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2kW Solar System Price, Subsidy, Benefits for Homes in India: 2022

26 min read | By admin

Solar photovoltaic technology is making electricity green and reliable for homes. A small 2 kW solar system can be your first step towards installing a home solar system. This opportunity becomes more exciting as you discover the price of a 2 kW solar panel system in India with subsidy.

2 kW Solar System Price in India

Consider a 2 kW solar system when planning the first and most cost-effective solar option for your house. A 2kW solar plant can generate about 300 kWh of electricity in a month which is sufficient to run a small 2bhk with a few appliances like 1 AC, fridge, etc., Although the precise price of a 2 kW solar system will vary depending on a number of factors, having an estimate is useful. Rather than depending on a third-party source, it is best to contact a reputable solar energy company to determine the cost.

2kW Solar System Specification

Components Description
Solar Power System 2kW
Average Electricity Generation 8-10 Units Per Day
2kW Solar System Price Approx. Rs. 1,40,000 to Rs 2,60,000
Solar Panel Required 6 to 8 Solar Panels of 330-250-watt
Warranty 25 Years on your Solar Panels
10 Years on Your Product
2kW Solar System Subsidy 20%  Govt. Subsidy on benchmark cost.
Area Required for 5kW Solar System 200 Square Feet
AMC Maintenance Yes, with additional cost of AMC Package Purchase.

Types of 2 kW Solar system for Home

There are three types of residential solar power systems: on-grid solar system, off-grid solar system and grid-tied solar system with battery backup or hybrid. 

Solar technology has evolved tremendously over the past decade. There are different variants of solar systems as per everyone’s utility for homeowners. If you are looking to install a 2 kW solar system, three options are available in the market. Although the same photovoltaic principle powers these systems, what sets each apart is their composition (solar components involved) and unique features. 

  • On-Grid Solar System (offers long-term savings and the flexibility of grid connection)
  • Off-Grid Solar System (offers long-term savings and battery backup to prevent power outages)
  • Hybrid Solar System (offers the best of off-grid and on-grid solar energy systems)

On-Grid Model of 2kW Solar System

The on-grid model of a 2 kW solar panel system in India is not only more affordable but also requires less maintenance. It offers the flexibility of net metering.

A grid-connected solar power system is the most common option for homeowners wanting to switch to solar. An on-grid system allows you to save significant money by reducing electricity bills through solar panel power generation.

The solar electricity generated by your panels is converted into alternating current (AC) for use in appliances by the inverter. If your system produces more power than your home requires, the excess can be exported to the grid in exchange for solar credits. On days when solar energy output falls below the normal capacity, you can import additional electricity from the grid. This export and import are monitored and recorded in your monthly utility bills at the net metering policy’s prices and regulations.

Moreover, the total price of a 2 kW solar system is more affordable than other types of systems as it includes fewer components and is relatively easy to install and maintain during its lifespan. The main components of an on-grid design are solar panels and a solar inverter. 

Off-Grid Model of 2 kW Solar System

If your home can’t connect to the grid or experiences frequent, prolonged outages, an off-grid solar system is for you. However, it includes solar storage batteries, which raises the price of a 2 kW solar panel system in India significantly.

An off-grid or stand-alone home solar power system is the one that is not connected to the local grid and thus becomes an ideal choice for homes in remote locations that are unable to access the grid. It uses solar batteries to ensure 24 hours of electricity supply throughout the year. An off-grid system is designed to be absolutely independent and thus requires a high number of solar panels to generate ample power to meet the daily electricity needs of your home and to charge batteries. As a result, the price of a 2 kW off-grid solar system in India is higher than that of an on-grid unit.

The biggest advantage of an off-grid system is that your home will not be affected due to outages. Also, you won’t receive any monthly electricity bills as your home completely runs on solar energy. 

Hybrid Model of 2 KW Solar System

A hybrid model combines the functions and features of both a grid-connected and off-grid system. This means that you earn solar credits via net metering and enjoy peace of mind with battery backups.

