Nowadays, everyone is making sustainable energy choices that include installing a solar panel on their home or office space. The likelihood of having a solar panel is growing day by day, and you might as well as contemplate having the same; but you may hesitate considering the cost of setup. In this blog, you will understand a rough market estimate of solar panel prices and subsidy in Kerala so that you can choose the best option for your space.
Solar panels are photovoltaic systems that use solar radiation to convert it into electricity because solar energy is a promising, readily available and inexhaustible source. Solar panels work under suitable climatic conditions that allow the light photons to access the solar cells without blocking sunlight. In Kerala, we enjoy warm weather and humidity most of the time and thus it is suitable for solar energy.
Nearly every person can benefit from solar panel installation. Offices, small businesses, hospitals, hotels, residencies, and commercial places are excellent areas where you can install a solar panel and enjoy its sustainable benefits. Solar energy powers numerous innovative and practical applications across industries, showcasing its versatility and sustainability:
1. Residential and Commercial Energy
Solar panels generate electricity for homes and businesses, often complemented by battery systems for energy storage.
2. Agricultural Applications
Solar-powered tube wells and irrigation systems enable farmers to reduce dependence on grid electricity or diesel pumps.
Cost dynamics for solar panels actually vary depending on several factors, such as installed capacity, kind of application, whether domestic or industrial, inverters, charge controllers, etc. Any solar panel installation requires a high initial cost, and the Government of India provides subsidies to make it affordable for many. Solar panel cost in Kerala generally ranges from ₹45,000 to ₹90,000 per kW, despite the subsidy for home use. On the otherhand, the commercial applications cost will be higher than this.
For a household use the cost per KW approximately estimated as follows:
1 kW System: ₹45,000 – ₹85,000
3 kW System: ₹1.2 Lakh – ₹2.55 Lakh
5 kW System: ₹2.0 Lakh – ₹3.5 Lakh
Estimated Solar Panel Prices in Kerala
Hybrid Solar System Prices
Capacity Price Range Best For 1 kW ₹70,000 – ₹90,000 Small homes 2 kW ₹80,000 – ₹1.5 Lakhs Medium homes 3 kW ₹2.10 Lakhs – ₹3.5 Lakhs Average households 5 kW ₹3.5 Lakhs – ₹5.5 Lakhs Large homes On-Grid Solar System Prices
Capacity Price Range Best For 1 kW ₹55,000 – ₹85,000 Small homes 2 kW ₹1.1 Lakh – ₹1.7 Lakh Medium homes 3 kW ₹1.6 Lakh – ₹2.15 Lakh Typical households 5 kW ₹2.5 Lakh – ₹3.5 Lakh Large homes Off-Grid Solar System Prices
Capacity Price Range Best For 1 kW ₹40,000 – ₹96,000 Basic setup 2 kW ₹80,000 – ₹1.68 Lakh Mid-range homes 3 kW ₹1.89 Lakh – ₹2.85 Lakh Average households 5 kW ₹2.5 Lakh – ₹4.85 Lakh High usage homes
Attributes that affect the price of a solar panel
- Installed capacity in KW - it can typically range from 1KW system to 5KW system
- Type of panel (directly affects the voltage)
- Type of inverters
- Installation cost (labour and technical expertise for setting up the system)
- Wiring and accessories
- Cost varies depending on brand and quality of components
- Type of roof and its condition
The Government of India has introduced the PM Surya Ghar: Muft Bijli Yojana to promote rooftop solar adoption across 1 crore households. This scheme provides financial assistance to reduce installation costs and make solar energy more affordable for residential users. Take advantage of government subsidies and reduce your electricity bills with rooftop solar. The whole process - Visit https://pmsuryaghar.gov.in/#/ - Select your KSEB - Apply for Roftop solar - Fill out all the necessary information, including your vendor information - Wait for approval from DISCOM - After installation, you can request for net meter - After the net meter inspection, you will get the approved subsidy amount within 30 days. Solar energy is unlimited, and you can easily utilise its endless opportunities at home or in industrial settings. All you need to be meticulously aware of the different options and Government subsidies for the same to avail maximum benefits. To achieve maximum satisfaction, you can select a top solar panel service provider, as they can effortlessly handle your requirements and integrate subsidies. Generally, a household rooftop solar panel installation in Kerala starts from ₹45,000 and can go up to ₹4 lakhs for 1kW to 5kW systems, excluding government subsidy benefits. Solar panel costs vary based on component quality, installation charges, labor expertise, rooftop condition, and system capacity. Premium components and complex installations may increase the overall cost. Despite the initial investment, solar panels help reduce electricity bills significantly over time and can increase property value, making them a smart long-term investment. With government subsidies, the payback period for a 5kW solar system in India typically ranges between 3 to 6 years. Yes, a properly sized solar system can power all household appliances. For most homes, a 5kW solar system is sufficient, depending on energy consumption and usage patterns.Solar Panel Subsidy – Government of India
Subsidy Structure
System Capacity Maximum Subsidy 1 – 2 kW Up to ₹60,000 2 – 3 kW Up to ₹78,000 Above 3 kW Up to ₹78,000 (fixed)
Subsidies are calculated based on system capacity, with higher support for smaller residential systems and a fixed cap for larger systems. Eligibility Criteria
Documents Required
Apply for Solar Subsidy Today
Solar Panel FAQ – Kerala
Solar panel installation cost in Kerala?
Why do solar panel costs vary?
What are the typical benefits of solar panel installation?
What is the payback period for a 5kW solar system in India?
Can a solar system support all household appliances?
