As the prices of electricity are increasing rapidly in India, more people are searching for an alternative source of energy. Installation of rooftop solar panels has become increasingly popular since the MRNE decided to increase the renewable energy capacity of India.
The Ministry caps the prices of solar panels every financial year, and therefore, the solar panels have become more affordable. Solar manufacturers decide prices based not only on their patented technology but also on market demand.
Solar Panel Prices in 2021
The table below represents the prices of solar panels in 2021.
| Solar panel capacity | Price range | Price per Watt |
| 10 Watt | ₹ 800 – 1,000 | ₹ 80 – 100 |
| 20 Watt | ₹ 1,500 – 2,000 | ₹ 75 – 100 |
| 40 Watt | ₹ 1,800 – 2,500 | ₹ 45 – 62.5 |
| 50 Watt | ₹ 2,000 – 3,000 | ₹ 40 – 50 |
| 75 Watt | ₹ 3,500 – 4,500 | ₹ 46.7 – 60 |
| 100 Watt | ₹ 4,000 – 5,500 | ₹ 40 – 50 |
| 120 Watt | ₹ 7,000 – 9,000 | ₹ 58 – 75 |
| 250 Watt | ₹ 10,000 – 12,000 | ₹ 40 – 48 |
| 375 – 400 Watt | ₹ 12,000 – 15,000 | ₹ 40 – 50 |
As it can be seen from the table, the price per watt of the solar panel decreases as the capacity increases. While the table depicts the market prices as of October 2021, there is still a wide price range owing to the various technologies and manufacturers in the market.
The cost of installing a solar panel in any residential home depends upon various factors.
Factors that affect solar panel installation cost
1. System size
The cost of installing a solar system depends heavily on the size of the solar system required. Depending upon your everyday energy requirements, you may need to install one, two or even three solar panels. The capacity of solar panels varies depending upon your household requirement. Therefore, for houses with higher energy needs, the cost of installation is generally higher.
2. Type of solar panels
Solar panel manufacturers produce PV modules of various technologies. When buying an option, you can select from PERC PV modules, monocrystalline solar panels, polycrystalline solar panels, bifacial solar panels, etc. Each type has its merits and demerits, and the price range of each varies. Therefore, the final installation cost of your solar system will depend upon which type of solar panels you install.
3. Additional components
Solar systems can be on-grid or off-grid. In the case of each, additional components like batteries, inverters, electrical wires, mounting stands, etc. are required. While many manufacturers provide a package for installing solar panels, it is not a general rule. The number of components required for your solar panel project depends entirely upon the size of the solar panel and the efficiency you wish to maintain.
4. Location
Most solar panel manufacturers provide quotations based on your location. For houses in rural or remote locations, the prices may be higher because most manufacturers do not have retail shops in rural areas. Therefore, to complete the project, the manufacturer often has to incur shipment costs and travel costs. This increases the total installation cost charged.
5. Labour costs
The final element that determines the installation cost is the labour cost. Houses with easily accessible roofs and fewer floors are often provided with a lower quotation. Labour costs for taller buildings are generally higher because the workers have to work in an increased risk environment. While many manufacturers provide discounts for this, it may not always be a general rule.
These are the five factors that affect the cost of solar panel installation. These costs are often included in the final quotation provided to you by the manufacturer. While many manufacturers provide discounts for new installation or second-time installation, the installation of a solar panel is still not cheap. However, solar panels can easily last for over 25 years, they are an investment worth making.