In a hybrid solar system, you will enjoy the advantages of both on-grid and off-grid solar system setups. A hybrid system is tied to the local grid and imports and exports power under net metering. At the same time, your home solar plant is also connected to solar batteries to maintain electricity backup for later use. A 2 kW hybrid Solar System will keep your home running during outages, save you money by producing low-cost solar electricity, and allow you to earn solar credits by transferring surplus energy to the grid.

The key components in a hybrid model are solar panels, bi-directional meter for net metering, a battery bank, and a hybrid inverter.

2 Kilowatt Solar Panel System Facts & Benefits

If you are planning to add a 2-kilowatt solar panel system to your home, here are some important facts that would interest you.

  • A 2 kW solar system, on average, generates 8-10 units of power in a day. This amounts to 240-300 units in a month and 2880-3600 units in a year.
  • Most solar companies offer a 25 years performance warranty on solar panels and a 5-10 years product warranty on other key components comprising a solar system.
  • The net metering system regulates only the hybrid and on-grid solar energy systems.
  • Only hybrid and on-grid solar systems are eligible for central and state subsidies. And, no subsidy is available for off-grid solar systems.

A 2-kilowatt solar panel system is an ideal choice if you want to run a small home like a 2bhk o equivalent. It can power your daily home electronics such as 8-10 LED lights, 3-4 fans, 1 TV, 1 AC, and 1 refrigerator. The energy produced will be sufficient for up to three people. Installing this size of the system only requires only a 200 square feet of shade free area.

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 an average. You will begin to get low-cost solar electricity and save money on utility bills from the first day of installation. Going solar is highly advantageous and promises great returns on the upfront investment price of a 2 kW solar plant. Other benefits include:

Low maintenance cost: Purchasing a solar system from an experienced and trusted solar energy company ensures that you get highly efficient, warranty-backed solar components. They are designed to provide peak energy output without requiring a lot of heavy maintenance. Cleaning your panels once a month and getting preventive inspections done routinely will keep your solar system in its top working condition throughout the average lifespan of 25 years.

An abundant power source: Most parts of India receive ample hours of sunshine, even on rainy days and the winter season. You can capture as much sunshine as you want without worrying about electricity bills.

Environmental benefits: Being a renewable resource, the process of solar power generation doesn’t cause any harm to the environment. Using solar energy also cuts down your consumption of fossil fuels, thereby minimizing your carbon footprint.

2 kW Solar Panel System Installation Cost in India

The approximate price of a 2 kilowatt solar system in India is in the range Rs. 1,40,000 to Rs 2,60,000. That makes the price per kilowatt approx. Rs 70,000 to Rs 1.3 Lakhs and it varies as per the design and customisations chosen by the customer. When determining the exact cost of solar for a home, several factors are taken into account. These include the quality of solar panels and other components and the cost of installation. Installing solar panels on your rooftop or ground requires a mounting structure to secure the panels at the right angle to capture maximum sunlight.

If you have the right knowledge and tools to complete the installation yourself, the installation cost will be minimal for you. However, if you seek professional help, the charges can vary. Several solar companies can also offer innovative mounting structures that allow you to add solar panels without losing precious rooftop or ground space. Hence, you’d also want to think about the base structure that will support the panels when getting solar. Most of the time, the installation cost in included in the total system package. 

Subsidy for a 2 kW Solar System in India

The price of a 2 kW solar system in India with subsidy makes solar more affordable for domestic installations.

The government is offering solar subsidies through various schemes, which are available only for systems that connect to the local grid. As per the announcement by MNRE about simplified rooftop solar installation for Grid-tied solar system, now you can purchase your rooftop solar PV plant from any solar energy company of your choice and claim a subsidy in your account. The typical rate of subsidy for different system capacities offered by the governments are:

System Capacity (kW)    

Solar Subsidy (in %)

  1 kW to 3 kW   40% of benchmark cost
  4 kW to 10 kW   20% of benchmark cost
  Above 10 kW    No subsidy

 

You can claim subsidies from the central government and your state government. The central government can pay up to 30% of the total price of a 2 kW solar system in India in general category States/UTs and up to 70% in special category states/UTs. 

