What’s the 20 kW Solar System Price in India in 2026?

A 20 kW solar system can generate ~28,000 to ~29,000 units of electricity annually. This much energy is sufficient to power common areas in a small housing society. It’s also suitable for commercial setups and small businesses. The 20 kW solar system price in India depends on whether it’s being installed in a housing society or a commercial space.

The main price difference is due to the fact that the solar subsidy under the PM Surya Ghar Muft Bijli Yojana is available only for housing societies, not for commercial setups. Let’s check out the estimated 20 kW solar panel price in India for both:

• 20 kW solar system price in India with subsidy for housing societies: ~Rs. 8.40 lakh* to ~Rs. 9.40 lakh*
• 20 kW solar system price in India for commercial setups: ~Rs. 10 lakh* to ~Rs. 11 lakh*

*Please note: The above-mentioned 20 kW solar system price for housing societies for on-grid solar systems is indicative as of 28th January 2026. The final 20 kW solar panel price in India depends on your DISCOM charges, city, solar system size, site conditions, project specifications, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Also, the final cost of 20 kW commercial solar systems can vary based on the type of solar panels you use (imported and non-DCR solar panels have a cost variation of ~15-20%), type of solar inverter you choose (string inverters and optimizers have a cost variation of ~15-20%), type of solar system, whether or not you use a battery energy storage system (BESS increases the final cost by almost 30%-40%), mounting structure height, type of after-sales service, roof height, etc. Prices are subject to change.

Read on to discover the ins and outs of the installation cost of a 20 kW solar system in India, the types of 20 kW solar systems, and the benefits of rooftop solar.

TL;DR Summary Box: Is a 20 kW Solar System a Worthwhile Investment?

Installing a 20 kW solar system is worthwhile for housing societies and commercial spaces with very high power consumption. It is generally not recommended for homes because the power consumption in homes is much lower than the electricity generated by a 20 kW solar system.

Here’s a tabulated snapshot of the key topics covered in this blog in detail:

*Please note: The above-mentioned 20 kW solar system price for housing societies for on-grid solar systems is indicative as of 28th January 2026. The final 20 kW solar panel price in India depends on your DISCOM charges, city, solar system size, site conditions, project specifications, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Also, the final cost of 20 kW commercial solar systems can vary based on the type of solar panels you use (imported and non-DCR solar panels have a cost variation of ~15-20%), type of solar inverter you choose (string inverters and optimizers have a cost variation of ~15-20%), type of solar system, whether or not you use a battery energy storage system (BESS increases the final cost by almost 30%-40%), mounting structure height, type of after-sales service, roof height, etc. Prices are subject to change.

What is the Subsidy for a 20 kW Solar System?

The central government offers housing societies a subsidy for installing grid-connected solar systems. This subsidy is not offered for commercial rooftop systems. Housing societies can receive a subsidy of Rs. 18,000 per kW for systems up to 500 kW under the PM Surya Ghar Muft Bijli Yojana.

Here’s a tabulated snapshot of the solar subsidy offered for different-capacity solar systems:

*Please note: The maximum subsidy for housing societies is capped at Rs. 90 lakh for systems equal to or above 500 kW.

What’s the 20 kW Solar System Price in India in 2026?

The cost of rooftop solar for housing societies without subsidy ranges between ~Rs. 60,000* per kW to ~Rs. 65,000* per kW. However, with the PM Surya Ghar subsidy, this cost reduces to ~Rs. 42,000* per kW to ~Rs. 47,000* per kW.

For commercial PV systems, the cost of solar installation ranges between ~Rs. 50,000* per kW to ~Rs. 55,000* per kW.

