Electricity Bill After Installing Solar Panels in India: One of the biggest reasons why Indian households and businesses are switching to solar is the dramatic drop in monthly electricity bills. With rising power tariffs across states, solar energy is no longer just about going green — it’s about long-term financial freedom. In this blog, we’ll break down how much you can realistically save on your electricity bill after installing solar panels in 2025.
How Solar Panels Reduce Your Electricity Bill
When you install a solar power system, it generates electricity from sunlight during the day. This power runs your appliances first, and any excess is exported to the grid through net metering. At night, when solar isn’t generating, you use electricity from the grid. Your final monthly bill shows only the net difference between units imported vs. units exported.
In simple words:
Grid Power Used – Solar Power Generated = Net Bill
Electricity Bill After Installing Solar Panels in India Before vs. After Solar:
Here’s an example of a 5 kW solar system for a household in 2025:
Item | Without Solar | With 5 kW Solar |
Monthly Units Consumed (kWh) | 700 units | 700 units |
Units Generated by Solar | 0 | 650 units |
Grid Units Billed | 700 units | 50 units |
Average Tariff (₹/unit) | ₹8 | ₹8 |
Monthly Bill | ₹5,600 | ₹400 |
Yearly Bill | ₹67,200 | ₹4,800 |
Annual Savings: ₹62,400 (≈ 92% reduction in bills)
State-Wise Savings Potential: Electricity Bill After Installing Solar Panels in India
Electricity tariffs differ across states, so savings also vary. Here’s an estimate for a 3 kW residential system:
State | Avg. Tariff (₹/unit) | Avg. Monthly Bill Before Solar | Bill After Solar (3 kW) | Savings % |
Delhi NCR | ₹7.5 | ₹3,800 | ₹400 | 89% |
Maharashtra | ₹9.0 | ₹4,500 | ₹500 | 89% |
Gujarat | ₹6.5 | ₹3,300 | ₹300 | 91% |
Tamil Nadu | ₹8.5 | ₹4,200 | ₹450 | 89% |
Uttar Pradesh | ₹7.8 | ₹3,900 | ₹400 | 90% |
On average, solar reduces household bills by 85–92% across India.
Cost of Electricity Bill After Installing Solar Panels in India:
The cost depends on system size and panel type:
- 3 kW system: ₹1.8 – ₹2.1 lakh
- 5 kW system: ₹3.0 – ₹3.5 lakh
- 10 kW system: ₹6.0 – ₹6.8 lakh
Subsidy in 2025 (PM Surya Ghar Muft Bijli Yojana)
- Up to 3 kW: 60% subsidy
- 4–10 kW: 40% subsidy
- Max subsidy: ₹78,000
So, a 3 kW system costing ₹1.8 lakh will cost only ₹1.0 lakh after subsidy.
Return on Investment (ROI): Electricity Bill After Installing Solar Panels in India
Most homeowners recover their investment in 3–4 years due to high electricity savings + subsidy. After that, solar continues generating free power for 20+ years.
For example:
- Investment: ₹1.0 lakh (after subsidy, 3 kW system)
- Annual Savings: ₹30,000+
- Payback: 3 years
- Lifetime Savings: ₹6–7 lakh
FAQs:
Q1. Can my bill become zero?
Yes, if your system generates equal to or more than your consumption. In most states, you only pay the fixed connection charge (₹100–300/month).
Q2. What happens if I generate more than I use?
Excess power is credited to your next bill under net metering.
Q3. Do subsidies apply for businesses too?
No, the central subsidy is only for residential rooftop solar. Businesses can get other state-specific incentives.
Final Thoughts: Electricity Bill After Installing Solar Panels in India
By 2025, solar is no longer an option — it’s a necessity for anyone looking to cut their electricity bills by up to 90%. With government subsidies, reduced solar costs, and rising grid tariffs, the best time to invest in solar is now.
If you live in India and pay over ₹2,500/month in electricity bills, switching to solar could give you massive long-term savings and financial independence from rising tariffs.
Also Read: What Are the Best Solar Panels for Home Use in India?
