Are you thinking of installing solar panels on your roof but are confused about the changing prices? There’s good news for you.
Due to some changes in the solar industry in 2025, solar systems will become accessible to the common man.
The biggest update is that due to the reduction in GST rates and falling solar panel prices, installing solar panels is now 10-15% cheaper than last year.
In this blog, we’ll discuss the real cost of solar panels in 2026 and which panels you should choose.
Three Main Reasons, Why have solar panels become cheaper?
Not just talk, but a look at the data reveals three main reasons for the price drop:
- Significant GST reduction: The government has reduced the GST on solar equipment from 12% to 5% from September 2025. This directly impacts your overall cost.
- Falling mono-PERC prices: The older polycrystalline technology is being phased out, and the increased production of new mono-PERC technology has significantly reduced its price.
- Raw material costs: Improvements in the global supply chain for silicon wafers have reduced manufacturing costs.
Solar Panel Price List 2025 (Price per Watt)
Solar panels of different technologies are available in the market. The following are the average retail prices by 2026:
| Solar Panel Type | Old Price (2024) | New Price (Dec 2025) | Best for Whom? |
| Polycrystalline | ₹28 – ₹32 / Watt | ₹25 – ₹30 / Watt | For homes with a low budget and more space. |
| Mono PERC (Most Popular) | ₹35 – ₹45 / Watt | ₹30 – ₹38 / Watt | Best for low sunlight and limited space. |
| Bifacial / TopCon | ₹45 – ₹55 / Watt | ₹40 – ₹50 / Watt | For premium performance and a long warranty. |
PM Surya Ghar Yojana: How much will it cost after subsidy?
If you’re planning to install solar on your rooftop, consider not just the panel rate but also the net cost (how much you’ll spend).
Under the government’s ‘PM Surya Ghar Muft Bijli Yojana: Free Electricity Scheme,’ a subsidy of ₹78,000 is still available on solar systems up to 3kW.
- Total cost of a 3kW system (without subsidy): approximately ₹1.60 lakh – ₹1.80 lakh
- Government subsidy: ₹78,000
- Customer out-of-pocket expense: ₹82,000 to ₹1.02 lakh approximately
That is, for an expenditure of approximately ₹1 lakh, you can be free from electricity bills for the next 25 years.
Conclusion: Should you wait until 2026?
Many people think it might get cheaper next year. But experts believe prices have stabilized now.
The government is tightening its grip on imported panels after the release of the new ALMM “Approved List of Models and Manufacturers.” Prices may increase slightly in early 2026. Therefore, this is the best time to take advantage of the 5% GST discount and subsidy.
1. Which is the best solar panel for home?
Ans: Mono PERC Half-Cut panels are considered value for money these days. They generate good power even in low sunlight.
2. Has the quality of solar panels deteriorated due to their low prices?
Ans: Absolutely not. Prices have fallen due to advances in technology and lower taxes; there has been no compromise on quality.