Based on the solar installation cost details listed above, here’s how much money you’ll have to invest in a 20 kW solar system in India:

• 20 kW solar system price in India with subsidy for housing societies: ~Rs. 8.40 lakh* to ~Rs. 9.40 lakh*
• 20 kW solar system price in India for commercial setups: ~Rs. 10 lakh* to ~Rs. 11 lakh*

*Please note: The above-mentioned 20 kW solar system price for housing societies for on-grid solar systems is indicative as of 28th January 2026. The final 20 kW solar panel price in India depends on your DISCOM charges, city, solar system size, site conditions, project specifications, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Also, the final cost of 20 kW commercial solar systems can vary based on the type of solar panels you use (imported and non-DCR solar panels have a cost variation of ~15-20%), type of solar inverter you choose (string inverters and optimizers have a cost variation of ~15-20%), type of solar system, whether or not you use a battery energy storage system (BESS increases the final cost by almost 30%-40%), mounting structure height, type of after-sales service, roof height, etc. Prices are subject to change.

What are the Types of 20 kW Solar Systems?

The three main types of solar systems in India are on-grid, off-grid, and hybrid.

• An on-grid solar system is connected to the grid, not lead-acid or lithium batteries.
• An off-grid solar system is the opposite – it’s connected to a battery bank, not the grid.
• A hybrid solar system is connected to both the grid and a battery bank.

Before we understand their specifications and working in detail, here’s a tabulated snapshot of the key differences between the three types: 

Now, let’s understand each type in detail.

20 kW On-Grid Solar System Specifications and Working

A 20 kW on-grid solar system is connected to the utility grid. Because the DISCOM does not cap energy exchange between the grid and the solar system, there’s no need for lead-acid or lithium batteries. As a result, these solar systems are the most affordable and highly recommended for areas with a very reliable grid and power outages rarely occurring.

Here are the key specifications of a 20 kW on-grid rooftop solar system:

Now, let’s have a look at how an on-grid solar system works:

• Solar panels convert sunlight into electricity: Solar panels, made of solar cells, capture photons from solar radiation. These photons then transfer their energy to electrons in the solar cells, energizing them. The energized electrons leave their bonds and begin to flow in a single direction, producing direct current (DC) electricity.
• DC power is converted to AC power: A solar inverter converts direct current into alternating current for safety.
• Solar net metering for billing purposes: The DISCOM fits a smart meter or a bi-directional net meter to track the energy exchange between the grid and the solar system. When the solar system supplies more electricity units to the grid than it imports, you receive credits. When the solar system imports more units than it exports to the grid, you pay the DISCOM for additional grid units used.

20 kW Off-Grid Solar System Specifications and Working

A 20 kW off-grid solar system is connected to a battery bank, not the grid. Excess energy produced during the daytime is used to charge the battery bank. This stored energy is used at nighttime or whenever required.

Here are the key specifications of a 20 kW off-grid rooftop solar system:

Now, let’s have a look at how an off-grid solar system works:

• Solar panels convert solar energy into DC power: This step is similar to how an on-grid solar system works.
• DC power generated is used in two ways: The DC power is converted to AC to power the connected load. Any excess energy not used in real time is used to charge the batteries. The energy stored in batteries is used whenever solar output is low or at night to keep the load running.

20 kW Hybrid Solar System Specifications and Working

A 20 kW hybrid solar system is connected to both the grid and a battery bank. It offers the best of both worlds: it’s connected to the grid for solar power net metering, and it’s connected to the batteries for backup power.

Here are the key specifications of a 20 kW hybrid rooftop solar system:

Now, let’s have a look at how this solar system works:

• Solar panels generate electricity during the day: This step is similar to electricity generation in on-grid and off-grid solar systems.

• The DC power generated is used in multiple ways: The power is first used to run connected loads, where the inverter converts DC to AC. Any excess DC energy not used in real time is stored in batteries. If there’s still any remaining surplus, it’s exported to the grid.
• Functioning during power outages or at night: Electricity is supplied from the battery bank. If both solar and battery power are insufficient, the hybrid solar system draws electricity straight from the grid.

Key Facts About a 20 kW Solar System in India

A 20 kW solar system is a very powerful photovoltaic machinery, capable of powering housing societies and commercial offices. It can generate ~28,000 to ~29,000 units of electricity in a year with proper care and maintenance.

Here are some interesting facts you must know about a 20 kW solar system in India before installing one.

What are the Benefits of Installing a 20 kW On-Grid Rooftop Solar System?

