2 kW Solar Panel System Price in India with Subsidy (2026) – Total Cost, Savings & Installation Tips

Last Updated : January 14, 2026

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11 min read
2kW Solar Panel System Price in India with Subsidy

If you intend to reduce your electricity bills but do not plan to invest heavily, you may consider a 2 kW solar panel system, which is quite feasible for an Indian house in 2026. The increase in monthly rates can be a problem, particularly for many households, such as small families, apartments, and independent floors. With a 2 kW rooftop system, the balance of power output, affordability, and payback will be ideal.

Due to the robust demand by the Central Government via the PM Surya Ghar Muft Bijli Yojana, rooftop solar is much more available. Residential solar has never been easier with subsidies, ease in approval procedures, and digital tracking being provided by the government.

Here, we discuss the price of the 2 kW solar panel system in India, the subsidy you will be receiving in 2026, what savings you will be making, and what this installation will really need. By the end, you will be in a position to know whether a 2 kW solar system is the right fit in your home and how much you are able to save in a realistic manner, every month.

What is a 2 kW Solar Panel System?

A solar system of 2 kW is a roof-mounted solar system which could provide 2000 watts (2 kilowatts) at full sunshine. This does not mean the number of panels, but how much solar power you can build using your roof.

The Power Generation of a 2 kW System

In the majority of Indian cities, a 2 kW system generally produces:

  • 8 – 10 units per day
  • 2,900 – 3,600 units per year


This is because it is ideal to be used in low-to-medium energy consumption households that desire reliability in power supply during the day and low electricity bills.

Rooftop Space Required

Typically, a 2 kW solar system requires –

  • 180–200 sq. ft. of shadow-free space

This also incorporates the area of panels, walkway breaks and electrical cables.

How Many Panels Does a 2 kW System Need?

The number of panels depends on panel wattage (Wp) –

Using Latest N-Type TOPCon Panels (630-720 Wp)

Panels required: 3 to 4

Benefits:

  • Higher efficiency (23%+)
  • Better shade performance
  • Lower space requirement

Using Mono-PERC Panels (440-550 Wp)

Panels required: 4 to 6

Benefits:

  • Lower cost
  • Good for basic rooftop needs


Using high-efficiency panels reduces both roof-space usage and long-term energy losses.

Advantages of a 2 kW Solar Panel System Installation

The rooftop solar system of 2 kW is an excellent balance of cost and savings, as well as energy security. The following are the largest benefits:

1. Electricity bill major savings

A standard household will save INR 8000 -1,500 each month, depending on usage. 

In one year, this saves INR 10,000-18,000, that is INR 100,000-180,000, without any lifestyle change.

2. Fast payback (3.5 – 4.5 Years)

The payback of a 2 kW system is much quicker than a bigger system; this is due to subsidies and the dropped prices of the panels. 

You have nearly free electricity after the payback period, which is 20+ years.

3. Higher property value

Solar pre-installed homes are more appealing to consumers as they assure them of reduced monthly payments. 

A 2 kW system will make the property attractive, particularly in urban markets.

4. Insurance against the increasing tariffs

In the majority of DISCOMs electricity tariffs increase nearly on a yearly basis. 

Solar will protect you against such variants, providing you with predictable and consistent home energy rates.

5. Environmental benefits

A 2 kW solar system lowers the amount of carbon emissions by 2.4 – 2.6 tonnes of CO₂ per year, equal to planting 120 -140 trees annually

This renders the small systems highly effective for the environment.

Difficulties Encountered by Homeowners and How to Beat Them

Here are some practical issues that Indian homeowners often have to deal with and how to address them.

1. Net metering approval delays

The time taken to carry out approval differs among DISCOMs.

Solution – Select one of the installers who already works in your state; he or she does all the paperwork and follow-ups.

2. Roof shade and space restrictions

Trees, buildings or tanks located near power lines can limit power production.

Solution –  VIP Topcon high-efficiency panels.

3. Select system type (On-Grid vs Hybrid vs Off-Grid)

Many buyers get confused about which one to choose. 

Solution – If you desire a subsidy and optimal ROI, select On-Grid.

4. Vendor selection by ALMM-Approved vendors

Compulsory subsidy and quality control.

Solution – It should always ensure that the installer uses ALMM-approved and certified modules.

2 kW Solar Panel System Price in India (2026 Updated)

Due to falling solar module prices and better domestic manufacturing capacity, the cost of 2 kW systems in 2026 is lower than ever.

