In India’s goal of becoming a fully developed nation by 2047, the adoption of solar power systems plays a significant role in sustainable development. However, harnessing solar power comes with its own challenges. This article talks about the advantages and disadvantages of solar panels, especially in the context of the Indian subcontinent.
Understanding The Indian Context For Solar Energy

The rate of adoption of a technology in a region depends on several contextual factors, including the demographic and psychographic profiles, the per capita income, prevailing weather conditions, domestic manufacturing capabilities, and so on.
Let’s talk about these factors one by one, as they will help us understand the advantages and disadvantages of relying on solar energy in India.
Demography and Psychography
According to the United Nations Population Fund, India’s population is just over the 1.41 billion mark, of which around 27.8% reside in urban areas (with relatively higher purchasing power but issues with available land due to preferred accommodation).
Psychographically, it is the younger Indians who are more conscious of the environment, or the older ones who might consider investing in solar panels for long-term financial benefits.
Also Read: Extending the Lifespan of Your Solar Panels in India’s Diverse Climates: A Comprehensive Guide
Per Capita Income
According to the International Monetary Fund, the Indian GDP per capita is around $2.88 thousand, a little less than Rs. 2,50,000 annually. This limits affordability for many households, not just in rural areas but in certain urban areas as well, making the upfront costs for installing solar panels a barrier.
Prevalent Weather Conditions
India receives enough sunlight, with most regions getting around 4 to 7 kWh of energy per square meter daily. As a result, there’s a huge potential for utilizing solar panels as an alternative energy source. However, the monsoon season could lower the amount of energy produced.
Domestic Manufacturing and Foreign Sourcing
In a statement published by The Hindu, the Director of Research at Crisil Market Intelligence and Analytics says that the price of Indian solar cells (the ones manufactured in the country) is about 1.5 to twice that of those sourced from China (including factors such as Basic Customs Duty).
Even so, the Ministry of New and Renewable Energy (MNRE) has directed solar equipment manufacturing companies to use only India-made photovoltaic cells, with a deadline of June 2026.
Currently, the country has an installed solar module manufacturing capacity of over 60 GW and a cell manufacturing capacity of over 5.5 GW; the government expects to expand this dramatically in the next two years.
Rising Level Of Pollution And Other Environmental Concerns
Coal-based power plants emit a significant amount of pollutants like PM 2.5 particles, sulphur dioxide, and carbon dioxide, which either result in direct air contamination or other phenomena like the greenhouse effect (which leads to a rise in temperature).
Government Policies and Incentives
Depending on the state, several incentives, capital subsidies, and tax exemptions are available for installing solar panels. For instance, the myscheme.gov.in portal mentions the PM Surya Ghar: Muft Bijli Yojna, which provides a subsidy of up to 40% of the solar panels’ cost. Then there’s the Rooftop Solar Programme Phase II, state government subsidy, etc.
Also Read: Rooftop Solar Pros and Cons For Indian Homes (2024)
Advantages of Solar Panels

