A homeowner in your city asks the simplest question in solar: "What will a 1 kW system cost me after subsidy?" If you quote a vague number, you lose the deal to the installer who answers with a clean breakdown. This guide gives you that breakdown, rupee by rupee, with the 2026 subsidy math, EMI examples, and the honest answer about when 1 kW is too small.
Key takeaway
PM Surya Ghar 1 kW cost in 2026: ₹55,000 to ₹70,000 gross, ₹25,000 to ₹40,000 net after the ₹30,000 central subsidy. A 1 kW on-grid system generates 110 to 140 units a month, needs 80 to 100 sq ft of shadow-free roof, and pays back in 3 to 4 years. It suits homes using under 150 units a month with no air conditioner.
We wrote this for installers and EPC (Engineering, Procurement and Construction) owners who quote 1 kW systems weekly, but homeowners will find every number they need too. For the full slab structure across sizes, see our PM Surya Ghar subsidy slabs guide.
What a 1 kW rooftop system costs in 2026
A 1 kW on-grid rooftop system in India costs ₹55,000 to ₹70,000 fully installed in 2026, before subsidy. That range holds across most states, with the low end in Gujarat and Rajasthan and the high end in the Northeast and hilly states where logistics add 8 to 12 percent. The price per watt for small systems sits higher than for 5 kW or 10 kW jobs, because fixed costs like the site visit, structure, and net-meter paperwork spread over fewer watts. Our solar cost per watt in India post shows the full curve.
One opinionated take from our side: if a customer is quoted above ₹75,000 for a standard 1 kW on-grid job in 2026, they are overpaying. Module prices have fallen for three straight years, as we tracked in solar panel price trends, and a 1 kW quote should reflect that.
Component-by-component cost breakdown
About 60 percent of a 1 kW quote is hardware, the rest is structure, electricals, labour, and DISCOM (Distribution Company) charges. Customers trust installers who itemise, so keep this table handy. For the deeper version across system sizes, see our solar installation cost breakdown.
| Component | Typical cost (2026) | What to check |
|---|---|---|
| Solar modules, 2 x 540 Wp or 2 x 550 Wp | ₹26,000 to ₹32,000 | ALMM-listed brand, DCR compliant for subsidy |
| On-grid string inverter, 1.1 to 1.5 kW | ₹12,000 to ₹16,000 | 5-year warranty minimum, local service centre |
| Galvanised iron mounting structure | ₹6,000 to ₹8,000 | Hot-dip galvanised, wind-rated for the district |
| DC/AC cabling, earthing, lightning arrester, protection | ₹5,000 to ₹7,000 | 3-pit earthing, proper DC isolator and SPD |
| Installation labour and commissioning | ₹4,000 to ₹6,000 | Includes testing and DISCOM inspection support |
| Net meter and DISCOM charges | ₹2,000 to ₹5,000 | Varies by state; some DISCOMs supply the meter |
Note. DCR means Domestic Content Requirement. Under PM Surya Ghar, only systems using ALMM-listed (Approved List of Models and Manufacturers) Indian-made modules qualify for subsidy. Imported modules void the CFA claim, per MNRE scheme guidelines, 2024.
What most installers get wrong here: they hide the net-meter and DISCOM charges inside a lump-sum "extra" line. When the DISCOM bill arrives separately, the customer feels cheated. Itemise it upfront and the dispute never happens.
The ₹30,000 CFA math on a 1 kW system
The Central Financial Assistance (CFA) for a 1 kW residential system is a flat ₹30,000, credited by Direct Benefit Transfer (DBT) to the homeowner's Aadhaar-linked bank account after commissioning and DISCOM inspection. The slab structure has not changed since the scheme launched in February 2024: ₹30,000 per kW for the first 2 kW, ₹18,000 per kW for the third, capped at ₹78,000. Only residential (LT domestic) consumers qualify, and only on-grid or hybrid systems, not off-grid, per the PM Surya Ghar National Portal and PIB, 2024.
₹ math. On a ₹65,000 1 kW system, the ₹30,000 CFA drops the customer's outlay to ₹35,000. The subsidy covers 46 percent of the project cost, the highest percentage the scheme offers at any size below 3 kW.
