India’s shift toward clean energy is growing faster than ever. More households are now adopting solar power systems to save electricity and reduce monthly bills. Among all available capacities, the 5kW solar system stands out as an ideal choice for medium to large homes. It offers high energy generation, low maintenance, and significant long-term savings. This article explains in detail the 5kW solar system price in India (2025), its government subsidy, benefits, and how you can apply for financial assistance to reduce your overall cost.
How Much Does a 5kW Solar System Cost in India in 2025?
Before installing a solar system, homeowners often want to know the average price of a 5kW solar system in India. The cost mainly depends on the brand, type of panel, and installation quality.
In 2025, the 5kW solar system price in India generally ranges between ₹2.5 lakh to ₹4 lakh. This includes the cost of solar panels, inverter, mounting structure, wiring, and complete installation service. The system can generate approximately 20 to 25 units of electricity per day, depending on the region’s sunlight exposure.
A 5kW solar setup easily supports heavy appliances like air conditioners, refrigerators, washing machines, and water heaters, making it ideal for residential use.
| System Capacity | Average Cost (₹) | Monthly Power Generation | Annual Units (Approx.) |
| 5 kW | 2.5 – 4 lakh | 600 – 750 units | 7200 – 9000 units |
This range covers both on-grid and off-grid systems, with the on-grid type being more popular due to government subsidies and easier maintenance.
What Factors Affect the 5kW Solar System Price in India?
The total price of a 5kW solar setup can vary from one installation to another. Several key factors play a role in determining the final cost.
Quality and Type of Solar Components
The quality of solar panels is one of the biggest price drivers. Monocrystalline panels are known for their higher efficiency but come at a slightly higher cost compared to polycrystalline panels. Similarly, the inverter brand and technology affect overall performance and reliability.
Well-known brands often charge more but ensure longer system life and lower maintenance costs. Homeowners must consider durability, efficiency, and warranty terms when choosing components.
Installation Site and Preparation
Every rooftop installation is different. The site must be clean, level, and free from shade for optimal performance. In some cases, preparation work like roof strengthening or structure adjustment is required. This can add ₹5,000 to ₹10,000 per kW to the total price.
A well-installed system ensures better energy generation and safety for years.
How Does the PM Surya Ghar Muft Bijli Yojana Reduce Solar Costs?
The PM Surya Ghar Muft Bijli Yojana has made solar adoption more affordable for Indian households. This government initiative provides direct financial subsidies to citizens who install rooftop solar systems. It not only promotes clean energy but also lowers the 5kW solar system price in India significantly.
Understanding the Subsidy Structure
Under this scheme, subsidies are based on system size. For smaller setups (up to 2kW), the government covers 60% of the total cost, while for systems between 2–3kW, it covers 40% of the additional cost.
| System Size | Subsidy % | Subsidy Amount (₹) |
| 1 kW | 60% | 30,000 |
| 2 kW | 60% | 60,000 |
| 3 kW or more | 40% | 78,000 |
The subsidy helps lower the initial cost, allowing more families to benefit from clean, renewable electricity.
How Can You Apply for the 5kW Solar Subsidy in India?
Applying for the subsidy is simple and can be done online through the National Portal for Rooftop Solar.
Step-by-Step Application Process
- Visit the official website at pmsuryaghar.gov.in.
- Click on ‘Apply Now’ or ‘Consumer Login’.
- Register your consumer details and select your approved solar vendor.
- Upload necessary documents and submit installation details.
- After inspection, the subsidy amount is credited directly to your bank account.
Once approved, the subsidy reduces the overall 5kW solar system price in India to about ₹2.3 to ₹2.7 lakh, making it highly affordable for most households.
Why Does the Solar System Cost Vary Across Indian States?
The cost of solar systems differs depending on state policies, climate conditions, and vendor competition. States like Gujarat, Rajasthan, and Maharashtra have advanced solar policies that make installations more cost-effective.
For instance, Gujarat offers additional state-level incentives for residential rooftop systems, while Rajasthan provides streamlined approval processes. These local programs make solar systems more accessible and cost-efficient.
| State | Estimated Cost (₹) | Extra State Subsidy |
| Gujarat | 2.4 – 2.8 lakh | Yes |
| Rajasthan | 2.5 – 2.9 lakh | Yes |
| Maharashtra | 2.8 – 3.2 lakh | Limited |
| Delhi | 3.0 – 3.5 lakh | Yes (under NDMC) |
These regional variations show how local solar policies play a big role in determining the final cost.
How to Get Financial Assistance for Your 5kW Solar System?
Apart from government subsidies, many banks and financial institutions offer loans for solar installations. These loans make it easier for homeowners to install systems without paying the entire amount upfront.
To qualify for financial assistance:
- The solar system must be purchased from an empanelled vendor.
- You must register your system with the state nodal agency.
- Provide documents like purchase proof, vendor details, and installation certification.
With financial aid and subsidies combined, the 5kW solar system price in India becomes highly affordable and offers fast returns on investment.
Conclusion:
Choosing a 5kW solar system for your home is one of the best investments in 2025. With falling equipment costs, attractive subsidies, and high performance, the 5kW solar system price in India has become affordable for most families. It delivers long-term savings, environmental benefits, and energy independence. By combining government support, reliable vendors, and quality installation, homeowners can enjoy free electricity for many years. Investing in solar energy today ensures a cleaner, greener, and more cost-efficient future for every Indian household.
People Also Ask
Q1. What Is the Current Price of a 5kW Solar System?
The average cost of a 5kW solar system in India is around ₹3,25,000 without any subsidy. After applying the government subsidy of ₹78,000, the price drops to approximately ₹2.5 lakh, making it a smart long-term investment.
Q2. How Much Electricity Does a 5kW System Generate?
A 5kW system can produce 7500 units per year, depending on the region’s sunlight. This amount of power can run an entire household’s daily needs, including cooling and heating appliances.
Q3. Which Company Offers the Best Price?
Companies like Truzon Solar are recognized for delivering reliable systems with affordable pricing and complete service support. Their systems are known for quality components, fast installation, and long warranties.
Q4. Can a 5kW System Run Air Conditioners?
Yes, a 5kW solar setup can easily power two air conditioners (1.5–2 tons each), depending on total consumption. This makes it suitable for homes with moderate to heavy electricity usage.
Q5. When Will the Investment Pay Off?
The payback period for a 5kW system is usually between 4 to 6 years. After that, the system generates free electricity for nearly two decades, offering huge savings over its lifetime.