How Much Does It Cost to Install Solar Panels in New Delhi?

Installing solar panels in New Delhi has become an increasingly popular and affordable option for homeowners and businesses alike. With growing awareness around climate change, rising electricity bills, and strong government support, solar energy is fast becoming a go-to solution for those looking to save money and embrace a sustainable future. But how much does it actually cost to install solar panels in the capital city? Let’s break it down.

As of 2024–2025, the cost of installing solar panels in Delhi largely depends on the system size and type. A 1 kW system typically ranges between ₹75,000 to ₹85,000. For larger setups, like a 3 kW system, the price may go up to ₹2,15,000. A 5 kW system could cost anywhere from ₹3,15,000 to ₹3,57,000, while a 10 kW system might set you back between ₹5,31,000 to ₹6,07,000 before any subsidies.

Fortunately, the Indian government offers generous subsidies that can significantly reduce these costs. For systems up to 3 kW, a central government subsidy of ₹30,000 per kW is available. For 4 kW to 10 kW systems, the subsidy reduces slightly to ₹18,000 per kW, while systems above 10 kW receive a fixed subsidy of ₹1,20,000. In addition, Delhi’s state government provides an extra incentive of ₹2,000 per kW, capped at ₹10,000. These combined subsidies can bring down the cost of a 3 kW system from around ₹2,00,000 to approximately ₹1,05,000–₹1,30,000, depending on the vendor and installation specifics.

There are three main types of solar systems to choose from: on-grid, off-grid, and hybrid. On-grid systems are the most popular in urban areas like Delhi because they are connected to the power grid and allow users to feed excess electricity back into the system, which can lead to additional savings. Off-grid systems operate independently and require battery storage, making them suitable for areas with unreliable power supply. Hybrid systems combine both approaches and are ideal for those who want grid connectivity along with backup power during outages. While on-grid systems are the most affordable, costing between ₹50,000 to ₹75,000 per kW, off-grid and hybrid systems are more expensive due to the inclusion of batteries and advanced inverters.

To apply for subsidies and get a solar system installed, users must register on the official national portal for rooftop solar at pmsuryaghar.gov.in. After registering, applicants fill out a form with necessary documentation and select an approved vendor from the empanelled list. Once the system is installed and inspected, the subsidy amount is credited directly to the applicant’s bank account.

Beyond the financial aspect, solar panels also offer long-term benefits. They reduce dependence on grid power, lower electricity bills, and significantly cut down on carbon emissions. As Delhi continues to battle air pollution and energy demands rise, solar energy offers a cleaner, smarter way forward. With both central and state governments backing solar adoption through subsidies and simplified procedures, there’s never been a better time for Delhi residents to make the switch to solar.