Solar Panels Price in Chennai, Tamil Nadu

solar Panel price in Trivandrum

How much Money Can I save using Solar Power ?

How much money can I save using solar panel

  1. Considering A domestic Solar On grid System in Chennai. A 3kW solar Panel could cost you anywhere between Rs. 1,35,000 to 1,65,000 after subsidy.
  2. A 3kW Solar Panel could save around Rs. 24000 – 30,000 annually.
  3. A tentative pay pack period of 5-8 years.  

Connect to know capacity for your home 


Solar Panel Price in Chennai Tamil Nadu, India

Tamil Nadu is blessed with solar power radiation across its length and breadth. Tamil Nadu has the potential of generating 5 kWh to 6 kWh of Solar energy per kW of Solar Panel Installed. India on an average has a Majority area which can produce solar power in the range of 4.5-5.5 kWh/kW.  

Tamil Nadu is located on the Eastern Coast of India and has a good solar energy potential. The average temperature across Tamil Nadu ranges from 28 – 38 degC. It is observed that from the end of January till early end of August there is a good amount of sunlight and from October to December it is the monsoons and the peak summer season falls in March to June. 

Average Sunny Hours in Tamil Nadu 

Tamil Nadu holds over 2716 hours of Sunny in a year which is around 13% lesser than the Country’s average annual sunny hours of 2600 hours. With Annual Average peak sun hours of 5.01 hours daily in Chennain. 

Annual Average Sunny Hours in Southern States of India 

  • Karnataka : 2361 
  • Tamil Nadu : 2762 
  • Telangana : 2730 
  • Lakshadweep : 2665 
  • Andaman & Nicobar : 2196 
  • Tamil Nadu : 2344 

Ideal Capacity for Solar Panels for Home in Tamil Nadu 

An average home in Tamil Nadu would need around 8-15 units daily. This accounts to around 2 – 5kW of Solar Panels.



Time used (hours)


Total Energy Consumed (kWh)

Ceiling Fan





LED TV 32 inch





Tube Light










Washing Machine (1 Ton)





Air Conditioner





Mixer / Blender





Water Pump










Daily Energy Consumption





Solar Capacity Needed





In the heart of Tamil Nadu, Chennai stands as a beacon for sustainable development, particularly through the adoption of Solar Energy Systems Chennai. The city’s commercial sector is increasingly recognizing the substantial benefits of installing solar PV systems, a move that is both economically and environmentally strategic.

Economic Advantages of Solar PV Systems in Chennai

The primary allure of Solar Energy Systems Chennai for commercial buildings lies in the significant cost savings they offer. Given the relatively high electricity tariffs in Tamil Nadu, commercial entities often face substantial power bills. By generating their own solar electricity, these buildings can substantially reduce their dependence on the traditional power grid, leading to considerable reductions in electricity expenses. The initial investment in solar panels, often perceived as a barrier, is quickly offset by the long-term savings on energy costs. This economic benefit is a major driving force behind the increasing interest in Photovoltaic Systems Chennai.

Government Support and Incentives

The Tamil Nadu government plays a pivotal role in this shift towards solar energy, offering various incentives and subsidies to encourage the adoption of Renewable Energy Solutions Tamil Nadu. These initiatives significantly lower the installation costs of solar PV systems, making them more accessible and financially viable for commercial entities. This governmental support is not just a testament to the state’s commitment to sustainable energy but also an opportunity for businesses to invest in solar power with reduced financial burden.

Environmental Impact and Sustainability

Beyond the economic perspective, the environmental impact of solar energy cannot be overstated. Solar power is a clean and renewable source of energy, helping commercial buildings in Chennai to significantly reduce their carbon footprint. This shift towards green energy is in line with global sustainability goals and enhances the corporate image of businesses, making them more appealing to environmentally conscious consumers and stakeholders.

Reliability of Solar Power

Another critical advantage of Solar Power Installation Chennai is the reliability it offers. In areas where power cuts are frequent, having a consistent and dependable energy source is crucial for the smooth operation of businesses. Solar PV systems provide this stability, ensuring that commercial activities are not disrupted due to power outages. This aspect of solar power is particularly appealing to commercial entities for whom energy reliability is non-negotiable.


