There are several factors that affect the cost of solar installation in India, including system size, type of installation, brand of components, and location. The following are the key components of the cost:

1. Cost of solar panels (PV Modules)

• Solar panels account for 50-60% of the total system cost.

• Types of Panels:

  • Polycrystalline: ₹18-₹25 per watt

  • Monocrystalline (PERC): ₹25-₹35 per watt

  • Bifacial or Top-tier brands: ₹35-₹45 per watt

2. Cost of Inverters

• Inverters contribute 15-25% of the cost of a system.

• Types:

  • String Inverters (5kW-50kW): ₹5-₹7 per watt

  • Microinverters: ₹12-₹18 per watt (higher efficiency but expensive).

3. Mounting structures

• Cost varies based on material (GI, Aluminum, or MS) and type (rooftop, ground-mounted, elevated).

• Approximate cost: ₹3-₹6 per watt.

4. BOS (Balance of System) Components

• Includes cables, junction boxes, AC/DC isolators, earthing, and lightning protection.

• Cost: ₹5-₹8 per watt.

5. Installation & Labor

• Depends on the project size and complexity.

• Approximate cost: ₹3-₹5 per watt.

6. Other costs

• Net Metering & Approvals: ₹5,000-₹20,000 (varies by state)

• Battery Backup (if required): ₹8-₹15 per watt

Total Cost Estimates (₹ per Watt)

System Size

Rooftop (₹/Watt)

Ground-Mounted (₹/Watt)

1-10 kW

₹40-₹55

₹35-₹50

10-100 kW

₹35-₹50

₹30-₹45

100 kW +

₹30-₹45

₹28-₹40

Government subsidy

• Residential Rooftop Solar (Up to 10 kW): 30-40% subsidy under PM Surya Ghar Muft Bijli Yojana.

• Commercial/Industrial: No subsidy but tax benefits like Accelerated Depreciation (40%).

ROI & Payback Period

• Residential: 4-6 years

• Commercial/industrial: 3-5 years (due to higher electricity tariffs).