As of 2025, installing a 1kW solar panel system in India is more affordable than ever. This is due to government subsidies and local manufacturing. A 1kW system is ideal for small homes, shops, and rural houses. It can power basic appliances like lights, fans, and a small fridge. Let’s explore the cost, subsidy, benefits, and everything else you need to know about a 1kW solar setup.

Cost of a 1kW Solar Panel System in India
The price of a 1kW solar system depends on the type of system, the brand of components, and your location. Here’s a general breakdown:
- On-Grid System: ₹72,000 – ₹85,000
- Off-Grid System: ₹80,000 – ₹1,78,000
- Hybrid System: ₹1,08,500 – ₹1,77,500
These prices usually include solar panels, inverter, mounting structure, wiring, and installation charges. On-grid systems are connected to the local electricity grid. Off-grid systems work with batteries and don’t need a grid. Hybrid systems use both grid and battery.
State-wise Price Estimates
Prices differ across states due to local policies and vendor charges. Below is a general estimate:
State | Estimated Price (₹) | Subsidy (₹) | Price After Subsidy (₹) |
---|---|---|---|
Andhra Pradesh | 75,000 – 85,000 | 20,000 | 55,000 – 65,000 |
Bihar | 70,000 – 80,000 | 20,000 | 50,000 – 60,000 |
Gujarat | 72,000 – 82,000 | 20,000 | 52,000 – 62,000 |
Jharkhand | 70,000 – 80,000 | 20,000 | 50,000 – 60,000 |
Maharashtra | 75,000 – 85,000 | 20,000 | 55,000 – 65,000 |
Tamil Nadu | 75,000 – 85,000 | 20,000 | 55,000 – 65,000 |
Uttar Pradesh | 75,000 – 85,000 | 20,000 | 55,000 – 65,000 |
These are only rough estimates. The actual price can vary based on installer, equipment, and site conditions.
Government Subsidy: PM Surya Ghar Muft Bijli Yojana
The Indian government launched the PM Surya Ghar Muft Bijli Yojana to help people install solar panels.
Subsidy Amounts:
- 1kW system: ₹30,000
- 2kW system: ₹60,000
- 3kW and above: ₹78,000 (maximum)
Eligibility:
- You must be an Indian citizen
- You must own the house or have legal rooftop access
- You must have an electricity connection
- You should not have used solar subsidy before
How to Apply:
- Register on the official government solar rooftop portal
- Choose a vendor from the approved list
- Get the system installed and inspected
- After inspection, the subsidy is credited to your bank account
The whole process is now simpler and faster compared to past years.
Components of a 1kW Solar System
A 1kW system has the following parts:
- Solar Panels: Usually 3 to 4 panels
- Inverter: Converts solar DC power to AC for use at home
- Mounting Structure: To fix the panels on the roof
- Wires and Connectors: For safe electricity flow
- Battery: Only in off-grid and hybrid systems
This system can power:
- 3-4 LED bulbs
- 2-3 ceiling fans
- 1 television
- 1 small refrigerator
It’s best for families with low to moderate electricity use.
Space Requirement
A 1kW solar panel system needs 80 to 100 square feet of clear rooftop space. The area should have no shade from trees or buildings. South-facing roofs are ideal for best sunlight.
Electricity Generation and Savings
On average, a 1kW solar system produces 4 to 6 units of electricity per day. This adds up to 120 to 180 units every month. The exact output depends on your location, weather, and panel quality.
This can save you around ₹600 to ₹1,000 per month on electricity bills. Over a year, that’s ₹7,000 to ₹12,000 in savings.
Installation and Maintenance
Installation Time: Usually 1 to 2 days
Maintenance: Very low. Just clean the panels once every two weeks to remove dust.
Warranty:
- Solar panels: 25 years
- Inverter and other parts: 5 to 10 years
Always hire a certified installer for best results.
Return on Investment (ROI)
With the subsidy and monthly savings, your system will recover its cost in 6 to 8 years. After that, it produces free electricity for over 15 more years.
This makes it a good long-term investment.
Frequently Asked Questions (FAQs)
Q1: Can I install solar panels on a rented house?
A1: Yes, but you need written permission from the landlord.
Q2: Do I need batteries for my 1kW system?
A2: Only if you want backup during power cuts. On-grid systems do not use batteries.
Q3: Is the subsidy available for commercial buildings?
A3: No. The PM Surya Ghar scheme is only for residential properties.
Q4: How do I claim the subsidy?
A4: Register online on the government’s official portal. Install the system through an approved vendor. After verification, the subsidy goes to your bank.
Q5: Can I run an AC on a 1kW solar system?
A5: No. A 1kW system is not enough to run an air conditioner. You need at least a 3kW system for that.
Final Thoughts
A 1kW solar panel system is a great choice for small homes and rural families. It helps cut electricity bills and reduce pollution. With the government’s financial support, more people can now afford solar energy.
It’s the right time to go solar. You save money, help the environment, and become energy-independent. All with just a small part of your roof!
Author- Ayush