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5KW Solar System for Home in India, Price, Subsidy 2024

43 min read | By admin

A 5kW solar power system is sufficient in supporting the electricity needs of a 2BHK, 3BHK and any other medium-sized houses with 2-3 ACs. It is a medium-capacity solar system for homes that has the capacity to generate up to 20kWh (units) of electricity. With 6 hours of good sunshine, 5kW solar panels can effortlessly power your heavy loads, such as Air conditioners, washing machine, water heater, oven, and refrigerator. If your consumption is more than 20kWh per day, then we would recommend going for energy audit once before considering going for a higher capacity solar system.

Investing in solar is a big decision, and it’s important that you are confident in your choice of a 5kW solar system. To that end, here are all the facts you need to know to make informed decisions.

Price of a 5kW Solar System in India

Installing a home solar system is a smart and long-term investment. The Indian government is also on a mission to make the country a green economy, thus making it easier for homeowners to leverage renewable energy.

With the solar subsidies and convenient financing options (solar lease, solar loan, and solar power purchase agreement (PPA)), the total price of a 5kW solar system in India with subsidy can drop significantly. On an average, a 5kW solar system can cost anywhere between Rs 72,000 to Rs 1.2 Lakhs per kw, so total cost of a 5kW will be Rs 3.5 Lakh to Rs 6 Lakhs. This cost is without taking into account any kind of subsidy that is available for the residential solar system. Please note that the exact cost will be disclosed by the developer after visiting your site and sharing the proposal with you, based on any customizations that your house needs. 

It is also important to note that:

  • The exact price of a 5kW solar panel system in India will also depend on factors like the location, type and brand of solar components used and efficiency rating of solar panels. 
  • Note that the above solar 5kW prices are ballpark figures, exclusive of subsidies. 


5kW Solar Price

5kW On-grid solar system

Rs. 3,55,500 Onwards*
5kW Off-grid solar system

Rs. 3,50,000

5kW Hybrid solar system

Rs. 7,50,000

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    Approx monthly electricity bill (INR)*

    Read More About: 1kW Solar System Price and Details for Home in India

    5kW Solar System Specification

    Components Description
    Solar Power System 5kW
    Average Electricity Generation 20 Units Per Day
    5kW Solar System Price Rs. 3.5 Lakh to Rs. 7.5 Lakh
    Solar Panel Required 15
    Warranty 25 Years on your Solar Panels
    10 Years on Your Product
    5kW Solar System Subsidy 20%  Govt. Subsidy on benchmark cost.
    Area Required for 5kW Solar System 30 Square Meters
    AMC Maintenance Yes, with additional cost of AMC Package Purchase.

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      Approx monthly electricity bill (INR)*

      5-Kilowatt Solar Panel Installation Cost in India

      The installation cost depends on the number of solar panels your 5-kilowatt solar panel system uses and the complexity of your module mounting structure (MMS). Selecting sturdy and durable mounting structures enables solar panels to withstand harsh weather conditions and provide years of optimal solar energy output. With an experienced solar company, you can rest assured that you get an end-to-end solution. The cost of installing your solar panels as well as other solar components involved will be included in the total price of your 5kw solar system.

      Solar Subsidy on a 5kW Solar System in India

      The government is making solar purchases less burdensome and more rewarding for homeowners with solar subsidies. The type and capacity of a solar panel system you choose will enable you to determine your eligibility for availing subsidy as well as the exact price of your 5kW solar system in India after subsidy.

      The Ministry of New & Renewable Energy (MNRE) provides a 20% subsidy on home solar plants of 4kW up to 10 kW capacity. The subsidy is only available on hybrid and 5kW on-grid solar systems. Off-grid systems are excluded from this government subsidy provision.

      Rooftop Solar System Capacity

      Applicable Subsidy (₹)

      1 kW

      Rs. 30,000/-
      2 kW

      Rs. 60,000/-

      3 kW and Above

      Rs. 78,000/-*

      Note: *The subsidy amount is fixed for rooftop solar systems of 3 kW and above capacity.

