Switching to rooftop solar has now become the smartest decision, especially for homeowners in Kerala. With electricity costs rising every year, many families are now exploring how a 5 kW solar system can help reduce their monthly utility bills and offer long-term savings.
Before you invest, you must understand the actual price of a 5 kW system in Kerala, the subsidy you can claim, and how much you can expect to save annually.
This blog breaks down all these in simple terms so that you can make an informed choice.
What Is the Solar Panel Price in Kerala?
A 5 kW rooftop solar system is a popular choice for medium-sized homes in Kerala. It can comfortably support electrical appliances like fans, lights, refrigerators, and even one or two air-conditioners, based on your usage.
In Kerala, the average price of a 5 kW system before subsidy usually falls between ₹2.5 lakh and ₹3.2 lakh. This range depends on the inverter type, quality of panels, electrical wiring, mounting structure, and the overall installation complexity.
Most homes in Kerala fall comfortably within this bracket.
Before finalising your system, our in-house team of solar panel installers will check the building’s roof for shading, wiring distance, roof angle, and the strength of the structure.
All these factors can influence final pricing. Our team will handle it and provide an estimate that covers all inclusive charges at affordable price points.
How Much Government Subsidy Is Available?
When you plan to install a 5 kW rooftop solar system in Kerala, understanding the solar panel installation subsidy structure must be given importance at first.
Central Government Subsidy
The Government of India offers financial support under the PM Surya Ghar: Muft Bijli Yojana. This subsidy helps reduce the initial investment for homeowners. The main reason behind it is to make rooftop solar more affordable across the country, especially for residential households.
The subsidy is calculated based on the system size, and it reaches its highest limit once you cross 3 kW.
If you install a 5 kW system, the maximum subsidy financial support you can receive is capped at ₹78,000.
This subsidy amount remains the same whether you choose 3 kW, 4 kW, or 5 kW panels.
Applying for it has its set of advantages, as it directly reduces the 5 kW solar panel price in Kerala, helping families shift to clean energy.
Our solar experts will follow the MNRE guidelines and ensure your system remains eligible for the subsidy.
What Is the Final Solar Panel Cost After Subsidy?
Once the subsidy gets applied to your investment cost, the actual 5 kW solar panel cost becomes far more affordable.
Here is a clear breakdown for better understanding:
| System Size | System Cost (Before Subsidy) – Approx | Subsidy Amount | Final Cost (After Subsidy) – Approx |
| 5 kW (Basic) | ₹2.50 lakh | ₹78,000 | ₹1.72 lakh |
| 5 kW (Standard) | ₹3.00 lakh | ₹78,000 | ₹2.22 lakh |
| 5 kW (Premium) | ₹3.20 lakh | ₹78,000 | ₹2.72 lakh |
The final price listed above can vary, and it includes the main components of the system, such as solar inverter, solar panels, mounting structure, earthing kit, DC/AC cabling, and labour for complete solar installation in Kerala.
Our team of solar experts will visit your place, estimate your investment prices, subsidy options, explain the post-installation support, and provide guidance throughout the entire subsidy and net metering process.
How Much Can You Save Annually?
A properly installed on-grid solar system in Kerala can significantly reduce your electricity bills. A 5 kW system typically generates 600 to 650 units per month, based on sunlight conditions, shading, and roof angle placement. Over a year, this comes to roughly 7,200 to 7,800 units.
Let’s now assume the average electricity rate you pay per unit is ₹10.12. Your monthly and annual savings would look like this:
- 600 units x ₹₹10.12= ₹6,072 per month
- Annual savings = Around ₹73,000
If your home has higher daytime consumption with multiple appliances usage like air conditioners, washing machines, induction cooktops, or water heaters, then your savings can increase further.
Households with consistent daytime power consumption can incorporate a 5 kW rooftop solar setup to reduce electricity bills close to zero for most months.
Such long-term reduction gives you predictable financial relief, letting you reinvest the savings into home improvements or energy-efficient appliances.
How to Apply for Solar Subsidy: Step-by-Step KSEB Process
Many homeowners hesitate to adopt solar mainly because they assume the subsidy process is complicated. With our expert help, the process remains straightforward, and our team will handle all the documentation needed for you.
