What a 3 kW solar system costs in India
A 3 kW solar system starting price in India, with installation, ranges between about Rs. 2.15 lakh and Rs. 2.47 lakh. That is the price before any subsidy. A 2 kW home solar system in India has a starting price range, with installation, of ₹1,75,000 to ₹2,13,000. The difference between the two sizes is roughly ₹40,000 to ₹34,000 at the lower and upper ends.
These are starting prices for on-grid residential systems. The final quote from an installer will depend on the panel brand, inverter type, roof structure, and the distance between the roof and the meter. Prices also vary by city and state.
How much electricity a 3 kW system generates
A 3 kW system will be able to generate more than 300 units a month on an average for a household. That is the figure the government uses for the PM-Surya Ghar: Muft Bijli Yojana. A 2 kW system generates proportionally less, around 200 units a month.
If your household uses 300 units or more every month, a 3 kW system can cover most of that consumption. If you use less, a 2 kW system may be enough. Check your last six electricity bills to see your average monthly units.
Subsidy under PM-Surya Ghar: Muft Bijli Yojana
The scheme provides a CFA of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 to 3 kW capacity, capped at 3 kW. At current benchmark prices this means Rs 30,000 subsidy for 1 kW system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher.
So a 3 kW system gets a subsidy of ₹78,000. A 2 kW system gets ₹60,000. The subsidy is paid directly to the household after the system is installed and inspected. The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. Check the National Portal for the latest benchmark prices and subsidy rates.
Loan option for the balance amount
After the subsidy, a 3 kW system costs about ₹1.37 lakh to ₹1.69 lakh out of pocket. Many households take a loan for this amount. Collateral-free loans are available from nationalized banks at a concessional interest rate of repo-rate plus 50 bps, i.e., 5.75% per annum for the present, with a tenure of 10 years.
This loan is part of the PM-Surya Ghar scheme. You can apply through the National Portal after selecting your vendor. The EMI for a ₹1.5 lakh loan at 5.75% for 10 years is around ₹1,650 per month.
How long the subsidy takes
With all credentials entered correctly on the National Portal, the average time taken in processing the CFA is around 15 days after the redemption request made by the consumer. The redemption request is made after the system is installed and the net meter is commissioned. The actual time can vary by DISCOM and state.
Selling surplus power to the grid
Through this scheme, the households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs. A 3 kW system often generates more than a household uses during the day. The surplus is exported to the grid and adjusted in your bill under net metering.
Why summer is a good time to install
The rise in demand is in line with the progression of summer conditions across the country, with electricity consumption witnessing a significant growth of 8.9% during the month of April 2026. Higher consumption means higher bills, and a solar system offsets that consumption. Installing before the peak summer months means your system starts saving from the first hot month.
2 kW vs 3 kW: which one to choose
Choose a 2 kW system if your monthly consumption is around 200 units and your roof space is limited. Choose a 3 kW system if you use 300 units or more, or if you expect your consumption to rise. The subsidy is higher for 3 kW, but the out-of-pocket cost is also higher. The payback period is similar for both sizes.
How to get an accurate quote
The prices above are starting ranges. Your actual quote will depend on your roof, your location, and the installer you choose. Get quotes from at least three local installers. Compare the panel brand, inverter brand, warranty, and the total cost including installation and net meter charges.
- 3 kW system price
- ₹2.15 lakh to ₹2.47 lakh with installation
- 2 kW system price
- ₹1.75 lakh to ₹2.13 lakh with installation
- 3 kW subsidy
- ₹78,000 under PM-Surya Ghar
- 2 kW subsidy
- ₹60,000 under PM-Surya Ghar
- Loan interest rate
- 5.75% per annum, 10-year tenure
- Subsidy processing time
- Around 15 days after redemption request
Indicative prices for 2 kW and 3 kW systems
- 2 kW on-grid residentialStarting price with installation, before subsidy ₹1,75,000–2,13,000 / system
- 3 kW on-grid residentialStarting price with installation, before subsidy ₹2,15,000–2,47,000 / system
What affects the final price
The price bands above are starting ranges. The final quote can be higher or lower depending on:
- Panel type: monocrystalline panels cost more than polycrystalline.
- Inverter: string inverters are standard; microinverters cost more.
- Roof: a tin shed or asbestos roof needs different mounting than an RCC roof.
- Wiring distance: longer cable runs from the roof to the meter add cost.
- Net meter: some DISCOMs charge for the net meter, others include it.
Always ask the installer for a line-item quote. Check that the quote includes the panel, inverter, mounting structure, cables, earthing, installation, and net meter charges.
How to apply for the subsidy
The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The process is:
- Register on the National Portal with your electricity consumer number.
- Apply for rooftop solar and get feasibility approval from your DISCOM.
- Select a vendor from the list on the portal.
- The vendor installs the system and submits the completion report.
- The DISCOM inspects and installs the net meter.
- You submit the redemption request for the subsidy.
- The subsidy is credited to your bank account.
With all credentials entered correctly on the National Portal, the average time taken in processing the CFA is around 15 days after the redemption request made by the consumer.
Is a 3 kW system worth it?
A 3 kW system will be able to generate more than 300 units a month on an average for a household. At an average tariff of ₹8 per unit, that is about ₹2,400 of electricity every month. Over a year, that is about ₹28,800. The system pays for itself in 5 to 7 years, depending on your tariff and consumption pattern. After that, the electricity is effectively free for the remaining life of the system, which is typically 25 years.
Through this scheme, the households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs. The surplus export is credited at the DISCOM's feed-in tariff, which is usually lower than the retail tariff.
Common mistakes to avoid
- Choosing a system size based on roof area alone. Always start with your monthly units.
- Ignoring the shadow from trees, water tanks, or neighbouring buildings.
- Not checking the installer's past work and warranty terms.
- Applying for the subsidy after installation. The subsidy must be applied for before installation through the National Portal.
- Forgetting to factor in the net meter cost and inspection time.
Next steps
Check your last six electricity bills to find your average monthly consumption. If it is 300 units or more, a 3 kW system is the right starting point. If it is around 200 units, compare the 2 kW and 3 kW prices and subsidy. Then get quotes from at least three local installers. The site passes your enquiry to independent local installers; it is not an installer itself.