      5kW Solar Panel System Price in India with Subsidy

      Here are the CFA calculations to ascertain 5000-watt solar panel prices in India. However, a trusted solar company should be in the best position to determine the accurate cost of a 5kw solar power plant for your home or business.


      5kW Solar Plant Price Subsidy Applicable Prices After Subsidy

      5kW On-grid solar system

      Rs. 3,55,500 Onwards* Rs. 78,000 Rs. 2,77,500 Onwards*
      5kW Off-grid solar system Rs. 3,50,000 Not applicable

      Rs. 3,50,000

      5kw Hybrid solar system Rs. 7,50,000 Rs. 78,000

      Rs. 6,72,000

      Note: Note that the subsidy amount calculation doesn’t include the cost of solar batteries and is fixed for each kW across different system capacity ranges.

      Types of a 5kW Solar System for Home 

      Determining which type of 5-kilowatt solar panel system is the right option for you is the first step to a solar-powered home. Although a 5kW on-grid solar system is often the preferred choice among homeowners than an off-grid one. Each of the 5kW solar systems be it on-grid or off-grid, looks and functions differently and requires unique components to go with the intended application. 

      Here’s a summary of the main differences between the three types of home solar systems:

      On-grid systems are connected to the local government grid and are billed as per the net metering regulations. The two key components constituting this type of system are solar panels and solar inverters apart from other components of the structure. 

      Off-grid systems are designed to help homes in remote locations become energy independent. This type of system involves solar panels, a solar inverter and a battery bank or battery storage. Oftentimes, there is also a generator.

      Hybrid systems are a combination of on-grid and off-grid units. The framework is tied to the local grid and comprises solar panels, a solar inverter, and a battery bank.

      In all three types of home solar system setups, solar panels and solar inverters are indispensable components. Composed of multiple solar cells, a solar panel is responsible for capturing sunshine and generating solar electricity initially in the direct current (DC) form. This electricity goes through the solar inverter, where it is converted into usable alternating current (AC) electricity to be used by your home appliances and electronics.

      Let’s take a closer look for a detailed comparison among all three types of 5kW solar panel systems.

      On-Grid 5kW Solar System

      An on-grid framework is by far the best deal for budget-conscious homeowners looking for an affordable 5kW solar system in India. Solar batteries are the second most costly component in any home solar system after the indispensable solar panels. With an on-grid setup, you don’t need to create a battery bank for maintaining a solar energy reserve as your house is connected to the government grid. As a result, fewer components mean a lower price of your 5kW solar plant for your home.

      on-grid solar systemUnder the net metering system, grid-connected 5kW home solar systems enjoy the flexibility to draw electricity from the grid. Likewise, on days when you get excess solar energy production, the unused solar electricity can be transferred back to the grid in exchange for solar credits. However, solar systems are designed to shut down whenever the grid is down to prevent the flow of any solar power into the grid lines, which will become a safety hazard for crew working on them. Hence, you will continue to experience blackouts.

      Off-Grid 5kW Solar System

      An off-grid setup is your pathway for creating energy independence, especially in remote locations where grid-provided power isn’t accessible or feasible for you. You can rely on this stand-alone 5kW solar system to work efficiently with a couple of solar panels and a battery bank and satisfy your home electricity requirement. Since you are not connected to the conventional power source, you’ll be consuming 100% renewable energy resource.

      off-grid solar systemCompared with an on-grid setup, the price of a 5kW off-grid solar system in India is higher due to the inclusion of a battery bank to ensure ample power reserve for later use. However, it comes with its own added advantages. Running your home solely on solar power allows you to do away with the discomfort of unannounced and prolonged outages.

      Hybrid 5kW Solar System

      A hybrid solar system allows you to have a self-sustaining home wherein you are in control of what energy source you use and have the opportunity to cut down your monthly utility cost.

      If your home solar system company recommends a hybrid 5-kilowatt solar panel system, it means that the system has enough solar photovoltaic (PV) panels to keep up with your daily energy requirement, charge the solar batteries, and still have surplus energy for several days. This excess production can be transferred to the grid in exchange for solar credits, which is an additional income source. 

      hybrid solar systemTherefore, a hybrid setup offers the best of both on-grid and off-grid frameworks, i.e., low-cost solar electricity, freedom from power outages, reduced dependability on the government grid, and the reliability of solar batteries.

