A solar system is a long-term investment that can significantly reduce electricity bills. Once you recover your investment, you can enjoy practically free electricity. However, to know how much time you will need to recover your investment, you need to know the home solar system cost and how much electricity it can generate monthly.
6 Factors Influencing the Cost of a Solar System
Here are the major factors which affect the cost of a solar system:
1. Cost of Components
A solar system consists of several components such as solar panels, solar inverter, batteries (optional), ACDB, DCDB, earthing material, wires, a mounting structure, and a charge controller. The price of these components depends on the brand name and quality of the products.
Solar panels are the most visible part of a solar power system. They contain photovoltaic (PV) cells that convert sunlight into direct current (DC) electricity through the photovoltaic effect.
The primary function of an inverter is to convert the DC electricity generated by the solar panels into alternating current (AC), which is what most household appliances use. Micro inverters and string inverters are the 2 important types of solar inverters.
Battery storage systems allow excess energy generated during sunny periods to be stored for use at night or during cloudy days. This component is particularly useful for off-grid systems or those wanting backup power.
The greater the reputation of a brand and the higher the quality of a product, the more the cost of a component.
2. Installation Charges
When considering a solar installation, it is essential to obtain detailed quotes from multiple providers and factor in potential government subsidies. The initial investment may be substantial; however, the long-term savings on electricity bills and environmental benefits make solar energy a compelling choice.
Installation charges also may vary from one location to another. For example, if you live in Assam, you can seek quotations from a solar company in Assam for installing the solar system.
The cost of installing solar systems in India varies significantly based on several factors, including system size, component quality, installation complexity, and location. The higher the skills and expertise of a solar vendor, the higher the cost charged by a solar vendor.
3. Capacity
The capacity of a solar system is one of the important factors behind the cost of a solar system. The greater the capacity of a solar system, the greater will be its cost. For example, the cost of installing a 1 kW solar system is Rs. 90,000 to Rs. 1,30,000, a 3-kilowatt solar panel price for installation is Rs. 1,90,000 to Rs. 2,30,000, and the cost of installing a 5 kW solar system is Rs. 2,90,000 to Rs. 3,30,000.
The installation charges can also vary depending on where the solar components are being sourced from. For example, if you want a solar company in West Bengal to install the system, and the components are being sourced from outside the state, the cost of the solar system is likely to be greater than if the components were sourced from within the state.
4. Solar Subsidy
Both the central and state governments provide subsidies for installing household rooftop solar systems. For example, under the PM Surya Ghar scheme, you can get a subsidy of up to Rs. 78,000. The subsidy is available for only on-grid solar systems.
For example, the 5 kW solar panel price for installation after subsidy is Rs. 2,90,000 to Rs. 3,30,000. To get the subsidy, you need to install the system with a local DISCOM registered vendor. If you live in Uttar Pradesh, you will have to contact a DISCOM-empanelled solar company in Uttar Pradesh to install the solar system.
5. Type and Quality of Solar Panels
The major types of solar panels currently available in the Indian market include polycrystalline, mono-PERC, mono-PERC half-cut, and TOPCon solar panels. While polycrystalline panels are the least efficient, the TOPCon solar panels are the most efficient. Accordingly, their price varies.
The choice of solar panels greatly affects installation costs. High-efficiency panels tend to be more expensive than standard polycrystalline panels. While they may have a higher upfront cost, their efficiency can lead to reduced overall system size.
Since polycrystalline solar panels have become outdated, we will consider the prices of mono-PERC, mono-PERC half-cut, and TOPCon solar panels. Please note that the prices mentioned below are for solar panels which fulfil the Domestic Content Requirements (DCR) criterion. We will explore the prices of non-DCR solar panels in the next section.
The cost of mono-PERC half-cut solar panels (550 Wp) is in the range of Rs. 12,500 to Rs. 13,500, the cost of mono-PERC half-cut bifacial solar panels (550 Wp) is in the range of Rs. 14,000 to Rs. 15,000, and the cost of TOPCon bifacial solar panels (N-Type) (570 Wp) is in the range of Rs. 15,500 to Rs. 16,000.
If you live in Kolkata, you can ask a DISCOM-empanelled solar company in Kolkata about the type of solar panels it can install in your solar system.
6. DCR vs Non-DCR
DCR-certified solar panels are those which are made entirely in India. Their solar cells are sourced from India as well. Non-DCR solar panels, on the other hand, are usually imported from abroad, usually China. DCR solar panels are more expensive than non-DCR solar panels, but you will be eligible for PM Surya Ghar subsidy only if you install DCR-certified solar panels.
The cost of non-DCR mono-PERC half-cut solar panels (550 Wp) is Rs. 11,000 to Rs. 12,000, non-DCR mono-PERC half-cut bifacial solar panels (550 Wp) is Rs. 12,000 to Rs. 13,000, and of non-DCR TOPCon bifacial solar panels (N-Type) (570 Wp) is Rs. 14,000 to Rs. 15,000.
Installing a solar system is an important decision. It can earn you significant savings over its lifetime. You have to take good care of your solar system so that it lasts for 25 to 30 years. Regular cleaning is essential to ensure that your solar panels perform at top efficiency.
You must look to save money not only on the cost of installing the solar system but also on the cost of maintaining it. To get the best quotations for solar installation and the best solar AMC, you can refer to platforms such as Das Energie Private Limited.
