5 kW Solar System Price in India With and Without Subsidy in 2025 

A 5 kW on-grid rooftop solar system is an extremely powerful machinery, capable of generating approximately 7,000 to 7,250 units of electricity every year. When it comes to the 5 kW solar panel price, you need to be aware that the rates vary based on several factors.

Furthermore, the Indian government also offers a subsidy of Rs. 78,000 on the installation of 5 kW on-grid rooftop solar systems under the PM Surya Ghar Muft Bijli Yojana. Hence, the 5 kW solar system price in India with subsidy and without one varies, too. 

To give you an idea, the 5 kilowatt solar panel price in Pune after considering subsidy starts at approximately Rs. ~ 2,22,000*. And the 5 kW solar panel price in Delhi after subsidy starts at Rs. ~ 2,37,000. 

*These prices are indicative as of 29th April 2025 for SolarSquare Blue 6ft variant. Please note that the final cost of a 5 kW solar system in India depends on your city, DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.

Let’s examine in detail the cost of a 5 kW solar system in India’s different cities.

What’s the 5 kW Solar System Price in India With Subsidy and Without One? 

Here’s an eye-opening stat about the 5 kW solar plant price: Different solar panels are priced differently based on their energy efficiency. Whether you choose the latest technology, bifacial mono perc half-cut modules (which produce more electricity from sunlight), primitive polycrystalline panels, or in-between monocrystalline panels will have a direct impact on the final prices of the entire solar system.

Here’s a tabulated snapshot of the 5 kw solar panel price in India with installation and subsidy across different cities.

State	5 kW Solar Plant Cost With Installation (Starting price – Indicative for base variant)*	5 kW Solar System Price in India After Subsidy (Starting price – Indicative for base variant)*
Pune, Maharashtra	Rs. ~ 3,00,000	Rs. ~ 2,22,000
Bhopal, Madhya Pradesh	Rs. ~ 3,10,000	Rs. ~ 2,32,000
Lucknow, Uttar Pradesh	Rs. ~ 3,05,000	Rs. ~ 1,97,000
Jaipur, Rajasthan	Rs. ~ 3,20,000	Rs. ~ 2,42,000
Ahmedabad, Gujarat	Rs. ~ 2,95,000	Rs. ~ 2,17,000
Bengaluru, Karnataka	Rs. ~ 3,70,000	Rs. ~ 2,92,000
Hyderabad, Telangana	Rs. ~ 3,40,000	Rs. ~ 2,62,000
Delhi	Rs. ~ 3,15,000	Rs. ~ 2,37,000
Chennai, Tamil Nadu	Rs. ~ 3,65,000	Rs. ~ 2,87,000

Please Note: *These prices are indicative as of 29th April 2025 for SolarSquare Blue 6ft variant. Please note that the final 5 kW solar power plant cost in India depends on your city, DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.

Did you know? Eligible homeowners in Uttar Pradesh can claim a total subsidy of Rs. 1,08,000 on a 5 kW on-grid rooftop solar system — Rs. 78,000 from the central government and an extra Rs. 30,000 provided by the state government.

Watch this video for a more detailed breakdown of the cost of a 5 kW solar system.

Types of 5 kW Solar Systems and Their Prices

In India, an on-grid rooftop solar system of the right capacity takes care of all energy needs. However, it’s not the only type of solar system out there. There are three kinds in total: 

• On-grid solar system
• Off-grid solar system
• Hybrid solar system

Before we break down the differences between the three and why on-grid is the best option out of the three, here are the pricing details:

Type of Solar System	5 kW Solar Price in India
5 kW on-grid solar system price in India with subsidy	Rs. ~ 1,97,000 to Rs. ~ 2,92,000
5 kW off-grid solar system price in India	Rs. 3,35,000 onwards
5 kW hybrid solar system price in India	Rs. 7,50,000 onwards

Please note: SolarSquare does not install off-grid or hybrid solar systems. The 5 kilowatt solar panel prices listed above are standard market estimates.

Now, let’s understand the differences between the three types of solar systems (and explore why on-grid is the most suitable option for Indian homes).

Feature	On-grid	Off-grid	Hybrid
Grid connection	Tied to utility via bidirectional meter	No grid connection	Connected to both grid and battery bank
Battery storage	None	Required (stores all excess energy)	Required (stores part of excess and provides backup)
Operation summary	Exports surplus to gridImports when neededNet-metering balances at month’s end	Panels power homeExcess charges batteriesBatteries discharge at night/cloud cover	Day: panels → home → batteries → grid; Night/outage: batteries → homeShortfall: grid with credit offset
Cost	Lowest (no batteries)	Higher (battery bank adds cost)	Highest (batteries + inverter + grid hookup)
Subsidy eligibility	Yes	No	Yes
Maintenance	Low	High (battery upkeep)	High (battery + inverter + grid components)
Best for	Urban homes with reliable grid	Remote homes or cabins off the grid	Commercial facilities needing backup power + net-metering

Pro Tip: Unless you live in remote areas where the grid is unreliable, or yours is a commercial facility where battery backup is a must, you should invest in an on-grid solar system. It comes at a much lower cost than the other two types, and requires lesser maintenance because it doesn’t have the hassle to maintain the battery life.

Want to calculate your savings from solar? Use this free rooftop solar calculator by SolarSquare. 

