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Solar panel installation

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Introduction :

Are you looking for a reliable and cost-effective way to generate your own electricity in India?

On-grid and off-grid solar systems are two different types of solar power systems that are designed to meet different energy needs. An on-grid solar system is designed to be connected to the utility grid, while an off-grid solar system is designed to operate independently of the grid.

An on-grid solar system, also known as a grid-tied solar system, works by using solar panels to generate electricity during the day. The electricity is then sent to an inverter, which converts the DC electricity produced by the solar panels into AC electricity that can be used in the home. If the solar system produces more electricity than the home uses, the excess electricity is sent back to the utility grid, and the homeowner is credited for the excess electricity. During periods of low solar production, the home can draw electricity from the grid.

An off-grid solar system, on the other hand, is designed to operate independently of the utility grid. It typically includes solar panels, a battery bank, and an inverter. During the day, the solar panels generate electricity, which is used to power the home and charge the battery bank. At night, or during periods of low solar production, the home draws electricity from the battery bank. In some cases, a backup generator may also be included to provide additional power when needed.

In this blog post, we'll discuss the components of an off-grid solar system, their costs, and the factors that can affect the total cost of a 3 kW off-grid solar system in India.

Components of an Off-Grid Solar System

An off-grid solar system typically consists of the following components:

Solar Panels:

Solar panels are the primary component of any solar system, and they generate electricity from sunlight. The number of solar panels needed depends on the energy requirements of the user, but a 3 kW solar system would typically require around 12 solar panels, each with a capacity of 250 watts.


The inverter converts the direct current (DC) electricity generated by the solar panels into usable alternating current (AC) electricity that can power your home or business.


Batteries are required in an off-grid solar system to store excess energy generated by the solar panels for use when there is no sunlight.

Charge Controller:

The charge controller regulates the amount of electricity flowing from the solar panels to the batteries.

Wiring and Installation:

Wiring and installation costs can vary depending on the complexity of the installation, the distance between the solar panels and the inverter, and other factors.

Costs of Off-Grid Solar System Components in India

The cost of a 3 kW solar system can vary depending on a number of factors, such as the quality of components used, installation costs, and location. However, I can provide a rough estimate based on current market trends and average prices in India.

The approximate cost of a 3 kW solar system in India can range from INR 1,70,000 to INR 2,40,000. This cost includes the solar panels, inverter, batteries, charge controller, wiring, and installation fees. Here is a breakdown of the average costs of each component:

Solar Panels: A 250-watt solar panel in India costs around INR 8,000 to INR 9,000, so 12 solar panels for a 3 kW system would cost around INR 96,000 to INR 1,08,000. - Amazon Link (LOOM SOLAR 225 watt)

Inverter: A 3 kW inverter in India costs around INR 15,000 to INR 20,000.

Batteries: A 150 Ah battery in India costs around INR 10,000 to INR 15,000. A 3 kW solar system would typically require 4 to 6 batteries, so the total cost of batteries would be around INR 40,000 to INR 90,000. - Amazon Link (Luminous Red Charge RC 18000 150 Ah)

Charge Controller: A 30 Amp charge controller in India costs around INR 2,000 to INR 3,000 (approximately USD 27 to USD 41). - Amazon Link (amiciSmart Solar Charge Controller 30A)

Wiring and Installation: The cost of wiring and installation for a 3 kW solar system in India is around INR 25,000 to INR 40,000 (approximately USD 345 to USD 550). - Amazon Link (Wire)

Factors That Affect the Total Cost of a 3 kW Off-Grid Solar System in India

Several factors can affect the total cost of a 3 kW off-grid solar system in India. Here are some of the key factors to consider:


The location where the solar system will be installed can affect the cost of the system. For example, if the location is in a remote area with difficult terrain or limited access, the cost of installation could be higher.

System Efficiency:

The efficiency of the solar panels and other system components can affect the cost of the system. Higher efficiency components typically cost more but can result in greater energy production and cost savings over time.

Maintenance Costs:

Maintenance costs can also add to the total cost of an off-grid solar system. Batteries, in particular, require regular maintenance to ensure optimal performance and longevity.

