1kW Solar System Price, Power Generation, Area Needed, Maintenance | Honest Review

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1 kW solar system is the smallest solar system one can install. In this article you will see how much 1kW solar system cost, area needed to install 1kW solar system, number of solar panels needed in 1kW solar system and everything else.

As per MNRE, the average cost of 1kW solar on grid system is Rs 60,000 and 1kW solar off grid system is Rs 62,000 to Rs 68,000. 1 kW solar system needs 3 solar panels each of 330 watt and a roof top area of 100 sqft.

1kW solar system price:

The price of a solar system depends on the type of system you are installing, brand of solar panels, type of solar panels (mono or poly) and quality of other equipment you use.

In the solar industry the price of solar system is based on per kilowatt value for e.g a 5 kW on grid solar system will cost Rs 70,000 / kW, which translates to a total of Rs 3,50,000.

Generally speaking, smaller the size of a solar system higher is the per kilowatt price. Also, a solar on grid system is cheaper than a off grid solar system. If you don’t know what a solar on grid system is then please check this article – Everything about solar on grid system an this one to know about solar off grid system.

Ministry of New & Renewable Energy (MNRE) sets benchmark cost every year for solar system from 1kW to 100 kW.

MNRE benchmark cost for solar on grid system from 1 kW to 500 kW

Solar System Size (kW)Cost (Rs / kW)
Above 1 kW – 10 kWRs 60,000 / kW
Above 10 kW – 100 kW Rs 55,000 / kW
Above 100 kW – 500 kW Rs 53,000 / kW

Note: The above pricing is benchmark cost set by MNRE, I work in the solar industry and have installed several solar on grid systems, the actual pricing goes up Rs 4,000/kW to Rs 10,000/kW for smaller systems (< 20 kW) and for larger system (> 100 kW) it generally comes down by Rs 2,000/kW to 5,000/kW. The prices totally depend on the quality of components you use.

You can download the MNRE benchmark cost for 2019 – 2020 from here – MNRE benchmark cost for solar system installation in 2019 – 2020

If you want to install a solar off grid system then it’s overall cost will be high as there are batteries involved in the system. The following cost are as per MNRE.

MNRE Benchmark Cost For Solar Off Grid System Up to 10 kW:

  • 1 hour backup Rs 62,000/kW – Rs 68,000/kW.
  • 3 hour backup Rs 74,000/kW – Rs 81,000/kW.
  • 6 hour backup Rs 94,000/kW – Rs 1,03,000/kW.

MNRE Benchmark Cost For Solar Off Grid System Above 10 kW Up to 25 kW:

  • 1 hour backup Rs 55,000/kW – Rs 60,000/kW.
  • 3 hour backup Rs 66,000/kW – Rs 72,000/kW.
  • 6 hour backup Rs 84,000/kW – Rs 92,000/kW.

Note: These are prices given by MNRE for a standard type of installation with standard equipment’s, if your solar panels installation has elevation, quality of equipment is top notch the prices will go up by Rs 5,000/kW – Rs 10,000/kW.

You can check out this article to know more about cost

If you live in a city or in a place where you don’t get frequent power cuts, then a solar on grid system is best for you.

Number of solar panels required in 1kW solar system:

In 2020, almost all solar panels installer install above 300 Watt solar panels. If you are using 330 Watt solar panel (market standard) for your 1kW system, then you will need 3 solar panels.

If you opt for smaller wattage solar panels like 250 watt, then you will need 4 solar panels to make a 1 kW = 1000 watt system.

if you are not sure about how many kW solar system your house needs, check out this article – Calculate how many solar panels a house needs.

But mind you to use electricity generated from solar panels you need a whole of other equipment’s. A 1kW on grid solar system will need following equipment’s:

1kW Solar System Equipment’sQty
Solar Panels 330 Watt Each3
Solar Inverter 1kW1
Direct Current Distribution Box (DCDB)1
Alternate Current Distribution Box (ACDB)1
AC Cables, DC Cables, MC4 ConnectorLot
Apart from these you will need conduit pipes, meters. earthing, lightening arrestor

Area needed to install 1kW solar system:

As a rule of thumb, 1kW solar system needs 100 sqft of shadow free area for installation considering adequate space for cleaning and maintenance.

Cross section area of a single 330 watt solar panel is 6.6 ft X 3.3 ft = 21.78 sqft.

Hence, the least area needed to install 1kW solar system (3 solar panels) is 65.34 sqft.

When it comes to area few things have to be considered.

  • Your solar panels should not receive shadow for atleast 5 hours in a day
  • Your roof should be able to handle solar panels load.
  • The access of roof should be easy for maintenance.

1kW solar system power generation:

The power generation of solar panels depends on the angle of inclination, direction of installation (North, East, West, South), shadow impact on solar panels, number of sun hours in your locality and maintenance of solar panels.

If we assume that your solar panels are facing the right direction with proper inclination and there is no impact of shadow on it with 6 hours of daily sunshine from 10:00 am to 4:00 pm then one can expect solar generation of 4 units every day or 115 to 120 units every month.

1kW Solar System GenerationkWh
1kW Solar System Generation in A Day4
1kW Solar System Generation in A Month120
1kW Solar System Generation in A Year 1,300
Assume 60 days rainy season & no generation in that time

How much savings in electricity bill will 1kW solar system give?

The amount of money you save from your solar system depends on the type of solar system you install (on grid, off grid, hybrid), electricity tariff in your area, TOU tariff plan or not and type of net metering policy.

As more and more people install solar on grid system, we will look at the amount of electricity bill that can be saved by installing a solar on grid system.

In best case scenario, if your area has no TOU plan and there is net metering policy with electricity tariff of Rs 10 / unit, then a 1kW solar system can save 115 unit X Rs 10 / unit = Rs 1,150 of electricity bill every month.

Savings From 1kW Solar System Rs
Electricity Savings From 1kW Solar System in A Day40
Electricity Savings From 1kW Solar System in A Month1,200
Electricity Savings From 1kW Solar System in A Year 13,000
You can multiply your locality electricity tariff to get your savings

As you can see that a 1kW solar system gives good savings but a lot depends on the way you install solar, so you get maximum generation out of it.

Final Verdict : Is it wise to install 1kW solar system:

For majority of home owners a 1kW solar system won’t be an ideal investment because, most home owners will need a bigger size solar system to completely offset their electricity bill.

If your budget permits and you have adequate area then you should aim to completely offset your electricity bill.

Even if today 1kW solar system is sufficient for you in future your electricity consumption is surely going up hence, it is advised to oversize your solar system by 1 kW to 3 kW to accommodate increase in future power generation.


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This Post Has 2 Comments

  1. Kurian

    Your blogue is very informative. I have 2 x 370 panels, 2 x 120 AH c10 solar batteries, livfast 50 amp solar controller, 1500 va apc inverter. at present we are using 3 x 9 volt led lights 3 fans, 1 pc etc. I want to use another pc, one led tv and one fridge. Are the panels and other equipments enough to connect the fridge to solar? Pls reply. I can add one or two panels if needed.

    1. Jayesh

      Hi sir,

      To run an additional PC, LED Tv, and refrigerator, you will need around 700 watt of solar panels, hence increase your solar panels.

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