Installing a 5kW solar system can be a great way for homes and businesses in India to utilize renewable energy while reducing electricity bills. However, the upfront cost of solar panel systems can be high. Luckily, the Indian government provides subsidies to make solar more affordable. This article will break down 5kW solar system prices across India, subsidy amounts, key solar scheme details, and more.

Overview of 5kW Solar Systems

A 5 kilowatt (5kW) solar photovoltaic system is an appropriately-sized system to meet the electricity needs of a medium to large home or small business in India. Key components include:

• Solar panels – Convert sunlight into usable electric energy. 5kW usually requires about 300-400 sq.ft of roof space.
• Inverters – Convert the DC output from panels into usable AC power. 5kW systems typically use a 5kW string inverter.
• Mounting structure – Securely holds panels in place. Roof, ground, pole, and carport mounts are options.
• Cables and switches – Safely transmit energy to point of use.
• Optional battery backup – Stores excess solar power in batteries for use when solar panels aren’t actively producing.

5kW solar systems generate about 22-25 units of electricity per day on average. They can offset about 75-90% of electricity needs for a typical home or small business. Larger 10kW or 20kW systems may be required for bigger loads.

5kW Solar System Price in India

The average price range for a complete 5kW solar system in India is Rs. 3,00,000 to Rs. 3,25,000 according to market data. However, prices can vary across states due to several factors:

• Brand, quality and type of equipment
• Site location and conditions
• Installation complexity
• Additional customization needs
• Local market rates and competition

Here are estimated 5kW solar system costs for some major cities, although exact quotes from installers may differ:

Key factors impacting 5kW solar system prices in India:

• Panel wattage/efficiency – Higher the wattage, higher the electricity generation
• Inverter type and capacity
• Storage batteries for off-grid/backup systems add cost
• Additional safety equipment, monitoring systems etc.
• Brand value and product quality result in pricing differences
• Complex installations on constrained roof spaces can increase labor and mounting expenses

5kW Solar System Price and Subsidy

The Indian government offers a subsidy of up to 32% for residential 5kW solar systems under the SRISTI scheme implemented through the Ministry of New and Renewable Energy (MNRE).

Solar Subsidy for Homes:

Additional 10% subsidy provided for special category states like northeastern states, Jammu & Kashmir, Himachal Pradesh etc.

This subsidy directly reduces system cost for residential consumers. The table below shows 5kW solar system prices after subsidy across India:

The key steps to avail the solar subsidy are:

1. Determine appropriate solar system size for your electricity load
2. Find a qualified installer/integrator under the SRISTI empanelled list
3. Installer will survey site, design system, provide pricing estimate
4. Apply for grid connectivity through DISCOM
5. Installer submits subsidy application to SRISTI portal on your behalf
6. Pay the discounted price after subsidy to installer
7. Government transfers subsidy amount directly to installer

Key Eligibility Criteria for Solar Subsidy:

• Grid-connected rooftop solar systems only
• System size up to 500kW
• Installations done through MNRE empanelled integrators
• Residential buildings, Group housing societies, Resident welfare associations (RWA)

Documents Required for Subsidy Application:

• Electricity bill copy
• Govt issued ID proof
• Building ownership documents
• Grid connectivity approval letter

Tata 5kW Solar System Price in India with Subsidy

Tata Power Solar is one of the leading solar panel manufacturers in India and a reputable company providing high-quality solar installations across the country.

As an MNRE channel partner empanelled under the subsidy schemes, Tata Power Solar offers appropriately-sized solar systems for homes and businesses.

The Tata Power Solar 5kW solar system price in India generally ranges between Rs. 2.75 lakhs to Rs. 3.10 lakhs based on location and specifications.

Their 5kW Rooftop EzyPower Solar solution includes Tata manufactured solar panels, string inverters, module mounting structures, and cables, along with design, installation, testing, commissioning and 5 years comprehensive maintenance.

As a technology and quality-focused company, Tata solar systems may come at a small premium compared to cheaper equipment. But the product and service quality provide a great long-term investment.

Applying the available 30% SRISTI solar subsidy, the final price range for Tata 5kW solar systems will be approximately:

Tata 5kW Solar System Price after Subsidy: Rs. 1.98 Lakhs to Rs. 2.25 Lakhs

This makes Tata Power Solar a strong contender for residential consumers aiming for the best quality equipment backed by a reputed brand.

On-Grid 5kW Solar System Price in India with Subsidy

On-grid solar systems are connected to the electricity grid, allowing any excess solar power generated during the day to be exported back to the grid. This enables consumers to earn extra income through net-metering besides just meeting internal load.

