What is the cost of installing a 5kW solar panel system? How much can you save monthly? Here is the full breakdown.

Installing a 5kW solar panel system on your rooftop can help you save thousands of rupees every month. Solar energy allows you to escape the burden of hefty monthly electricity bills. To facilitate this, the Central Government has launched the 'PM Surya Ghar Yojana.' Additionally, several state governments offer subsidies for solar panel installations, which help reduce the overall cost.

What is the cost of a 5kW solar panel system?

Installing a 5kW solar system on your rooftop typically costs between ₹2.5 lakh and ₹3.5 lakh, depending on the quality and type of the solar panels. This cost includes the panels as well as essential components like the DCDB, ACDB, wiring, and earthing systems. However, if you also require battery backup, you will incur additional expenses, bringing the total cost to between ₹4 lakh and ₹5 lakh.

To avail of the government subsidy, the new policy mandates that panels must be sourced from the ALMM (Approved List of Models and Manufacturers). This list includes only those companies that manufacture solar cells within India for the domestic market.

What appliances can it power?

A 5kW solar panel system can easily power two 1.5-ton inverter ACs. You can also comfortably run other household appliances such as geysers, water pumps, washing machines, refrigerators, and induction cooktops. A 5kW system can generate between 400 and 500 units of electricity per month.

How much subsidy is available?

The government offers a substantial subsidy for rooftop solar panel installations under the 'PM Surya Ghar: Muft Bijli Yojana' (Free Electricity Scheme). Under this scheme, a subsidy of approximately ₹30,000 is provided for installing a 1 kW solar system. Meanwhile, the subsidy is ₹60,000 for a 2 kW system and ₹78,000 for a system of 3 kW or higher. Additionally, several state governments are offering their own subsidies, allowing customers to achieve significant savings when installing solar systems. Furthermore, up to 300 units of electricity are provided free of cost every month.