500 kW Solar System: Price in India with Subsidy, Installation Cost, Specifications & More (2025 Guide)
India’s solar energy sector is growing faster than ever. As electricity costs rise, industries, schools, hospitals, and large institutions are turning to solar power for long-term savings and sustainability.
If you are planning to install a 500 kW solar system, this guide will help you understand its price, subsidy, installation cost, benefits, and specifications in simple terms.
🌞 What is a 500 kW Solar System?
A 500 kilowatt (kW) solar system is a large-scale solar power plant capable of generating around 2,000 to 2,200 units (kWh) of electricity per day — depending on sunlight conditions.
It is ideal for:
- Large factories and warehouses
- Commercial buildings
- Educational institutions
- Hospitals and hotels
- Industrial plants and offices
A 500 kW system can easily reduce your electricity bill by 70–90% and help your organization achieve green energy goals.
💰 500 kW Solar System Price in India (2025)
The price of a 500 kW solar system depends on the type of system (on-grid, off-grid, or hybrid), quality of solar panels, and inverter brand.
Here’s an approximate price breakdown:
| System Type | Price per Watt (₹) | Total Cost (Approx.) |
|---|---|---|
| On-Grid System | ₹40 – ₹45 | ₹2.0 – ₹2.25 Crore |
| Off-Grid System | ₹55 – ₹60 | ₹2.75 – ₹3.0 Crore |
| Hybrid System | ₹60 – ₹65 | ₹3.0 – ₹3.25 Crore |
✅ Note: On-grid systems are most popular for commercial use because they are cost-effective and can export extra power to the grid.
🧾 Government Subsidy on 500 kW Solar System (2025)
Government subsidies are usually available for residential and small-scale systems (up to 10 kW).
However, industrial and commercial solar systems above 500 kW may benefit from accelerated depreciation, net metering, and tax incentives, such as:
- Accelerated Depreciation (AD): 40% tax benefit on solar investment for businesses.
- Net Metering Policy: Sell excess power back to the grid and reduce your bill.
- Custom Subsidy Schemes: Some states offer financial assistance or low-interest loans for large solar projects.
You can check state-wise subsidy details with your local DISCOM or through your solar installation partner.
⚙️ Technical Specifications of a 500 kW Solar System
| Component | Specification |
|---|---|
| Capacity | 500 kW (AC Output) |
| Solar Panels | Mono PERC / Bifacial (550–600W each) |
| Number of Panels | Around 830–900 panels |
| Inverters | String or Central Inverter (High Efficiency) |
| Space Required | 40,000 – 45,000 sq. ft. |
| Energy Generation | 2,000 – 2,200 units/day |
| Annual Generation | Around 7.5 – 8 lakh units/year |
| System Type | On-grid / Off-grid / Hybrid |
| Life Span | 25+ years |
| Warranty | 25 years on panels, 5–10 years on inverter |
🏗️ Installation Cost & Process
Installation costs are usually included in the total system price but can vary based on site conditions.
Installation Process:
- Site Survey – Roof or land assessment for sunlight and space.
- System Design – Engineering layout and electrical design.
- Procurement – Selection of panels, inverters, and other components.
- Installation & Wiring – Mounting structure setup and connection.
- Testing & Commissioning – Final checks and grid synchronization.
🌍 Benefits of Installing a 500 kW Solar System
- ✅ Huge Cost Savings: Cut down electricity bills by 70–90%.
- 🌱 Environment Friendly: Reduces CO₂ emissions by around 800 tons per year.
- ⚡ Energy Independence: Generate your own clean energy.
- 🏭 Low Maintenance: Simple cleaning and annual inspection are enough.
- 💼 Corporate Reputation: Helps meet ESG and sustainability goals.
🧮 Payback Period & ROI
A 500 kW solar plant generally pays back its investment in 3–4 years, depending on local tariffs and usage.
After that, you enjoy free electricity for nearly 20 years, making it a high-return, low-risk investment.
🏢 Why Choose Bhandari Solar?
If you are planning to install a large-scale solar project, Bhandari Solar is one of India’s most trusted names.
Why Bhandari Solar?
- 10+ years of experience in solar EPC projects
- Expertise in commercial & industrial solar plants
- Government-approved vendor
- High-efficiency Mono PERC & bifacial panels
- End-to-end services – Design to Maintenance
- On-time project delivery and performance warranty
📌 FAQs on 500 kW Solar System
Q1. How much area is required for a 500 kW solar system?
Around 40,000–45,000 sq. ft., depending on panel type and layout.
Q2. How many units does a 500 kW solar system generate?
It produces about 2,000–2,200 units per day on average.
Q3. Can I get subsidy for a 500 kW solar plant?
Subsidy is not available for commercial projects, but tax benefits and net metering are applicable.
Q4. What is the total cost of a 500 kW solar system in India?
Approximately ₹2 to ₹3.25 crore, depending on the type and quality.
Q5. How long does it take to install?
A 500 kW solar plant typically takes 4–6 weeks for complete installation and commissioning.