A 20 kW solar system in India can substantially lower power bills, offer energy independence to companies and housing societies, and also tackle air pollution. Let’s have a look at all the benefits in detail.

Benefits of on-grid rooftop solar for housing societies:

• Sharp drop in common-area electricity bills: In housing societies, common services such as lifts, corridor lighting, water pumps, and CCTV systems run all day. A 20 kW PV system supplies most of this daytime demand directly from sunlight, cutting reliance on grid power. As electricity expenses fall, monthly maintenance charges become lighter for residents.
• Subsidy support reduces the cost of solar installation: Housing societies benefit directly from the PM Surya Ghar Muft Bijli Yojana, which offers a subsidy of Rs. 18,000 per kW for installations up to 500 kW. For a 20 kW system, this significantly reduces the upfront cost and shortens the payback period, making solar adoption financially practical even for societies with tight budgets.
• Decades of low-cost power for shared infrastructure: Once the system recovers its installation price, the electricity generated for common areas comes at almost zero cost. Since solar panels last 25 years or more, societies gain long-term protection against rising electricity tariffs.
• Easier budgeting and stronger financial planning: Predictable power costs help RWAs plan expenses with confidence. Savings from reduced electricity bills can be redirected toward building maintenance, safety upgrades, or resident amenities.
• Higher property value: A solar-powered housing society signals cost efficiency, long-term planning, and environmental responsibility. Buyers view these factors as indicators of a future-ready property, which can improve resale value and rental appeal over time.

Benefits of rooftop solar for commercial setups:

• Lower operating cost: For commercial buildings and factories, a 20 kW rooftop system offsets a meaningful portion of daytime electricity use. This reduces dependence on grid power and diesel generators, directly lowering operating expenses while cutting fuel consumption.
• Extra savings under time-of-day tariffs: In states where discoms apply time-of-day pricing, electricity consumed during peak evening hours costs more. By aligning energy-heavy operations between 9 AM and 5 PM, businesses can let solar power handle most of the load and avoid higher tariff slabs.
• Stable output during extreme heat with modern panels: High-efficiency N-type TOPCon solar panels perform reliably even during harsh Indian summers. With temperature coefficients around −0.29%/°C or lower, power loss remains minimal even as rooftop temperatures soar, ensuring consistent generation during high demand.
• Cooler rooftops and improved indoor comfort: Solar panels act as a protective layer over the roof, reducing direct heat absorption. Studies show noticeable drops in rooftop temperatures under solar arrays, helping HVAC systems in offices operate more efficiently, especially during peak summer months.
• Measurable reduction in carbon emissions: Switching to rooftop solar significantly reduces carbon emissions. For commercial installations, the environmental impact is comparable to planting fully grown trees year after year, which directly contributes to cleaner air and lower pollution levels.

Let’s give you some numbers on how solar systems in housing societies and commercial setups make your city’s air cleaner:

Conclusion

A 20 kW solar system is a worthwhile investment for housing societies and commercial setups looking forward to lowering their energy bills and carbon footprint. When you choose a tier-1 solar system and maintain it throughout its operational life, it lasts for more than 25 years and continues to operate at 80% of its efficiency thereafter.

SolarSquare is the best home solar company in India, offering installation services for homes, housing societies, and commercial buildings.

We’re India’s first and only solar company to offer a generation guarantee with a money-back promise. Our IIT Bombay-approved solar mounting structures can withstand wind speeds up to 170 km/hr, and we offer an exhaustive 5-year annual maintenance plan with monthly scheduled visits to ensure your solar system operates at peak efficiency post-installation, resulting in massive savings.

You can book a free solar consultation with our experts for rooftop installation in housing societies and commercial buildings.

FAQs

How much area is needed for a 20 kW solar plant?

You will require 2,000 square feet of shadow-free area on the roof to install a 20 kW solar system comfortably.

How many units per year can a 20 kW solar system produce?

A 20 kW solar system can generate ~28,000 to ~29,000 units of electricity in a year.

Is a 20 kW solar system enough to power a home?

