How much electricity does a 3kw solar system generate

Monthly generation from a 3 kW system

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 of India uses when it describes the PM-Surya Ghar: Muft Bijli Yojana, which targets one crore households with rooftop solar and free electricity up to 300 units every month.

Actual generation varies with your location, the tilt and orientation of the panels, shading, and how clean the panels are. The 300-unit figure is an average across Indian conditions, not a guarantee for every roof. A system in a high-sunshine state will usually generate more than one in a cloudy or heavily polluted area, but the scheme's benchmark remains the same.

What 300 units means for your bill

If your household uses around 300 units a month, a 3 kW system can cover most or all of that consumption. The scheme has been approved with a total outlay of Rs.75,021 crore for installing rooftop solar and providing free electricity up to 300 units every month for one crore households. That means the subsidy is designed around the same 300-unit figure.

If you use more than 300 units, the solar system still reduces the number of units you buy from the DISCOM. If you use fewer, you may have surplus power. Through this scheme, households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs. Net metering rules vary by state, so check your DISCOM's policy before you count on export income.

How the subsidy is calculated

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. A 3 kW system therefore attracts the maximum subsidy of Rs 78,000.

You apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The subsidy is paid after installation and inspection, so you pay the installer first and then receive the CFA. 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.

What a 3 kW system costs

Before subsidy, a 3 kW solar system starting price in India, with installation, ranges between about Rs. 2.15 lakh and Rs. 2.47 lakh. After the Rs 78,000 subsidy, the effective cost comes down to roughly Rs 1.37 lakh to Rs 1.69 lakh, depending on the final quote. Prices vary by city, installer, panel brand, and roof type.

For comparison, a 2 kW home solar system in India has a starting price range, with installation, of Rs 1,75,000 to Rs 2,13,000. The 3 kW system costs more but generates proportionally more power and attracts a higher subsidy.

Financing options

If you do not want to pay the full amount upfront, 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. The loan is tied to the PM-Surya Ghar scheme and is meant to make rooftop solar affordable for households that cannot pay cash.

Is a 3 kW system right for you?

A 3 kW system suits a household that uses around 300 units a month or wants to offset a large part of a higher bill. If your consumption is much lower, a 2 kW system may be enough and will still attract a Rs 60,000 subsidy. If your consumption is much higher, you can install a larger system, but the subsidy is capped at 3 kW, so the CFA remains Rs 78,000.

Electricity demand in India is rising. 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. A rooftop solar system protects you from some of that rising cost by generating your own power.

How to get accurate numbers for your roof

The 300-unit figure is a national average. To get a realistic estimate for your home, ask a local installer to assess your roof area, orientation, shading, and your last 12 months of electricity bills. They can calculate expected generation for your specific location and panel configuration.

This website passes your enquiry to independent local installers. They can give you a site-specific quote and help you apply for the PM-Surya Ghar subsidy through the National Portal.