5kW Solar System Installation in India: Cost, Benefits, Subsidy & Complete Guide (2026)

Akash Bayner
7 hours ago
3 min read

With rising electricity prices and frequent power cuts, installing a 5kW solar system in India has become one of the smartest long-term investments for homes, offices, and small commercial spaces. A 5 kilowatt solar power system can significantly reduce your electricity bills while supporting clean and sustainable energy.

This detailed guide explains everything you need to know about 5kW solar panel installation, including cost, subsidy, power generation, space required, and return on investment in India.

What Is a 5kW Solar System?

A 5kW solar system is a medium-capacity solar power setup that generates around 18–22 units (kWh) of electricity per day, depending on location and sunlight availability. It is ideal for households with monthly electricity consumption between 500–800 units.

Suitable For:

Independent houses
Large apartments
Small offices
Shops, clinics & restaurants
Small factories and warehouses

Types of 5kW Solar Systems in India

1. 5kW On-Grid Solar System

Connected to the electricity grid
Net metering allows export of excess power
No battery required
Lowest cost option

Best for: Urban homes and commercial buildings

2. 5kW Off-Grid Solar System

Works independently without grid connection
Includes battery storage
Higher installation cost

Best for: Rural areas with power cuts

3. 5kW Hybrid Solar System

Combines on-grid + battery backup
Power during outages
Flexible and future-ready

5kW Solar System Cost in India (2026)

The cost of a 5kW solar system in India depends on system type, brand, and installation quality.

Approximate Prices:

On-grid: ₹2.5 lakh – ₹3.2 lakh
Off-grid: ₹3.8 lakh – ₹4.8 lakh
Hybrid: ₹4.2 lakh – ₹5.5 lakh

💡 Prices vary by city, inverter brand, panel efficiency, and mounting structure.

5kW Solar System Government Subsidy in India

Under the MNRE rooftop solar subsidy scheme, residential consumers can avail subsidy for on-grid solar systems.

Subsidy Details:

Up to 40% subsidy on benchmark cost (for residential)
Available only for homes (not commercial)
Net metering mandatory

⚠️ Subsidy policies may vary state-wise and are subject to government updates.

Power Generation from a 5kW Solar System

A 5kW solar plant in India typically generates:

Daily: 18–22 units
Monthly: 550–650 units
Yearly: 6,500–7,800 units

Generation depends on:

City/location
Roof direction (south-facing is best)
Shadow-free area
Panel quality

Space Required for 5kW Solar Installation

For a standard rooftop installation:

Area required: 450–550 sq. ft.
Shadow-free roof is essential
RCC, metal sheet, or ground mounting possible

5kW Solar Panel Specifications

A typical 5kW setup includes:

10–12 solar panels (450W–550W each)
5kW solar inverter (string or hybrid)
ACDB & DCDB boxes
Solar mounting structure
Cables, connectors, earthing & lightning arrestor

Top solar panel brands in India include:

Adani Solar
Waaree
Tata Power Solar
Vikram Solar
RenewSys

Installation Process of a 5kW Solar System

Site survey & load analysis
System design & layout approval
Mounting structure installation
Solar panel and inverter installation
Wiring, earthing & safety setup
Net meter installation
Testing & commissioning

⏱️ Installation time: 7–15 days

Maintenance of 5kW Solar Power System

Solar systems require minimal maintenance:

Panel cleaning once every 15–30 days
Annual inverter check
Monitor generation through app or meter

🧼 Clean panels = higher output

Return on Investment (ROI) for 5kW Solar System

Electricity Savings:

Monthly savings: ₹4,000–₹6,000
Annual savings: ₹50,000–₹70,000

Payback Period:

4–6 years (with subsidy)
System lifespan: 25+ years

After payback, electricity is almost free for decades.

Advantages of Installing a 5kW Solar System

Massive reduction in electricity bills
Protection against tariff hikes
Eco-friendly and renewable energy
Increased property value
Government subsidy benefits
Low maintenance cost

Is a 5kW Solar System Worth It in India?

Absolutely. With abundant sunlight, rising power costs, and supportive government policies, a 5kW rooftop solar system in India is one of the best investments for homeowners and small businesses. It offers long-term savings, energy independence, and environmental benefits.