All About 5kW Solar System: Price, Subsidy, Benefits & More

5kW Solar System Price in india

Solar is the surefire way to save big bucks on your monthly power bills. And a 5 kilowatt solar system is a great-sized solution to efficiently run Indian homes and offices of medium load. Aside from slashing power costs, 5kW solar panels crowning your rooftop are a great value addition to your property. By generating your own power, you also free yourself from grid dependence.

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Approx monthly electricity bill (INR)*

5 Kilowatt Solar Panel System Price List & Specifications

Talking about the 5 kilowatt solar panel price in India, many factors influence the cost and your choice of solar panels. From monofacial vs bifacial panels to monocrystalline vs polycrystalline panels, understanding the options available is important for making the right choice. Also, check your solar panel’s efficiency rating which also determines the energy output and the price of your 5kW solar system in India.


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. 4,50,000

Key specifications of a 5kW solar panel system:

Key components Solar panels (at least 75% performance efficiency), solar mounting structure, solar inverter, solar batteries (optional), the balance of system (cables, fuses, MCBs, and Distribution boxes)

*All components should be in compliance with MNRE guidelines and ALMM standards to be eligible under the subsidy scheme.

Energy output – 20 kWh of electricity per day

– 600 kWh of electricity per month 

– 7200 kWh of electricity per year

Appliances powered Common home appliances such as fans, a 2-ton AC, 1 TV, 8 LEDs, 1 fridge, 1 washing machine, 1 oven, and laptops.
Area required for 5kW solar panel system A 500 sq ft area free of shade

5kW Solar Panel System Subsidy in India

For rooftop solar plants installed for residential use all over India, the following Central Financial Assistance (CFA)/ Central Government Subsidy are available. These figures will help you determine an estimated 5kW solar panel price in India with subsidy.

Rooftop Solar System Capacity

Applicable Subsidy (₹)

Up to 3 kW

Above 3 kW and up to 10 kW


Above 10 kW


Note: *₹18,000/kW for the first 3 kW and ₹9,000/kW for the rest of the capacity up to 10 kW.

**The subsidy amount is fixed for rooftop solar systems above 10 kW 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. 18,000 X 3 + Rs. 9,000 X 2

= 72,000

Rs. 2,83,500 Onwards*
5kW Off-grid solar system Rs. 3,50,000 Not applicable

No change

5kw Hybrid solar system Rs. 4,50,000 Rs. 18,000 X 3 + Rs. 9,000 X 2

= 72,000

Rs. 3,78,000

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.

Schedule a Free Site Visit Today!

Approx monthly electricity bill (INR)*

5kW Solar Panel System Installation Cost in India

Roof mounting your solar PV module requires a lot of planning and consideration. You require complete roof information, like orientation, average sun hours, size, and shading, to ensure safe and efficient installation. Also, your choice of mounting system affects your 5kW solar system prices. Therefore, let an expert solar installer do the job for you. Reach out to several vendors to obtain personalized quotes to understand the installation cost.

Also Read: 10kW Solar System Price in India with Subsidy

You can also hire an experienced solar company to handle your entire solar transition journey. Leading solar companies, like Amplus Solar, design customized solar power plants using quality, warranty-backed solar components. They also acquire relevant permits and perform flawless installation in compliance with high working and safety standards.

The Working of a 5kW Solar Panel System and Its Benefits

The working of solar PV technology is simple. As sunlight hits your solar panels (made up of several solar cells linked together), the photons (light particles) set the electrons free from atoms. This generates an electric flow (energy in its DC form) which then travels through the inverter to get converted into usable AC electricity.

In perfect weather conditions, your solar panels reach their maximum energy-generation threshold during peak sun hours. Assuming that your 5kW solar panels give you 5kW of power at all times is a misconception.

Also Read: 1kW Solar System Price in India with Subsidy

Solar has numerous advantages that even exceed 5kW solar system price in India, making solar a promising and popular alternative to conventional energy sources:

Lower Electricity Bill

Savings through solar is appreciable and start from day one. Unlike conventional energy sources, the sun is basically a free and abundant power source and so is the process of generating electricity from sunlight. Generating your own free, clean solar electricity means less usage from the grid, which translates to savings. These savings eventually help you earn back your upfront 5kW solar power plant cost in 6-8 years.

Earn Solar Credits

Under the net metering mechanism, grid-interactive solar panels are designed to send unused solar electricity units to the local grid. The utility companies incentivise these energy contributions obtained from residential solar panels by giving solar credits that can be used to buy grid electricity or redeemed in cash by the end of the year.

Environmental Gains

In addition to incredible savings, payback timeline (6-8 years), and return on investment, solar is also good for the environment. As a powerful alternative energy source, the adoption of solar by residential and commercial consumers can eventually reduce our dependence on fast-depleting conventional resources. Also, solar energy is emission-free and in exhaustible and will pave the way towards a cleaner, greener future.

Different Types of 5kW Home Solar Panel Systems

There are three types of solar designs and each includes a unique combination of equipment that suit the application. Each type of system has its own features and functionalities and varying 5 kilowatt solar system prices in India.

  • On-grid 5kW solar system (regulated under the net metering mechanism)
  • Off-grid 5kW solar system (suitable for remote locations)
  • Hybrid 5kW solar system (connects to the grid and also includes solar batteries)

5kW On-grid Solar Panel System Specifications

A grid-tied framework is the most popular among residential customers who want to go solar in a cost-effective manner. If you have a similar goal, the prices of 5kW on-grid solar systems in India will not disappoint you, especially if you consider its long-term financial gains, savings, and subsidy aid available. 

