Switching to solar energy is one of the best ways to save money and reduce reliance on fossil fuels. But before installing solar panels, it’s important to understand how much home solar energy costs in the US and India.
In this guide, we’ll compare solar costs, incentives, and potential savings in both countries.
Average Solar Energy Cost For Home
United States
As of 2025, the average cost of a residential solar system in the US is:
– $15,000 – $25,000 (before incentives)
– Cost per watt: $2.50 – $4.00
India
In India, the cost of installing solar panels is much lower due to cheaper labor and manufacturing:
– ₹1,50,000 – ₹3,50,000 for a 3kW system
– Cost per watt: ₹30 – ₹60
Cost Comparison by System Size
United States: 3kW |$7,500-$12,000
India: 3kW |₹1,50,000-₹3,50,000
Why is solar cheaper in India?
– Lower labor costs
– Government subsidies
– Locally manufactured solar panels
Incentives & Tax Benefits
United States:
– Federal Solar Tax Credit (ITC): 30% of the total cost
– Net Metering: Sell excess power back to the grid
– State & Utility Rebates: Vary by location
Example Saving:
If you install a $20,000 system, you can claim a $6,000 tax credit, reducing the cost to $14,000.
India:
– Subsidies (Up to 40%): Available for residential rooftop solar
– Net Metering: Reduces electricity bills
– Bank Loans & EMI Options: Government-supported financing
Example Saving:
A 3kW system costing ₹2,50,000 can get up to ₹1,00,000 subsidy, reducing the cost to ₹1,50,000.
How Much Can You Save?
United States
– Average Monthly Bill (Before Solar): $150
– New Bill (With Solar): $20 – $50
– Annual Savings: $1,200 – $1,800
– Payback Period: 6-10 years
India
– Average Monthly Bill (Before Solar): ₹2,000
– New Bill (With Solar): ₹500 – ₹1,000
– Annual Savings: ₹12,000 – ₹18,000
✔ High electricity costs make solar a great investment
✔ Government tax credits reduce installation costs
✔ Payback in 6-10 years
✔ Lower panel prices & subsidies make solar affordable
✔ Ideal for hot, sunny regions
✔ Payback in 4-7 years
Final Verdict:
Solar is a smart investment in both the US and India, offering long-term savings and energy independence.
Would you install solar panels? Let us know in the comments!