Cost Breakdown — What Is the Real Price of a 3 kW Solar System After Subsidy?

Switching to solar isn’t just an environmental choice; it’s a strategic financial investment. If your monthly electricity bill ranges between ₹3,000 and ₹4,500, a 3 kW solar system is likely your perfect match.

1. The Gross Investment: 3 kW Solar System Price Before Subsidy

The market price for a high-quality 3 kW on-grid solar system in India currently ranges between ₹1,60,000 and ₹2,10,000.

This variation depends on:

• Panel Technology: Monocrystalline PERC or TOPCon bifacial panels cost more than traditional polycrystalline ones but offer higher efficiency.
• Inverter Quality: Premium brands with better monitoring and longer warranties add to the upfront cost.
• Mounting Structure: High-rise structures (to use the space underneath) are more expensive than standard flush mounts.

2. The Game Changer: PM Surya Ghar Muft Bijli Yojana Subsidy

Under the latest government guidelines, the solar subsidy for 3 kW systems is the most generous slab. The Central Financial Assistance (CFA) is calculated as follows:

• First 2 kW: ₹30,000 per kW (= ₹60,000)
• Third kW: ₹18,000
• Total Central Subsidy: ₹78,000

Note: Some states like Uttar Pradesh offer an additional state subsidy (up to ₹30,000), potentially bringing your total benefit even higher.

3. The Net Cost: What You Actually Pay

When you choose a trusted partner like Solar Squad, the “real” price becomes much more affordable.

Component	Estimated Cost (On-Grid)
Average Market Price	₹1,85,000
Central Subsidy (CFA)	– ₹78,000
Real Effective Price	₹1,07,000

By investing roughly ₹1.07 Lakhs, you secure free electricity for the next 25+ years.

4. ROI and Payback Period

A 3 kW system generates approximately 12–15 units per day (roughly 360–450 units per month).

• Monthly Savings: ~₹3,500 (at ₹8/unit)
• Annual Savings: ~₹42,000
• Payback Period: Your system pays for itself in just 2.5 to 3 years. After that, your electricity is virtually free.

5. Why Choose an On-Grid System?

Most residential users opt for an on-grid solar system because it is the only type eligible for the ₹78,000 subsidy. These systems use net metering to send excess power back to the grid during the day and pull it back at night, eliminating the need for expensive battery replacements.

6. Components Included in the Price

When you receive a quote from Solar Squad, ensure it includes:

• Solar Modules: High-efficiency DCR (Domestic Content Requirement) panels (mandatory for subsidy).
• Solar Inverter: A 3 kVA grid-tie inverter with a 5–10 year warranty.
• BOS (Balance of System): ACDB/DCDB boxes, lightning arrestors, and earthing kits.
• Installation & Liaison: Professional mounting and help with the DISCOM (Net Metering) paperwork.

Final Verdict: Is it Worth It?

The “Real Price” of a 3 kW solar system is no longer a burden. With the ₹78,000 subsidy, the cost is comparable to a mid-range scooter, but with the added benefit of slashing your bills to zero.

Ready to start your solar journey?

Don’t get lost in the paperwork. At Solar Squad, we handle everything from site assessment to subsidy approval.

👉 Get a Free Quote for Your Home Today!