A 20 kW solar system is usually very large for homes. Homes in India generally do not consume 28,000 to 29,000 units of electricity per year. Even very big villas and bungalows with multiple ACs and high-load devices can easily run on a 10 kW solar system. So, a 20 kW solar system is usually used in small housing societies and commercial setups.

How many solar panels are needed for a 20 kW solar system?

You can calculate the number of solar panels needed using this simple formula:

Number of solar panels = solar system size in watts / module’s capacity.

Suppose you’re using 580-watt TOPCon solar panels, then the number of solar panels needed to build a 20 kW solar panel would be ~35 (20,000 / 580 = 34.48 = 35 panels).

Similarly, if you choose 540-watt mono-PERC bifacial panels, you’ll need ~38 panels to build a 25 kW solar system (20,000 / 540 = 37.037 = ~38 panels)

What’s the subsidy for a 20 kW solar system in India?

If you’re installing a grid-connected 20 kW solar system for housing societies, you will receive a subsidy of Rs. 3.60 lakh.

Here’s a tabulated snapshot of the key topics covered in this blog in detail:

Main Topics Key Takeaways Is there a subsidy for installing a 20 kW solar system in India? The central government offers the PM Surya Ghar subsidy only for housing societies, not for commercial setups. Housing societies can receive a subsidy of Rs. 18,000 per kW for grid-connected solar systems up to 500 kW. What’s the cost of a 20 kW solar system in India? It depends on whether the system is being installed in housing societies or commercial spaces.

20 kW solar system price in India with subsidy for housing societies: ~Rs. 8.40 lakh* to ~Rs. 9.40 lakh* 20 kW solar system price in India for commercial setups: ~Rs. 10 lakh* to ~Rs. 11 lakh* What are the types of 20 kW solar systems in India? On-grid solar systems: They’re connected to the grid. Off-grid solar systems: They’re connected to a battery bank. Hybrid solar systems: They’re connected to both the grid and a battery bank. What are the benefits of installing a 20 kW on-grid rooftop solar system? It lowers electricity bills, offers energy independence, and tackles air pollution. *Please note: The above-mentioned 20 kW solar system price for housing societies for on-grid solar systems is indicative as of 28th January 2026. The final 20 kW solar panel price in India depends on your DISCOM charges, city, solar system size, site conditions, project specifications, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Also, the final cost of 20 kW commercial solar systems can vary based on the type of solar panels you use (imported and non-DCR solar panels have a cost variation of ~15-20%), type of solar inverter you choose (string inverters and optimizers have a cost variation of ~15-20%), type of solar system, whether or not you use a battery energy storage system (BESS increases the final cost by almost 30%-40%), mounting structure height, type of after-sales service, roof height, etc. Prices are subject to change." } },{ "@type": "Question", "name": "What is the Subsidy for a 20 kW Solar System?", "acceptedAnswer": { "@type": "Answer", "text": "The central government offers housing societies a subsidy for installing grid-connected solar systems. This subsidy is not offered for commercial rooftop systems. Housing societies can receive a subsidy of Rs. 18,000 per kW for systems up to 500 kW under the PM Surya Ghar Muft Bijli Yojana.

Here’s a tabulated snapshot of the solar subsidy offered for different-capacity solar systems:

Solar System Size PM Surya Ghar Solar Subsidy for Housing Societies 20 kW solar system Rs. 3.60 lakh 30 kW solar system Rs. 5.40 lakh 50 kW solar system Rs. 9 lakh 100 kW solar system Rs. 18 lakh 500 kW solar system Rs. 90 lakh *Please note: The maximum subsidy for housing societies is capped at Rs. 90 lakh for systems equal to or above 500 kW." } },{ "@type": "Question", "name": "What’s the 20 kW Solar System Price in India in 2026?", "acceptedAnswer": { "@type": "Answer", "text": "The cost of rooftop solar for housing societies without subsidy ranges between ~Rs. 60,000* per kW to ~Rs. 65,000* per kW. However, with the PM Surya Ghar subsidy, this cost reduces to ~Rs. 42,000* per kW to ~Rs. 47,000* per kW.

For commercial PV systems, the cost of solar installation ranges between ~Rs. 50,000* per kW to ~Rs. 55,000* per kW.

