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5kW Solar System in India: Price, Subsidy & Payback (2025 Update)

5kW Solar System in India
Updated on: September 3, 2025

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5kW Solar System in India: Switching to solar energy is no longer just about saving electricity bills it’s also about energy independence and contributing to a greener future. If you’re considering solar for your home, a 5kW solar system is one of the most popular choices in India. It’s powerful enough to run most household appliances, including air conditioners, refrigerators, washing machines, and more.

But how much does it actually cost in 2025? And what about the government subsidy? Let’s break it down.


Key Takeaways

  • 5kW on-grid solar system price in India (2025): ~₹3 lakh
  • After subsidy, net cost: ₹2 – 2.2 lakh
  • Generates 20–25 units/day, enough for a medium-to-large home
  • Payback period: 3–4 years, then free electricity for decades

What is a 5kW Solar System?

A 5-kilowatt solar system typically includes:

  • Solar panels (15–20 panels depending on wattage)
  • Inverter (converts DC power to AC)
  • Battery (optional) for backup
  • Mounting structure & wiring

On average, a 5kW Solar System in India can generate 20–25 units of electricity per day, enough for a medium to large household.


5kW Solar System Price in India (2025)

The price depends on whether you choose on-grid, off-grid, or hybrid:

Type of SystemPrice (Before Subsidy)Best For
On-Grid (no batteries)₹2.8 – ₹3.2 lakhHomes with stable electricity & net metering
Off-Grid (with batteries)₹4 – ₹4.5 lakhAreas with frequent power cuts
Hybrid (grid + battery)₹4.5 – ₹5.5 lakhHomes that want backup + net metering

Average cost of on-grid 5kW Solar System in India (2025): ~₹3 lakh


Government Subsidy on 5kW Solar System (2025)

PM Surya Ghar Muft Bijli Yojana
PM Surya Ghar Muft Bijli Yojana

The PM Surya Ghar: Muft Bijli Yojana launched in 2024 makes solar much more affordable. Under this scheme:

  • Up to 3kW system → 60% subsidy
  • Above 3kW to 10kW system → 40% subsidy

For a 5kW solar system, the subsidy is roughly ₹78,000 to ₹1.2 lakh, depending on your state and DISCOM (electricity board).

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Net effective cost of a 5kW solar system after subsidy: ~₹2 – 2.2 lakh


Savings from a 5kW Solar System

  • Monthly savings: ₹5,000 – ₹8,000 (depending on usage & location)
  • Annual savings: ₹60,000 – ₹90,000
  • Payback period: 3–4 years

After that, electricity is almost free for the remaining 20+ years of solar panel life.


How to Apply for Solar Subsidy in India

  1. Visit the National Portal for Rooftop Solar (https://solarrooftop.gov.in).
  2. Register with your state DISCOM.
  3. Choose an empaneled vendor for installation.
  4. After inspection & approval, the subsidy amount is credited directly to your bank account.

Is a 5kW Solar System Right for You?

A 5kW system is ideal if:

  • Your monthly electricity bill is ₹5,000+.
  • You have 1000 sq. ft. of shadow-free rooftop space.
  • You plan to live in the same house for the next 10–15 years.

If your usage is lower, you may start with 3kW and expand later.

If you’re exploring solar options for your home or business, it’s worth comparing different system sizes before making a decision. For smaller households, you can check the detailed guide on the 2kW Solar System Price in India or the slightly larger 3kW Solar System Price in India. For families with higher energy needs, our breakdown of the 5kW Solar System Price in India and the more powerful 10kW Solar System Price in India will help you understand the costs, subsidies, and savings potential.


FAQs on 5kW Solar System in India

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

A 5kW solar system can comfortably run 2–3 air conditioners (1.5 ton each) along with other household appliances, provided there is sufficient sunlight.

How much area is required for a 5kW solar system?

You need around 450–500 sq. ft. of shadow-free rooftop space for a 5kW system.

What is the lifespan of a 5kW solar panel system?

Solar panels last 25 years or more, while inverters may need replacement after 10–12 years.

Is subsidy available for 5kW solar systems in all states?

Yes, the central subsidy applies across India, but the process and subsidy amount may vary by state DISCOM.

What is the maintenance cost of a 5kW solar system?

Maintenance is minimal mostly panel cleaning once or twice a month and an annual service check. The average cost is around ₹2,000 – ₹5,000 per year.


Final Word

Investing in a 5kW solar system in India is not just about saving money it’s also about securing your energy future. With the government subsidy in place, 2025 is one of the best times to make the switch to solar.

Aparna Roy

I writes about solar energy, renewable power, and sustainable living. She simplifies complex topics like solar system prices, government subsidies, and real-world savings into practical guides that help readers make smarter energy choices. Her goal is to make solar adoption easier and more accessible for every household in India.

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