In summary, solar PV systems present a viable and advantageous solution for commercial buildings in Chennai. They offer a blend of cost savings, environmental benefits, and energy reliability, aligning perfectly with the electricity tariffs and policies in Tamil Nadu. As the city continues to grow and evolve, the role of solar energy in shaping a sustainable and economically viable future becomes increasingly significant.

Solar Panel price for Home in Chennai, Tamil Nadu. 

The price of the solar panels for homes in Chennai, Tamil Nadu India depends on various parameters including the size, Quality of Equipments, location of Installation and so on.

Cost of 1kW Solar Panel system for Home in Chennai (Tentative)





Solar Panel 

250 – 280 Wp


35,000 – 50,000

Solar Inverter

1.2kVA – 2kVA


15,000 – 30,000



15,000 – 25,000

Wiring & Structures



15,000 – 18,000

Total Cost



80,000 – 1,30,000

Cost of 2 kW Solar Panel system for Home in Chennai





Solar Panel 

250 – 280 Wp


60,000 – 1,00,000

Solar Inverter

2.5kVA – 3kVA


25,000 – 50,000




25,000 – 45,000

Wiring & Structures



30,000 – 35,000

Total Cost



1,40,000 – 2,30,000

Note: The Rates are only Tentative and are bound to vary based on Availability, site condition and actual capacity to be installed. 

An on grid solar power project without a battery roughly costs between 50,000INR – 75,000INR. This does not include any subsidy. While, an-grid solar power plant with battery and an off-grid solar plant will be 12,000-15,000Rs more than on-grid solar power plant due to additional Battery and control systems needed. 

Solar Panel Subsidy in Tamil Nadu for Homes up to 10kW

The Tamil Nadu Energy Development Agency (TEDA) offers subsidies for domestic solar rooftop installations in Tamil Nadu. The subsidy amount varies depending on the capacity of the solar system and the type of consumer.

As of my knowledge cutoff date of September 2021, the subsidy for domestic solar rooftop installations in Tamil Nadu was as follows:

  • For residential consumers: a subsidy of 40% of the benchmark cost (up to a maximum of Rs. 20,000 per kW) for systems up to 3 kW capacity
  • For institutional consumers: a subsidy of 20% of the benchmark cost (up to a maximum of Rs. 20,000 per kW) for systems up to 100 kW capacity


Domestic Electricity Tariff in Chennai (Chennai) Tamil Nadu 

If your domestic electricity consumption is over 300 Units monthly, then, installing a solar panel for your home or commercial unit would be a viable option for you. With a domestic tariff of 7Rs/Unit, Solar could help save a lot of money for you in the long run as the Electricity tariff is expected to increase in the future. 

In comparison to Rs 3 per unit up to 500 units, Rs 400 units for two months, Rs 6.50 per unit from 401 to 500 units, and Rs 8 per unit from 501 to 600 units, domestic consumers will have to pay Rs 4.50 each unit used.For up to 601 to 800 units consumed, the price will be Rs 9, for 801 to 1,000 units, it will be Rs 10, and for more than 1,000 units, it will be Rs 11.

Source TNEB Tariff

Solar Irradiance in Chennai, Tamil Nadu

In simple terms Solar Irradiance means the Total amount of solar Energy (kWh) available per sq.m of land. After installing a solar panel of 18-20% efficiency and system losses in Inverters, cables, and switch gears we can extract roughly around 4.5.5 Kwh of electricity from 1kW of Solar panels.

Solar Irradiance Map of India (Kerala)

Image Source :

Sun Rise, Sun Set and Sun Hours in Chennai, Tamil Nadu

Sunrise and Sunset in Trivandrum Trivandrum SOlar Power

image Source: 

This above graph shows the days (months) across the year in X-axis and hours during the day in Y axis for Chennai, Tamil Nadu 

On 1st January the sun rises just after 6.15 am and sets a little before 5.45pm with a total sun hours around 11 hours. May – July has the longest days.

Major Components in a Solar Panel System for Homes and its Cost

The Below are the List of major components affecting the price of a solar Power Installation for your Home. 

  • Type of Installation – Off-Grid, On-grid, Hybrid 
  • Solar Panel 
  • Solar Inverter
  • Module mounting Structures
  • Cables, Wires and Connectors
  • Transportation & Installation 
  • Overheads 

Cost of Solar Panel 

The solar panel is the most costly part of a solar power system for your home. There are two types of solar panels being widely used for Residential solar plants in India. Monocrystalline and Polycrystalline, Monocrystalline panels are comparatively more efficient than polycrystalline and hence more expensive too. 

