Solar panel installation process

What the solar panel installation process involves

The solar panel installation process is a sequence of technical and administrative steps that takes a rooftop from empty to generating power. It starts with a site survey and ends with net metering, after which the household begins to see lower electricity bills. The process is the same whether you go through the PM-Surya Ghar: Muft Bijli Yojana or buy the system directly from an installer.

A household that installs a 3 kW system will be able to generate more than 300 units a month on an average. That is enough to cover the free electricity limit under the PM-Surya Ghar scheme, which provides free electricity up to 300 units every month for one crore households.

Step 1: Site survey and system design

An installer visits the rooftop to check its condition, orientation, shading and available area. The survey decides the system size, panel layout and inverter capacity. The installer also checks the existing electrical connection and meter.

For a typical home, a 2 kW or 3 kW system is common. A 2 kW home solar system in India has a starting price range, with installation, of ₹1,75,000 to ₹2,13,000. A 3 kW solar system starting price in India, with installation, ranges between about ₹2.15 lakh and ₹2.47 lakh.

Step 2: Application and approval

Under PM-Surya Ghar: Muft Bijli Yojana, households apply for subsidy through the National Portal. On the portal, they can select a suitable vendor for installing rooftop solar. The application needs basic details, an electricity bill and proof of identity.

The scheme provides a CFA of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 to 3 kW capacity, capped at 3 kW. At current benchmark prices, this means ₹30,000 subsidy for a 1 kW system, ₹60,000 for a 2 kW system and ₹78,000 for a 3 kW system or higher.

Step 3: Installation

After approval, the installer fixes the mounting structure, panels, inverter and wiring. The work usually takes one to three days, depending on the system size and roof type. The installer also connects the system to the household's distribution board.

Step 4: Inspection and net metering

The local DISCOM inspects the installation and, if it meets the standards, installs a net meter or approves net metering. Net metering lets the household export surplus power to the grid. Through this scheme, households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs.

Step 5: Subsidy release

After the net meter is installed and the system is commissioned, the consumer makes a redemption request on the National Portal. With all credentials entered correctly on the National Portal, the average time taken in processing the CFA is around 15 days after the redemption request made by the consumer.

Financing the installation

If the upfront cost is a concern, collateral-free loans are available from nationalized banks at a concessional interest rate of repo-rate plus 50 bps, i.e., 5.75% per annum for the present, with a tenure of 10 years. This loan can cover the system cost before the subsidy is credited.

Why install now

Electricity demand is rising. The rise in demand is in line with the progression of summer conditions across the country, with electricity consumption witnessing a significant growth of 8.9% during the month of April 2026. A rooftop solar system reduces the amount of electricity you draw from the grid, which helps during peak demand periods.