Intro:
Thinking about going solar? The first question on every homeowner's mind is: How much will it actually cost?
To be honest, the answer to this depends on where you live. A 5kW solar cost in Pune may vary from the same setup in Chandigarh, due to different labor charges, permitting fees, state incentives, and local market conditions.
Solar has never been more affordable. Solar panel prices have dropped by over 50% in the last decade, and with government solar rooftop subsidies, state rebates, and innovative financing options, that system could pay for itself faster than you think.
In this guide, we're breaking down the real costs of 3kW to 10kW rooftop solar systems across different states. Keep reading to discover exactly what to expect in your state when it comes to solar system prices in India.
What Influences Rooftop Solar System Cost in India?
Before we compare prices, let’s understand why rooftop solar cost varies across states:
- System capacity: A 3kW solar price is lower per system, while a 10kW solar system price offers better per-unit value. The larger the system capacity, the higher the price.
- State policies & subsidies: The central and state-level solar rooftop subsidy schemes majorly impact the final cost of solar in India.
- Component quality: The total cost of a system also depends on the solar panel price, inverter type, and mounting structure.
- Installation conditions: Roof height, structure, and accessibility influence labour and BOS costs.
- Local DISCOM fees: Metering and grid-connection fees vary in different states, this also causes a significant difference in residential solar prices.
Average Solar Panel Price in India (Before Subsidy):
These figures reflect the solar system price India before subsidy and may vary based on state and installer.
System Size
Average Cost Range (₹)
Ideal For
3kW solar price
₹1.8 – ₹2.4 lakh
Small households
5kW solar cost
₹2.8 – ₹3.5 lakh
Medium homes
10kW solar cost
₹5.0 – ₹6.5 lakh
Large homes / villas
State-Wise Rooftop Solar Price Comparison (3kW–10kW):
This price comparison highlights how labour, logistics, and policy differences impact residential solar prices across regions.
State
3kW Price (₹)
5kW Price (₹)
10kW Price (₹)
Maharashtra
1.9–2.3 L
3.0–3.4 L
5.4–6.2 L
Gujarat
1.8–2.2 L
2.9–3.3 L
5.2–6.0 L
Uttar Pradesh
2.0–2.4 L
3.1–3.6 L
5.6–6.5 L
Karnataka
1.9–2.3 L
3.0–3.5 L
5.3–6.3 L
Tamil Nadu
2.0–2.4 L
3.2–3.6 L
5.7–6.5 L
Rajasthan
1.8–2.2 L
2.9–3.3 L
5.1–5.9 L
Impact of Solar Rooftop Subsidy on Final Cost:
The central government of India offers significant subsidies for rooftop solar under the PM Surya Ghar: Muft Bijli Yojana. Under these schemes, eligible homeowners receive support for grid-connected systems up to 10kW. Government subsidies have significantly lowered the rooftop solar system cost in India, making solar adoption easier, quicker and better.
The Estimated Subsidy Structure is as below:
- Up to 3kW: ~₹18,000 per kW
- 3–10kW: ~₹9,000 per kW (additional capacity)
Example: If you are planning on getting a 5kW System the base cost would have been ₹3.2 lakh. But post subsidy, the same system might cost you around ₹2.5 lakh.
Electricity Savings & Solar ROI in India:
Installing solar is not just about upfront cost; it’s about long-term returns.
Estimated Annual Savings
- 3kW system: ₹30,000–₹40,000/year
- 5kW system: ₹50,000–₹70,000/year
- 10kW system: ₹1–1.2 lakh/year
With a payback period of 4–6 years, followed by a system life of 20–25 years, resulting in net savings of nearly 4–6 times the initial investment, solar savings in India are both substantial and predictable.
Which System Size Is Right for You?
Choose 3kW if:
- Monthly consumption is under 300 units
- You live in an apartment or small independent home
Choose 5kW if:
- Monthly consumption is 400–600 units
- You want optimal balance of cost and output
Choose 10kW if:
- High power usage (ACs, EVs, large families)
- You want maximum long-term savings
Selecting the right size directly affects the solar ROI India. Therefore, work with installers who are familiar with your local market and seek help from authorized EPCs to find the ideal system size as per your needs.
Hidden Costs to Watch Out For:
Transparent pricing avoids surprises and protects your investment. When comparing & evaluating solar cost India, confirm whether everything mentioned below is included:
- Net meter & DISCOM charges
- Elevated structure (if required)
- Monitoring system
- O&M support
Final Thought
Understanding the solar system price in India is the first step toward energy independence. With falling component costs, strong subsidies, and rising grid tariffs, there’s never been a better time to switch. Work with a trusted EPC to assess your roof, confirm eligibility, and install a system that delivers reliable savings for decades.
Whether you are planning to invest right away or simply want to find out the 10kW solar system price, you can benefit from partners who understand regional pricing and policy nuances. And that’s exactly what Aerem does. We help you make informed solar decisions by aligning system costs with expected savings and solar ROI in India.

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