Government Incentives:

The Indian government offers various incentives and subsidies to promote the adoption of renewable energy systems, including solar. These incentives can significantly reduce the cost of installing an off-grid solar system in India.

System Size:

The size of the solar system can also impact the cost. A 3 kW system is suitable for a small household with moderate energy consumption, but larger systems will require more components and therefore incur higher costs.

What factors affect the lifespan of batteries in an off-grid solar system?

Several factors can affect the lifespan of batteries in an off-grid solar system. These include:

Battery Type:

The type of battery used in the system can affect its lifespan. For example, lead-acid batteries are commonly used in off-grid solar systems and have a lifespan of around 5 to 10 years, while lithium-ion batteries can last up to 20 years.

Level of Usage:

The frequency with which the batteries are charged and discharged can affect their lifespan. Batteries that are used frequently may have a shorter lifespan than those that are used less often.

Quality of Maintenance:

Proper maintenance is crucial for maximizing the lifespan of batteries in an off-grid solar system. Regular monitoring of battery performance, ensuring proper charging and discharging, and maintaining appropriate temperature and ventilation are all important factors in extending battery lifespan.

Differences between off-grid and on-grid solar systems:

Connection to the grid:

Off-grid systems are designed to operate independently of the grid, while on-grid systems are designed to be connected to the grid.

Handling of excess energy:

Off-grid systems store excess energy in a battery bank, while on-grid systems feed excess energy back into the grid.


Off-grid systems are generally more expensive than on-grid systems because they require more equipment, such as batteries, to store excess energy.

Government initiatives and subsidies:

The Indian Ministry of New and Renewable Energy (MNRE) has introduced various Central Financial Assistance (CFA) schemes to favor the use of solar energy in India and achieve the target of 100 GW of electricity usage.

Here are some of the key initiatives:

Capital Subsidies:

The Ministry of New and Renewable Energy (MNRE) says that the Central Government pays 30% of the benchmarked installation cost for roof PV systems which is limited to some states, whereas a subsidy of 70% benchmark installation costs is offered to special category states of North which are Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and Uttar Pradesh. The target solar rooftop installations should be cumulatively 8 lac consumers by the end of the financial year 2022-23 and the solar rooftop subsidy will be provided accordingly.

State subsidy of 40% should be available for solar rooftop systems up to 3kW and 20% for solar rooftop systems between 3 kW to 10 kW, which will be installed and commissioned by private residential consumers. If the capacity of the solar rooftop system is beyond 1 kilowatt DC, it can be installed irrespective of a sanctioned load of consumers. There is a possibility that a subsidy on a solar panel can be limited to the maximum capacity of 10 kW.

Solar Energy Corporation of India (SECI):

The SECI was established in 2011 to facilitate the implementation of the National Solar Mission, which aims to promote the use of solar energy in the country. The SECI conducts auctions for solar projects and facilitates the development of solar parks across the country.

Jawaharlal Nehru National Solar Mission (JNNSM):

The JNNSM was launched in 2010 with a target of installing 20,000 MW of solar power capacity by 2022. The mission offers various incentives and subsidies to developers, including a feed-in-tariff for solar power producers and capital subsidies for rooftop solar installations.

Net Metering:

Net metering is a policy that allows solar panel owners to feed excess electricity back into the grid and receive credit for it. The Indian government has implemented net metering policies in various states to encourage the installation of rooftop solar panels.

Solar Park Policy:

The Solar Park Policy was introduced in 2014 to develop large-scale solar parks across the country. The policy provides financial incentives and support for the development of solar parks, including land acquisition and infrastructure development.

Accelerated Depreciation:

The Indian government allows businesses to claim accelerated depreciation on the cost of solar equipment, which reduces their tax liability. This policy incentivizes businesses to invest in solar energy systems.


Off-grid solar systems can provide a reliable and sustainable source of electricity in areas that are not connected to the grid or where grid electricity is unreliable. The cost of setting up a 3 kW off-grid solar system in India can vary depending on the components used, location, system efficiency, maintenance costs, and government incentives. However, with decreasing costs of solar panels and increasing government incentives, solar energy is becoming more accessible and affordable for households and businesses in India. With proper planning, installation, and maintenance, an off-grid solar system can provide energy independence and cost savings for years to come.



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