Table of Contents
Quick Question: Is a 3kW solar system enough for your home?
If your monthly electricity bill ranges from ₹2,500 to ₹4,000, you typically consume around 300-450 units of power; this would make a 3kW solar system the optimal financial solution for you as this is the most commonly installed size across India, and matches the amount of government subsidy available, as well as the typical load of a 2-3 BHK (4 person household, with an air conditioner) home.
With grid connectivity prices rising 5%-7% each year, it would be beneficial for you to lock in a fixed price for your energy now, helping protect you from rising electricity costs due to inflation. This guide provides all the information you need on the pricing structure for a 3kW solar power system, the PM Surya Ghar subsidy you are eligible for, and the estimated savings you can expect over the life of the system (25 years).
Quick Answer: 3kW Price at a Glance
For most homes in India, here is the math for 2025. Note that prices may vary slightly based on your state (due to transport costs) and the height of the mounting structure required.
| System Type | Avg Market Price (Pre-Subsidy) | PM Surya Ghar Subsidy | Net Cost to You |
|---|---|---|---|
|
On-Grid Most Popular | ₹1.60L – ₹1.80L | - ₹78,000 | ₹82,000 – ₹1.02L |
|
Hybrid (With Battery) | ₹2.70L – ₹3.50L | - ₹78,000* | ₹1.92L – ₹2.72L |
|
Off-Grid (No Grid) | ₹2,40,000+ | ₹0 (No Subsidy) | ₹2,40,000+ |
*Hybrid subsidy applies only to the grid-tied inverter capacity, not the batteries.
Note: scroll horizontal for more details
Which system is right for you?
1) On-Grid: 90% of users use on-grid because it is the cheapest way to go solar. It connects directly to grid-supplied electricity; therefore, you can use the grid to sell any extra electricity you generate back to the utility. However, one major drawback is that on-grid systems are not operational during power outages. If you are in an area that has less than 1% of outages (ex., A city), then on-grid systems will give you the best return on investment.
2) Hybrid (Premium): A hybrid extensive system will incorporate both the grid and a battery backup (lithium/lead acid) as an option. The hybrid system allows you to have power when the grid is down. This system should only be considered if there are repeated interruptions of electrical service (power outages) or if you have a high dependence on electricity for your job or to keep your medical equipment operational at all times.
3) Off-Grid: Off-grid systems are primarily used for farms or remote locations where no utility is available, or is required to use electricity. Off-grid systems tend to be quite expensive, and battery life averages about five to seven years, requiring you to replace them.
Detailed Cost Breakdown (Bill of Materials)
Where does your money go? A solar system is an asset that lasts 25 years, so quality matters. Don’t let installers overcharge you or cut corners on safety.
Here is the fair market rate for components in a 3kW On-Grid system:
| Component | Specifications | Estimated Cost | Why it matters? |
|---|---|---|---|
| Solar Panels | 6-8 High-Efficiency Mono PERC / Bifacial Panels (540W+) | ₹90,000 | The Engine Mono PERC panels work better in low light. Bifacial panels produce power from the backside (reflected light), adding 5-10% extra generation. |
| Solar Inverter | 3kW On-Grid Inverter (Growatt/Solis/Tata) | ₹30,000 | The Brain Converts DC to AC. Modern inverters come with Wi-Fi Monitoring Apps. Warning: Cheap inverters often fail in 3-5 years. |
| Structure | Hot-Dipped Galvanized Iron (GI) Structure | ₹20,000 | The Backbone Must be "Hot-Dipped" (80 microns zinc) to resist rust for 25 years. Avoid painted iron which rusts in 3 years. Rated for 150 kmph winds. |
| Installation Kit | ACDB, DCDB, Lightning Arrester, Earthing, DC Cables | ₹15,000 | The Safety ACDB/DCDB boxes contain fuses and surge protection (SPD) to protect your home appliances from voltage spikes. |
| Labor & Approvals | Installation charges + Net Metering Liaisoning | ₹20,000 | The Process Includes physical labor, fitting the net meter, and handling government DISCOM paperwork/approvals. |
| TOTAL | (Pre-Subsidy Estimate) | ~ ₹1,75,000 | |
Note: Scroll horizonal for more info.
Pro Tip on “Earthing”: Many local installers save money by using thin AC wires for DC connections or skipping the Lightning Arrester (LA). Never allow this. Solar panels generate high-voltage DC current; proper “Chemical Earthing” (maintenance-free) is non-negotiable for the safety of your family during thunderstorms.
The Subsidy Explained: PM Surya Ghar Muft Bijli Yojana
The PM Surya Ghar Muft Bijli Yojana is a subsidy for solar panel installations. The government provides these subsidies to encourage the adoption of 3kW systems.
- If you install a system greater than 3kW, you will only receive the subsidy amount corresponding to 3kW. Solar panel subsidies will be capped at ₹78,000 for systems rated greater than or equal to 3kW.
- To qualify for a solar panel subsidy, you must own the electricity connection in your name as well as hold the roof rights.
- All solar panel systems must use only DCR (Domestic Content Requirement) solar panels. These solar panels must be manufactured in India and must contain only Indian-made solar cells. If you select a solar panel system that includes solar panels that are not DCR compliant, you will receive NO subsidy under this program.
Follow the steps below to access the PM Surya Ghar Muft Bijli Yojana subsidy:
- Register on the National Portal for Rooftop Solar so that you can receive your Consumer ID verification.