Also Read: Complete Details About 2kW Solar System

This type of solar system has fewer components in comparison with off-grid and hybrid setups that need costly solar batteries. To facilitate grid interaction, your 5 kilowatt solar panel system is integrated with a net meter and regulated under the net metering mechanism that incentivises solar power.

During peak sun hours, your solar panels are likely to generate more electricity than your home needs. Instead of getting wasted, this unused power is transferred to the local grid for solar credits, which is similar to money in a virtual wallet. This additional income combined with monthly savings on electricity costs (thanks to 20 kWh of free solar electricity supplied to you every day) will overweigh the price of your 5kW solar panels in India.

5kW Off-grid Solar Panel System Specifications

An off-grid framework is an ideal option if your region doesn’t have a local grid or faces prolonged and frequent power outages. With declining 5kW off-grid solar system prices in India and flexible financing options available, all homes and businesses can afford solar. Your 5kW solar panels combined with robust batteries ensure a 24/7 supply of power.

Your solar batteries provide you with a dependable power reserve by collecting all the unused solar electricity. As grid outages no longer affect you, your property becomes self-sufficient and energy independent.

5kW Hybrid Solar Panel System Specifications

As the name suggests, a 5kW hybrid solar system merges the net metering mechanism of the on-grid framework and the batteries of the off-grid framework into a unified solar energy plant. In addition to your 5kW solar panels working as your main power source, you also have the flexibility to draw electricity from the grid and your batteries (especially when the grid goes down).

Also Read: Complete Details About 3kW Solar Panel System

As a result, you ensure absolute energy independence by securing a dependable and consistent power supply in your home. When you receive surplus energy solar output, the unused electricity is stored in the batteries for later use. If still surplus remains, it is transferred to the grid. These savings offset your 5 kilowatt solar panel price in 6-8 years.

5kW Solar Panel System Facts

Number of solar panels: Both the number and the price of a 5kW solar panel fluctuate depending on how powerful PV modules you select for your 5kW solar system. On average, the solar panel wattage varies from 280 to 340 watts. If you choose 280-watt panels, your system will have approximately 18 solar panels. However, picking higher wattage panels of 340 watts brings your count to 15 solar panels, enabling you to save valuable roof space. This is a substantial difference if you consider the area occupied by each solar panel, i.e., 17 square feet.

Warranty: Solar components last for several decades, even beyond their warrantied lifespan. Nonetheless, the warranty available on solar components varies from manufacturer to manufacturer. Solar panels come with a performance warranty of 25 years. Your other solar components are likely to have 5-10 years of product warranty. 

Subsidy: If you are a homeowner considering solar for your home, don’t forget to understand the price of a 5kW solar system in India with subsidy. To qualify for the national rooftop solar subsidy scheme, your grid-tied 5kW solar system should be composed of made-in-India solar components. Also, only empanelled vendors are allowed to install your solar system in compliance with the technical specifications and standards prescribed in the scheme. Visit the National Portal for Rooftop Solar to understand all about the scheme and submit your application online.

Schedule a Free Site Visit Today!

Approx monthly electricity bill (INR)*

Frequently Asked Questions – 5kW Solar System

How do I determine my daily electricity consumption?

System sizing requires you to ascertain your annual electricity consumption. This is an important criterion in deciding if a 5 kilowatt solar panel system is suitable for your property. To obtain this information, check your monthly utility bills over the past 1 year. You can also trust an experienced solar company to do such calculations and offer a personalised solar solution.

Can solar panels eliminate electricity bills?

Unless you opt for an off-grid framework, switching to solar doesn’t make monthly electricity bills disappear. Your grid-tied 5kW solar panel system is billed as per the net metering mechanism. Your monthly bill reflects solar credits for transferring unused solar electricity to the grid and charges for grid power withdrawals.

How much electricity does a 5kW solar system produce?

On average, a 5kW solar system can give an annual energy output of 7,200 kWh. On sunny days, 5kW solar panels can generate 20 kWh of electricity in a day, amounting to 600 kWh in a month.

Will a 5kW solar system run a house?

A 5kW solar system is recommended for households with average energy usage of 3,000 to 4,000 kWh per year. It’s important to consider the weather conditions of your area and the home’s energy usage to pick a suitable solar system size for your energy needs.

How many ACs can run in 5kW?

A 5kW solar system can generate ample electricity to power a 2BHK, 3BHK and other medium-sized properties with 2-3 ACs.

How many solar panels do I need for 5kW?

A modern 5kW solar system design will require about 15-20 panels depending on the panel’s wattage. The solar panel array can be set up in about 25-35 m2 of roof space.

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

Although many factors influence the upfront investment of a home solar system, you can put together the entire 5kW solar system for approximately Rs. 3.15 lakhs to 3.57 lakhs.

Is maintaining a 5kW solar system costly?

Very little maintenance is needed to keep your 5kW solar panels in their best shape and working order. Aside from warranties that cover you for critical panel damage and replacements, a simple cleaning routine is enough to keep your solar panel surface free of dust, debris, and foliage build-up. Also, many solar companies offer AMC service packages to cater to your system’s inspection, maintenance, and repair needs.

Do I need to add solar batteries to my 5kW solar system?

Not opting for solar batteries translates to lower cost of your 5 kilowatt solar system and reduced maintenance. A solar + battery system helps you avoid inconvenient outages and ensure a dependable, free-of-cost power supply in your home or office.

What financing options are available to get a 5 kilowatt solar panel system?

Don’t want to make a heavy financial commitment upfront? Consider financing your switch to solar. Solar loans, solar leasing, and solar power purchase agreement (PPA) give you the opportunity to go solar at zero upfront cost. Reach out to Amplus Solar to understand the financing options available for you.

Amplus Solar

Amplus Solar

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