5 Kilowatt Solar Panel Price With a Solar Loan

You can completely forget the hefty out-of-pocket investment in solar because solar is now well within reach of every Indian. Banks and NBFCs offer solar loans specifically designed for rooftop installations, covering every cost (from panels to inverters).

But with SolarSquare, you get an even smoother path:

• Zero Upfront Investment: Your government subsidy offsets the initial down payment. So, you’re starting from Rs. 0 out of your own pocket.
• Bill-Balanced EMIs: Monthly installments to offset the loan mirror your electricity savings. If your system generates more than the EMI amount, you pay nothing extra. Instead, you’ll get credits.
• Earnings on Surplus Power: Under the PM Surya Ghar Muft Bijli Yojana, DISCOMs credit you approximate Rs. 2 for every excess unit you feed back into the grid. This rate however depends from discom to discom.
• Flexible Tenures: Choose an EMI schedule from 3 to 60 months, aligning payments per your budget and monthly cash flow.

There’s more good news for you: SolarSquare’s loan plans have turned a 5 kW solar panel for home price in India from a luxury into a smart investment. Loan approvals come within 1-2 days!

Is 5 kW the Right Capacity for Your Home?

Now that you know everything about 5 kW solar panel cost with and without a subsidy, it’s time to teach you to figure out the right solar capacity for your home. 

The math is straightforward:

1. Collect every electricity bill of yours from the last 12 months
2. Add up all the monthly kWh figures: that’s your total electricity annual usage
3. Divide the yearly total from step 2 by *1,400 kW (the average annual yield from a 1 kW system)
4. The kilowatts you get is the capacity of the system you require to cover all your electricity needs

*On an average, a 1kW solar system produces 1,400-1,450 units per year.

Did you know? 

A 5 kW solar system can power 3-4 BHK homes, bungalows, villas, and even small offices, single-handedly powering appliances, including:

• 2 ACs
• 2 geysers
• A washing machine
• A refrigerator
• A TV
• 3-4 LED bulbs
• 1-2 tube lights
• 4-5 ceiling fans

What Are the Benefits of Installing a 5 kW On-grid Rooftop Solar System?

Here are three standout advantages of a 5 kW rooftop solar system:

• You get clean energy at scale: By swapping grid power for sunlight, a 5 kW system prevents as much carbon dioxide as planting 75 trees — no emissions, just pure sunshine.
• You gain true grid freedom: With a 5 kW solar system, you generate your own electricity and shrink your utility dependence and blackout risk.
• Quick ROI: Usually, the breakeven from installing a 5 kW solar system happens in around 3-5 years.

Why Choose SolarSquare’s 5.4 or 5.94 kW Solar System?

SolarSquare – one of India’s most notable manufacturers – offers 545 W MonoPERC bifacial panels that pack more power into each unit. Therefore, you can hit your target output of 7,000 units of electricity each year with fewer panels.

Here’s a straightforward calculation:

• 5,000 Watts (5 kW) / 545 Watts per panel = 9.25 panels, rounding up to 10 panels.
• 5940 Watts (5.94 kW) / 545 Watts per panel = 10.89 panels, rounding up to 11 panels.

By contrast, older 330 W modules require you to install about 15 panels for 5 kW, which uses more roof space and extra hardware. 

Additionally:

• SolarSquare offers a minimum 45 maintenance visits over 5 years for deep cleaning and preventive checks
• We are the only company in India that offers a Rs. 1 lakh leakage-free guarantee for 1 year

Conclusion

You now have all the data in hand: the starting range for a 5 kW solar system price in India after subsidy is between Rs. ~ 1,97,000 and Rs. ~ 2,92,000, generates around 7,000-7,250 units of electricity yearly, and is sufficient to power a 3-4 BHK home with ease.

However, you must bear in mind that the government subsidy of Rs. 78,000 will not be offered forever. Ready to never pay for electricity again? Book a free solar consultation with SolarSquare now. Let us handle the nitty gritty of going solar while you settle back to enjoy free electricity for the next 25 years of your life.

5 kW Solar Panel Price FAQs

Q 1. How many ACs can run in a 5 kW solar system?

A. A 5 kW solar system can power 2 ACs (1.5 tons each) or 1 AC along with other heavy appliances. 

Q 2. How much does a 5 kW solar system cost?

A. The starting cost of a 5 kW solar system in India after subsidy ranges between Rs. ~ 1,97,000 and Rs. ~ 2,92,000. However, the exact price varies, depending on factors like the types of panels and inverters you choose.

Q 3. Is there any subsidy for a 5 kW solar system in India?

A. Yes. The Indian government offers a subsidy of Rs. 78,000 to homeowners installing a 5 kW on-grid rooftop solar system for residential purposes. However, there’s no subsidy offered on off-grid solar or if you plan to use the solar system for commercial purposes. 

Q 4. Do solar panels work at night?

A. No. Solar panels produce electricity only when illuminated by sunlight. After dusk, an on-grid solar system draws power from the utility grid to maintain a household’s electrical supply.

Q 5. Which solar panels are best?

A. SolarSquare’s 545 W MonoPERC bifacial modules exemplify one of the highest-performing solar panel technologies, allowing you to assemble a 5.4 kW array with just 10 panels (or 5.94 kW with 11). By contrast, achieving the same output with conventional 330 W modules would require a minimum of 15 panels, increasing roof coverage and installation complexity.