# 5kW Solar Panel System Price in India: Complete Cost Breakdown (2025)

Switching to solar power is becoming one of the smartest decisions for Indian households, especially in 2025 when electricity charges keep increasing every year. Among all solar options available today, a 5kW solar panel system is one of the most popular choices. It is powerful enough to run most home appliances, reduce your electricity bill to almost zero, and still remain affordable for a medium-size family.

In this complete guide, you will learn everything about the [5kW solar panel system price in India](https://avaadaelectro.com/5kw-solar-panel-system-price-in-india-with-subsidy/), what affects the cost, how much subsidy you can get, and how much electricity and savings you can expect. This blog uses simple and easy English, so even beginners can understand solar power clearly.

Let’s get started.

What Is a 5kW Solar Panel System?
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A 5kW solar system is a power-generating system that can produce up to 5 kilowatts (5000 watts) of electricity when placed under sunlight. It usually includes solar panels, an inverter, mounting structures, wiring, and sometimes batteries (only in off-grid or hybrid systems).

### System Capacity and Power Output

A 5kW system can generate:

* 20 to 25 units per day

* 600 to 750 units per month

These numbers may vary depending on weather, location, and panel quality.

A system of this capacity is ideal for:

* Medium to large homes

* Homes with AC, fridge, washing machine, and other heavy appliances

* Small businesses

* Shops and small offices

### Applications of a 5kW Solar System

A 5kW solar system can easily power:

* 2–3 ceiling fans

* 1–2 ACs

* Refrigerator

* Lights and LEDs

* Washing machine

* Mixers, pumps, water heaters

* Computers, TV and more

In small commercial spaces like shops, coaching centers, and clinics, it works as a reliable energy source. If you add batteries, the system becomes even more useful during power cuts.

5kW Solar Panel System Price in India (2025)
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The cost of a 5kW solar system in India varies depending on the type of system (on-grid, off-grid, hybrid), the brand, and the components used.

### Average Price Range

In 2025, the average price of a 5kW solar panel system in India is:

* On-Grid System: ₹2,50,000 – ₹3,20,000

* Off-Grid System: ₹3,80,000 – ₹4,80,000

* Hybrid System: ₹4,20,000 – ₹5,20,000

This is only the average range. Your final cost may change depending on additional factors.

### Factors Affecting the Price

Several important elements influence the final price of a 5kW system.

#### 1\. Solar Panel Type

* Mono PERC panels: Highly efficient and common in India

* TOPCon panels: Better performance, slightly higher price

* Bifacial panels: Generate power from both sides, best for open roofs

#### 2\. Inverter Type

* String inverters (most common)

* Microinverters (more efficient but expensive)

#### 3\. Battery Requirement

* Only needed for off-grid and hybrid systems

* Lithium-ion batteries cost more but last longer

#### 4\. Installation Structure

* Standard structure for flat or sloped roofs

* Customized elevated structures cost extra

#### 5\. Brand and Warranty

Premium brands offer stronger warranties, better quality, and longer lifespan.

Complete Cost Breakdown of a 5kW Solar System
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Here is the detailed breakdown of what makes up the total cost.

### Solar Panels Cost

In 2025, high-quality solar panels cost:

* ₹28–₹38 per watt (depending on type and brand)

For a 5kW system:

* Panels alone cost ₹1,40,000 – ₹1,90,000

### Solar Inverter Cost

A good inverter is essential for converting DC power into usable AC power.

* String inverter (5kW): ₹30,000 – ₹45,000

* Microinverter setup: ₹60,000 – ₹80,000

### Battery Cost (If Required)

Used only in off-grid or hybrid systems:

* Lithium-ion battery (5kWh): ₹55,000 – ₹70,000 each

* Lead-acid batteries: ₹25,000 – ₹30,000 each (but shorter lifespan)

A 5kW off-grid system may need:

* 8–12 kWh battery bank, costing ₹1,20,000 – ₹2,00,000

### Installation, Wiring & Accessories

This includes:

* Mounting structures

* DC wiring

* AC wiring

* Earthing kit

* Lightning arrestor

* Protection devices (MCB, SPD, DCDB, ACDB)

* Labour cost

Expected cost: ₹25,000 – ₹40,000

### Total Estimated Cost Summary Table

Component

Estimated Cost (₹)

Solar Panels

1,40,000 – 1,90,000

Inverter

30,000 – 80,000

Batteries (optional)

1,20,000 – 2,00,000

Installation + Wiring

25,000 – 40,000

Total Cost (On-grid)

2,50,000 – 3,20,000

Total Cost (Off-grid)

3,80,000 – 4,80,000

Total Cost (Hybrid)

4,20,000 – 5,20,000

5kW Solar System Types & Their Prices
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### On-Grid 5kW Solar System Price

This is the most popular and affordable system. It does not require batteries.