The subsidies are calculated on the basis of the benchmark cost of different system capacities. This cost also varies from general category to special category states. 

FAQs About 2kW Solar System

Does a home solar plant give the same electricity output throughout the day?

No. Solar panels need a constant supply of sunlight to produce energy. However, this generation capacity is influenced by the intensity of the sunlight. Your 2 kW solar panels will give less energy output around sunrise and sunset, whereas the production capacity progresses to a maximum around noon. Having said that, you should be worried about this interruption in power supply as you will connected with a grid or a reliable source at all times to make up for the continuity.

Will shading over solar panels impact their performance?

Yes. Shading affects the overall production capacity of a solar PV system. A single solar panel has a large number of interconnected solar cells. Shading on even a small part of the panel has a knock-on effect, causing the energy produced by the rest of the solar cells across multiple panels to also decline. Therefore, it is important to ensure that the area is shade-free before installing your 2 kW solar panel system.

How can net metering benefit me?

Under the net metering system, a solar system owner has the opportunity to earn additional solar credits by transferring their unused solar energy to the government grid. This allows the homeowner to enjoy solar credits, which can be used to buy grid electricity when the solar production of your 2 kW solar system is low or at night time when your solar system is not generating. The total solar credits will reflect in your annual bill cycle and be settled from your electricity bill.

Will I still get monthly electricity bills if I switch to a 2 kW solar system?

As long as your 2 kW solar system is connected to the grid, or say that you have a grid-coonected rooftop  solar system, you will continue to receive monthly electricity bills from your state’s DISCOM. However, the amount to be paid against your bill will drastically be reduced, even to Rs 0. During those months, when you don’t draw any electricity from this grid and contribute solar electricity to it instead, your bill will reflect a positive solar credit balance which can be adjusted in monthly billing cycle.

Will my solar system be affected if the grid electricity is off?

A grid-connected solar PV system is without batteries. It is designed to shut down whenever the grid electricity is out. This is important to ensure the safety of technicians during grid maintenance, as there is a risk of electrocution if any electricity is sent to the grid by your solar system. However, you can have your 2-kilowatt solar panel system designed to include a battery backup so that you never have to face outages. 

What will happen if my battery bank is fully charged?

Similar to your regular power bank that automatically prevents overcharging even if it is plugged in, your solar batteries are also designed to resist overcharging. Batteries come with charging protection that blocks the excess intake of power when they are fully charged.

How much does it cost to service and maintain a 2 kW solar panel system?

Solar panels and other components in a solar system are manufactured using high-quality material. Solar panels are sturdy and can withstand harsh elements of weather and daily wear. Moreover, several solar companies back their 2 kW solar panel system with product and performance warranties. Your installer can further offer AMC maintenance packages and ensure timely routine servicing, inspection, and repair of your entire system throughout its lifespan. In a nutshell, a home solar system needs minimal maintenance costs and requirements to keep it in top condition.

What is the payback period of a 2 kW solar panel system?

Getting a rooftop solar system is a major financial investment. However, the payment is upfront and made in one go. Throughout the 25 years of lifespan, you don’t have to worry about any fuel cost, and the maintenance requirement is also minimal. The average payback period for a 2 kW solar system is 6-8 years. For the rest of the lifespan, the majority of electricity produced by your solar panels is free electricity.

Can solar be the sole energy source for my home?

If you use batteries in your 2 kW solar system, your home can become self-sufficient and eliminate the local grid electricity use. However, solar experts recommend that you connect with the grid if such an option is available for you. Your solar plant is integrated with your existing utility meters in a way that solar energy is always the primary source for your home to draw power from. If solar panels aren’t generating enough electricity, the second source is the solar battery bank. The local grid is always the last resort if both solar panels and batteries are unable to meet your home’s electricity demand due to the unavailability of sunlight.

If I install a 2 kW solar system at my home, will it be possible to upgrade to a higher capacity system in the future? 

When designing a solar system for your home, solar companies ensure to offer homeowners the flexibility to make future improvements. You can add more panels to increase power generation capacity and get more batteries at any time. However, you might also need to buy a larger inverter.

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