- The local DISCOM (electric utility) will review the system’s technical feasibility (i.e., check transformers for capacity) to determine if the system can be installed.
- After the technical feasibility has been determined, you can contact a registered vendor for assistance in the installation of the system. Payment is required in full at the time of registration with the vendor.
- The vendor will complete the necessary paperwork to apply for a net metering agreement with the local DISCOM. The local DISCOM will then send someone to install the net meter.
- After the net meter has been installed and all safety checks have been completed, a “Commissioning Certificate” will be provided.
- To receive the subsidy amount of ₹78,000, upload a cancelled cheque to the National Portal. The subsidy amount will be deposited into your bank account directly by the Government of India.
What does a 3 kW System Power? (The Grid Tied Reality)
Many people believe that solar systems must be connected to certain appliances, which is an incorrect belief.
When you install an On-Grid solar system, the way your home consumes electricity (today) stays the same, with the solar power being added to your existing power supply via your home’s main switchboard.
Scenario A: (Sunny Afternoon): Solar Power = 2.5 kW, What Your AC/Fridge are Consuming = 2 kW, therefore the entire home will operate using the solar energy and the surplus 0.5 kW exported back out to the grid (Export).
Scenario B (Night): Solar Power = 0 kW, what you run (your AC) is using power coming from the grid (Import).
Bill Calculation: At the end of each bill cycle (Month-End), the Net meter will take (Total Import Units) – (Total Export Units), with only the difference being what needs to be paid for.
Generation Estimates: Summer vs. Winter. The Generation level varies from summer to winter.
- Summer (March – May): Peak generation (15-18 Units/Day).
- Monsoon Season (July – August) = Lowest Generation due to cloudiness, expect to generate approximately 8-10 units on Average/Day.
- Winter (November – January) = Moderate Generation (12-14 Units/Day). Therefore, the annual Average Is Approximately 12-13 Units/Day, which is equal to approximately 4500 units on average/year.
The Energy Produced will be able to supply enough energy to satisfy the Monthly Energy use of:
- 1 x Air Condition (1.5 Ton) and will be used for running approximately. 4-5 hours per Day
- 1 x Refrigerator (Double Door type) approx. 24 hours a Day
- All fans/lights (the entire house)
- TV/Wi-Fi
- Washing machine and kitchen appliances such as Mixer/Microwave, etc.
Return on Investment (ROI) – Is It Worth It?
Let’s take an example of a normal individual in the states of Gujarat and Maharashtra, where the average cost of electricity is around ₹8 per unit.
Monthly Cash Flow: ₹90,000 (after deducting subsidies). Monthly Savings: ₹3600 (based on the above amount of energy consumed).
Yearly Cash Flow: ₹36,000. Your initial investment will generate a cash flow of ₹3600 every month, and the electricity used during this time will cost nothing since you already paid for it with the cash flow from your investment.
In addition, you will have your full investment value after 2500 months, and for the next 22.5 years, you will have free energy. In addition, with annual increases in the electricity tariff and inflation, the amount of money you will save each year will increase. A home with a pre-existing solar system has a greater resale value and sells quickly than a home without one. Would you like to see an annual breakdown of your savings?
Click here for your customised 25-year report.
Top Solar Brands for 3kW Systems (2025)
| Brand | Price Tier | Best For... |
|---|---|---|
| Tata Power Solar | Premium |
Trust & Service. Largest service network in India. If something breaks in 5 years, they will be there. Costs 15-20% more. |
| Adani Solar | Mid-Range |
Performance. India's largest manufacturer. High-quality DCR panels often used in mega-projects. Excellent efficiency. |
| Waaree Energies | Flexible |
Variety. Best for custom kits. Huge range of panel sizes and technologies. Very popular with local installers. |
| Loom Solar | High-Tech |
Innovation. The go-to brand for cutting-edge tech like Bifacial (double-sided) panels or advanced Lithium battery setups. |
Note: Scroll horizontal for more info
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Frequently Asked Questions
How much roof space do I need?
You need approximately 250 to 300 sq. ft. of shadow-free area.
Tip: If you live in a dense city with a small roof, ask for an “Elevated Structure” (6-8 feet high). This allows you to walk under the panels, so you don’t lose your terrace utility for drying clothes or evening walks.
Can I install 3kW if my sanctioned load is only 1kW?
No. Your electricity meter’s sanctioned load must be equal to or higher than your solar capacity. You will need to apply for a “Load Extension” with your DISCOM before installation. Most installers handle this paperwork for you, but you will have to pay the security deposit difference to the DISCOM.
What happens during a power cut?
If you have an On-Grid system (the cheapest option), the solar system shuts down completely during a power cut. This is a mandatory safety feature called “Anti-Islanding” to protect the linemen working on the grid wires from getting electrocuted by your solar power. If you need backup during outages, you must upgrade to a Hybrid Inverter with batteries.
Does it require a lot of maintenance?
Very little. You only need to clean the dust off the panels every 10-15 days to maintain efficiency. A dusty panel can lose 15-20% of its generation capacity.
Warning: Do not use soap or abrasive scrubbers. Plain water and a soft cloth/sponge are best. Clean early in the morning when panels are cool.
Can I upgrade my system later?
It is difficult. Your inverter is sized for 3kW. If you want to add 2kW more later, you will likely need to replace the entire inverter. It is better to oversize your inverter slightly (e.g., buy a 4kW inverter for a 3kW panel setup) if you plan to expand later.