An Overview of a 5kW Solar System: Prices, Types, Specifications, & More

A 5kW solar system is a self-sustainable system that can meet power requirements for homes, shops, or small offices. It can operate multiple homes and kitchen appliances, up to a certain wattage.

A 5kW solar system installed on your rooftop works in a way similar to solar systems of other capacities. A 5kv solar system converts solar energy into usable electric power that can run your electric appliances. 

The 5kW solar inverters are there in these systems for the DC to AC power conversion. The resultant AC power is used to operate domestic and commercial appliances.

If you want to learn more about the 5 kilowatt solar panel price and other aspects, let us dive in deeper!

Important statistics and working of a 5 kW solar system for home

Before the pricing and anything else, it is significant to look at some important statistics of the 5kW solar power system. You must have the basic know-how of the working of such systems.

  • – The solar panels installed for these systems are composed of photovoltaic cells. 
  • – During the daytime, the sunlight gets trapped in the PV cells of the solar panels. 
  • – The solar cells create an electric field within them, which causes the electrons to move. 
  • – Then, this movement of electrons produces the flow of electric current. 

Notably, under ideal conditions, a 5kW solar-powered system generates roughly:

  • – 20 units of electricity every day,
  • – 600 units of electricity every month,
  • – and 7200 units a year.

Price List of a 5kW Solar Panel in India

You must be desiring to know the 5 kW solar system price in India. The approximate price range of a 5kW solar panel in India is ₹2,25,000 to ₹3,50,000. 

Please note that this 5 kv solar system price range is the entire system installation cost. If you want to apply for a subsidy, certain criteria have to be met (to be discussed a little later in this guide).

Types of a 5kW Solar System

There are three major types of 5kva solar systems, namely – on-grid, off-grid, and hybrid systems.

1. 5 kW on grid solar system 

The 5 kW on grid solar system is also called the grid-connected or grid-tied solar system as it is connected to the utility grid. 

A 5kv on grid solar system price is the most economical in terms of power saving as compared to the other types. The 5kW solar inverter installed in this solar system transforms the DC power produced by the solar panels into AC power.

Did you know that the major chunk of an entire solar system is the 5kW inverter price?

2. 5kW Off Grid Solar System 

The 5kW off grid solar system is a self-dependent battery-based solar system as it does not need a power grid to function. 

This is an independent solar system that includes a 5kW solar panel set, a battery, and a 5kW solar inverter. It is a distinct type of solar system as it has a power backup.  

3. Hybrid 5kW Solar System

5kW Hybrid solar systems are a fusion of on-grid and off-grid specialties. The solar array framework is connected to the local grid like the on-grid systems. Besides, the hybrid systems also embrace solar panels, 5kW solar inverters, and a battery bank. 

Hence, it uses the electricity grid of the city and also has in-built batteries altogether to ensure that the house has the needful power supply during power outages. 

Specifications of rooftop on-grid 5kW solar panel types that you should know

You must be interested in knowing the specifications of a 5kW solar array and its influence on its pricing. Let us discuss this.

There are some standard specifications set by the government to which all rooftop solar systems in India must abide. Here are the key specifications listed. 

Solar Panels Complying with MNRE standards and registered in ALMM
Grid Connected InverterComplying with MNRE/BIS Standard regulations
Module Mounting StructureGalvanised according to the applicable IS
Solar DC and AC Cables Total 50 metres in length and should be as per MNRE standards
Performance TestingAt least 75%
Warranty5 Years

Notably, the 5 kv solar system price varies with the specifications of the system. The price variation depends on two major factors – the type of solar cells and the brand of solar panels.

  • Type of Solar Cells: If you are opting to buy a monocrystalline 5kv solar panel, it will have a higher efficiency than the polycrystalline panels. Hence, it is more expensive than the Polycrystalline 5kv solar panel price since poly panels are less efficient.
  • Brands: Varied brands offer varied qualities of panels. Remarkably, the slightly expensive panels from notable manufacturers have low-temperature coefficients for better performance over time. 

Specifications & Pricing of 5kW Solar Conversion Kit

By using a solar conversion kit, you can convert a standard inverter into a solar inverter. It is a small solar device that is also known as a solar charge controller.

