5KW Solar Panel Price in Gujarat – Subsidies and Application Process

The constant rising prices of electricity is a problem that almost everyone has faced. Moreover, the source of electricity, fossil fuels, is one of the biggest contributors to pollution. 

When you switch to solar energy, you make a financially beneficial choice while simultaneously helping the environment. Among all the solar systems available in the current market, a 5KW solar system is a great option as it can generate 20 units of electricity daily. 

However, switching to solar energy involves a marginally high upfront investment. Therefore, the overall 5KW solar panel price in Gujarat is expected to be high. 

But did you know that the actual 5KW solar panel price in Gujarat is not so high? You must be wondering how. Don’t worry; we have the answer for you!

The Gujarat government has been offering subsidies as financial incentives to promote on-grid solar installations in the residential sector. After subsidy deductions, the 5KW solar panel price in Gujarat gets significantly lower. 

Read on if you want to find out how much 5KW solar systems cost before and after subsidies.

5KW solar panel price in Gujarat: The influencing factors 

Before we tell you about the 5KW solar panel price in Gujarat after deducting subsidy, let us discuss the original cost and the factors that determine the cost of the 5KW solar system.

The original price range of the 5KW solar system is around ₹ 2,25,000 to 3,50,000. The factors that affect the overall cost include:

  • Monocrystalline vs Polycrystalline Solar Panels: If you purchase a solar system for residential use, you can choose from two options; monocrystalline solar panels or polycrystalline solar panels. The monocrystalline panel is an expensive yet highly efficient solar panel. Contrary to this, polycrystalline panels are more affordable but less efficient. 
  • Type of System: Much of the solar project cost depends on the type of system you are installing. Solar equipment like inverters are expensive. Similarly, value added services you purchase influence the final price of a solar system.
  • Brand: The overall cost of your solar project greatly depends on your choice of brand. No two brands may offer you the same estimate on the solar project.

Now that you know the overall 5KW solar panel price in Gujarat and the reasons that affect it, let’s explore the subsidies available for it. 

L1 rate of a 5KW solar system in Gujarat

Before understanding the calculations for subsidy deductions, let us first learn about L1 rates. L1 rate or discovery rate is basically the lowest bid placed by a vendor in the solar tender of the state. 

The vendor bidding the lowest price also gets the maximum allocation rights, and the lowest bid becomes the L1 price upon which the solar subsidies are calculated.

So, the final subsidy amount depends entirely on the L1 rate. The L1 rate of solar panels in Gujarat is divided into two slabs-

  • – For 1 KW to 3 KW Solar systems – ₹ 40,991/KW
  • – Above 3KW and up to 10 KW solar systems – ₹ Rs. 43,500/KW

Therefore, if you are purchasing a 5KW system, the subsidy on the 5KW solar panel price in Gujarat will be calculated against ₹ Rs. 43,500/KW.

Now, let’s calculate the 5KW solar system price in Gujarat with subsidy deductions.

Price of a 5KW Solar System With Subsidy In Gujarat

We know that the L1 rate for a 5KW solar system is ₹43,500. Therefore, the total subsidy amount you will receive is –

Solar System CapacitySubsidy AmountSolar system’s cost before subsidy5KW solar panel price in Gujarat with subsidy
5KW₹ 69,600₹2,25,000 to ₹3,50,000₹1,55,400 to ₹2,80,400

However, this subsidy is not applicable across all solar systems. In addition, your solar project must fulfil certain requirements to qualify for the subsidy. Let’s look at what these conditions are –

  • – The solar panels used for the solar project should be ALMM-approved and made in India.
  • – The subsidy applies only to rooftop on-grid solar systems.
  • – The solar project must not be used for commercial use. Subsidies are available only for residential solar projects and small housing societies.

How to Apply For a Subsidy in Gujarat?

In addition to providing worthwhile subsidies, the Gujarat government has also simplified the application process for claiming a subsidy. Let’s look at the procedure you must follow to get a subsidy on the 5KW solar panel price in Gujarat.

  • – First, visit the Dakshin Gujarat Vij Co.Ltd (DGVCL) website.
  • – Select SolarSquare from the list given on the website.
  • – Afterwards, enter the details of your solar project details.
  • – Once you submit the details, a DGVCL officer will verify the provided details and inspect the installation site.
  • – When the DGVCL officer verifies that your solar system is eligible for a subsidy, you will receive approval on the final price for the solar project.
  • – Pay the approved amount to SSE after deducting the subsidy.
  • – After the payment is complete, SSE will begin installing the solar system.
  • – Finally, the DGVCL will pay the subsidy to SSE when your solar system is activated.

Do not forget to keep a scanned copy of these documents!

  • – Self-attested copy of Aadhar card
  • – PAN card
  • – Passport-sized photograph
  • – The latest municipal tax receipt of your house
  • – The latest electricity bill
  • – Cancelled cheque


The price of a 5KW solar system may appear to be slightly high for immediate investment.  However, subsidies can greatly help you to afford and install these panels. 

Besides, did you know that a solar system has a long lifespan of 25 years? Even after 25 years, the system will continue working at a minimum of 70% efficiency. Therefore, do not hesitate to switch to the use of solar energy!


Q. What does the overall 5KW solar panel price in Gujarat cover?

The 5KW solar panel price in Gujarat is around ₹2,25,000 to ₹3,50,000 (without  subsidy). This is the entire installation cost and also includes the AMC package. 

Q. Is subsidy available on all 5KW solar panel systems?

No, according to the conditions set by the Indian Government, only 5KW on-grid solar systems that have made in India solar panels are eligible for subsidies. 

Moreover, the subsidy is available only for installations in individual homes or housing societies. Commercial setups do not get any subsidy. 

Q. How much subsidy can I get on my 5KW solar project?

According to the L1 rates in Gujarat, you will receive a subsidy of ₹69,600 for installing a 5 KW rooftop solar system.