Solar Panel Buying Guide India 2026 — Everything Before You Sign
Buying solar is a ₹1–5 lakh decision that lasts 25 years. Getting it right the first time matters. This guide covers every key decision point based on India's market in 2026.
Step 1: Calculate How Much Solar You Need
Before getting quotes, know your target system size. Check your last electricity bill for monthly units consumed.
- Monthly consumption 100–150 units → 1 kW system
- Monthly consumption 150–300 units → 2 kW system
- Monthly consumption 300–500 units → 3 kW system
- Monthly consumption 500+ units → 5 kW or larger
Rule of thumb: 1 kW of solar generates ~100–130 units/month in most Indian cities (slightly less in monsoon months).
Step 2: Decide On-Grid, Off-Grid, or Hybrid
This one decision changes your budget by ₹50,000–1,50,000:
- On-grid (recommended for cities with stable power): No battery, lowest cost, maximum subsidy
- Hybrid (recommended for most Indian homes): Battery backup for power cuts, slightly higher cost
- Off-grid (only if no grid connection): Fully independent, highest cost, no central subsidy
Step 3: Apply for PM Surya Ghar Yojana Subsidy First
Don't sign with any installer before registering for PM Surya Ghar Yojana subsidy. The subsidy is:
- Up to 2 kW: ₹30,000/kW (up to ₹60,000)
- 3 kW: ₹18,000 for the 3rd kW (total ₹78,000 max)
- Above 3 kW for residential: no additional central subsidy
Register at: pmsuryaghar.gov.in → click "Apply for Rooftop Solar" → choose your state and DISCOM → complete form with your electricity consumer number. The subsidy is credited directly to your bank account after installation + DISCOM net metering approval.
Important: You must choose an MNRE-empanelled installer (listed on the portal) to be eligible for this subsidy. Most good installers are already empanelled — verify before signing.
Step 4: Get at Least 3 Quotes
Never buy from the first installer who visits. Get quotes from at least 3 empanelled installers. Quotes should include:
- Brand and model of solar panels (watt rating, efficiency, warranty)
- Brand and model of inverter
- Battery specifications (if hybrid/off-grid)
- Mounting structure type (aluminium, galvanised steel, etc.)
- DC cable specification (4 sq.mm or 6 sq.mm, UV-resistant)
- Earthing and lightning protection
- Net metering application service (included or extra?)
- Total installed cost and subsidy amount
- Annual maintenance contract terms
If a quote doesn't specify panel brand and model, don't accept it. "Good quality solar panels" is not a specification.
Step 5: Evaluate Panel Quality
Things to check about the panels being offered:
- IEC certifications: IEC 61215 (performance) + IEC 61730 (safety) are mandatory. Ask for the certificate.
- BIS certification: Bureau of Indian Standards IS 14286 certification for panels sold in India
- Tier-1 manufacturer: Bloomberg's Tier-1 list or equivalent — indicates financial stability and bankability
- Efficiency: Below 18% efficiency (for mono) is outdated stock. Expect 19–22% for good mono PERC
- Temperature coefficient: −0.40%/°C or better (lower is better for Indian heat)
- Product warranty: Minimum 10 years; 12+ years is better
- Performance warranty: 25 years at minimum 80% output (linear degradation is premium)
Step 6: Evaluate Inverter Quality
The inverter is the solar system's brain and the most likely component to need replacement. Key checks:
- BIS/MNRE approved: Inverters must be on MNRE's approved list for subsidy eligibility
- Efficiency: 95%+ is good; 97%+ is excellent
- MPPT efficiency: How well it tracks maximum power from panels
- Monitoring app: Most modern inverters have WiFi + smartphone monitoring — check this works in India
- Warranty: 5 years standard; 10 years with extended warranty (worth paying for)
- Local service: Does the inverter brand have service centers in your city? Sungrow, Growatt, Havells, Luminous have good India networks.
Step 7: Check Installer Credentials
The installer's quality of work determines your system's real-world performance. Verify:
- MNRE empanelment: Check pmsuryaghar.gov.in vendor list or your state renewable energy agency list
- Years in business: 3+ years preferred. New companies may not honor long-term commitments
- Local references: Ask for 3 recent customer contacts in your city — call them
- Certified electricians: Installation must be done by licensed electricians (electrical contractor license)
- Physical office: Visit their office. A company operating from a residential flat is a risk
- GST registration: Always get a proper GST invoice
Step 8: Understand What's Included in the Quote
Low-price quotes often exclude critical items. Verify these are included:
- Net metering application and DISCOM liaison (₹2,000–10,000 value)
- Earthing and lightning arrestor (essential, not optional)
- DC-AC disconnect switches
- Generation meter
- Roof waterproofing/sealing at mounting points
- Structural load analysis for your roof type
- Post-installation commissioning and training
Step 9: Payment Terms and Contract
Standard payment structure for reputable installers:
- 20–30% advance on signing
- 40–50% on material delivery
- Remaining 20–30% on commissioning + net meter installation
Red flags in payment terms:
- 100% advance required — big red flag
- Payment demanded in cash (loses GST input credit benefit)
- No written contract — never proceed without a signed agreement
Your contract must specify: Panel brand + model, inverter brand + model, warranty terms, installation timeline, penalty for delay, after-sales service terms.
Step 10: After Installation — What to Verify
Before making final payment, verify:
- All panels are the brand and model specified in the contract (check serial numbers)
- Inverter model matches quote
- System generates roughly expected units on a clear sunny day (check inverter display)
- Proper earthing installed (test with multimeter or ask inspector to verify)
- Net metering meter installed by DISCOM (this may take 1–3 months after application)
- All electrical work is neat, proper cable management, no exposed wires
- Roof mounts are leak-proof (check inside during or after installation)
- You receive: inverter manual, warranty cards, system design document, net metering application receipt
What Does Solar Cost in India in 2026?
| System Size | On-Grid Cost | After Subsidy | Hybrid Cost | Payback |
|---|---|---|---|---|
| 1 kW | ₹65,000–85,000 | ₹35,000–55,000 | ₹1.2–1.7 lakh | 5–7 yrs |
| 2 kW | ₹1.10–1.40 lakh | ₹50,000–80,000 | ₹1.8–2.4 lakh | 5–7 yrs |
| 3 kW | ₹1.50–2.0 lakh | ₹72,000–1.22 lakh | ₹2.5–3.2 lakh | 4–6 yrs |
| 5 kW | ₹2.20–2.80 lakh | ₹1.42–2.02 lakh | ₹3.5–4.5 lakh | 5–7 yrs |
Common Solar Buying Mistakes in India
- Choosing cheapest quote without checking quality — A ₹20,000 cheaper system with unknown panels will underperform and may fail warranty claims
- Not checking MNRE empanelment — Ineligible for PM Surya Ghar subsidy
- Paying 100% advance — If work doesn't happen, recovery is difficult
- Buying "off the shelf" without a site survey — System sizing without seeing your roof leads to under/overinstallation
- Ignoring shadow analysis — A single shadow source (water tank, AC unit, neighbour's building) can reduce output by 20–40%
- Not registering subsidy yourself — Some installers claim they'll handle it but don't follow through. Register on pmsuryaghar.gov.in yourself.