SunLight hits these panels during the day time and gets converted to Direct Current (DC) electricity through the solar panels and gets collected and converted into Alternative Current (AC) suitable for the Grid Condition using the Solar Inverters. 

Solar Panel accounts to the highest expense in a Solar Panel system for Homes. Solar Panel accounts to 40-50% of the Cost of the system. It ranges from 35Rs/Watt to 50Rs/Wp based on the Capacity, Efficiency, Technology and make of the solar panel. 

Solar Inverter 

Solar panels produce Direct current (DC) electricity as compared to Alternating Current (AC) which is the common form of electricity supply available at home. Hence the Solar Inverter converts the DC to AC which is consumed by our homes. 

There are majorly two types of solar inverters used widely. Off-grid and On-grid inverters. There are variations within these broad two categories. 

In simple terms, On-grid inverters as the name suggests is connected to the local grid (Electricity board) installed at our homes. 

And the off-grids are the ones which are found in remote locations or stand alone power systems which are not connected to our electricity board. 

Cost of the solar inverter accounts to 20-25% of the cost of the solar panel system for homes in India. For a 1kW solar panel we would need atleast 1.3-1.5kVA solar Inverter accounting Conversion Efficiency. It costs 15 Rs/Watt – 22Rs/Watt. 

On-grid Solar Inverter 

Most modern homes within the city or a town use an on-grid solar inverter. They rely on solar power as the primary source of power along with the electricity supplied from the Electricity board and batteries as the third source of power. 

Off grid solar inverter

These solar power systems are primarily used in remote locations or special use cases when electricity grid supply is not available. They depend on  solar as the primary source of power followed by battery systems.  

Module Mounting structures

The solar panels are placed on top of a mounting structure mostly Galvanised Iron, Aluminium and mild steel. These structures hold the solar modules in place during heavy winds. The other most important aspect of the module mounting structure is to maintain the required tilt of the solar module to keep it perpendicular to the incoming solar radiation. Do not get confused, just keep in mind that the solar panel tilt should be equal to the latitude degrees of your location. Module Mounting structures and wiring combined accounts for 15-18% of the cost of the solar panel system for homes. It costs 15 Rs-22 Rs/kW. 

Solar Wires, cables, Earthing and Connectors

Next critical and expensive part of a solar power system is Solar Wires, cables, earthing etc. There are majorly 3 types of cables needed. One, connecting solar panels in series to meet the input voltage of the inverters, two, connecting a group of solar panels in parallel to match the input current of the inverter. 

Note that in series connection, voltage gets added and in parallel connection current gets added. The cable thickness varies according to the current carried, distance to be covered from panel to the inverter and inverter to the Electricity board and the losses in the cable. This is slightly technical and the Solar company executive should be able to clarify this. 

Transport & Overheads cost of Solar

The other major cost of a solar power plant for your home is the transport and Overhead cost of the company. If the location is far off from the main town and city then this demands additional logistic cost for the customers. 


What is Net-metering in Solar inverters? 

Net metering is a concept in which the inverter supplies the excessive electricity produced by the solar power back to the electricity board and you get additional benefits from the local electricity board for supplying electricity. 

Working of a Net-metering Solar power Inverters 

Solar Power Generation during the Day. According to National Renewable Energy Laboratory (NREL) data, The following map represents the Solar Energy Irradiance available across different parts of India. 

Where Can I install Solar Power in Chennai?

Solar panels can be installed technically any place with no direct shadow. Financially a solar panel is viable for following applications in Chennai where high electricity bills are paid

  1. Homes where monthly Electricity bill is  more than 4000 Rs.
  2. Resorts, Estates, Farm Houses, Serviced Villas which is in remote locations and high Electricity bills 
  3. Restaurants, Cafes and Bars to reduce the electricity bills 
  4. Solar Pumps for Agricultural Irrigation
  5. Small off-grid societies and homes
  6. Fishing Boats
  7. Replace Telecom Towers using D.G. sets
  8. Converted Electric Charging Stations  

How much Electricity can a 1kW solar Panel produce in Chennai, Tamil Nadu?

1kW of Solar Panels roughly needs 7-10 sq.m (70-100 sq.ft) of floor space and one side of the wall for mounting the inverters and other converter systems inside a ventilated room. A normal size of our bedrooms are 120 sq.ft (10ftx12ft). Slightly less than the size of our bedrooms can generate 4-5.5 units (kwh) of Electricity Daily. 

