Switching to solar energy is one of the cleverest decisions homeowners and small businesses can make in India today. With rising electricity costs and cumulative awareness about clean energy, installing a 3KW solar panel system offers long-term savings and ecological benefits.
In this all-inclusive blog post, we’ll cover:
- Current 3KW solar panel system price in India
- How government subsidies reduce installation cost
- Return on investment, savings, and financing
- FAQs and expert tips
Let’s dive in!
Solar power is not only an environmentally responsible choice but also a smart financial investment. Although the initial installation cost may appear high, the long lifespan of solar panels up to 25 years helps recover the investment in under five years. This means you can start enjoying virtually free electricity within just five years of installing a solar panel system.
A 3kW solar panel system is ideal for meeting the daily electricity requirements of a 2–3 BHK home with up to 10 hours of power usage. But how much does a 3kW solar panel system cost in India? What is the upfront investment needed to benefit from long-term savings? This blog answers all these questions in detail.
To encourage the use of renewable energy, the Government of India offers attractive subsidies on solar panel installations. With abundant sunlight and cost-effective solar panel manufacturing, India is well-positioned to adopt solar energy at scale.
By the end of this blog, you’ll have a clear understanding of the 3kW solar panel price in India with subsidy, the costs for different system types, and where to find the best solar panels in the country.
What Is a 3KW Solar Panel System in India?
A 3KW solar panel system is a grid-connected photovoltaic installation that generates up to 3 kilowatts (kW) of power during peak sunlight hours. This capacity is ideal for:
- Small to medium homes
- Offices and shops
- Areas with regular high power demand
A 3KW solar system naturally includes:
- Solar panels (approx. 9–12 panels)
- Inverter (Hybrid or Grid-tied)
- Mounting structures
- Cables, connectors, and installation labour
3kW Solar Panel Price in India Based on System Types
A 3kW solar power system typically consists of around six solar panels and is capable of generating 12–15 units of electricity per day under ideal sunlight conditions. To install a 3kW solar system, you will need approximately 300 square feet of shadow-free rooftop space.
There are three main types of solar panel connection systems designed to suit different locations and user requirements.
Whether you are planning a residential installation or a small commercial project, understanding the 3kW solar system price in India, along with available subsidies, is essential.
3kW Solar Panel Price in India with Subsidy
- On-Grid Solar System: ₹1,65,000
- Off-Grid Solar System: ₹2,40,000
- Hybrid Solar System: ₹2,70,000
Note: The above prices are indicative and may vary depending on market demand, raw material availability, solar cell technology, and regional factors. For the most accurate pricing and current subsidy benefits, it is recommended to consult trusted solar panel dealers such as Solar Earth.
Today, polycrystalline panels are rarely preferred. Most customers now opt for advanced technologies like Mono PERC, Bi-Facial, and TOPCon solar panels due to their higher efficiency and better performance.
For a 3kW solar power system, only six high-efficiency panels are required. In the following sections, we will explore the pricing and benefits of each of these modern solar panel options.
3KW Solar Panel System Price in India (2026 Average)
The price of a 3KW solar panel system in India varies based on brand, quality, city, and whether you choose an online or local vendor.
Here’s the approximate price range in 2026:
| Component | Estimated Price (₹) |
| Solar Panels (3KW) | ₹60,000 – ₹90,000 |
| Inverter + Accessories | ₹15,000 – ₹40,000 |
| Mounting & Installation | ₹10,000 – ₹25,000 |
| Total (Before Subsidy) | ₹85,000 – ₹1,55,000 |
| After Central Subsidy (~40%) | ₹60,000 – ₹95,000 (approx) |
*Prices may differ slightly in metros vs non-metros.
Government Subsidy on Solar Panels in India
To encourage renewable energy adoption, the Government of India provides subsidies under schemes such as:
Central Financial Assistance (CFA)
Under the Ministry of New and Renewable Energy (MNRE) program:
- Subsidy up to 40% for rooftop solar systems up to 3KW
- 26% for 3KW–10KW systems for residential users
This reduces overall investment significantly.
Subvention is based on system capacity, not bill amount.
State-Level Subsidies
Many state governments provide additional incentives.
Examples (varies by state):
| State | Extra Subsidy |
| Gujarat | ₹10,000 – ₹20,000 bonus |
| Rajasthan | Performance-based rewards |
| Karnataka | Additional tariffs |
Check with your local DISCOM/solar vendor for exact figures.
How Much You Actually Pay (After Subsidy)?
Let’s break this down with a simple example:
- 3KW System Cost: ₹1,20,000
- Central Subsidy (40%): ₹48,000
- Your Cost: ₹72,000
Final amount the homeowner pays: around ₹70,000–₹95,000, depending on hardware quality.
Electricity Savings & ROI (Return on Investment)
Electricity Bill Savings
A 3KW solar system can generate about 350–420 units/month, depending on sunlight. For example:
- Your tariff: ₹7/unit
- Monthly generation: 380 units
- Estimated saving: ₹2,660/month
Annual saving: ₹31,920
Payback Period
| Scenario | Payback Time |
| Without Subsidy | ~5.5–7 years |
| With Subsidy | ~3–5 years |
Typically, solar systems in India pay for themselves within 3–5 years!
Net Metering & Solar Benefits
India follows net metering, which means:
- Excess power generated is fed back to the grid.
- You get credits from the utility company.
- Those credits reduce your monthly electricity bill.
In many states, net metering is zero‐cost; in some, minimal charges apply.
