |
₹30,000 | ₹15,000 |
₹45,000 |
|
2KW |
₹60,000 | ₹30,000 |
₹90,000 |
|
3KW |
₹78,000 | ₹30,000 |
₹1,08,000 |
|
4KW |
₹78,000 | ₹30,000 |
₹1,08,000 |
|
5KW |
₹78,000 | ₹30,000 |
₹1,08,000 |
|
6KW |
₹78,000 | ₹30,000 |
₹1,08,000 |
|
7KW |
₹78,000 | ₹30,000 |
₹1,08,000 |
|
8KW |
₹78,000 | ₹30,000 |
₹1,08,000 |
|
9KW |
₹78,000 | ₹30,000 |
₹1,08,000 |
|
10KW |
₹78,000 | ₹30,000 |
₹1,08,000 |
FAQ?
Q. What is the solar power installation price in India?
Solar power installation price depends on the capacity of the solar system, such as solar panels, inverter type, battery, and installation location. It is very important to do a site survey and system design for the final price.
Q How much electricity can a 5kW solar system generate?
A 5kw solar system will generate an average of 20 units per day. And if the location and system design are right, then it will generate even more.
Q. How many solar panels are required for a 5kW solar system?
It depends on how much wattage the panel has. For example, if you have a 500-watt panel, you will need 10 solar panels.
Q. How much rooftop space is required for a 5kW solar system?
A 5kw solar system will require approximately 200 square feet of space, which means 34 square feet of space per panel.
Q. Can I obtain a government subsidy for solar installation?
Yes, but it is approved only for residential plants, and a subsidy is not provided for commercial and industrial plants.
Q. Does a 5kW solar system require regular maintenance?
Generally solar systems require low maintenance. Only the panel should be kept clean, and a wiring check should be done once yearly.
Conclusion:
If you are planning to do solar panel installation, then it is very important to understand the solar power installation price. The final price of solar installation depends on solar system capacity, panel quality, inverter, installation requirements, rooftop condition, and applicable subsidy factor.
