What Is The Cost Of A 3KW Rooftop Solar? Answer Lies On Firm Selection

What Is The Cost Of A 3KW Rooftop Solar? Answer Lies On Firm Selection

India’s rooftop solar installations are accelerating. According to the latest data from the Ministry of New and Renewable Energy (MNRE), India’s rooftop solar capacity reached 14.44 GW by the end of October 2024. This growth can be attributed to factors such as increased subsidies, the introduction of automated Technical Feasibility Reports (TFRs), and a series of system reforms.

In the residential rooftop solar market, one of the most common requirements comes from households who want to install a 3kW rooftop system. Such systems are considered items for conventional 2 BHK households in the country. But what is the price for a 3 KW rooftop solar system? Read the five points you must know about the pricing of residential rooftop solar for a 3kW system. Many of these firms have also tried to imbibe additional services like monthly cleaning of their panels, and checkups for the initial five years. Beyond the initial five years, some of these firms are charging them separately as “maintenance packages”.

1. Rising Demand for 3 KW Rooftop Solar Systems

As the number of installations increases, so do the queries about the cost of a 3-kilowatt (KW) rooftop solar system. Many prospective users are turning to search engines and platforms like Google and YouTube for answers. However, the reality is that the total cost of a typical 3 kW rooftop system varies significantly. This is due to the flexibility granted by the government, allowing vendors to independently set prices, which leads to differing costs between sellers and consumers.

2. Pricing Discrepancies: Government Benchmark vs Market Rates

The MNRE benchmark cost for a 3 KW system is approximately Rs 1.45 lakh. However, many solar vendors are charging up to Rs 3 lakh or more for the same system, with prices often double the benchmark cost. The variation in pricing can be attributed to the lack of standardization, leaving vendors and consumers to negotiate the final price.

3. Impact of Local Licensing Fees and Vendor Expansion

Many rooftop solar companies are expanding their reach and are now required to pay licensing fees to local distribution companies (discoms), which are charged on a per-discom basis. According to a solar rooftop vendor who spoke to Saur Energy, vendors must pay Rs 2.5 lakh annually per discom.

Moreover, these companies also bear the costs of maintaining inventories and sourcing equipment like panels and inverters. As these firms expand, the cost of operations rises, leading to higher prices for solar vendors. These expanding solar vendors often pass on this to new consumers. On average, modest local vendors are now installing 3 KW systems for Rs 1.70 lakh to Rs 1.80 lakh, with some vendors raising their prices, going even up to 3 lakh to 3.5 lakh.

4. Transparency from Solar Module Makers

In contrast, many solar module manufacturers are now offering greater transparency in pricing. Some have begun selling solar panels or complete solar system packages—including inverters, panels, wires, and other necessary components—online at prices under Rs 1.5 lakh. This move is intended to make rooftop solar systems more affordable for consumers.

5. Pricing Trends Across Leading Companies

A leading rooftop solar company from Maharashtra is now charging around Rs 3 lakh or more for a 3 KW system, which includes bifacial mono-PERC panels. It also promises regular check-ups and cleaning visits by a company representative for the initial five months. Meanwhile, a company from Gurgaon is selling a mono-PERC-based rooftop solar system at prices between Rs 2.3 lakh to Rs 2.5 lakh for a 3 KW system. In addition, the same firm offers visually appealing options, with prices reaching up to Rs 3.5 lakh or higher.

The MNRE has proposed the National Rooftop Portal, which lists all solar vendors across India. While some vendors have started publishing their package prices and product brochures on this platform, many are still hesitant to provide full transparency regarding pricing.