* Price: ₹2,50,000 – ₹3,20,000

* Ideal for areas with continuous electricity

* You can use net metering to send extra power to the grid

### Off-Grid 5kW Solar System Price

This system works independently of the grid and uses batteries for backup.

* Price: ₹3,80,000 – ₹4,80,000

* Ideal for villages or areas with frequent power cuts

* Battery replacement cost after 6–10 years

### Hybrid 5kW Solar System Price

Hybrid systems combine both on-grid and off-grid features.

* Price: ₹4,20,000 – ₹5,20,000

* Best for homes needing battery backup AND net metering

* Higher upfront cost but most flexible option

Government Subsidy on 5kW Solar System in India (2025)
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In 2025, the PM Surya Ghar: Muft Bijli Yojana provides attractive subsidies for homeowners installing solar.

### New Subsidy Policy Under PM-Surya Ghar Yojana (2025)

For a 5kW system:

* Subsidy for 3kW = ₹78,000

* Subsidy for next 2kW = ₹18,000

* Total subsidy = ₹96,000

This subsidy is available only for residential on-grid systems.

### Net Metering Rules

Net metering allows you to:

* Send excess electricity to the grid

* Receive credits to reduce your bill

* Pay only for the units you import

A 5kW system with net metering can bring monthly bills close to zero.

Space Requirements for a 5kW Solar System
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### Roof Area Needed

A 5kW system requires:

* 350–450 sq. ft. of shadow-free roof area

* South-facing direction for maximum power generation

If your roof receives shade for even 2–3 hours a day, generation may reduce.

### Weight and Structural Requirements

Solar panels are light, but the mounting structure must be strong.

* Panels weigh about 20–25 kg each

* A good mounting structure ensures stability during wind or storms

Most Indian roofs can handle the load comfortably.

Electricity Savings from a 5kW Solar Panel System
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### Monthly & Yearly Savings

A 5kW system generates around:

* 600–750 units/month

* 7200–9000 units/year

If your electricity unit cost is ₹7–₹10 per unit, the savings are:

* ₹4,500 – ₹7,500 per month

* ₹54,000 – ₹90,000 per year

### Payback Period (ROI)

With subsidy, an on-grid system costs around:

* ₹2,50,000 – ₹3,00,000 (after subsidy)

If you save ₹60,000 per year:

* Payback period = 4 to 5 years

After that, electricity is almost free for the next 20+ years.

Best 5kW Solar System Brands in India
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### Top Solar Panels

Some of the best brands are:

* Adani Solar

* Tata Power Solar

* Waaree Energies

* Vikram Solar

* Longi Solar

* REC Solar

These brands offer 25-year performance warranties and high efficiency.

### Best Solar Inverters

Popular inverter brands include:

* Growatt

* Luminous

* Sungrow

* Microtek

* Enphase (microinverters)

A good inverter ensures stable and safe power supply.

Should You Install a 5kW Solar System?
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### Who Should Choose 5kW?

Choose a 5kW system if:

* Your monthly electricity bill is ₹4,000 – ₹7,000

* You use 1–2 air conditioners

* You have a 2BHK or 3BHK home

* You want long-term savings

### Advantages & Limitations

#### Advantages

* Saves up to ₹60,000 – ₹90,000 yearly

* Reduces electricity bills to almost zero

* Low maintenance

* 25-year panel lifespan

* Eco-friendly

#### Limitations

* Requires enough roof space

* Off-grid systems need battery replacement

* Upfront investment is high

Tips for Buying a 5kW Solar Panel System
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### How to Compare Quotes

Before buying, compare these factors:

* Panel wattage and efficiency

* Inverter quality

* Warranty on components

* Installation type and materials

* Battery capacity (if needed)

* Net metering support

* Subsidy assistance

### Warranty & After-Sales Support

Choose only those installers who offer:

* 5-year installation warranty

* Fast customer support

* Annual maintenance services

Conclusion
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A 5kW solar panel system is one of the smartest investments for Indian homes in 2025. It offers excellent power output, great savings, and long-term benefits for your family. Although the upfront cost may feel high, the savings you get in the next 20 years make solar a highly profitable investment.

With government subsidy, strong brands, and advanced panel technologies, installing a 5kW solar system has become easier, cheaper, and more beneficial than ever.