The specifications for a standard 5kW on-grid solar system are:

• 300-400 sq.ft shadow-free rooftop area
• 16-20 solar panels (320-400W each) totaling 5kW
• 5kW string inverter (or microinverters)
• Bi-directional net meter for grid export
• Mounting structures, junction boxes, cables etc.

The total price for a 5kW on-grid solar system in India ranges from Rs. 2.90 lakhs to Rs. 3.20 lakhs depending on the city.

Factoring in the applicable SRISTI subsidy of around Rs. 72,000, the effective out-of-pocket cost for a 5kW on-grid solar system ranges between Rs. 2.18 lakhs to Rs. 2.48 lakhs.

This investment can yield great long term returns by reducing grid electricity consumption month after month for 25+ years.

Off-Grid 5kW Solar System Price in India with Subsidy

Off-grid solar systems are stand-alone systems designed to operate independently without any connection to the grid. This makes them suitable for remote areas without grid access.

Since they must meet the entire electricity demand solely through solar, off-grid systems need:

• Larger solar panel capacity
• Battery backup to store excess solar power
• Charge controllers and inverters designed for off-grid operation

A standard 5kW off-grid solar system would comprise of:

• 8-10 kWp solar panels
• 4-6 kWh battery bank
• 5kW hybrid inverter/charger
• Charge controller and wiring

The total cost of a 5kW off-grid solar system in India ranges from Rs. 4.5 lakhs up to Rs. 6.5 lakhs depending on hours of backup, battery size, panels etc.

However, MNRE subsidy support is NOT applicable for off-grid solar systems as it targets only grid-connected rooftop installations under the current SRISTI policy.

So while off-grid solar systems provide electricity access for remote areas, consumers need to bear the full system cost without any government financial support.

Hybrid 5kW Solar System Price in India with Subsidy

Hybrid solar systems have both grid-connectivity as well as battery backup to provide 24×7 power. During the day, solar panels directly power the home’s loads while charging the batteries simultaneously. When solar production reduces in the evening or night, the battery bank kicks in to power essential loads. Grid acts as a secondary backup and also allows net metering to export excess solar power.

Components of a 5kW hybrid solar system include:

• 5kW solar panels
• 4-6 kWh battery bank
• 5kW hybrid inverter for both grid and off-grid operation
• Net and bi-directional meter for grid connectivity

5kW hybrid solar systems are priced between Rs. 4.75 lakhs to Rs. 5.50 lakhs across India.

Exact pricing depends on the solar battery capacity needs of each home to provide desired backup duration. More batteries mean longer backup but also higher cost.

When it comes to subsidies for 5kW hybrid solar systems, MNRE provides capital support only on the solar panel side, while storage battery components are excluded.

So the applicable SRISTI subsidy on a 5kW hybrid system will be around Rs. 72,000, calculated solely based on the 5kW solar panels.

Factoring this in, the effective out-of-pocket cost for a 5kW hybrid solar system will be Rs. 4.03 lakhs to Rs. 4.78 lakhs based on location and specifications.

State-wise 5kW Solar System Price and Subsidies

Solar system costs can vary across different states in India. Here is an overview of 5kW solar pricing, subsidies and net outlay for some major solar states:

Rajasthan

Being a leading solar state, Rajasthan has a well-developed market for solar installations.

• 5kW Solar System Price in Rajasthan: Rs. 2.80 lakhs to Rs. 3.10 lakhs
• Solar Subsidy: 30% under State Policy + Central Subsidy
• Effective System Price after Subsidy: Rs. 1.96 lakhs to Rs. 2.17 lakhs

Gujarat

Gujarat too has a mature solar industry given strong state policies.

• 5kW System Price in Gujarat: Rs. 2.70 lakhs to Rs. 3 lakhs
• Solar Subsidy: State subsidy of Rs. 10,000 per kW + Central subsidy
• Price after Subsidy: Rs. 1.88 lakhs to Rs. 2.08 lakhs

Maharashtra

Maharashtra has among the highest electricity rates, making solar highly lucrative.

