5 kW Solar System ROI - Real Savings After PM Surya Ghar Subsidy
A 5 kW solar system is perfect for medium to large Indian homes with high electricity usage (ACs, appliances, EV charging). Under the PM Surya Ghar Muft Bijli Yojana in 2026, subsidies significantly reduce upfront costs while net metering delivers substantial monthly savings.
This guide shows realistic ROI calculations, cost breakdowns, monthly bill reductions, and payback periods based on current tariffs, subsidies, and generation data from across India.
5 kW Solar System Cost Breakdown (2026 Pricing)
Pre-Subsidy Cost Components
PM Surya Ghar Subsidy Impact (2026)
Effective Cost After Subsidy: ₹1.50-2.10 lakh
Exact amount depends on current notification and portal approval
Expected Generation & Monthly Savings
Generation Estimate (India Average)
Monthly Bill Savings
₹2,800-3,800
ROI Calculation Examples (Post-Subsidy)
Delhi (High Sunlight, ₹8/unit)
₹1.80 lakh
₹3,600
4.2 years
₹2.7 lakh
Bengaluru (Moderate Sunlight, ₹7.5/unit)
₹1.75 lakh
₹3,000
4.9 years
₹1.85 lakh
Mumbai (Coastal, ₹9/unit)
₹1.90 lakh
₹3,800
4.2 years
₹2.67 lakh
Factors That Affect Your Actual ROI
Positive Influences
- ✅High daytime usage (ACs, pumps, appliances)
- ✅Favourable net metering (Delhi, Gujarat, Maharashtra)
- ✅Rising grid tariffs (improves future savings)
- ✅Proper system design (south-facing, correct tilt)
Potential Challenges
- ❌Frequent shading or poor orientation
- ❌Low daytime consumption (night-heavy usage)
- ❌Net metering delays or caps
- ❌Substandard installation (reduced generation)
Lifetime Value Beyond Payback (20+ Years)
After payback, your 5 kW system generates "free electricity" for the remaining warranty period:
Years 5-20
₹7-10 lakh
additional savings
Total 20-Year Value
₹10-14 lakh
lifetime savings
Annualised Return
15-20%
better than FDs
Panels typically carry 25-year performance warranties, ensuring 80-85% output even after two decades.
Who Should Install a 5 kW Solar System?
Perfect Fit
- ✓3-5 bedroom homes with 2+ ACs, water pumps, EV charging
- ✓Monthly bills > ₹8,000-15,000
- ✓500-700 sq.ft unshaded south-facing roof space
- ✓Locations with good sunlight and net metering support
May Need Adjustment
- •Very small homes (<₹5,000 bill): Consider 3 kW
- •Heavy night usage: Add hybrid battery
- •Shaded/multiple roofs: May need optimizers
PM Surya Ghar Subsidy Process (2026 Steps)
Arkahub guides you through every step to ensure maximum subsidy benefit.
Why Arkahub for Your 5 kW Solar Investment
- ✓Transparent ROI calculator based on your location and bill
- ✓MNRE-approved vendors with proven track record
- ✓Complete subsidy assistance and net metering paperwork
- ✓Performance guarantee and post-installation monitoring
A 5 kW solar system with PM Surya Ghar subsidy offers Indian homes exceptional ROI-typically paying for itself in under 5 years while delivering clean power for decades. With electricity prices rising and subsidies at peak levels, 2026 is the perfect time to lock in these savings.
Get started on your Solar journey today.
Request a call back from one of our experts to learn more about how you can achieve your saving goals with ArkaHub.
Frequently Asked Questions
Common questions about 5 kW solar system ROI and subsidies.
Is 5 kW enough for a villa with 3 ACs?
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