Solar Panel: What is the cost of installing a 1 kW solar panel, and how long does it take to recover the investment?

Installing a 1 kW solar system can be a viable option to reduce electricity bills. The PM Surya Ghar Yojana offers a subsidy, which lowers the overall cost. Here is a breakdown to help you understand the costs and the time required to recover the investment.

If you want to relieve yourself of the burden of rising electricity bills and are considering installing solar panels on your roof, a 1 kW solar system could be a great choice. While installing a solar system under the PM Surya Ghar Yojana requires an initial out-of-pocket expense, the cost is reduced after the subsidy is applied. The key questions remain: how much does it cost to install the system, and how long does it take to recover that amount through savings on electricity bills?

What is the cost of installing a 1 kW solar system?

The estimated cost for installing a 1 kW solar system is around ₹55,000. However, eligible consumers can avail of a government subsidy. For instance, if a subsidy of approximately ₹30,000 is received, your net out-of-pocket expense would be around ₹25,000.

If your household electricity consumption is around 150 units per month, a 1 kW system could prove beneficial. However, the actual cost of the solar system and the subsidy amount may vary based on the scheme's current guidelines.

How much will be saved on the monthly electricity bill?

A 1 kW solar system generates electricity based on weather conditions and the availability of sunlight. On average, it can generate about 4 to 5 units of electricity per day, resulting in a monthly output of approximately 120 to 150 units. Electricity generation: Approximately 120–150 units per month
Estimated bill savings: Approximately ₹1,000–₹1,200 per month
If this results in monthly electricity bill savings of around ₹1,000 to ₹1,200, your long-term electricity costs could be significantly lower than before.

How long does it take to recover the cost?

If your out-of-pocket expense after the subsidy is around ₹25,000 to ₹30,000 and you save approximately ₹1,000 to ₹1,200 per month on your electricity bill, the initial cost can be recovered in about 2 to 3 years.