Components That Affect Price
Here’s what impacts the final cost:
✔ Solar Panel Type
- Polycrystalline – cheaper, slightly lower efficiency
- Monocrystalline – higher efficiency, costlier
✔ Inverter Type
- String inverter
- Hybrid inverter (with battery backup)
- With or without battery (Battery systems cost more)
✔ Mounting System
- Rooftop type (flat/tilted)
- Quality of rafters and tools
✔ Installation Charges
Vary by:
- City
- Installation complexity
- Vendor reputation
Tips to Reduce Cost Further
✔ Apply subsidy through approved vendors
✔ Negotiate installation charges
✔ Choose govt-approved modules (better resale value)
✔ Compare quotes from 3-4 installers
3kW On-Grid Solar System Price in India
An on-grid solar system does not store excess electricity in batteries. Instead, any surplus power generated by your solar panels is sent directly to the local electricity grid. This system typically includes solar panels, a solar inverter, a mounting structure, and a net metering setup.
With net metering, your solar system is connected to the government grid. When your system generates more electricity than required, the excess is exported to the grid, earning you energy credits.
During periods of low solar generation, such as cloudy days or at night, you can draw electricity from the grid. This makes on-grid solar systems ideal for locations with frequent power cuts or inconsistent sunlight availability.
Under the PM Surya Ghar Mufti Bijli Yojana, homeowners can avail of a subsidy of up to 40% or ₹78,000 on a 3kW solar system. After applying the subsidy, the 3kW on-grid solar system price in India comes down to approximately ₹1,65,000.
3kW Off-Grid Solar System Price in India
A 3kW off-grid solar system is best suited for areas with unreliable or no grid connectivity and frequent power outages. This system stores excess solar energy in batteries, which can be used when solar power generation is low or unavailable. An off-grid system includes solar panels, an inverter, and solar batteries.
Currently, no government subsidy is available for off-grid solar systems. As a result, the 3kW off-grid solar system price in India is around ₹2,40,000. Homeowners can choose advanced solar panel technologies such as TOPCon or Mono Bi-Facial panels to maximise efficiency, improve return on investment, and shorten the payback period.
3kW Hybrid Solar System Price in India
If you are looking for a balance between energy storage and grid connectivity, a hybrid solar system is an excellent option. This system combines the features of both on-grid and off-grid setups. It includes solar batteries for backup storage along with net metering to export excess electricity to the grid.
Although the initial investment for a hybrid solar system is higher, the long-term savings and energy security make it a worthwhile choice. Under the PM Surya Ghar Mufti Bijli Yojana, a 40% subsidy is available, bringing the 3kW hybrid solar system price in India to approximately ₹2,70,000 after subsidy.
Why Choose Solar Earth for a 3kW Solar Panel System in India?
Solar Earth is a trusted solar panel dealer based in Ahmedabad, known for delivering high-quality solar solutions with transparent pricing. Our state-of-the-art manufacturing facility ensures superior panel performance and durability.
From expert installation to reliable after-sales maintenance, we focus on maximising your system’s efficiency and return on investment.
To get the latest 3kW solar system price in India, connect with our team today by scheduling a call or filling out the contact form.
Checklist Before Buying Solar
Before you finalize, consider:
✅ Vendor’s MNRE registration
✅ Warranty (Panels: 10+ years; Inverter: 5 years)
✅ Performance guarantee
✅ AMC/maintenance options
FAQ – Frequently Asked Questions
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What is the average cost of a 3KW solar panel system in India?
A 3KW system naturally costs ₹85,000 – ₹1,55,000 before subsidy. After subsidy, the price is around ₹70,000–₹95,000 depending on hardware quality.
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How much subsidy does the government offer?
The central subsidy is approximately 40% for residential rooftop systems up to 3KW. Additional state incentives may apply.
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Can I install a 3KW system in a 2-storey house?
Yes! As long as you have adequate rooftop space (about 200–250 sq ft) with good sunlight, a 3KW system is feasible.
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How much electricity does a 3KW system produce?
Usually around 3,500–4,800 units per year, depending on sunlight and location.
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Do I need batteries with a 3KW solar system?
For grid-tied systems, batteries are optional. They add cost but help during power cuts.
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How quickly will it pay back the investment?
With a subsidy, the solar panel’s payback is characteristically around 3–5 years.
7. How Much Can You Save With a 3kW Solar System in India?
A 3kW solar power system can generate approximately 12 units of electricity per day. This translates to around 300–360 units per month, depending on sunlight conditions. With this level of energy production, homeowners can reduce their monthly electricity bills by approximately ₹3,500 to ₹4,000.
8. How Much Subsidy Is Available on 3kW Solar Panels in India?
The Government of India provides a 40% subsidy on 3kW solar panel systems. Under the PM Surya Ghar Mufti Bill Yojana, eligible on-grid solar installations can receive a subsidy of up to ₹78,000. This subsidy is also applicable to hybrid solar systems, helping reduce the overall installation cost.
9. How Much Space Is Required for a 3kW Solar Panel System?
A standard 3kW solar system typically consists of six solar panels. To install the panels along with the mounting structure, around 300 square feet of shadow-free roof space is required. Contact us today for a professional site and space assessment.
Final Thoughts: Is a 3KW Solar System Worth It?
Absolutely! A 3KW solar system offers:
🌱 Long-term electricity bill savings
💸 Quick payback, especially with subsidy
🔋 Reduced dependence on grid
🌍 Clean & eco-friendly energy
If you’re planning to go solar in 2026, a 3KW system is one of the best ROI options for Indian homes.