This is where the misconception lives. Customers hear "₹30,000 subsidy" and assume the installer pockets it or that the quote should be ₹30,000 cheaper than a neighbour's unsubsidised quote from 2023. Neither is true. The subsidy goes to the customer's bank account, and the correct comparison is gross quote versus gross quote. Correct this in your proposal itself, and you kill the "the other shop quoted less" objection before it starts. The full application flow is in our PM Surya Ghar application process guide.
What a 1 kW system actually runs in an Indian home
A 1 kW system generates 4 to 5 units a day, roughly 110 to 140 units a month, enough for fans, lights, a fridge, a TV, and a washing machine in a 1 to 2 BHK home. It will not comfortably run a 1.5-tonne air conditioner, a water pump above 0.5 HP, or an electric geyser on a regular basis. Those loads either need 2 to 3 kW or will eat the entire generation the moment they switch on.
| Appliance | Units/day at typical use | Best for 1 kW? |
|---|---|---|
| 4 ceiling fans + 6 LED lights | 1.5 to 2 | ✓ Comfortably |
| Refrigerator, 250 L | 1 to 1.5 | ✓ Comfortably |
| TV + Wi-Fi + laptop | 0.8 to 1.2 | ✓ Comfortably |
| Washing machine | 0.5 to 1 | ✓ If used in daylight hours |
| 1.5-tonne AC, 4 hrs/day | 4.5 to 6 | ✗ Eats the full day's output |
| Electric geyser, 15 min/day | 1 to 1.5 | ✗ Only if everything else is minimal |
Generation flows through a bidirectional meter under net metering, so daytime surplus exports to the grid and offsets evening consumption on the bill. That is what makes a small on-grid system work without a battery.
EMI and payback math on a 1 kW system
Most 1 kW buyers either pay cash or take a small consumer-durable-style loan, and both routes pay back in 3 to 4 years at current tariffs. Under PM Surya Ghar, collateral-free loans up to ₹2 lakh at around 7 percent interest are available through partner banks for systems up to 3 kW, per the scheme guidelines on pmsuryaghar.gov.in, 2026. Our PM Surya Ghar EMI options post covers lender-by-lender details.
₹ math. Net cost ₹35,000, monthly bill saving ₹900 (120 units at ₹7.5/unit), annual saving ₹10,800. Simple payback: 35,000 divided by 10,800 is 3.2 years. After that, roughly 21 years of near-free power on the panels' 25-year warranty.
EMI route, worked example: ₹35,000 financed at 10.5 percent over 36 months gives an EMI near ₹1,138. Bill saving of ₹900 a month covers 79 percent of the EMI from day one, so the real out-of-pocket is about ₹238 a month for three years. That framing, "less than your mobile recharge", closes more 1 kW deals than any subsidy pitch. Show this inside the quote itself using the layout we described in showing ROI in a solar proposal.
Fast tip. Always quote payback on the net cost after subsidy, not the gross cost. A 3.2-year payback sells; a 6-year payback on the gross figure does not, and the customer only ever pays the net figure.
State top-ups that cut the net cost further
Several states add their own subsidy on top of the central ₹30,000, and a 1 kW buyer in those states can land below ₹25,000 net. Delhi adds up to ₹30,000 for residential rooftop systems, applied separately on the Delhi solar portal, according to 2026 state subsidy trackers. Uttar Pradesh offers ₹15,000 per kW up to ₹30,000 per consumer through UPNEDA. Gujarat closed its residential top-up in earlier phases, so always verify the current status before quoting. Our state top-up subsidies for PM Surya Ghar list tracks each state's live status.
Watch out. State top-ups need a separate application on the state portal in most cases. If your team only files the central PM Surya Ghar form, your customer in Delhi leaves ₹30,000 unclaimed, and they will blame you when they find out.
The tradeoff to discuss honestly: chasing a top-up adds 2 to 6 weeks of paperwork in some states. For a ₹35,000 net job, an extra ₹15,000 top-up is worth the wait. For a time-pressed commercial client, it may not be. Put the choice to the customer with dates, not a vague "subsidy will come".
