Explore easy ways to finance your solar setup and make going solar more affordable than ever.
Solar energy is growing fast across India’s homes, businesses, and industries. It reduces electricity bills and promotes clean, sustainable energy use. However, while the benefits are clear, the cost of setting up a solar system often leaves people confused.
Switching to solar is appealing, but the upfront cost can feel like a barrier. That’s why it’s important to understand the available solar panel financing options. From easy loans to zero-investment models, there are several ways to go solar without paying everything upfront.
In this blog, we’ll explain the most common financing options available in India, compare their pros and cons, and help you understand which model suits your budget and property best.
Why Financing Matters in Solar Adoption
Upfront cost is one of the biggest reasons people hesitate to switch to solar panels. Financing options help remove this barrier and make solar accessible for all.
Reduces financial burden
Not everyone can pay the full cost of a solar system at once. Financing allows for spreading the cost over time, which makes it more affordable.
Encourages faster adoption
Many people delay installation due to budget limits. However, with flexible solar panel financing options, they can start sooner without waiting to save up.
Supports more user types
Financing makes solar possible for all property types and budgets, whether it’s a home, shop, or factory.
Gives room to scale
Financing allows users to install a basic system and upgrade later as their needs grow.
Understanding the Rooftop Solar Installation Cost in India
The cost of installing a solar system on your rooftop can vary depending on several factors. Here’s a simple overview to help you understand what to expect.
Cost range (1kW to 10kW systems)
In India, a basic 1kW system may cost between ₹75,000 and ₹85,000, while a 5kW system can range from ₹2.5 to ₹3.5 lakhs. Larger setups like 10kW may go up to ₹6 lakhs or more. These are average prices for standard grid-tied setups without batteries.
Key factors affecting cost
The overall rooftop solar installation cost in India depends on:
- System size (kW capacity)
- Use of batteries (adds 30–40% more)
- Type of solar panels employed (mono vs polycrystalline)
- Quality of the inverter and structure
- Roof type and installation complexity
- Local labor and logistics
- State subsidies (if applicable)
What Are the Solar Panel Financing Options in India?
There are multiple ways to finance a solar setup in India. Each model works differently based on who pays, who owns the system, and how payments are managed. Here’s a breakdown of the main solar panel financing options available:
Self-Financed (CAPEX Model)
In this model, the buyer pays the full cost upfront. You own the system from day one and enjoy the full savings on your electricity bill. It’s ideal for homeowners or businesses with the budget for a one-time investment.
Loan-Based Financing
Many banks and NBFCs offer solar loans at low interest rates. You can repay the cost monthly, just like an EMI. This option allows you to install solar without paying the full amount upfront, making it popular for households.
Solar Lease Model
You pay a fixed monthly fee to use the solar system in this setup. The installer or provider owns the system, and you use the power it generates. It’s a low-risk option but may offer lower long-term savings than owning the system.
OPEX/RESCO Model
Commonly used by industries and institutions, the OPEX model solar rooftop involves a third party installing and maintaining the system. You only pay for the electricity you use, often at a rate lower than the local utility. There’s no ownership or upfront cost.
How to Choose the Right Financing Option
Not every solar financing model works for everyone. The right choice depends on your space, budget, and how involved you want to be in owning and maintaining the system.
Check your budget
If you can manage the upfront cost, the CAPEX model gives full ownership and long-term savings. If not, consider loan-based or zero-investment models like OPEX.
Understand your property type
Homeowners may prefer rooftop setups under CAPEX or loans, while businesses or factories with large roofs can benefit from the OPEX model solar rooftop approach.
Think about your usage goals
Third-party models like OPEX or lease systems may be better if you want to lower your bills without handling maintenance. If long-term control and returns matter more, owning the system is a better fit.
Get a site assessment
A site visit from trusted solar EPC contractors in India can help evaluate your roof or land, expected energy use, and recommend the most cost-effective setup.
Conclusion: Solar Made Affordable, Step by Step
Going solar doesn’t have to be a one-time, heavy investment. With multiple financing models available today – like CAPEX, loans, lease plans, and the OPEX model solar rooftop – you can choose a path that fits your budget and goals.
For those looking to simplify the process, Wattnexx offers well-planned systems and expert guidance to help you choose the right financing and setup. Their team supports everything from site assessment to installation, ensuring the system runs efficiently for years. With solutions tailored for homes, businesses, and industries, Wattnexx makes solar adoption easier.
Take the first step toward affordable, hassle-free solar with Wattnexx.