5 Kilowatt Solar System: Price, Cost, and Subsidy in India

A 5kw solar system is an excellent choice for households and small businesses looking to reduce electricity bills and become energy independent. With rising power costs and increasing awareness of renewable energy, more people are switching to solar power. If you’re considering installing a 5 kW solar panel system, it’s essential to understand the price, total cost, and government subsidy available in India. In this blog, we will explore these aspects in detail. What is a 5 Kilowatt Solar System? A 5 kW solar system generates around 20–25 units of electricity per day, depending on sunlight availability. This system is powerful enough to support households with high energy consumption or small commercial spaces. Who Should Install a 5 kW Solar System? Homeowners with high electricity bills – If your monthly electricity consumption is around 600–750 units, a 5 kW solar system can help reduce your expenses significantly. Businesses looking to cut energy costs – Small shops, offices, and commercial spaces can benefit from solar power. People looking for long-term savings – A one-time investment in solar ensures free electricity for years to come.

5 Kilowatt Solar Panel Price in India The 5 Kilowatt Solar Panel Price in India varies depending on the type of solar panels used. Monocrystalline panels are more efficient but expensive, while polycrystalline panels are more affordable but slightly less efficient. On average, the price of just the solar panels for a 5 kW system can range between ₹1,50,000 and ₹2,50,000. However, this is only part of the total installation cost. Total Cost of a 5 kW Solar System The final 5 kW solar power plant cost includes not just the solar panels but also the inverter, mounting structures, wiring, and installation charges. The overall cost depends on whether you choose an on-grid, off-grid, or hybrid system. On-Grid Solar System – This type of system is connected to the electricity grid and allows you to export excess energy, reducing your power bills through net metering. It is the most cost-effective option, with a price range of ₹2.2 lakh to ₹3 lakh. Off-Grid Solar System – This system works independently and requires batteries for energy storage. It is ideal for areas with frequent power cuts but costs more due to the added battery expense, typically between ₹3 lakh to ₹4.5 lakh. Hybrid Solar System – This system combines on-grid and off-grid features, providing both backup power and grid connectivity. It is the most expensive option, ranging from ₹3.5 lakh to ₹5 lakh. Subsidy for 5 kW Solar System in India The Government of India offers subsidies under the PM Surya Ghar Muft Bijli Yojana to make solar energy more affordable for homeowners. If you install a 5 kW solar system, you can benefit from government incentives that significantly reduce the upfront cost. Under this scheme, the subsidy is calculated based on system capacity. The first 3 kW of your system gets a higher subsidy amount, and the remaining capacity (from 3 to 10 kW) receives a lower rate. As a result, 5kw solar system price in india with subsidy can go up to ₹78,000, reducing the total cost. This means that if an on-grid solar system costs around ₹2.5 lakh, the final price after subsidy will be much lower, making solar power an affordable investment. Why Should You Install a 5 kW Solar System? 1. Huge Savings on Electricity Bills One of the biggest benefits of switching to solar is the drastic reduction in electricity bills. A 5 kW system can cut your electricity costs by up to 70–90%, depending on your consumption. 2. Quick Return on Investment Solar power is a long-term investment. The initial cost may seem high, but with the savings on electricity bills, most homeowners recover their investment within 4–6 years. After that, the electricity generated is practically free for the next 20–25 years. 3. Government Subsidies and Net Metering The solar subsidy makes installation more affordable, while net metering allows homeowners to earn credits for excess electricity sent back to the grid. This further reduces the financial burden. 4. Low Maintenance and Long Lifespan A 5 kW solar system requires minimal maintenance. With periodic cleaning and annual servicing, your solar panels can last 25 years or more. The inverters and batteries (if applicable) may need replacement every 5–10 years, but overall maintenance costs are low. 5. Eco-Friendly and Sustainable Switching to solar power reduces reliance on fossil fuels and lowers carbon emissions. By installing a 5 kW solar system, you contribute to a cleaner environment while ensuring energy security for your home or business. How to Get a 5 kW Solar System Installed? Step 1: Choose a Trusted Solar Provider Selecting a reliable solar installation company is crucial. Look for providers with experience, positive customer reviews, and good after-sales support. Step 2: Site Inspection and Design A professional team will inspect your site, assess your energy needs, and design a solar system that fits your requirements. Step 3: Apply for Subsidy (if eligible) If you qualify for the government subsidy, your solar provider will help with the necessary applications and approvals. Step 4: Installation and Setup The installation process includes mounting the solar panels, connecting the inverter, and setting up the electrical wiring. Step 5: Testing and Commissioning Once installed, the system is tested for efficiency. If you opt for an on-grid solar system, a net meter will be installed to monitor power usage and grid export. Final Thoughts Installing a 5 kilowatt solar system is a smart decision for homeowners and businesses looking to save on electricity bills and reduce dependence on the grid. With government subsidies, the cost of installation becomes much more affordable, making solar energy a worthwhile investment. If you’re considering switching to solar, reach out to a trusted solar installation company to get expert guidance and a customized quote. Investing in solar today ensures long-term savings and a sustainable future.