5kW Solar System Price in India 2026 (With Subsidy)

What does a 5 kW solar system cost in India in 2026?

A 5 kW grid-connected home solar system in India works out to about ₹2,35,000 at the MNRE benchmark cost used in the PM Surya Ghar subsidy formula (₹50,000/kW for the first 2 kW plus ₹45,000/kW for the next 3 kW), while real installed quotes typically land around ₹2.75–3.5 lakh including GST, scaled from published per-kW anchors of ₹55,000–70,000/kW. The central subsidy stays fixed at ₹78,000 no matter how much capacity you add above 3 kW, and Haryana's state scheme still helps at 5 kW with up to ₹97,500 of interest-free, bill-recovered assistance.

TL;DR: Benchmark ₹2.35 lakh is a subsidy-calculation figure, not a quote — market quotes for 5 kW run about ₹2.75–3.5 lakh including GST. Central PM Surya Ghar subsidy is ₹78,000 (the ceiling); Delhi's top-up takes combined support to ₹1.56 lakh, Haryana adds ₹97,500 via electricity bills, UP ₹1.08 lakh and Rajasthan ₹95,000. A 5 kW plant generates about 600–720 units a month in North India and pays back in roughly 5 years for a home consuming 700–800 units a month. The scheme runs until 31 March 2027.

Last verified: 7 November 2026

Where the ₹2.35 lakh benchmark comes from

The PM Surya Ghar subsidy is not paid on your invoice — it is computed from a benchmark cost MNRE fixed when the scheme launched in February 2024. The MNRE guidelines (updated July 2025) pay residential consumers:

Source: MNRE's PM Surya Ghar guidelines. The arithmetic for 5 kW: ₹50,000 × 2 kW = ₹1,00,000, plus ₹45,000 × 3 kW = ₹1,35,000, giving a ₹2,35,000 notional benchmark — but because the CFA stops growing at 3 kW, the subsidy you receive is the same ₹78,000 as a 3 kW system.

In special-category states and UTs (J&K, Himachal, Uttarakhand and others), the central CFA is 10% higher — max ₹85,800 — because their benchmark is set higher. The benchmark is a notional figure for the subsidy formula, not a quote you can demand from a vendor.

What you will actually be quoted for 5 kW

Three published per-kW anchors bracket the realistic range:

So a realistic installed quote for 5 kW is roughly ₹2.75–3.5 lakh including GST, depending on module brand, mounting height, structure work, cabling length and city logistics. On GST: solar modules and devices carry 5% GST since 22 September 2025; a full home-system quote blends that with other components, so treat the per-kW anchors above as the practical guide. After the ₹78,000 central subsidy, your out-of-pocket cost is roughly ₹2.0–2.7 lakh — before any state top-up.

Subsidy on a 5 kW system, state by state

The mechanics differ more than the amounts — Delhi and UP route their share through the national portal as DBT, Rajasthan's discom verifies and transfers separately, and Haryana's assistance is credited against your electricity bill in instalments over two years (it funds your upfront cost but is paid back). Every amount and mechanism, with government sources, is in our PM Surya Ghar state top-up guide, and the per-state details are in our Delhi, Haryana, UP and Rajasthan guides.

What a 5 kW system generates and saves

A 5 kW plant in North India typically generates about 600–720 units a month averaged over the year (roughly 120–145 units per kW) — our units-per-kW guide for North Indian cities shows the city-wise spread. That is about 9–10 panels of 540–575 Wp each.

Worked example, with the assumptions stated: a home consuming about 800 units/month (two ACs, EV charging, standard appliances), a 5 kW plant generating ~650 units/month, with generation fully offset against grid draws. At CREST's tariff value of about ₹5.4/unit for offset units, monthly savings are roughly 650 × ₹5.4 ≈ ₹3,500/month. Against a net investment of about ₹2.0–2.7 lakh (₹2.75–3.5 lakh quote minus the ₹78,000 CFA), simple payback works out to roughly 5–6 years, leaving 19–20 years of essentially free generation over the 25-year plant life.

Roof area needed: about 30–37 sq m of shadow-free space — our roof area guide per kW covers the general rule of thumb.

