23 October 2026
A 5 kW solar system costs ₹2,80,000 to ₹3,80,000 in India in 2026 before subsidy. The PM Surya Ghar subsidy is capped at ₹78,000 regardless of size, so your net cost is ₹2,02,000 to ₹3,02,000. The system produces 450 to 750 units a month depending on your state, needs 400 to 450 sq ft of shade-free roof, and typically pays back in four and a half to six years.
The subsidy cap is the detail that catches most buyers out. A 3 kW system collects the same ₹78,000 as a 5 kW one, so the extra 2 kW is bought entirely at your own cost. That still makes sense for the right household, and this guide shows exactly when it does.
| Component | Cost range | Notes |
| Solar modules (5 kW) | ₹1,10,000 to ₹1,50,000 | ₹22 to ₹30 per watt at module level |
| Inverter (5 kW on-grid) | ₹32,000 to ₹65,000 | Single or three phase, depending on your connection |
| Mounting structure | ₹40,000 to ₹70,000 | Galvanised steel, grade and coating matter |
| Cables, earthing, protection | ₹25,000 to ₹40,000 | Longer DC runs than a 3 kW system |
| Installation and commissioning | ₹35,000 to ₹50,000 | Three to four days of work |
| Net meter and DISCOM fees | ₹5,000 to ₹20,000 | Varies by state; may need a load upgrade |
| Total before subsidy | ₹2,80,000 to ₹3,80,000 | ₹56,000 to ₹76,000 per kW |
Note the per-kW figure. A 5 kW system costs slightly less per kilowatt than a 3 kW one, because labour, liaison and the net meter are close to fixed costs spread across more capacity. That is the one economy of scale working in your favour here.
| System size | Cost before subsidy | Subsidy | Net cost | Net cost per kW |
| 3 kW | ₹1,65,000 to ₹2,25,000 | ₹78,000 | ₹87,000 to ₹1,47,000 | ₹29,000 to ₹49,000 |
| 5 kW | ₹2,80,000 to ₹3,80,000 | ₹78,000 | ₹2,02,000 to ₹3,02,000 | ₹40,400 to ₹60,400 |
Per kilowatt, a 5 kW system costs you noticeably more after subsidy than a 3 kW one. The decision therefore comes down to consumption, not to the subsidy. If you genuinely use 500 to 700 units a month, the extra capacity pays back on its own merits because every unit it generates replaces a unit you were buying at the highest slab rate. If you use 350 units, the surplus only earns whatever your state's export tariff pays, which is usually well below the retail rate. Our net metering guide covers how each state treats exported units, and the 3 kW guide sets out the smaller option in full.
| Region | Units per month | Annual saving at ₹8/unit |
| Gujarat, Rajasthan, Madhya Pradesh | 660 to 750 | ₹63,000 to ₹72,000 |
| Maharashtra, Karnataka, Telangana, Tamil Nadu | 570 to 660 | ₹54,700 to ₹63,000 |
| Uttar Pradesh, Bihar, Punjab, Delhi | 500 to 600 | ₹48,000 to ₹57,600 |
| West Bengal, Assam, hill states | 450 to 530 | ₹43,200 to ₹50,900 |
Most 5 kW systems sit at the boundary between the two. A single-phase connection can usually take 5 kW, but several DISCOMs require a three-phase connection above a certain sanctioned load, and some cap single-phase solar exports. A three-phase inverter costs ₹8,000 to ₹15,000 more and the connection upgrade adds its own DISCOM charge.
Settle this before signing, because discovering it after installation means re-doing the inverter and the net metering application. Ask your installer to confirm your sanctioned load and the DISCOM's limit in writing.
Take a mid-range build at ₹2,50,000 net, generating 6,600 units a year in a central Indian city. At ₹8 per unit that saves ₹52,800 in year one, giving payback in about four years and nine months. Tariff escalation of 3 to 5% a year brings it closer to four and a half.
One cost to plan for: the inverter will need replacing once, usually between years ten and fifteen, at ₹35,000 to ₹60,000 for a 5 kW unit. Modules keep going, with a linear warranty guaranteeing at least 80% output at year 25. Our warranty guide explains the difference between product and performance cover, which matters more on a system this size.
Seven modules of 725 to 745 Wp, eight of 630 W, or nine of 580 W will build 5 kW. Fewer large modules cut mounting hardware and connection points; more smaller ones fit awkward roof shapes and are easier to handle on a tight staircase.
Check the same six datasheet lines whatever you choose: BIS registration number for the exact model, ALMM listing, module efficiency, temperature coefficient, degradation rate and the IP rating of the junction box. The technology guide explains what each figure tells you, and verification against the MNRE ALMM list is the step that protects your subsidy claim.
Credence Solar manufactures BIS-certified modules from 580 W to 745 Wp at a 2.2 GW plant in Rajkot. Full specifications are on our datasheet page, and the PM Surya Ghar portal lists registered vendors in your district.
A 5 kW solar system costs ₹2,80,000 to ₹3,80,000 before subsidy and ₹2,02,000 to ₹3,02,000 after the capped ₹78,000. It makes sense for homes genuinely consuming 500 units a month or more, particularly with an electric vehicle in the picture. Below that level of consumption, a 3 kW system gives a better return per rupee because it collects the same subsidy on a smaller outlay. Size the system to your bill, confirm your phase connection early, and budget for one inverter replacement across the system's life.
For module specifications or dealer pricing, get in touch with our team.
₹2,80,000 to ₹3,80,000 before subsidy for a complete on-grid system, which works out to ₹56,000 to ₹76,000 per kW. After the ₹78,000 PM Surya Ghar subsidy the net cost is ₹2,02,000 to ₹3,02,000. Three-phase installations and premium TOPCon modules sit at the upper end.
₹78,000, the same as on a 3 kW system, because the central PM Surya Ghar subsidy is capped at 3 kW and above. Some states add ₹10,000 to ₹30,000 of their own. The extra two kilowatts over a 3 kW system are therefore paid for entirely by you.
Between 15 and 25 units a day, or 450 to 750 units a month. Gujarat and Rajasthan reach the top of that range, while eastern and hill states sit near the bottom. Output falls during the monsoon and peaks between February and May.
400 to 450 sq ft of unshaded roof. High-efficiency TOPCon modules need the lower figure because they deliver more watts per square metre. The area must be free of shadows from tanks, parapets and neighbouring buildings through the middle of the day.
Only if you consume what it produces. Both collect the same ₹78,000 subsidy, so a 5 kW system costs more per kilowatt after subsidy. It is the right choice for homes using 500 to 700 units a month or charging an electric vehicle, and the wrong one for a household using 350 units in a state with a low export tariff.
It depends on your DISCOM and your sanctioned load. Many allow 5 kW on single phase, but several require three phase above a set load, and some limit single-phase export. Confirm this in writing before installation, because changing it afterwards means replacing the inverter and re-applying for net metering.