Here is the simplified KSEB subsidy approval process.
Step 1: Register on the National Portal
You begin by creating an account on the official MNRE portal that is designed specifically for residential rooftop solar consumers.
Step 2: Select Your DISCOM (KSEB)
Choose Kerala State Electricity Board (KSEB) as your electricity provider. This will further link your application to your home connection.
Step 3: Choose Your Vendor (ELSOL)
Select an MNRE-approved installer. Choosing ELSOL ensures your system is eligible and installed according to the respective guidelines.
Step 4: Submit Installation Request
Our experts will further conduct a site survey, check roof suitability, and submit a proposal for approval.
Step 5: Installation & Inspection
Post approval, solar system installation process begins. Once completed, KSEB engineers will inspect the system to confirm compliance.
Step 6: Net Meter Installation
KSEB replaces your existing meter with a bi-directional net meter to track exports.
Step 7: Subsidy Disbursement
After inspection, MNRE processes the subsidy and transfers the approved amount to your linked bank account.
By choosing our residential solar services, you will get complete assistance from installation, subsidy application, to regular maintenance.
Who Is Eligible for Solar Subsidy?
The 5 kW on grid solar panel as installed in your place remains eligible for subsidy once you meet the following conditions:
- You are a residential consumer (not commercial or industrial).
- Your home has adequate shadow-free roof space.
- Your home has a valid KSEB electricity connection.
- Your home has adequate shadow-free roof space.
- Your installation is a grid-connected on-grid solar system.
- You have not applied for a subsidy for another property.
- Your vendor is MNRE-approved (ELSOL qualifies).
These eligibility rules ensure the subsidy reaches genuine homeowners who wish to reduce their electricity costs and switch to clean, renewable energy.
Net Metering: How Solar Exports Reduce Bills
Net metering is one of the major benefits of an on-grid solar installation. It allows you to export extra electricity to the KSEB grid whenever your solar system generates more power than your home is actually using.
Here is how it helps you save:
- During the day, your home appliances rely on solar power first.
- Any excess energy generated in the daytime is exported to the grid.
- KSEB subtracts the exported units from the imported units.
- Your monthly bill reflects only the net consumption.
For many homes in Kerala, especially those with moderate daytime electricity usage, installing an on-grid solar system can reduce the electricity bill to a minimal fixed charge.
Such direct reduction in consumption is what makes the 5 kW solar panel price in Kerala a valuable long-term investment.
ROI and Payback Period Analysis
A major advantage of residential solar is the quick and easy return on investment. With the final cost after subsidy falling between ₹1.7 lakh and ₹2.7 lakh and annual savings of around ₹40,000, most households in Kerala can achieve full payback within a period of 4 to 6 years.
Once you have achieved the payback period, the electricity produced by your system is essentially free for the remaining 18 to 20 years of the panel’s lifespan.
With regular maintenance and proper usage, the long-term value of 5 kW solar panels is far greater than the initial cost.
This makes the 5 kW system one of the smartest financial decisions for homeowners looking to lower their electricity expenses and increase property value.
Frequently Asked Questions
1. How much does a 5 kW solar system cost?
2. How much subsidy can I get on a 5 kW solar system?
3. How many units does a 5 kW system generate per day?
4. What is the payback period for a 5 kW solar system?
5. What is the price of a 5 kW solar panel with subsidy?
6. Can I run AC with a 5 kW solar system?
7. Can I get a loan for a 5 kW solar system?
Conclusion
Investing in a 5 kW rooftop solar system is an excellent investment choice, especially for homes in Kerala. With a clear subsidy structure, stable pricing, and strong annual savings, switching to solar gives you predictable financial benefits for years.
At El Sol Power Solutions, the most trusted solar company in Kerala, we ensure every project is handled with utmost care and precision.
With 8+ years of expertise in on grid solar panel installation, we are Kerala’s first solar vendor to complete 1500+ projects, under MNRE DBT subsidy scheme successfully.
We are one phone call away to clear your subsidy-related queries. Save on your hard earned money by installing 5 kW on grid solar panels, applying for subsidy, and net metering through our expert services.