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        Facts & Benefits About a 5kW Solar Panel System 

        Energy output: system sizing is an important part of buying home solar systems and requires you to ask how many units are generated by 5kw solar panels. The average solar power generation capacity of a 5kW solar system is 20 units per day. This gives you 600 units (20 units x 30 days) of solar electricity every month, accumulating to 7,200 units (600 units x 12 months) over a year.

        Area required: Wonder how much roof area is required for 5kW solar panels? The standard dimensions of residential solar panels are approximately 2m x 1m. This will take up at least 30 square meters of your roof space or less if you go with high-efficiency panels that reduce the number of total solar panels required.

        No. of Solar Panels reqd.: For a 5kW solar system, you would need at least 15 panels if the efficiency is around 330Wp for a single solar panel. If you consider higher capacity solar panels, you will need less no. of solar panels. To calculate no. of solar panels for a particular capacity, jut divide the total capacity by efficiency of 1 single solar panel. 

        Warranty: With most solar system vendors, you get 25 years of performance warranty on your solar panels. The other components will have a product warranty of anywhere between 5-10 years, based on the brand you go with.

        Subsidy: Solar subsidies can reduce the price of your 5kW solar system in India. However, homeowners getting on-grid and hybrid solar systems (excluding the cost of solar batteries) are eligible for solar subsidies. There is no subsidy for off-grid solar systems.

        Upgrading to a solar-powered home can benefit you  in several ways, both financial and otherwise. Some of the top benefits of getting solar for home are:

        • Save On Utility Bills and Enjoy Long-term Financial Gains

        A 5kw solar system reduces your monthly utility bills, which accumulate to significant savings over a year and through to the 25+ years of lifespan of your solar panel system. Your solar panels will generate an enormous amount of solar electricity to power your home throughout the year, reducing your grid electricity withdrawals. In fact, you have the opportunity to make an additional income under net metering by transferring surplus solar energy to the grid in exchange for solar credits.

        As a result, the upfront solar investment is actually paid off by your own 5kw solar system in a span of 6 to 8 years (which is the estimated payback period of a home solar system), after which all solar electricity units produced by your solar panels are practically free for you. Moreover, you can’t deny the long-term returns on your solar investment.

        • Reliable Energy Source

        Equipping your home with 5-kilowatt solar panel system can reduce or even eliminate your dependence on traditional power sources of electricity which can be unreliable. Your home now generates and uses its own electricity. Unlike non-renewable energy sources that are scarce and likely to deplete in the near future, sunshine is available for free and in abundance. Hence, as long as the sun continues to rise and shine, you will never run out of electricity in your home. 

        • Solar is Environment friendly

        Solar energy is a green and clean energy source as compared to conventional energy sources, such as coal, oil, and natural gas. With increasing power demand, we are exploiting these sources exceedingly, causing serious harm to the environment we live in. The process of extracting energy from non-renewable sources emits emissions into the air, causes water pollution, and impacts our health.

        Hence, the sooner we switch to environmentally-friendly energy sources, the better it will be for the future of all living beings on this planet. And this awareness among homeowners and commercial establishments is encouraging them to switch to solar.

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          FAQs About 5kW Solar System

          How much does a 5kW solar system cost in India?

          Several factors affect the total price of a 5kw solar system – the type, efficiency rating, and the number of solar panels used, the quality of other solar components, and the mounting structure. The average cost of a 5kW solar system can fall anywhere between Rs 72,000 to Rs 1.2 Lakhs per kW. Therefore, the upfront cost of this system capacity ranges between Rs 3.5 Lakh to Rs 6 Lakhs.  

          How many ACs can run on a 5kW solar energy system?

          A 5kW solar system produces approximately 20kW a day. If you own a 2-ton split AC consuming 1.7 kilowatts an hour, its average runtime will be 11 hours. However, considering that you’ll need solar power to run other appliances, you can consider having 1 or 2 smaller capacity ACs (1 ton) in the house.

          How much space is required to install a 5kW solar power system?