Average 2026 Market Prices

  • On-Grid 2 kW: ₹1,30,000 – ₹1,60,000
  • Hybrid 2 kW: ₹1,80,000 – ₹2,30,000
  • Off-Grid 2 kW: ₹1,90,000 – ₹2,40,000

Costs vary based on –

  • Panel type (TOPCon vs Mono-PERC)
  • Inverter brand
  • Location
  • Mounting structure type

Updated Cost Table of 2 kW Solar Panel System in India – Before & After Subsidy

2 kW solar panel price after subsidy and before as well – 

System Type Before Subsidy (Avg.) Subsidy Final Price (Approx.)
2 kW On-Grid ₹1,30,000 – ₹1,60,000 ₹52,000 ₹78,000 – ₹1,08,000
2 kW Hybrid ₹1,80,000 – ₹2,30,000 Not eligible ₹1,80,000 – ₹2,30,000
2 kW Off-Grid ₹1,90,000 – ₹2,40,000 Not eligible ₹1,90,000 – ₹2,40,000

Tip: On-grid systems offer the best value for money due to subsidies and the highest long-term ROI.

What Can a 2 kW Solar System Run? (Realistic Load Guide)

A 2 kW solar system can power the essential load of a small Indian household comfortably.

Regular Loads (Runs Easily)

  • 8-10 LED lights
  • 3-4 ceiling fans
  • 1 refrigerator
  • TV & Set-top box
  • Wi-Fi router
  • Laptop/computer
  • Mobile chargers

Moderate Loads (Occasional Usage OK)

  • Washing machine
  • Mixer/grinder
  • Small pump (0.5 HP)

Not Suitable (Without Batteries)

  • Air Conditioner
  • Geyser
  • Large motors
  • Heavy heating appliances


A 2 kW system is ideal for low to medium-consumption homes seeking dependable daytime power and strong bill reductions.

Government Subsidy for 2 kW Solar System (PM Surya Ghar Yojana 2026)

The Indian households have been rendered small rooftop systems, such as 2 kW, very affordable through the PM Surya Ghar Muft Bijli Yojana. Its subsidy system is straightforward – 

Systems up to 3 kW (including 1 kW, 2 kW and 3 kW systems) shall be subsidised by 40%.

In the case of a 2 kW system, the total value of the subsidy available is INR 52,000.

The subsidy is passed to the bank account of the homeowner once the installation, inspection and net-metering approval are done. You are not required to pay the system cost minus subsidy at an upfront stage, but rather the subsidy is accrued in the future.

Important –

ALMM-approved solar modules must be installed, and a DISCOM-empanelled vendor must be chosen; otherwise, the subsidy will not be granted.

The system should not be on the grid (systems that have battery backup are not eligible).

2 kW Solar System Cost Breakdown – Where Does Your Money Go?

To help you understand exactly where your money goes, here is a transparent component-wise breakup of a typical 2 kW rooftop solar system in India –

Component Description Approx. Cost (₹)
Solar Panels 4–6 Mono-PERC / 3–4 TOPCon panels ₹48,000 – ₹60,000
Solar Inverter 2 kW on-grid inverter ₹22,000 – ₹28,000
Mounting Structure GI/Aluminium structure with fasteners ₹12,000 – ₹18,000
DC/AC Cables & Wiring High-quality fire-resistant wiring ₹6,000 – ₹10,000
Protection Devices MCB, SPD, ACDB, DCDB, earthing kit ₹10,000 – ₹14,000
Labour & Installation Skilled installation & safety setup ₹12,000 – ₹18,000
Net Metering Fee DISCOM charges ₹500 – ₹1,500
Total Estimated Cost Before subsidy ₹1,30,000 – ₹1,60,000

Payback & ROI Analysis

A 2 kW solar system offers one of the fastest payback periods in the residential segment due to its low cost, high efficiency, and subsidy support.

Let’s calculate a realistic example.

Total Cost Before Subsidy

₹1,40,000 (mid-range)

Subsidy for 2 kW

₹52,000

Net Cost to Homeowner After Subsidy

₹88,000

Average Monthly Savings

₹800 – ₹1,500 depending on your usage and tariff rates.

Annual Savings

₹10,000 – ₹18,000

Payback Period

3.5 – 4.5 years

After this, your system generates almost free electricity for 20+ years, giving you a very high lifetime ROI.

ROI Table Example 

Parameter Value
System Size 2 kW
Final Cost After Subsidy ₹88,000
Average Daily Generation 8–10 units
Monthly Savings ₹800 – ₹1,500
Yearly Savings ₹10,000 – ₹18,000
Payback Period 3.5–4.5 years
25-Year Lifetime Savings ₹3.5 – ₹4.5 lakh
CO₂ Reduction (Annual) 2.4–2.6 tonnes
Equivalent Trees Planted (Annual) 120–140 trees

Factors That Affect the Total Cost of a 2 kW Solar System

Although 2 kW systems are cheap, the cost may vary with individual houses. The following are the most important factors that are involved in determining your final cost:

1. Panel efficiency (TOPCon vs Mono-PERC)

TOPCon panels (630-720 Wp) are marginally more expensive, but are more efficient and have better long-term performance than Mono-PERC.

2. Inverter type

An on-grid inverter is cheaper than a hybrid inverter that can accommodate battery storage.

