Adoption of solar energy for residential purposes can save you up to 80% on monthly electricity bills. To be self-sustaining and energy-independent will be a good move as a homeowner. Using solar power instead of conventional forms of energy reduces the amount of carbon and other pollutants that are released into the environment. Not only do solar panels produce clean energy and improve air quality, they also help homeowners save money on their energy bills.
This blog serves as a homeowner’s guide for residential solar installation.
Residential solar installation is designed to meet the energy needs of individual households and involves mounting solar panels on the roof depending on the space availability.
Solar panels generate electricity through a process called photovoltaic effect. When the sunlight hits the panel, the electrons create an electrical current that flows to the system’s solar inverter. The DC energy received is converted into AC energy for the appliances and devices. The solar energy produced by the solar panels depends on the weather conditions and sunlight direction. On a good day, excess energy produced can be sent back to the utility grid or stored in a battery for later use.
Read More: Home Solar Panel System Installation Cost in India 2025
1. To begin with, you need to assess your property to find the ideal location for solar panel installation. The key factors to be considered include roof orientation, shadow-free space, and the available space for installing the panels.
2. Take your time to do the research about the types of solar panels to be used and the vendor comparison. Try to opt for high-efficiency panels that can generate power in smaller spaces. Check the efficiency ratings and the durability factor before closing the solar panel selection.
3. Hire the vendor and ask them about the installation cost, annual maintenance contract, warranty, service procedures, etc.
4. Before proceeding with installation, make sure you obtain the required permits and approvals from your local authorities or homeowners' association.
5. The next step is to install the mounting hardware on your roof or property to ensure the proper placement of the solar panels. Once done, the panels are wired together and connected to the inverter, which then converts the solar energy into electricity for your home.
The right size for the residential solar system can be confusing with available options like 2 KW, 3 KW, 5 KW, 10 KW, and more. Let’s look into key considerations to understand the size of the solar system needed for residential purposes.
1 KW solar system typically generates about 1400 units of electricity per year, i.e. roughly 116 units per month. For instance, if your average consumption is 1000 units per month, you will require a system of around 8.6 KW (1000 ÷ 116). A system that over-meets or under-meets the energy requirements can cause cost disruptions.
The next consideration is the space availability. Solar panels need direct sunlight to function efficiently, and if you have space that is not shadow-free, it will act as a constraint in their efficiency. Each polycrystalline solar panel requires about 100 square feet of shadow-free space. If your roof is obstructed by trees or other buildings, the total area available for installation will affect the efficient energy generation.
Read More: Solar Panel Installation- A step by step guide
Before installing a solar system, it's important to check your approved electrical load with your local utility (DISCOM). If you need a larger system, the sanctioned load must be sufficient to support it or you’ll need to request a load increase from your utility provider before proceeding with the installation.
To calculate how many solar panels you need, use the following formula: |
(Monthly energy usage (kWh) ➗ Monthly peak sun hours) ➗ Solar panel output (kW) |
Read More: Benefits of Installing Solar Panels for Home
Solar panels are installed in houses under PM Surya Ghar Muft Bijli Yojana, to supply power to households and additional money for excess electricity output. The Central Government will provide substantive subsidies directly to people’s bank accounts and heavily concessional bank loans to ensure that there is no cost burden on the people. The government subsidy will cover up to 40% of the cost of installation of the solar panels up to INR 78000*.
A 2 kW solar panel system is an ideal choice if you want to run a small home. On average, a 2kW will generate 280-350 units monthly. These might cover around 70-80% of your electricity needs if you use a mix of appliances like fans, lights, fridges, TVs, and washing machines. However, if you use high-power appliances like an air conditioner regularly, you may need supplementary grid power or a larger system to meet the total demand. In most cases, a top-quality 2 kW solar panel system can pay for itself through savings in as little as 6-8 years on average.
The cost of solar panels for a home varies greatly based on factors like your home's structure, roof specifications, shading, and the local utility. On average, the cost of installing a 3kW solar system in India ranges from Rs. 1,89,000 to Rs. 2,15,000. The price per watt for solar panel systems typically falls between Rs. 75 and Rs. 85. Read more here for detailed residential solar installation costs.
Solar panels are a very durable investment and have a lifespan of 25 to 30 years.