When 1 kW is too small: the 1 kW Fit Test
A 1 kW system is the right answer for homes using under 150 units a month, and the wrong answer the moment an air conditioner, a borewell pump, or an EV enters the picture. Selling 1 kW to a 300-unit household is the fastest way to earn a "solar does not work" reputation in that neighbourhood. We use a simple check before quoting, and we named it the 1 kW Fit Test.
-
1
Check the bill: under 150 units a month?
Pull the last 6 months of electricity bills. If average consumption is under 150 units, 1 kW offsets 70 to 90 percent of usage. Above 180 units, quote 2 kW or 3 kW instead, because the subsidy per rupee of bill saved is better there.
-
2
Check the load: any AC, geyser, or pump?
One 1.5-tonne AC running 4 hours a day adds 130 to 180 units a month, more than the entire 1 kW output. If the customer plans to buy an AC within 2 years, size up now. Retrofitting capacity later costs more per watt than sizing right today.
-
3
Check the roof: 80 to 100 sq ft shadow-free?
A 1 kW array needs 80 to 100 sq ft with no shadow from 9 am to 4 pm. If the only clear patch is 50 sq ft, a high-efficiency module pair may still fit, but confirm at site survey, never over the phone.
Pass all three checks and 1 kW is a clean, fast-closing sale. Fail any one and you owe the customer a 2 kW or 3 kW quote, where the 3 kW solar price often delivers better value per rupee because of the ₹78,000 slab cap.
1 kW vs 2 kW vs 3 kW: the honest comparison
For most urban Indian homes, 2 kW or 3 kW beats 1 kW on subsidy efficiency and future-proofing, while 1 kW wins only on absolute out-of-pocket cost. Here is the full picture, sourced from PM Surya Ghar National Portal slabs and 2026 market pricing.
| Factor | 1 kW | 2 kW | 3 kW | Best for |
|---|---|---|---|---|
| Gross cost (2026) | ₹55,000 to ₹70,000 | ₹1.1 to ₹1.3 lakh | ₹1.7 to ₹2 lakh | Budget check first |
| Central CFA | ₹30,000 | ₹60,000 | ₹78,000 | 3 kW maximises grant |
| Net cost | ₹25,000 to ₹40,000 | ₹50,000 to ₹70,000 | ₹92,000 to ₹1.22 lakh | 1 kW lowest entry |
| Units per month | 110 to 140 | 220 to 280 | 330 to 420 | Match to the bill |
| Subsidy as % of gross | About 46% | About 50% | About 42% | 2 kW sweet spot |
| Runs a 1.5-tonne AC? | ✗ | Partially | ✓ | AC homes: 3 kW |
When 1 kW wins
- ✓Monthly bill under 150 units, no AC
- ✓Lowest cash outlay, ₹25,000 to ₹40,000 net
- ✓Small roof, only 80 to 100 sq ft clear
- ✓Rented-out homes and elderly-parent homes where usage stays flat
When 1 kW loses
- ✗Any AC, geyser, or pump in daily use
- ✗Family of 4 or more with rising consumption
- ✗Customer plans an EV or new appliance within 2 years
- ✗Roof space exists for 3 kW and budget allows, the ₹78,000 cap rewards sizing up
A quick narrative, and we label it hypothetical: a Surat installer quoted 1 kW to a Varachha household with a 280-unit bill and one AC. The system generated 125 units a month, the bill barely moved, and the customer told his whole street solar was a scam. The same installer now runs the 1 kW Fit Test on every call, quotes 3 kW where it fits, and closed 11 of 14 residential deals last month. Hypothetical example, but the pattern is one every EPC owner recognises.
For pricing across every size, keep PM Surya Ghar cost by system size open in another tab while you quote.
How QuickEstimate fits
The 1 kW sale is a volume game. Margins are thin, ₹8,000 to ₹12,000 per job, so your profit lives in how fast you quote and how little you rework. QuickEstimate calculates the ₹30,000 CFA automatically the moment your rep enters 1 kW, pulls the right slab if the customer upsizes to 2 kW mid-conversation, and produces a branded PDF with the component breakdown, EMI, and payback table already filled. No calculator, no subsidy errors, no "sir I will send the quote tomorrow".
- Proposal Generator, 60-second branded PDF with PM Surya Ghar subsidy and payback math pre-filled for any system size.
