5KW Solar System: A Complete Guide about Benefits, Subsidy, Price, and More

Solar power is constantly becoming the preferred choice for homeowners as an affordable and clean source of electricity. It helps in creating a healthier environment with no or reduced carbon footprints and saves electricity bills. A 5kw (kilowatt) rooftop solar system services is a great solution to effectively run homes and workplaces of medium load in India.

What is a 5kw solar system?

This is a self-sustainable solar product installed on a rooftop to successfully satisfy the power requirements for homes and other places. This solar system can produce 5,000 watts of electricity. However, it can produce about 4000-5000kwh electricity yearly based on the solar panel orientation and location.

India’s 5kw solar system works just like all other similar solar products i.e. convert solar power into electric energy for the successful functioning of various electric appliances. These systems use 5kw solar inverters to convert DC (direct current) to AC (alternating current) power that can later be used to run domestic and commercial appliances.

Who should purchase 5kw solar panels?

People who consume approximately 600-620 units of power per month can buy 5kw solar panels. Before purchasing the panels, it is good to contact a solar engineer and get some useful insights on the system, installation, and difference between the investment and return.

To check the energy requirements of your home, shop, or small office, look at your utility (electricity) bills. See how many kilowatt-hours (kWh) you consume monthly. 1kwh is equal to 1000 watts used per hour. Divide the total number of kilowatt-hours used by the total number of days given in the bill to calculate the average electricity use.

Benefits of a 5kw solar system

By producing your own energy using solar street light services, solar panels, and other solar systems, you can relieve yourself from grid reliance. It can provide numerous benefits –

Reduced electricity bills

You can start saving your electricity bills right from the first day after the 5kw solar system installation. The sun, contrary to traditional sources of energy, is a free source of power that produces electricity from the sun’s rays.

By producing your own clean solar electricity with no carbon dioxide emissions and no higher investment, you can ensure less use from the grid. This eventually saves the monthly bills and getting back upfront 5kw solar power system cost in approximately 6-8 years.  

Clean & Green Environment

Alongside payback timeline and electricity bill savings, emission-free solar systems also help in contributing to a safer, healthy, and pollution-free environment. Using solar rooftop panels and other systems in residential and commercial areas, one can reduce the dependency on quickly reducing traditional resources.

Get solar credits

To reduce rooftop solar challenges like the rooftop solar energy system cost, new initiatives are being used such as net metering. It is a billing mechanism that credits solar system users for the power they include in the grid.

Under this mechanism, grid-interactive solar energy systems are created to transfer unused electricity units to a local grid. The provided solar credits can be used to purchase grid electricity. Or, these can simply be converted into cash by the end of that particular year.    

Types of 5kw solar systems

There are basically 3 types of 5kw home solar systems, each having varying features, functionalities, prices, and combinations of products.


This type of solar system is regulated under the mechanism of net metering and has fewer components than off-grid and hybrid solar systems. This is the most cost-effective solution for the solar demands of residential customers.


This solar system is perfect if there is a frequent and prolonged power failures. You can get this system installed in your home if your locality does not have a local grid. You can get a 24/7 supply of electricity by combining 5kw solar systems with robust batteries.   


A 5kw hybrid solar system is a combination of 5kw on-grid and off-grid solar systems. It means this system has batteries and a net metering mechanism. You can draw power from the grid and batteries as per your requirement. When you get excess solar energy output, the remaining electricity gets stored in the batteries to be used later.   

What appliances can easily function with a 5kw solar panel?

This highly popular solar-powered system – a 5kw solar panel produces about 20 units of electricity per day. Hence, it is ideal for 2BHK and 3BHK flats/homes, duplex homes, villas, and large bungalows. This solar system is also beneficial to power 2-3 storey offices, restaurants, educational institutes, and other commercial buildings.

A 5kw solar panel system can effectively run several kitchen and home appliances. For example, washing machines, fans, lights, dishwashers, computers, microwaves, geysers, coolers, and more appliances up to a specific wattage.  

Price of a 5kw solar panel

The cost of a 5kw solar system in India depends on so many factors such as the brand of a solar panel, your location, the efficiency rating of the solar panel, and installation quality. Urban regions are more likely to cost higher installation charges because of the higher labor costs. Rural areas, on the other hand, have comparatively reduced installation costs.

A solar panel with poor installation quality may not work properly and require more frequent maintenance costs than a perfectly installed system. Many Indian states provide incentives and discounts for the installation of solar power. This helps balance the initial installation cost.

The cost of solar panels can range from 60,000 – 1.5lakh. The average cost of a 5kw on-grid solar system is Rs. 2,50,000; a 5kw off-grid solar system cost is Rs. 3,50,000; and a 5kw hybrid solar system cost is Rs. 4,50,000.   

5kw solar system specifications

A solar inverter, the system balance (fuses, distribution boxes, cables, and MCBs), solar mounting structure, solar panels, and solar batteries (optional) are the key components of a 5kw solar system. These systems have the capacity to generate 20kwh electricity per day, 600kwh electricity monthly, and 7200kwh electricity yearly. Just a 500 square feet area is sufficient for a 5kw solar panel system.

Subsidy of 5kw solar systems in India

The CFA (Central Financial Assistance)/Central Government Subsidy is available on the rooftop solar systems installed for residential purposes across Indian regions. Rs. 14,588/kw subsidy is applicable on rooftop solar systems with up to 3kw capacity, Rs. 7,294/kw* subsidy for more than 3 kw and up to 10 kw system capacity, and Rs. 94,822** subsidy for more than 10kw system capacity.

The amount of subsidy is fixed for all rooftop solar systems having more than 10kw capacity. No subsidy is applicable on 5kw off-grid solar systems. However, you will see a significant change in the prices of 5kw on-grid and hybrid solar systems after subsidy. The cost of solar batteries is not included in the calculation of the subsidy amount.   


A 5kw solar system is a perfect choice for a home or office with an average electricity use of 3,000-5,000kwh yearly. And, since now you know the benefits, cost, applications, subsidies, and other facts about a 5kw solar panel system, it’s time to switch to a reliable solar energy supply for your home.

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