Based on the solar installation cost details listed above, here’s how much money you’ll have to invest in a 20 kW solar system in India:

20 kW solar system price in India with subsidy for housing societies: ~Rs. 8.40 lakh* to ~Rs. 9.40 lakh* 20 kW solar system price in India for commercial setups: ~Rs. 10 lakh* to ~Rs. 11 lakh* *Please note: The above-mentioned 20 kW solar system price for housing societies for on-grid solar systems is indicative as of 28th January 2026. The final 20 kW solar panel price in India depends on your DISCOM charges, city, solar system size, site conditions, project specifications, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Also, the final cost of 20 kW commercial solar systems can vary based on the type of solar panels you use (imported and non-DCR solar panels have a cost variation of ~15-20%), type of solar inverter you choose (string inverters and optimizers have a cost variation of ~15-20%), type of solar system, whether or not you use a battery energy storage system (BESS increases the final cost by almost 30%-40%), mounting structure height, type of after-sales service, roof height, etc. Prices are subject to change." } },{ "@type": "Question", "name": "What are the Types of 20 kW Solar Systems?", "acceptedAnswer": { "@type": "Answer", "text": "The three main types of solar systems in India are on-grid, off-grid, and hybrid.

An on-grid solar system is connected to the grid, not lead-acid or lithium batteries. An off-grid solar system is the opposite – it’s connected to a battery bank, not the grid. A hybrid solar system is connected to both the grid and a battery bank. Before we understand their specifications and working in detail, here’s a tabulated snapshot of the key differences between the three types:

Feature On-Grid Solar Systems Off-Grid Solar Systems Hybrid Solar Systems Are they connected to the grid? Yes No Yes Do they need a battery bank to store solar energy for later use? No Yes Yes Are they eligible for the PM Surya Ghar Muft Bijli Yojana subsidy scheme? For housing societies: Yes For commercial setups: No No For housing societies: Yes For commercial setups: No How do they work? Solar panels produce electricity during the day.

Any power not used in real time is sent to the grid. At night, the system draws power from the grid to keep the load running. The electricity generated by the solar panels during the day is used in two ways:

It keeps the load running in real time. Excess energy is used to charge lead-acid or lithium batteries through a solar panel charge controller.

Electricity stored in the battery bank keeps the load running at night.

Solar panels generate electricity during the day.

The power is first used to run connected loads. Excess energy is stored in batteries. Any remaining surplus is exported to the grid.

During power outages or at night, electricity is supplied from the battery bank. If both solar and battery power are insufficient, the system draws electricity from the grid.

When are they most recommended? Ideal for rooftop solar panel systems for homes, housing societies, and commercial buildings in areas with rare power outages and a very reliable grid. Ideal for residential and commercial rooftop systems in areas with unreliable or unavailable grid power. Ideal for housing societies and offices that experience frequent power cuts but still want to benefit from net metering and grid connectivity. Now, let’s understand each type in detail." } },{ "@type": "Question", "name": "What are the Benefits of Installing a 20 kW On-Grid Rooftop Solar System?", "acceptedAnswer": { "@type": "Answer", "text": "A 20 kW solar system in India can substantially lower power bills, offer energy independence to companies and housing societies, and also tackle air pollution. Let’s have a look at all the benefits in detail.

Benefits of on-grid rooftop solar for housing societies:

Sharp drop in common-area electricity bills: In housing societies, common services such as lifts, corridor lighting, water pumps, and CCTV systems run all day. A 20 kW PV system supplies most of this daytime demand directly from sunlight, cutting reliance on grid power. As electricity expenses fall, monthly maintenance charges become lighter for residents. Subsidy support reduces the cost of solar installation: Housing societies benefit directly from the PM Surya Ghar Muft Bijli Yojana, which offers a subsidy of Rs. 18,000 per kW for installations up to 500 kW. For a 20 kW system, this significantly reduces the upfront cost and shortens the payback period, making solar adoption financially practical even for societies with tight budgets. Decades of low-cost power for shared infrastructure: Once the system recovers its installation price, the electricity generated for common areas comes at almost zero cost. Since solar panels last 25 years or more, societies gain long-term protection against rising electricity tariffs. Easier budgeting and stronger financial planning: Predictable power costs help RWAs plan expenses with confidence. Savings from reduced electricity bills can be redirected toward building maintenance, safety upgrades, or resident amenities. Higher property value: A solar-powered housing society signals cost efficiency, long-term planning, and environmental responsibility. Buyers view these factors as indicators of a future-ready property, which can improve resale value and rental appeal over time. Benefits of rooftop solar for commercial setups:

Lower operating cost: For commercial buildings and factories, a 20 kW rooftop system offsets a meaningful portion of daytime electricity use. This reduces dependence on grid power and diesel generators, directly lowering operating expenses while cutting fuel consumption. Extra savings under time-of-day tariffs: In states where discoms apply time-of-day pricing, electricity consumed during peak evening hours costs more. By aligning energy-heavy operations between 9 AM and 5 PM, businesses can let solar power handle most of the load and avoid higher tariff slabs. Stable output during extreme heat with modern panels: High-efficiency N-type TOPCon solar panels perform reliably even during harsh Indian summers. With temperature coefficients around −0.29%/°C or lower, power loss remains minimal even as rooftop temperatures soar, ensuring consistent generation during high demand. Cooler rooftops and improved indoor comfort: Solar panels act as a protective layer over the roof, reducing direct heat absorption. Studies show noticeable drops in rooftop temperatures under solar arrays, helping HVAC systems in offices operate more efficiently, especially during peak summer months. Measurable reduction in carbon emissions: Switching to rooftop solar significantly reduces carbon emissions. For commercial installations, the environmental impact is comparable to planting fully grown trees year after year, which directly contributes to cleaner air and lower pollution levels. Let’s give you some numbers on how solar systems in housing societies and commercial setups make your city’s air cleaner:

Solar System Size Equivalent to How Many Full-Grown Trees? Carbon it offsets in 25 Years 20 kW 784 full-grown trees 5,17,440 kg 100 kW 3,920 full-grown trees 25,87,200 kg 200 kW 7,840 full-grown trees 51,74,400 kg 500 kW 19,600 full-grown trees 1,29,36,000 kg" } },{ "@type": "Question", "name": "How much area is needed for a 20 kW solar plant?", "acceptedAnswer": { "@type": "Answer", "text": "You will require 2,000 square feet of shadow-free area on the roof to install a 20 kW solar system comfortably." } },{ "@type": "Question", "name": "How many units per year can a 20 kW solar system produce?", "acceptedAnswer": { "@type": "Answer", "text": "A 20 kW solar system can generate ~28,000 to ~29,000 units of electricity in a year." } },{ "@type": "Question", "name": "Is a 20 kW solar system enough to power a home?", "acceptedAnswer": { "@type": "Answer", "text": "A 20 kW solar system is usually very large for homes. Homes in India generally do not consume 28,000 to 29,000 units of electricity per year. Even very big villas and bungalows with multiple ACs and high-load devices can easily run on a 10 kW solar system. So, a 20 kW solar system is usually used in small housing societies and commercial setups." } },{ "@type": "Question", "name": "How many solar panels are needed for a 20 kW solar system?", "acceptedAnswer": { "@type": "Answer", "text": "You can calculate the number of solar panels needed using this simple formula:

Number of solar panels = solar system size in watts / module’s capacity.

Suppose you’re using 580-watt TOPCon solar panels, then the number of solar panels needed to build a 20 kW solar panel would be ~35 (20,000 / 580 = 34.48 = 35 panels).

Similarly, if you choose 540-watt mono-PERC bifacial panels, you’ll need ~38 panels to build a 25 kW solar system (20,000 / 540 = 37.037 = ~38 panels)" } },{ "@type": "Question", "name": "What’s the subsidy for a 20 kW solar system in India?", "acceptedAnswer": { "@type": "Answer", "text": "If you’re installing a grid-connected 20 kW solar system for housing societies, you will receive a subsidy of Rs. 3.60 lakh." } }] }

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