Is 5 kW worth it when the subsidy stops at 3 kW?

Yes, if your consumption justifies it. The central CFA stops growing at 3 kW, so the extra 2 kW is unsubsidised — but those 2 kW still cost only about ₹1.1–1.4 lakh installed and save roughly ₹10,000–13,000 a year at the tariffs above, which is itself a 9–12% annual return on that increment. Sizing to consumption beats sizing to subsidy:

• Homes using 300–400 units/month: a 3 kW system usually offsets most of the bill and captures the full ₹78,000 CFA efficiently.
• Homes using 600–800+ units/month, with EVs or planning them: 5 kW matches the load, and surplus exports are settled at modest APPC-linked rates at year-end (Delhi's own illustration uses about ₹6.5/unit for surplus).
• In Delhi, households using up to 400 units/month may not need to pay anything at all — the zero-upfront Discom Trusteeship route covers a system up to 3 kW entirely; see our Delhi free rooftop solar guide.

Financing note: collateral-free repo-linked loans (about 5.75% p.a., 10-year tenure at the last government update) are available for residential rooftop systems — details in our PM Surya Ghar loan guide.

Application rules that apply at 5 kW

• DCR modules only — modules and cells must both be made in India for the CFA; a non-DCR system forfeits the subsidy.
• Empanelled vendor only — installation must go through a vendor registered on the PM Surya Ghar national portal; the full flow is in our step-by-step application guide.
• One subsidy per household, once — a plant that has claimed CFA cannot claim again.
• Scheme deadline — PM Surya Ghar is approved until 31 March 2027; the installation needs to fit inside the window for the CFA to apply.

Frequently Asked Questions

What is the price of a 5 kW solar system after subsidy?

Roughly ₹2.0–2.7 lakh after the ₹78,000 central CFA, assuming a gross quote of ₹2.75–3.5 lakh including GST. In Delhi the combined ₹1.56 lakh of central plus state support brings it to about ₹1.2–1.9 lakh, and in Haryana the ₹97,500 bill-based assistance reduces your effective upfront outlay further.

Why is there no subsidy above 3 kW — is 5 kW still worth it?

MNRE's guidelines cap the CFA at the 3 kW level (₹78,000); capacity beyond that earns no additional subsidy. The extra 2 kW is still usually worth installing for homes consuming over 600 units a month, because it costs about ₹1.1–1.4 lakh and saves more than that within roughly 9–12 years at typical tariffs — and far sooner with EV charging added. Size to your consumption, not to the subsidy ceiling.

How many solar panels are in a 5 kW system?

About 9–10 panels of 540–575 Wp each, needing roughly 30–37 sq m of shadow-free roof area.

How many units does a 5 kW solar system generate per day?

About 20–24 units a day on annual average in North India (600–720 units/month), more in summer, less in monsoon and winter. City-level numbers are in our units-per-kW guide.

Which state gives the most subsidy on a 5 kW system?

Delhi — its ₹26,000/kW state top-up doubles the central support to a combined ₹1.56 lakh, the highest total support of any state. Haryana's ₹19,500/kWp scheme is the only state support that still extends to 5 kWp (₹97,500 maximum), though it is interest-free assistance recovered through bills rather than a grant.

Is 5 kW enough for a home with an EV and two ACs?

Usually yes. Two ACs plus a household's base load and periodic EV charging typically adds up to 600–900 units a month, which a 5 kW plant (600–720 units/month) offsets substantially. If you consume beyond that, excess imports still bill at the normal slab tariff; the plant size should follow a 12-month consumption history.

Does a 5 kW system need DCR panels for the subsidy?

Yes. PM Surya Ghar eligibility requires domestically manufactured modules and cells (DCR). Consumers who voluntarily forgo the subsidy via the scheme's "Give It Up" option are exempt from the DCR requirement.

Sources

• MNRE — Guidelines for PM Surya Ghar: Muft Bijli Yojana
• CREST Chandigarh 3 kWp cost-benefit example — Times of India, February 2026
• Haryana rooftop solar targets and norms — Times of India, June 2026
• Central Bank of India — Roof Top Solar Loan Scheme
• MNRE Lok Sabha answer on benchmark costs and CFA disbursals, August 2026