A 5kW solar conversion kit includes solar panels, Solar Management Unit (SMU), and other solar accessories. Here are its key specifications listed:

  • – Type of Solar Panels: Mono/Poly
  • – Technology: MPPT (Maximum Power Point Tracking)
  • – Warranty:  25 Years
  • – Other Accessories: Earthing Kit, Fasteners, Cable Tie, Crimping Tool, Lighting Arrestor, mounting structures, conduit trays

Specifications of a 5kW 12V Solar System and a 5KW 24V Solar System

Not all solar systems are the same, which is why the price range also differs. 5KW 12V and 5KW 24 systems are either off-grid or hybrid.

Here are some major specifications:

  • – Solar System Capacity: 5kW
  • – Type: off-grid or hybrid
  • – Inverter type: off-grid solar inverter for an off-grid system and hybrid solar inverter for a hybrid system
  • – Type of Solar Panel:  Mono/Poly
  • – Technology: MPPT

5Kv Solar Panel Price in India With Subsidy

Do you know about solar subsidies offered by the Government of India? Do not worry if you don’t know! We are here to guide you.

Getting solar panels installed at homes is not an issue, all thanks to Government subsidies. Here’s a quick list of the conditions mandatory to avail of a subsidy.

  • – The solar panels should be DCR (Made in India) and ALMM-approved.
  • – The system should be an on-grid rooftop solar system.
  • – Only homeowners and housing societies are eligible for a subsidy. Commercial and industrial setups aren’t provided a subsidy. 

That being said, although the range of the solar panel 5kW price in India is ₹2,25,000 – ₹3,50,000, the subsidies are calculated against L1 rates (discovered rates). 

The empanelled solar vendors are invited to bid on the solar tender to earn allocation rights from the state government. The lowest bid becomes the L1 price, which is different for all states. 

Here is a table depicting the L1 rates for a 5KW solar system in different states in 2022 and the subsidies offered against them.

State L1 solar panel 5kW priceSubsidy offered on 5 kW  system against L1 rates
Madhya Pradesh (Bhopal)₹38,800₹62,080

Benefits of 5kW Solar System

Let us now discuss the benefits of installing a 5kW Solar System.

1. Solar power is an environment-friendly energy source

Solar energy is a renewable and clean energy source. It does not emit greenhouse gases that conventional energy sources like coal, natural gas, etc do. It is green energy that equates to the goodness of planting several trees.

A 5KW solar system specifically equals the goodness of planting 75 trees.

2. Long-term financial gains

A 5kW solar-powered system slashes your monthly electricity bills. Moreover, when considered over the long term, the savings are in tens of lakhs of rupees. 

3. Lesser to no dependency on the grid

Solar energy is a highly reliable energy source. When you install an on-grid 5kv solar system for your home, it can minimise or even eliminate your dependency on the power grid. It enables your home to produce its own electricity.

Who Should Buy 5kW Solar Panels?

The 5 kW solar system is the most preferred choice for people who consume about 600-620 units of electricity/month. 

For those people planning to buy 5kW Solar Panels, we must recommend calling a solar engineer to your home to gain insights on product, installation, and investment vs. return. Solarsquare offers engineer visits across the country that are trusted by thousands of homeowners.

Which Appliances a 5kW Solar Panel Can Run?

A 5kva solar system is the most favoured solar-powered system that is very popular. A 5kW solar system generates approximately 20 units of electricity each day. It is a suitable choice for 2BHK and 3BHK homes or even large bungalows, villas, and duplex homes.

Other than residential infrastructures, the 5kW is capacious enough to power a two to three-story office, school, restaurant, or any commercial building. 

A 5 kW solar power plant cost becomes more bearable after availing of the subsidies (for homeowners and housing societies only).

This solar system can competently run a big household in India. It can run Air conditioners, water pumps, and other essential home appliances, including fans & lights, microwaves, coolers, dishwashers, washing machines, geysers, computers, and whatnot.


Now, you know considerable details about the 5kW solar system and 5kW solar panel cost along with the subsidies offered by the government.  

You are now aware of its applications, the power output statistics, and the monetary savings that can be gained in the long run. 

So, isn’t it an ideal time to switch to solar? We hope you make the right decision!


1. What is the approximate price range for a 5kW solar system?

In India, the approximate 5kva solar system price is INR 2,25,000 to INR 3,50,000. 

2. What is the energy output of a 5kW solar panel in units?

Under standard conditions, a 5 kW solar system can produce 20 units of electricity every day. 

So, it is the perfect option for households that need around 600-620 units of electricity per month.

3. What are the appliances which a 5kW solar system can operate?

A 5kW solar system can operate all appliances in a household setting. These appliances include fans, lights, refrigerators, TV, AC, washing machine, geysers, dishwashers, etc.