Abundance Of Sunlight
As mentioned earlier, the tropical climatic conditions that prevail over India (with high solar irradiance) make it ideal for solar energy production. According to the Energy Efficiency & Renewable Energy Management Center, “most parts of India have 300 – 330 sunny days in a year,” which hints towards a potential of 50000 trillion kWh per year (if utilized efficiently).
This doesn’t just apply to rooftop solar panels, but to the vast patches of land that remain barren around the year. If harvested properly, solar energy can replace coal as the country’s primary energy source, a non-renewable natural resource.
Low Cost Of Producing Electricity
While the cost of one kWh of electricity varies for the consumer category (domestic or commercial) and consumption, it lies in the range of Rs. 5.50 to 10 per unit.
In comparison, the levelized cost of one kWh of solar electricity is around Rs. 3 to 8 per kWh. Keep in mind that this cost can vary based on several factors, including the type of solar panel, grid type, and whether or not you’re using battery storage.
Long-Term Financial Benefits
Depending on the cost of the solar panels (including their capacity), the location of installation, and the average energy consumption of a household, solar panels start paying for themselves in around five to seven years.
The payback duration could also differ, but despite that, solar panels promise to provide long-term financial benefits by reducing the electricity bills or bringing them to zero altogether.
Provide An Alternative Power Source In Remote Areas
While the urban population is slowly but steadily adopting the technology, solar panels are an excellent alternative power source for rural areas, especially for off-grid rooftop setups.
Solar panels can power devices like solar cookers, solar lanterns, street lights, water pumps, mobile chargers, etc., all of which can help develop schools, hospitals, and other public-interest infrastructure requiring electricity.
Also Read: Cheap Printed Solar Panels Could Make It To Your Rooftop Very Soon
Government Support
Several policies and schemes are being implemented to facilitate the adoption of solar panels in India. While explaining them would be beyond this article’s scope, you can contact your solar equipment and installation provider to gather more information about the same.
The primary advantage in today’s landscape is the government’s financial support; every house that avails of the central or state policies or schemes counts.
Environmental Benefits And Pollution Reduction
By increasing our reliance on solar panels, we can contribute to reducing carbon emissions, greenhouse gas emissions, and other pollutants that exist in the atmosphere during coal and natural gas combustion.
Disadvantages of Solar Panels

Technical Aspects Related To Solar Panels
Perhaps the biggest disadvantage of solar panels is the technical nature of the equipment, installation, and maintenance. First, a buyer has to spend some time determining the overall solar capacity required for the household.
The second step is to reach out to several solar equipment providers and compare their quotations with each other. The lack of knowledge about the installation and maintenance also works against solar panel adoption. Combined with the next disadvantage, this leads to confusion and abandonment of the technology.
High Unfront Cost
Solar panels aren’t cheap. Despite falling prices, solar systems (with the panels, the supporting infrastructure, and installation costs) can cost lakhs, depending on the panel’s capacity.
On average, a solar 1kW power system can cost around Rs. 50,000 to Rs. 80,000. However, a household with moderate energy consumption requires at least a 3kW to 5kW system, which could cost around Rs. 2 to 4 lakhs. Those with higher efficiency and life expectancy can cost even more.
In addition, you’ll have to install inverters that convert the solar energy into usable electricity, which adds another 10 to 20% to the overall cost. If you wish to store the solar power generated by the panels, you can also purchase a battery, making the bill even heavier.
Difficult Installation And Maintenance Cost
Since installing solar power systems requires skilled technicians, getting the panels affixed and the entire system online is an expensive afair. Once installed, you’d also need trained maintenance personnel every once or twice in a year.
Also Read: Uttar Pradesh Solar Subsidy in 2025: A Complete Guide
Import Dependence & Supply Chain Risks
Even though most solar panels available in India are sourced from global markets, localizing the manufacturing process could lead to increased prices (due to the difference in scale and availability of components).
Space Constraints
Those living in apartments or small houses in rural areas face space-related constraints when installing solar panels. For instance, a typical 1 kW rooftop setup takes about 100 – 130 square feet of shadow-free space, around 10 – 12 square meters, on an RCC roof.
Dependence On Sunlight And Weather
Even though the Indian subcontinent receives plenty of sunlight, there are certain regions of the country where solar panels might not be completely effective. These include the northeastern states or the windward side of the Western Ghats, which often receive heavy monsoons or unexpected rainfalls throughout the year.
FAQs
Do the disadvantages of solar panels outweigh the advantages?
It depends on a case-by-case basis. If someone is installing a solar panel after considering all the factors like panel type, size, energy requirements, quality installation, and the prevalent weather conditions, the benefits of solar panels often outweigh their disadvantages.
Should I invest in a solar power system?
Solar panels help reduce electricity bills by a significant margin, but they aren’t as affordable. Only after consulting with authorized technicians, or someone who has already invested in a solar power system and can explain everything in detail, should you make up your mind about investing in solar panels.
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