With renewable energy adoption accelerating across industries, commercial solar panel prices in India are seeing noticeable shifts in early 2026. Policy support, lower equipment costs, and improved economies of scale are making large-capacity installations more attractive for businesses, factories, warehouses, and institutions.
If you’re planning a commercial solar project, here’s what you need to know.
1. Typical Commercial Solar Installation Costs in 2026
As of February 2026, commercial and industrial (C&I) solar systems are significantly more cost-effective per watt compared to residential systems.
Approximate Market Prices (Before Subsidy)
| System Size | Approx Price (₹) |
| 25 kW | ₹9,00,000 – ₹11,00,000 |
| 50 kW | ₹16,00,000 – ₹20,00,000 |
| 100 kW | ₹32,00,000 – ₹45,00,000 |
| 250 kW | ₹75,00,000 – ₹1.1 Cr |
| 500 kW+ | ₹1.5 Cr+ (project-specific) |
✔ Per-watt cost: Typically ranges from ₹32–₹45 per watt, depending on:
- System capacity
- Roof type (RCC, metal shed, ground-mounted)
- Inverter configuration
- Location and logistics
- Engineering complexity
These prices generally include modules, inverters, mounting structures, cabling, and installation, but exclude major structural modifications, advanced monitoring systems, and battery storage.
2. Government Policies & Incentives for Commercial Solar
Unlike small residential systems, direct central subsidies for commercial installations are limited. However, businesses benefit through other financial mechanisms:
Key Advantages:
- Accelerated Depreciation (AD): Allows businesses to claim higher depreciation in the first year, reducing taxable income.
- Net Metering / Gross Metering: Enables adjustment or sale of surplus power to the grid (subject to state policies).
- Open Access Models: For large power consumers sourcing solar power off-site.
- State-Level Incentives: Some states offer additional benefits for industrial consumers.
These mechanisms significantly improve project IRR and shorten payback periods, even without upfront subsidies.
3. Why Commercial Solar Prices Are Softening in 2026
Several market factors are contributing to more competitive commercial solar pricing this year:
📉 Falling Module & Equipment Costs
Global oversupply of solar modules and balance-of-system components has led to a 5–8% softening in prices in early 2026. Bulk procurement for commercial projects further enhances cost efficiency.
⚖️ Reduced GST on Solar Equipment
The GST reduction on solar PV modules and related equipment (from 12% to 5% in 2025) continues to lower overall project costs for businesses.
🌍 Global Supply & Raw Material Trends
Pricing remains influenced by:
- Manufacturing output from global supply hubs
- Shipping and freight costs
- Fluctuations in raw materials like silver and polysilicon
While minor volatility exists, the overall commercial solar market trend in 2026 shows stable to moderately declining prices.
4. Cost Comparison: Rooftop vs Ground-Mounted Commercial Systems
Rooftop Commercial Solar
- Ideal for factories, malls, hospitals, and warehouses
- Slightly higher installation complexity
- Limited by available roof space
Ground-Mounted Solar (Large Scale)
- Lower per-watt cost at higher capacities
- Easier maintenance and expansion
- Requires land availability
In most cases, larger installations (100 kW and above) benefit from stronger economies of scale and better long-term returns.
5. ROI & Payback for Businesses in 2026
Commercial solar projects in India typically offer:
- Payback period: 3–5 years (depending on tariff and usage pattern)
- System lifespan: 25+ years
- Electricity cost savings: 40–70% compared to grid tariffs in many states
- Strong IRR: Especially for high daytime consumption industries
With rising grid tariffs and demand charges, self-consumption of solar power significantly improves financial performance.
6. What This Means for Businesses Planning Solar
For Manufacturing & Industrial Units
- High daytime energy usage aligns perfectly with solar generation.
- Large systems (100 kW – 1 MW+) provide maximum cost efficiency.
- Ideal for reducing operating expenses and improving ESG compliance.
For Commercial Buildings & Institutions
- Solar reduces common area electricity costs.
- Enhances sustainability credentials.
- Protects against long-term tariff escalation.
Strategic Outlook for 2026
- Commercial solar remains one of the most financially viable infrastructure investments.
- Stable module prices and tax benefits improve project feasibility.
- Businesses that invest early lock in lower energy costs for decades.
Final Takeaway
In February 2026, commercial solar panel prices in India are competitive and relatively stable, with modest softening driven by global supply conditions and supportive tax policies. While direct subsidies are limited, financial mechanisms like accelerated depreciation and net metering make large-scale solar installations highly attractive.
For businesses with significant electricity consumption, commercial solar continues to offer strong long-term savings, predictable energy costs, and improved sustainability performance.
