PM Surya Ghar Yojana: Know the Exact Cost of Installing a 5 kW Solar Panel

PM Surya Ghar Yojana: These days, electricity is a must-have in every home. No matter if it’s summer or winter, devices like fans, air conditioners, refrigerators, washing machines, and other electronics just can’t work without it. But as our gadgets multiply, the electricity bills are getting heavier for the average person. That’s where rooftop solar systems come in as a great solution. By putting solar panels on their roofs, folks can cut down on their electricity costs and also take advantage of government subsidies worth lakhs of rupees.

Thanks to the Government of India’s Pradhan Mantri Surya Ghar Free Electricity Scheme, homeowners are getting financial help for installing solar panels. This initiative is turning out to be super helpful, especially in states like Uttar Pradesh. So, let’s dive into how much the PM Surya Ghar Yojana costs and what a 5-kilowatt panel will set you back.

What is PM Surya Ghar Yojana?

The Pradhan Mantri Surya Ghar Yojana (PMGSY) is a major program from the Government of India, designed to provide affordable and clean electricity to its citizens. Under this scheme, rooftop solar systems are set up on homes, and the government chips in with subsidies to cover some of the costs.

The standout feature of this scheme is that once you’ve installed the solar system, you can generate your own electricity and even earn credits through net metering by sending any extra electricity back to the grid.

What is a 5 kW solar system?

A 5 kW solar system is perfect for medium to large homes. It’s generally a good fit for families living in 3BHK to 5BHK houses with a monthly electricity usage of 600 to 750 units, plus heavy-duty appliances like ACs, refrigerators, washing machines, and geysers. By installing a 5 kW solar system, you could save around Rs 5,000 to Rs 7,000 each month on your electricity bill.

The cost of a 5 kW solar system in Uttar Pradesh is around ₹300,000 to ₹320,000 in 2025.
This price generally covers top-notch Tier-1 solar panels, an MNRE-approved grid-tied inverter, the mounting structure for the panels, wiring and connectors, installation and testing, plus complete net metering setup.

What’s the subsidy for a 5 kW system under the PM Surya Ghar Yojana?

1. Central Government Subsidy – According to MNRE guidelines, for systems between 4 kW and 10 kW, the subsidy is ₹9,000 per kW, totaling Rs 45,000 for a 5 kW system.

2. Uttar Pradesh State Government subsidy – This is Rs 15,000 per kilowatt, with a cap of Rs 30,000. So, the total subsidy can reach up to Rs 108,000.

How do you apply for the PM Surya Ghar Yojana?

1. To take advantage of this scheme, head over to pmsuryaghar.gov.in.

2. Click on the Apply for Rooftop Solar option.

3. Fill in your State, Electricity Company, Consumer Number, Mobile Number, and Email.

4. Log in and complete the application form.

5. Upload the necessary documents.

6. Get approval from DISCOM.

7. Have the solar system installed by a registered seller.

8. Apply for a net meter.

9. You’ll receive a certificate after inspection.

10. The subsidy will be credited to your account within 30 days. The whole process usually takes about 15 to 30 days.