5 kW Solar System Price in India: A Complete Guide for Farmers (2025)
India’s agriculture sector forms the backbone of its economy, and there is no doubt. Hence, it is often the duty of the economy to pay it back and enable it. Luckily, it’s a good thing that the government recognises that in the form of subsidies (and other incentives) that help enable farmers and the entire agricultural sector. And that’s a good thing.
After all, farmers could use some relief. Rising electricity costs and an increasing need for reliable power in agricultural operations, farmers are slowly turn to solar energy as a smart, cost-saving solution in their daily operations. They can now adopt solar power systems with greater efficiency and ease. And make their farming more sustainable.
The 5kW solar system is one of the most practical and popular options for rural households and small to medium farms. But what does it cost in 2025? How can farmers benefit from subsidies and schemes like the PM-KUSUM Yojana?
Let’s break it down in this blog.
What is a 5kW Solar System?
To compute it in terms of essential math: A 5kW solar system is one that generates about 20-25 units of electricity per day. I think it also depends on sunlight and the region. It is powerful enough to:
● Run a 1HP to 2HP water pump
● Power household appliances and lights
● Support irrigation, borewells, and cold storage units
● Charge batteries or power inverters for backup
This size is ideal for small and mid-sized farms with moderate electricity needs.
What are the Best 5kW Solar System Price in India (2025)?
The average price of a 5kW solar system price in India with subsidy varies according to the type of system:
Note: Prices may vary based on location, quality of panels, inverter type, and installer.
What are the Government Subsidies Available for Farmers?
Farmers in India can significantly reduce costs through government schemes. It’s not only important for them to be aware of them, but also for regular people who have farming ambition or own land in rural areas that they hope to deploy for agricultural usage.
So without further ado, let’s learn about them in detail.
1. PM-KUSUM Scheme (Component-B & C)
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is India’s flagship solar scheme for farmers.
It’s Key benefits include:
● Up to 60% subsidy on standalone solar pumps
● 30% soft loan from NABARD or other banks
● Only 10% upfront contribution by the farmer
The key benefits apply to both off-grid solar pumps and grid-connected systems, especially for irrigation and agriculture.
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2. State-Level Subsidies
States like Maharashtra, Gujarat, Rajasthan, and Haryana offer additional support over and above central schemes. These may include:
● Extra 20–40% subsidy
● Free installation for marginalized farmers
● Priority for SC/ST or women farmers
It’s important to learn about the ins and outs of the various state subsidies. You can take some time and read about all of them here.
How Much Does it Cost for a 5kW Solar Pump for Irrigation?
Let’s say a farmer installs a 5kW off-grid solar system to run a 2HP water pump.
● Market cost: ₹5 lakh
● Subsidy under PM-KUSUM: ₹3 lakh (60%)
● Farmer’s contribution: ₹50,000 (10%)
● Bank loan (if needed): ₹1.5 lakh at low interest
In most cases, this system pays for itself within 4–5 years through savings on diesel, electricity bills, and fewer power outages.
Why Farmers Should Switch to Solar Now?
Here are five reasons Indian farmers should consider a 5kW solar system in 2025:
1. Energy Independence
No more depending on irregular electricity supply or expensive diesel pumps. Solar gives 24/7 power.
2. Zero Operating Cost
Once installed, solar power is free for 25+ years. No monthly bills.
3. Irrigate Anytime
Water your fields early morning or late evening — even when the grid fails.
4. Government Support is at Peak
2025 offers maximum subsidies, easy loans, and fast approvals through national and state schemes.
5. Sell Surplus to Grid
With on-grid or hybrid systems, farmers can sell extra power back to DISCOMs and earn a secondary income.
How to Apply for a 5kW Solar System as a Farmer?
Here’s a simple step-by-step guide:
1. Visit your state’s MNRE or DISCOM portal
○ Ex: https://mnre.gov.in or your local electricity board
2. Register under the PM-KUSUM scheme
3. Submit documents
○ Aadhaar card, land ownership proof, bank account, etc.
4. Site inspection & load assessment
○ Technicians will visit your farm to check solar suitability
5. Choose empaneled vendors
○ Only MNRE-approved vendors can install subsidized systems
6. Installation & Activation
○ Installation takes 7–15 days. You start saving from Day 1.
Final Thoughts: A Smart Investment for Indian Farmers
A 5kW solar system in India is more than just a power source — it’s a long-term investment in self-reliance, savings, and sustainability. In an era with a variety of government subsidies, rising electricity prices, and a little more awareness, now is the perfect time for farmers to go fully solar.
Whether you want to power your home, irrigation pump, or dairy unit, solar can transform your rural operations, reduce costs, and give you peace of mind. Want to know more? Visit Ecozaar and read up on some of this in detail.