• 5kW Solar System Price in Maharashtra: Rs. 3.15 lakhs to Rs. 3.57 lakhs
• Solar Subsidy: Rs. 72,000 central subsidy
• Price after Subsidy: Rs. 2.43 lakhs to Rs. 2.85 lakhs

Tamil Nadu

• 5kW System Price in Tamil Nadu: Rs. 2.85 lakhs to Rs. 3.15 lakhs
• Solar Subsidy: Rs. 72,000
• Price post Subsidy: Rs. 2.13 lakhs to Rs. 2.43 lakhs

Here is the continuation of the section on Haryana with the 5kW solar system pricing details:

Haryana

• 5kW Solar Price in Haryana: Rs. 2.90 lakhs to Rs. 3.20 lakhs
• Solar Subsidy: Rs. 72,000
• Effective Price after Subsidy: Rs. 2.18 lakhs to Rs. 2.48 lakhs

Haryana has moderate solar adoption, but a 5kW solar system can still provide good savings on electricity bills. After factoring in the central subsidy support, the out-of-pocket investment comes down to between Rs. 2.18-2.48 lakhs making it more affordable for homeowners and businesses.

Tamil Nadu:

• 50% capital subsidy on solar systems below 3kw + other benefits
• 5kw system approx ₹ 2.3 lakhs

Karnataka:

• 50% GBI on rooftop solar installations
• 5kw rate around ₹ 2.4 lakhs

In Delhi, Haryana, West Bengal there are generally no state-level incentives over and above the center’s 30% CFA which brings down system price to around ₹ 2.5 lakhs.

Rural households can avail an additional 10% discount on the base subsidy amount along with credit financing if needed.

To summarize, thanks to the federal and state-level incentives, the current outlay for installing a grid-connected 5kw solar rooftop system ends up in the ₹ 1.8 lakhs to ₹ 2.5 lakhs range depending on your state. This offers a great value proposition for long term energy savings.

providers like Tata, Loom Solar and Waaree also offer integrated packages including panels, inverters, install services etc to claim the subsidies easily. Their 5kw solar system quotes are very cost competitive.

Key Benefits of 5kw Rooftop Solar Power Plant

Installing a 5kw solar power plant on your home or office can deliver the following techno-commercial benefits:

• Reduce monthly electricity bills by 50-90% through solar self-consumption replacing grid power
• Earn revenues of ₹3,000-5,000 per year by selling surplus solar power to distribution company at ₹2-3/kWh
• Accelerate your ROI within 4-6 years with subsidies plus lower energy bills
• Lock-in clean solar power costs for 25 years helping manage inflationary grid tariffs
• Take charge of your energy future with partial independence from grid supply issues
• Hedge against rising retail electricity prices with solar
• Significantly bring down overall lifetime energy costs
• Add value to your property for future sale or rentals
• Showcase your social commitment towards sustainability and RE adoption

So in a nutshell, a 5kw solar roof system can help you stabilize and lower electricity expenses for decades to come. You also reduce yearly carbon emissions by 5,500 kg on average while buffeting your home or enterprise against energy inflation.

Frequently Asked Questions

Here are some common queries potential homeowners/business owners may have regarding small-scale solar installations to help clarify the costs and process.

Q: How much space do I need for a 5kw solar system?

A: You would need approximately 500 sq.ft or more of unshaded rooftop area facing direct sunlight to install 20 panels of 250W each totalling 5kw capacity. Exact area needed depends on the module power rating and efficiency.

Q: How to apply for the solar subsidy on 5kw systems?
A: You can apply for the central financial assistance (CFA) and state benefits online on the respective renewable energy department portals. The process is fairly smooth aided by solar vendors.

Q: What are the maintenance costs for a 5kw setup?

A: Cleaning panels every few months is advisable for max. power generation. The inverter may need replacement after 10 years. Other than that, very little maintenance expenditure is required for trouble-free solar performance.

Q: What documents do I need to claim the subsidy benefit?

A: Relevant home ownership/occupancy proof, electricity bill copies, vendor installation invoice along with technical specs of components used are some key documents. IDs, firm details also need to be submitted in certain cases.

Q: Can I separately claim depreciation benefit over and above subsidies?
A: Yes, accelerated depreciation of up to 40% can further sweeten your solar investment apart from claiming subsidies and lower tariffs.

Conclusion

Installing a 5 kilowatt solar PV system can be a great way for Indian households and commercial setups to lock in lower, predictable energy costs for 25 long years. Thanks to generous federal and state clean energy subsidies, the outlay for a good quality solar system is brought down to just ₹ 1.8 lakhs to ₹ 2.5 lakhs depending on your location. This amounts to nearly 50% funding assistance through government capital incentives!

With system costs set to decline further and retail power tariffs ever rising, a 5kw solar plant is undoubtedly a smart investment allowing you to take charge of your energy future. If you have been sitting on the fence pondering the switch to solar, there has possibly never been a better time thanks to the supportive incentives. Go for an expert site assessment and vendor quotation to evaluate the numbers in detail and make the switch for decades of free solar power starting this year!