          When it comes to residential installations, a minimum of 348.48 square feet of area is required for 5kW solar panels. However, considering that rooftop solar is a bundle of several solar panels and a racking system, the installation can occupy a total space of up to 500 square feet to ensure ease of cleaning and maintenance. Also, ensure that your roof will be able to handle the load of a 5kW solar system for the entirety of its lifespan of 25-30 years.

          How much unit does a 5kW solar system produce?

          On a good sunny day, your 5kW solar panel system can give you a daily energy output of 20-25kW and 700kW a month, which can power small to medium-sized residential properties. The electricity generated annually by your system will amount to 4,500 kWh. A typical 5-kilowatt solar panel system is composed of 17 x 300W or 16 x 320W solar panels along with a solar inverter and a monitoring system.

          How many appliances can a 5kW solar panel system run?

          The energy produced by a 5kw solar system can offset a big share of your household’s monthly power consumption. It can power most of the common household appliances and electronics like a fridge, washing machines, lights, fans, laptops, a TV, and AC for several hours.

          How to check roof suitability for a 5kW solar panel installation?

          You need at least 30 square meters of the shade-free area to allow your solar panels to work at peak efficiency levels. Setting up your solar panels at the correct angle is also important for maximum sunshine and solar energy.

          Is a 5kW solar system the right size for your home?

          A home solar system delivers 80%-90% of its nameplate capacity under perfect conditions. However, it proves to be a great choice for 2BHK, 3BHK and other medium-size houses and can run heavy loads, such as refrigerators, air conditioners, and more.

          What is my current daily electricity consumption?

          Ascertaining your current electricity requirements will help you decide if a 5-kilowatt solar panel system will be the right choice. This is easily done by reviewing your monthly electricity bills for the past one year. You can also ask an expert solar installer for guidance.

          Are 5kW solar systems expandable?

          Most homeowners go with a smaller capacity system than needed in their homes. The price of a 5kW solar system in India with subsidy will be lesser than any higher capacity system. As you begin to redeem the economical and environmental benefits of solar, you are likely to be tempted to add more solar panels to generate more solar energy on your own.

          Do power outages affect solar-powered homes? 

          With an off-grid or hybrid system, you can do away with the unpredictable blackouts as you will have solar batteries to provide electricity. However, a 5kW on-grid solar system is designed to shut down whenever the grid goes down for the safety of technicians working on the grid.

          How do I choose between on-grid vs off-grid frameworks?

          From the price point, A 5kW on-grid solar system is less expensive than other types of solar systems. It has the benefits of net metering, giving solar credits for every surplus solar power unit transferred to the grid. However, an off-grid framework is the best option for homes in remote locations that don’t have access to the grid. It also allows you to reduce utility costs by eliminating grid dependency.

          What kind of weather is perfect for solar energy production?

          Solar photovoltaic (PV) technology needs sunlight to generate electricity. Hence, it gives maximum solar energy output on sunny days. A cloudy sky and rain prevent sunshine from reaching the earth, which reduces solar output. In the winter season, the sun hours are reduced, which impacts the total output. However, on all those days, the system still produces some electricity with the available sunshine as slightly cool days enable solar panels to work at their peak efficiency levels.

          Will batteries support my power needs during the night and blackouts?

          Yes. Your 5kW solar system should have enough batteries to create ample power reserves to sustain you during hours of zero solar energy generation. Your solar installer takes into consideration your daily electricity requirements to ensure power availability at all times. 

          Is maintaining a 5kW solar system expensive?

          Home solar system maintenance requires minimal efforts and monetary investment. Thanks to warranties, you are protected against major system failures and unexpected damages. Also, solar companies provide solar AMC maintenance packages to cover your routine solar inspection, servicing and repair needs.

          If I use solar electricity, will I still get monthly bills from the utility company?

          As long as your 5kW solar system is connected to the local grid, you will receive monthly bills as per the net metering regulations. However, your utility expenses will be significantly reduced and even show a zero charge if you don’t draw any electricity from the grid. Your electricity bill will also record your solar exports and reflect your earned solar credit against every unit transferred.

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