3. Roof structure

Flat roofs are needy in terms of structure and hardware, and the metal sheds require alternative mounting, which influences the cost of installation.

4. Cable & protection quality

Higher quality DC cables, ACDB/DCDB and SPDs make the system safer and extend the life of the cable and also cost more.

5. Distance from the vendor

Delivery and labour fees are different depending on the city and the location of your installer.

6. Labour variation by the state

The cost of installation is a little more in the metros than in smaller cities.

7. DISCOM documentation requirement

Other states have imposed fees on net-metering, safety approvals and application processing.

2 kW Solar System Step-by-Step Installation Guide

The PM Surya Ghar Yojana is simply installed with a 2 kW solar system. Here is the complete process –

Step 1: Filling the Government Portal form.

Make a PM Surya Ghar account using your consumer number.

Step 2: Rechoose an Empanelled Vendor.

Select a licensed supplier in your state DISCOM.

Step 3: Feasibility Check and Survey of the site.

The vendor or DISCOM analyses roof-space, wiring and shade.

Step 4: Panels and Inverter Installation.

Your vendor assembles the panels, wires the inverter, and installs the configuration as well as safety measures.

Step 5: Approval and Synchronisation of Net Metering.

The bidirectional meter is installed by DISCOM, and the grid connection is authorised.

Step 6: Subsidy Deposited into your Bank Account.

The 2 kW (INR 52,000) subsidy is then sent back to your bank account after final verification.

Avaada Electro

Avaada Electro is a solar manufacturing business division of the Avaada Group and supplies modules that meet required certification standards

1. Premium technology

Installs N-type TOPCon modules (630-720 Wp) at a 23% efficiency.

Can be suitable for homes with limited roof space, depending on system design.

2. Smart manufacturing

Modules are manufactured at the company’s Butibori facility using automated processes.

3. Certifications you can count on

ALMM-Listed (mandatory to subsidise)

BIS, UL, IEC Certified

Adheres to international quality and safety standards.

4. Long-term protection

Has up to a 30-year performance warranty.

5. India-wide supply and project execution

Good distribution throughout the nation.

Experience in EPC, rooftop and O&M services.

6. Strong industry reputation

Supported by renewable investments made by the Avaada Group in both large-scale (including in MoUs) and smaller (such as the 36,000 crore green power investment in Gujarat) scale.

An optimal mix of high efficiency modules, compliance and long-term reliability.

Comparison: 1 kW vs 2 kW vs 3 kW Solar Systems

Feature1 kW2 kW3 kW
Daily Generation4–5 units8–10 units12–15 units
Monthly Savings₹400–₹700₹800–₹1,500₹1,500–₹2,500
Subsidy (2026)₹30,000₹52,000₹78,000
Roof Space Needed80–100 sq.ft.180–200 sq.ft.260–300 sq.ft.
Best For1 BHK / low usage1–2 BHK homes2–3 BHK homes

Maintenance & Performance Tips (Simple & Practical Advice)

The following are the basic requirements to maintain a running 2 kW system and ensure over 25 years of service:

1. Regular Cleaning

Wipe the panels after 15-30 days so that there is no dust to cover them, to ensure more sunlight is absorbed.

2. Use the monitoring app

Check inverter or app data frequently to check that your system is generating normally.

3. Safety checks

Visit wiring, earthing, and protection devices after one year.

4. Avoid shade

Re-cut trees around the area or move the water tanks in the way of sunlight.

5. Plan upgrades wisely

In case of the addition of a battery later, refer to your installer about the compatibility of the inverter.

These are just some of the steps that keep performance down and ensure your investment is safe.

Final Takeaway

One of the smartest upgrades of the small Indian households in 2026 is a 2 kW rooftop solar system. It will save monthly bills, have a quick payback of 3.5-4.5 years, and will provide near-free electricity within the next 20+ years. The system is now even cheaper with the ₹52,000 subsidy to first-time users.

Choosing ALMM-listed, high-efficiency modules can support system performance and long-term reliability when installed correctly.

A 2 kW system provides the optimal combination of cost, savings and long-term payback in case you are thinking of switching to solar this year.

Frequently Asked Questions

How much can a 2 kW solar system cost in India, in 2026?

₹1,30,000 – ₹1,60,000

INR 52,000 under the PM Surya Ghar Yojana.

Around 180–200 sq ft.

Not suggested unless to be used with a battery/hybrid.

8–10 units per day on average.

Yes, on-grid and eligibility for subsidies.

25–30 years.

Yes, Avaada Electro modules are ALMM listed.

1–2 days after approvals.

General cleaning and inspection once a year.

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Vinoo George

Vinoo George, is a Whole-time Director of our Company. He has received bachelor’s degree in mechanical engineering from the University of Madras in 1977. He is responsible for providing strategic direction, operational efficiency, quality management technology integration and overall capacity management in our Company.

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