- Quotation System, itemised component-level quotes so the net-meter charge never becomes a dispute.
- WhatsApp Follow-up, send the 1 kW quote in the customer's chat and get reminded on day 3 and day 7.
The free plan covers 10 proposals a month, enough for a solo installer doing 3 to 5 small jobs. Check pricing when your team grows past that.
What to do this week
Three actions, seven days. Do them in this order.
- Rebuild your 1 kW quote template today. Itemise modules, inverter, structure, electricals, labour, and DISCOM charges, then show gross, CFA, and net as three separate lines. Customers who see ₹65,000 minus ₹30,000 equals ₹35,000 stop negotiating on the gross figure.
- Add the 1 kW Fit Test to your site-survey script. Bill under 150 units, no AC or geyser planned, 80 sq ft clear roof. Train every rep to run it in the first two minutes of a call, and to upsell 2 kW or 3 kW the moment a check fails.
- Pull last month's 1 kW enquiries and re-send quotes with payback math. A quote that says "3.2-year payback, 21 years of free power after" revives cold leads. Send them through WhatsApp and track who opens them, or book a demo to see the follow-up tracking live.
Frequently asked questions
What is the cost of a 1 kW solar system under PM Surya Ghar in 2026?
A 1 kW on-grid system costs ₹55,000 to ₹70,000 gross in 2026. After the ₹30,000 central subsidy under PM Surya Ghar Muft Bijli Yojana, the net cost to the homeowner is ₹25,000 to ₹40,000. State top-ups in Delhi and Uttar Pradesh can cut this further, per the PM Surya Ghar National Portal and state nodal agencies, 2026.
How much subsidy do I get on a 1 kW solar system?
Exactly ₹30,000. The CFA slab is ₹30,000 per kW for the first 2 kW of residential rooftop capacity, so 1 kW gets ₹30,000 and 2 kW gets ₹60,000. The money comes by Direct Benefit Transfer to your Aadhaar-linked bank account after the system is commissioned and your DISCOM completes inspection, per MNRE scheme guidelines, 2024.
How many units does a 1 kW solar system generate per month?
Between 110 and 140 units per month in most Indian states, or about 4 to 5 units a day. Chennai and Tamil Nadu average closer to 130 to 140 units; hilly and high-rainfall regions run lower at 100 to 115. Generation assumes a shadow-free, south-facing roof at the right tilt.
Is a 1 kW solar system enough for a 2 BHK home?
Yes, if the home uses under 150 units a month and has no air conditioner or electric geyser. A 2 BHK running fans, lights, a fridge, a TV, and a washing machine fits comfortably within 1 kW output. The moment a 1.5-tonne AC enters daily use, you need 2 kW minimum and 3 kW for comfort.
Can I run an AC on a 1 kW solar system?
Not practically. A 1.5-tonne AC consumes 4.5 to 6 units in 4 hours of use, which equals or exceeds the entire daily generation of a 1 kW system. The system will export little or nothing to the grid, and your evening bill stays high. Size up to 2 or 3 kW if an AC is in the plan.
How long is the payback period on a 1 kW system after subsidy?
Typically 3 to 4 years on the net cost after subsidy. A ₹35,000 net cost against ₹900 a month in bill savings (120 units at ₹7.5 per unit) gives a simple payback of about 3.2 years. Panels carry 25-year performance warranties, so the post-payback saving period is two decades or more.
Is the 1 kW subsidy given to the installer or the customer?
The customer. The ₹30,000 CFA goes directly to the homeowner's Aadhaar-linked bank account through DBT after commissioning and DISCOM inspection. The installer receives only the agreed project payment. Any installer asking you to sign over the subsidy should be avoided, per the PM Surya Ghar National Portal process, 2026.
Does a 1 kW system need net metering to get the subsidy?
Yes. PM Surya Ghar CFA applies only to on-grid or hybrid systems connected through a bidirectional net meter approved by your DISCOM. Off-grid systems with batteries do not qualify for the residential CFA. Net-meter charges of ₹2,000 to ₹5,000 apply depending on your state and DISCOM.
Want to put this into practice?
Quickest Solar CRM gives you everything in this article, proposal automation, lead capture, WhatsApp follow-up, built for Indian solar EPCs.
Start free
