The most exciting part for the family was the financial outcome. The combination of government subsidy and strong sunlight in Erode turned the project into a smart long term investment.
On average, a 5 kW solar system in a place like Erode can generate around 18 to 22 units per day over a year, depending on weather and system quality. That works out to roughly 540 to 660 units per month. Over a two month billing cycle, that is more than 1,000 units in many cases.
These units replace grid power that the home would normally pay for. The result is a sharp drop in the electricity bill.
Using the Government Solar Subsidy in Tamil Nadu for a 5 kW System
Mr. Sebastin and family used the central government rooftop solar subsidy available for residential homes. They applied through an approved channel following the process given on the National Portal for Rooftop Solar.
The subsidy is usually calculated as a percentage of the benchmark cost for the system size and is credited after proper verification. Since subsidy rates can change from time to time, it is always better to check the latest details on the same portal or with your installer.
For this Sasthri Nagar project, the subsidy reduced the upfront cost of the 5 kW system by a significant amount. That made the decision easier, because the family could see a clear path to recovering their investment through future bill savings.
From High Bills to Big Savings: ₹10,000 Less on Each Electricity Bill
Before solar:
- Typical two month bill: around ₹10,000 to ₹12,000
After solar:
- Bill reduced by about ₹10,000 per cycle
- In some months, the payable amount dropped to a very small figure
In simple words, the 5 kW solar system in Erode now covers most of their regular usage, especially during the day when the panels are active. At night, they still draw power from the grid, but the net impact on the bill is much lower because daytime solar units are adjusted.
The family now uses their appliances with more peace of mind. They still avoid waste, but they no longer panic every time they turn on the AC. The system works quietly in the background, turning sunlight into savings.
Payback Period: When Will the 5 kW Solar System Pay for Itself?
Let us use easy round numbers to understand the payback.
Suppose the total cost of the 5 kW system was in a certain range, and after subsidy, the net cost came down to a reasonable amount. If the family now saves about ₹10,000 per bill, and TNEB issues bills every two months, that means:
- Savings per year are roughly ₹60,000 (₹10,000 × 6 cycles)
With this level of savings, many 5 kW residential systems in Tamil Nadu can reach payback in about 4 to 6 years, depending on exact cost, usage pattern, and tariff slabs.
After the payback period, the remaining life of the system, often 15 to 20 more years, is almost pure savings on electricity, apart from small maintenance costs.