Complete Guide to 2kW Solar Panel Price in India with Subsidy

If you’re considering a 2kW solar system for your home in India, it’s essential to understand the costs involved—both with and without government subsidies.

A 2kW system is perfect for small households that can reduce your electricity bills.

However, the cost can vary depending on the type of system you choose: on-grid, off-grid, or hybrid.

This guide will break down the costs, highlight the benefits of each system type, and help you make a confident decision that aligns with your energy needs and budget.

2kW Solar System Price Without Subsidy

This capacity is ideal for small households, accommodating 1 to 3 occupants, and can effectively support a 2 BHK home with common appliances.

The price of a 2 kW solar system in India differs based on the type of system installed.

Here’s a breakdown of the pricing:

System Type	Price
2kW On-grid solar system	Rs. 144,000
2kW Off-grid solar system	Rs. 160,000
2kW Hybrid solar system	Rs. 310,000

2kW Solar Panel System Price in India With Subsidy

Under the PM Surya Ghar Muft Bijli Yojana, government subsidies significantly reduce the price of a 2 kW solar system in India. 

Below is the overview of how the PM solar scheme applies to different solar system types:

Rooftop Solar System Capacity	Applicable Subsidy (₹)
1 kW	30,000/-
2 kW	60,000/
3 kW and Above	78,000*

Now, what is the effect of the final prices of solar systems after including this subsidy?

Here is how it goes:

2kW On-Grid Solar System:

• Price Before Subsidy: Approximately ₹144,000
• Subsidy Applicable: ₹60,000.
• Price After Subsidy: Approximately ₹1,35,300

2kW Off-Grid Solar System:

• Price: Approximately ₹160,000
• Subsidy Applicable: Not applicable.
• Price After Subsidy: Remains ₹160,000.

2kW Hybrid Solar System:

• Price Before Subsidy: Approximately ₹310,000
• Subsidy Applicable: ₹60,000.
• Price After Subsidy: Approximately ₹250,000.

Solar System Types Covered in Subsidy

Under the government’s subsidy schemes in India, on-grid and hybrid solar systems are eligible for financial assistance, making them more affordable for homeowners.

Specifically, these systems can receive a subsidy of ₹30,000 per kW to reduce the overall installation costs.

In contrast, off-grid solar systems do not qualify for subsidies, meaning homeowners must bear the full cost of these systems.

Why is the Off-Grid Solar System not eligible for Subsidies?

Off-grid solar systems are not eligible for government subsidies in India primarily because the government aims to promote grid-connected solar installations. 

By providing subsidies for on-grid and hybrid systems, the government can achieve two goals.

First, it supports the transition to renewable energy, and second, it ensures that excess energy produced can be utilized effectively within the grid. 

 In contrast, off-grid systems, which operate independently and require significant investment in battery storage, do not align with this policy framework.

Setup Required for 2kW Solar Panel System

To set up a 2 kW solar panel system, you will need the following components:

Solar Panels

• Number of Panels: 6-8 solar panels, each with a capacity of 330-400 watts
• Total Panel Capacity: 2 kW

Inverter

• Inverter Capacity: 2-3 kW
• Type: Grid-tied inverter for on-grid systems, hybrid inverter for off-grid systems

Mounting Structure

• Area Required: 100-150 square feet of shade-free rooftop space
• Mounting Type: Roof-mounted or ground-mounted, depending on available space

Cables and Connectors

• DC Cables: To connect solar panels to the inverter
• AC Cables: To connect the inverter to the home’s electrical system
• MC4 Connectors: To connect the solar panels

Battery Bank (for Off-Grid Systems)

• Battery Capacity: Depends on energy storage requirements
• Battery Type: Lead-acid or lithium-ion batteries

Combiner Box

• Combines the output from multiple solar panel strings
• Provides overcurrent protection

Charge Controller (for Off-Grid Systems)

• Regulates the voltage and current from the solar panels to the batteries
• Prevents overcharging and over-discharging of batteries

Grounding and Lightning Arrestor

• Provides protection against electrical surges and lightning strikes

How Many Units Can a 2kW Solar Panel System Generate?

 In optimal conditions, such as during summer months with ample sunlight, a 2 kW system can produce up to 6 kWh daily.

While in less favorable conditions, such as winter, it may generate as low as 3 kWh per day

System Size	Daily Output	Monthly Output	Yearly Output
3 kW	6 kWh	180 kWh	2100 kWh

Solar panels should be oriented towards the south to capture the maximum amount of sunlight throughout the day.

Also, adjusting the tilt angle to the optimal value can increase the annual efficiency output by 10-30% compared to a fixed horizontal installation.

The tilt angle of solar panels should be approximately equal to the location’s latitude.

For example, in New Delhi, the optimal tilt angle would be around 28.6 degrees

What Appliances Can Be Run on a 2kW Solar System?

A 2 kW solar system can power various appliances in a small to medium-sized home.

Lighting

• 5 LED lights (10W each) for 6 hours per day

Refrigeration

• 1 refrigerator/freezer for 24 hours per day

Entertainment

• 1 LCD TVs (42″ each) for 5 hours per day
• 1 laptop for 3 hours per day
• WiFi router for 24 hours per day

Kitchen Appliances

• 1 microwave for 15 minutes per day

Other Appliances

• 1 washing machine for 2-3 hours per day

It’s important to note that a 2 kW system cannot simultaneously power larger appliances like refrigerators and washing machines.

How Much Can a 2kW Solar System Save on Your Electricity Bills?

The savings generated by a 2 kW solar system can vary greatly based on the type of system installed—on-grid, off-grid, or hybrid.

On-grid systems generally offer the highest savings.

While off-grid systems provide energy independence through battery storage, they usually yield lower savings.

As they do not benefit from net metering. 

Here’s an analysis of how much you can save:

Savings on Electricity Bills

Assuming an average electricity tariff of ₹8 per unit, a 2 kW solar system can save you around ₹1,680 to ₹2,500 per month on your electricity bills.

Over a year, the savings can amount to ₹20,160 to ₹29,2500.

Payback Period

With the help of government subsidies, a 2 kW solar system costs around ₹1,44,000 to ₹2,00,000.

Assuming an annual electricity bill savings of ₹30,000, the system can pay for itself in 4-5 years.

Concluding Remarks

In summary, this guide has provided a comprehensive overview of the solar scheme.

So, investing in a 2kW solar system in India is a smart choice for small households.

By choosing the right system—whether on-grid, off-grid, or hybrid—you can optimize your savings and energy independence.

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