Solar panel in India vs. USA — In‑Depth Comparison (2025)
1. Solar panel Market & Business Landscape
India
India crossed 100 GW cumulative solar capacity by January 2025, with strong momentum under initiatives like the National Solar MissionDeltapowerReddit+1Wikipedia+1.
The government’s PM Surya Ghar Muft Bijli Yojana (launched Feb 2024) offers subsidies up to ₹78,000 for residential rooftop systems, empowering low-income households to adopt solar Deltapower+6Wikipedia+6Deltapower+6.
Private players such as Tata Power are also launching affordable rooftop programs—e.g., systems starting at ₹7,499 for 2 kW installed with EMI options across Rajasthan The Times of India.
USA
The U.S. solar market has historically depended on a 30% federal Investment Tax Credit (ITC) to make rooftop solar affordable. Average $29,000 installations become manageable post-credit investopedia.com+15washingtonpost.com+15reuters.com+15.
However, with a newly passed law in July 2025, that 30% credit is being phased out—leading to predicted 85% drop in residential solar demand, job losses, and major financial disruption in the rooftop segment washingtonpost.com+1reuters.com+1.
U.S. prices are also rising due to tariffs on Chinese solar components and regulatory burden—residential installs now average $3‑$3.45/W (~₹250–₹290/W) Wikipedia.
2. Cost of Solar Panel & Installed Systems
India (2025)
Per watt module cost: ₹25–₹50/W depending on technology:
A 300 W monocrystalline panel costs around ₹12,000–₹16,500 (₹40–₹55/W × 300 W).
USA (2025)
Installed cost: $3.00–$3.45/W residential (₹250–₹290/W), mostly due to labor, regulation, and imported component tariffs WikipediaWikipediaapnews.com.
A typical 5–6 kW system costs ~$15,000–$20,000, though some reports estimate average installs around $29,000 before credit washingtonpost.comWikipedia.
ITC removal impact: With expiry of the 30% tax credit after 2025, effective cost to consumers will rise sharply; demand may drop dramatically washingtonpost.comreuters.com.
Estimated per-panel cost
A 300 W panel module in retail might cost ~$150–200 depending on volume and manufacturer (China vs U.S. brands).
Payback period: typically 4–6 years, with net-metering credits adding savings over 25 years (~₹6–8 lakh) Deltapower+1Deltapower+1.
In places like Amethi, community CSR plus subsidy schemes enabled 1 kW setups for ₹5,000 and monthly generation of 135 units (₹877/month income) solarrenwablepower.com+1The Times of India+1.
USA
Under the 30% tax credit, households saw typical paybacks of 5–8 years, and ~$50,000 electricity savings across 25 years washingtonpost.comreuters.com.
Removal of ITC threatens to stretch payback to 12+ years, reducing financial attractiveness significantly washingtonpost.comreuters.com.
4. 2 kW vs 3 kW Systems & AC Usage
Indian Context
A 2 kW system (₹1–1.4 lakh before subsidy; ₹60k–₹100k after subsidy) can meet basic energy needs: fans, fridge, lights, TV. It may run a 1 ton AC intermittently during sunlight, but not reliably spardhakranti.comtruzonsolar.com.
A 3 kW system (₹1.5–2.1 lakh; after subsidy ₹1.1–1.6 lakh) generates ~12–15 kWh/day under peak. That supports one 1–1.5 ton inverter AC for a few hours, plus essential household loads; grid / battery backup needed for night or high load DeltapowerDeltapowerDeltapower.
US Context
Most residential installations are 5–6 kW capacity as grid electricity rates, size of homes, and appliance needs are larger.
A 2–3 kW rooftop system may produce ~8–12 kWh/day, insufficient for air-conditioning-heavy U.S. homes. A 5 kW system is typical to offset monthly consumption (~900–1,200 kWh).
🔍 Summary Comparison
Feature
India (2025)
USA (2025)
Panel/module price
₹25–₹55/W
Approx. $0.30–0.50/W (~₹25–₹40/W)
Installed cost per kW
₹60k–₹80k (net ₹40k–₹65k after subsidy)
$3.00–$3.45/W (~₹250–₹290/W)
Subsidies / Incentives
₹78,000 max per home (up to 3 kW)
30% ITC (expires end of 2025)
Typical system size
3–5 kW for homes
5–6 kW common rooftop size
Payback period
4–6 years
5–8+ years (longer without ITC)
AC support per system
3 kW ≈ one 1–1.5 ton AC during daytime
5 kW needed to power multiple AC and loads
📝 Conclusion
In India, falling solar panel prices, strong government subsidies (e.g. PM Surya Ghar), and net-metering make solar adoption cost-effective and accessible for residential users. A 3 kW system can comfortably power modern homes with occasional AC usage.
In the USA, while solar has offered huge financial returns via tax credits, policy shifts—including the removal of the 30% ITC and high regulatory/ tariff costs—now threaten residential solar economics. Without tax incentives, average system prices rise substantially, potentially slowing adoption.