Electricity produced by a 1kw solar panel, 2kw, 3kw and 5kw Solar Panel

How much money can I save installing a Solar plant at home in Chennai? 

Investment Cost for a 3kW solar Power Plant 

Average solar radiation in Chennai can produce 4.5kWh (units of electricity daily from a 1kW solar plant in Chennai. An average domestic household in Chennai would need a 3kW Solar plant. Let’s assume this is connected to a grid and also has battery backup. In that case total rough investment is around 65,000Rs/kW which equals to close to 2,00,000Rs. 

What is the payback period for a 3kW solar Power Plant in Chennai?

A 3kW solar plant can produce close to 4.5kWh/kW, which equals to 4.5×3 = 13.5kWh of electricity produced daily. in a month, a 3kW solar plant can produce  4880kWh of electricity. 

The tentative Domestic Electricity tariff in Chennai is around 5Rs/unit for a household consuming 300 units of electricity. Hence, an average money saved by a 3kW solar plant at home in a year is =4880*5= 24300Rs. 

With an initial Investment of close to 2,00,000Rs. The tentative payback years will be 2,00,000/24300= 7-8 years. This is a very basic calculation assuming that the Electricity tariff remains 5Rs. for 25 years. This is very unlikely as Domestic tariffs will increase over time. second, there are not operations and maintenance cost considered for the solar plant, like battery replacement panel degradation, etc. 

How to Design a Solar Power Plant for Your Home in Chennai?

Solar power design is explained in simple steps. 

  1. Find the total existing Daily Electricity consumption at your home. (this you can get from electricity bill from KSEB) 
  2. Imagine your total units (electricity kWH) consumed is 300 units, divide that by 30 days to get daily Electricity demand for your home. 
  3. 300KWh/30 days = 10kWh/Day. This is your Daily consumption. Calculate this for at least last 1 year data to avoid any additional consumption due to functions at home, summers AC consumption,  faulty meters, etc.   
  4. The Total Electricity Needed at home is 10kWh. Now to account for system losses (wires, cables, Connectors and inverters, say 20% losses). Divide this by 80%.
  5. 10/80%= 12.5kWh this is the total electricity that needs to be produced. 
  6. Based on the solar irradiance and shadow study by the solar design team for your exact location, they shall provide you with the range of Solar generation kWh/kW. Normally for ease of calculation this is considered as 4.5kWh/day in Chennai. 
  7. To get the total solar power capacity needed divide Total Electricity needed/ Energy produced per kW.
  8. 12.5kWh/4.5kWh/kW = 2.78 kW. approximately 3kW of Solar Panel is needed. 
  9. Click Here for the Google Sheet


FAQs in Solar Power Installation

A 5kW solar Panel with a Battery Can cost around 3,75,000Rs – 5,00,000Rs and With a Battery can cost around 4,50,000 – 6,75,000Rs before subsidy.

With rising Electricity prices, Solar power becomes a viable alternative for stable Low cost Electricity. If your electricity consumption is more than 500Units/month and your domestic tariff is above 5Rs/unit, then Solar is the right option.

The Panel should be able to generate more Watts/sqm since area is a big concern for homes.  Cost is also a big parameter when buying solar panel for home. Hence, both Poly & Monocrystalline solar modules are good for homes.  

A general household with a monthly electricity consumption of more than 400 units and a domestic electricity tariff of 5Rs and above needs solar power. A typical house in India for such cases would need 3-5kW of solar panel with & without battery

A 1-ton AC needs 1.5kW to operate and needs a 2+kW of solar panel. for a 1.5Ton AC would need 3+kW of Solar Panel system. 

Solar Panel does not work with 100% efficiency during rainy season. If it is continuously raining, it produces close to Zero electricity from the Sun. But with a battery backup system, it will charge electricity from the grid and works like a normal Inverter. Solar will continue to charge the battery slowly from the Sun as and when it is available. 

1kW of Solar Panel Can generate 4-7kWh(units) of electricity daily. This depends on system losses at inverter & cables, Location, Temperature, Altitude, etc. 

Disclaimer: The information provided on this website is for general informational purposes only. While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. By using this website, you agree to these terms and conditions.

Leave a Reply

Your email address will not be published. Required fields are marked *