A major portion of India’s economy is eaten by importing fossil fuels to keep operations running. It has also put a toll on the pollution levels, which is alarming. In addition, the energy demand is rising in both urban and rural areas. Conventional electricity is expensive and fails to fulfil the requirement to the mark.
To fill the demand-supply gap concerning electricity requirements and bring down pollution levels, solar power seems to be a viable solution. It provides cheaper electricity without pollution. A 5 kilowatt solar system can be an ideal choice due to its optimal size to fit on an average rooftop space of any home. It comes with a solar subsidy which reduces its initial investment cost.
This blog discusses 5 kilowatt solar panel price, subsidy, and the benefits of installing a 5kW solar system.
Understanding 5 Kilowatt Solar System
The 5 kW solar panel system has become a popular choice for the following reasons:
1. Perfect Size for Households
A 5 kW solar panel system can fulfil the energy requirements of an average household. It thus makes a practical and efficient choice.
2. Cost-Effective
The 5 kW solar system produces more energy, which justifies its cost. It offers a good return on investment in the long term.
3. Scalable
A 5 kW system is flexible. This means you can scale it up or down according to your energy requirements and roof space availability.
Current Pricing of 5 kW Solar Panels
A few factors determine the 5 kW solar power plant cost. These are panel type, complexity level, location, and government subsidy. A 5 kilowatt solar power plant cost is around Rs. 3,02,825/- without government subsidy. The government offers a fixed subsidy amount of Rs. 78,000/- on it.
It requires a rooftop space of approximately 450 sq. ft. The system produces about 7500 units of solar energy every year. You can save approximately Rs. 54,000/- per year with a 5 kW solar system.
5-Kilowatt Solar Price Breakdown
- Panels: The solar panel 5 kilowatt price as per the type are as follows:
- Monocrystalline panels: INR 60 to INR 70 per watt
- Polycrystalline panels: INR 55 to INR 65 per watt
- Bifacial Panels: INR 70 to INR 75 per watt
- Inverters: Approximately Rs. 30,000 to 50,000 for a typical household setup
- Mounting Structures: 2 meters will cost you Rs. 4000, and 3 meters Rs. 8500
- Installation (Labour cost): Approximately Rs. 10,000 to Rs. 20,000 per kW
- Cables, Combiner Boxes, and Accessories: Approximately Rs. 10,000 to Rs. 20,000
Prices may vary depending on location, installation, and brand. Please contact Freyr Energy for an accurate quote.
Available Subsidies
- The central government offers a subsidy of Rs. 78,000/-
- Some states offer additional subsidies that will further reduce the price of 5 kW solar system
- Commercial establishments can avail of tax benefits in place of government subsidies
The government subsidies help consumers switch to solar energy as it reduces solar system 5 kW price. It relieves consumers from the burden of the huge cost of solar panel installation.
Benefits of Installing 5 Kilowatt Solar Panel
Financial Benefits of Installing a 5 kW Solar System
The government subsidy pays a major chunk of the initial investment cost of the 5 kW solar panels. It encourages people to switch to solar energy. Government subsidy is a great financial benefit.
Another financial benefit of solar energy is the drastic reduction in electricity bills. Consumers are allowed to sell the surplus solar energy to the regional DISCOM. They can thus offset a major amount from their electricity bills. Consumers can reduce their electricity bills by up to 90%, saving a sizeable amount throughout the years.
Environmental Benefits
Solar energy does not use fossil fuels to produce electricity. It keeps the air clean, thus supporting a sustainable future.
India has set ambitious renewable energy goals to transition towards a sustainable future. The key targets include:
- Achieve 500 GW of non-fossil fuel energy capacity by 2030
- Renewable sources to fulfil 50% of energy requirements by 2030
- Reduce carbon emissions by one billion tonnes by 2030
- Reduce carbon intensity by less than 45% by 2030
- Achieving net-zero emissions by 2070
Solar energy can help in achieving the above renewable energy goals for India.
Social Benefits
Switching to solar energy helps reduce greenhouse gas emissions. It promotes sustainability and is a good way towards energy security. Unlike conventional energy sources, solar energy is abundant and never-ending.
Investing in solar energy boosts the economy by creating jobs. It safeguards consumers from volatile fossil fuel prices.
Solar energy can improve the lives of rural populations by:
- Providing reliable electricity
- Improving educational opportunities
- Enhancing agricultural productivity
- Creating jobs
- Contributing to sustainable development
Why Choose a 5 kW Solar System for Your Home?
- Excellent Power Output: A 5kW solar system is ideal for an average residential usage in India. This allows for usage of multiple appliances and sustains higher wattage appliances from time to time.
- Eco-Friendly Alternative: A home with a 5kW solar system helps reduce a massive 8 tonnes of carbon emission annually, which is equivalent to planting 80 trees.
- Great Savings: A resident can save INR 25,000-30,000 annually off their regular power bills and can reach their ROI in around 3 -4 years.
Challenges & Considerations
- Finances: The initial costs of nearly INR 3 lakh rupees is still a huge upfront cost that is to be borne by the resident.
- Clearances: Clearances need to be attained beforehand from local bodies and DISCOM for ensuring a seamless solar panel installation.
- Space Required: At least 400 sq. ft of open space.
Types of 5kW Solar Systems
|
System Type |
Works During Power Cuts? |
Suitable For |
Price Range (5kW) |
Subsidy |
|
5kW On-Grid Solar System |
No |
Homes with stable electricity + net metering |
₹3,50,000 – ₹3,70,000 |
₹78,000/- |
|
5kW Off-Grid Solar System |
Yes (battery required) |
Rural/Power-cut-prone areas |
₹4,80,000 – ₹6,50,000 |
Not Applicable |
|
5kW Hybrid Solar System |
Yes |
Homes wanting battery backup + export |
₹4,50,000 – ₹6,00,000 |
Not Applicable |
Appliance Load Capacity of a 5kW System
A 5kW system generates ~20 units/day. It can comfortably run:
|
Appliance |
Quantity |
|
1.5 Ton AC |
2–3 units |
|
Refrigerator |
1 |
|
Washing Machine |
1 |
|
TV |
2 |
|
Fans |
6–8 |
|
Lights |
10–12 |
|
Water Pump (0.5–1HP) |
1 |
|
Kitchen Appliances |
Yes |
Solar Panel Price List in India (2025) – Other System Sizes
Apart from 5 kW systems, homeowners can choose from multiple solar capacities depending on power usage and budget.
|
Solar System Size |
Solar System Price |
|
₹1,20,000 – ₹1,30,000 |
|
|
₹1,80,000 – ₹1,90,000 |
|
|
₹2,30,000 – ₹2,40,000 |
|
|
₹3,50,000 – ₹3,70,000 |
|
|
₹6,30,000 – ₹6,40,000 |
5kW vs 1kW vs 2kW vs 3kW vs 10kW Solar System Comparison Chart
|
Capacity |
Ideal For |
Daily Generation |
Annual Savings |
Panel Count |
Roof Space |
|
1kW Solar Panel |
Small home, 1 room |
4 units/day |
₹6k–₹8k |
3–4 panels |
80 sq. ft |
|
2kW Solar Panel |
1BHK |
8 units/day |
₹10k–₹15k |
6–8 panels |
120 sq. ft |
|
3kW Solar Panel |
2BHK |
12 units/day |
₹15k–₹25k |
9–12 panels |
200 sq. ft |
|
5kW Solar Panel |
3–4BHK |
20 units/day |
₹25k–₹54k |
15–20 panels |
400–450 sq. ft |
|
10kW Solar Panel |
Large homes / villas |
40 units/day |
₹60k–₹1.2 lakh |
30–40 panels |
850–1,000 sq. ft |
Government & Policy Links
- MNRE – Ministry of New and Renewable Energy – Official website for central government solar policies and subsidies.
- PM Surya Ghar: Muft Bijli Yojana – Link to state-level incentive programs.
- DISCOM Information – Regional electricity board contacts for net-metering and approvals.
Subsidy Application Steps (Simple How-To Guide)
|
Step |
What You Need To Do |
|
1. Visit PM Surya Ghar Portal |
Register with address & DISCOM details |
|
2. Select Vendor |
Choose an empanelled solar company (ex: Freyr Energy) |
|
3. Technical Feasibility Approval (TFA) |
DISCOM inspects rooftop feasibility |
|
4. Installation |
Vendor installs approved system |
|
5. Net Metering Application |
DISCOM installs bi-directional meter |
|
6. Final Inspection |
DISCOM verifies system & generation |
|
7. Claim Subsidy |
Upload bank details → subsidy transferred directly |
Eligibility Rules for Subsidy
✔ Indian resident
✔ Residential rooftop only
✔ System installed via empanelled vendor
✔ Net metering mandatory
✔ Property must have electricity connection in applicant’s name
Documents Required
- Aadhaar card
- Electricity bill
- Property tax / ownership proof
- Bank passbook / cancelled cheque
- Passport-size photo
- Subsidy form (auto-generated on portal)
Conclusion
Solar energy is the answer to high-priced conventional electricity and rising pollution. It offers several benefits, related to financial, environmental, and societal. A 5 kilowatt solar system is an ideal choice for an average household. The 5 kW solar system helps in covering the initial investment cost quickly.
Investing in solar panel installation is an ideal way to procure uninterrupted and cheap electricity. It reduces the monthly electricity bills. Most importantly, consumers feel proud of their contribution towards a sustainable future.
Why Choose Freyr Energy?
- MNRE-empanelled vendor
- 12+ years of expertise
- High-qualitysolar panels
- App-based monitoring
- End-to-end handling: site survey → installation → subsidy → net metering
- Nationwide service network
- Transparent pricing
Ready to install a 5kW solar system with full subsidy support?