The cost of solar panels has dropped significantly over the past decade due to advancements in photovoltaic technology. Despite the upfront investment, solar energy remains the most cost-effective renewable power source, offering free electricity for 25+ years. Tamil Nadu residents can further reduce costs with government subsidies, making solar installation an attractive option.
This guide covers the latest solar system prices in Tamil Nadu, subsidy details, application process, and cost-saving calculations to help you make an informed decision.
Solar Panel Subsidy in Tamil Nadu
Government Incentives for Residential Solar Installations
The New and Simplified Programme for Rooftop Solar Phase II is a nationwide initiative designed to encourage residential solar adoption across India. This program allows homeowners and housing societies in Tamil Nadu to install solar panels at a reduced cost.
Who is Eligible for a Solar Subsidy?
Homeowners who install grid-connected solar PV systems with domestically manufactured components can apply for a Central Financial Assistance (CFA) or government subsidy. Applications must be submitted through the National Portal for Rooftop Solar.
Solar Subsidy Rates in Tamil Nadu (2024)
| Rooftop Solar System Capacity | Subsidy Amount (INR) |
| Up to 3 kW | 18,000 per kW |
| Above 3 kW and up to 10 kW | 9,000 per kW |
| Above 10 kW | 1,17,000 (fixed) |
| Resident Welfare Associations (RWA) / Group Housing Societies (GHS) | 9,000 per kW for common facilities up to 500 kWp |
Example: A 5kW solar system will receive a subsidy of INR 72,000, reducing the overall installation cost significantly.
Solar System Prices in Tamil Nadu (2024)
How Much Does a Solar System Cost?
Solar system costs in Tamil Nadu depend on the system type (on-grid, hybrid, off-grid), panel efficiency, and installation size. The most budget-friendly option is an on-grid system, as it does not require costly batteries.
| Solar System Size | Estimated Price (INR) |
| 1kW | 75,000 – 85,000 |
| 2kW | 1,50,000 – 1,70,000 |
| 3kW | 1,89,000 – 2,15,000 |
| 4kW | 2,52,000 – 2,85,600 |
| 5kW | 3,15,000 – 3,57,000 |
| 10kW | 5,31,000 – 6,07,000 |
Solar System Prices After Subsidy
The table below shows the estimated net cost of installing a solar system after applying subsidies.
| Solar System Size | Estimated Cost (INR) | Subsidy (INR) | Final Price After Subsidy (INR) |
| 1kW | 75,000 – 85,000 | 18,000 | 57,000 – 67,000 |
| 2kW | 1,50,000 – 1,70,000 | 36,000 | 1,14,000 – 1,34,000 |
| 3kW | 1,89,000 – 2,15,000 | 54,000 | 1,35,000 – 1,61,000 |
| 4kW | 2,52,000 – 2,85,600 | 63,000 | 1,89,000 – 2,22,600 |
| 5kW | 3,15,000 – 3,57,000 | 72,000 | 2,43,000 – 2,85,000 |
| 10kW | 5,31,000 – 6,07,000 | 1,17,000 | 4,14,000 – 4,90,000 |
How to Apply for a Solar Subsidy in Tamil Nadu?
To claim a subsidy, follow these steps via the National Portal for Rooftop Solar:
- Register on the Portal – Visit solarrooftop.gov.in and create an account.
- Submit Application – Provide system details, estimated capacity, and installation type.
- Approval Process – Your application is reviewed by the state DISCOM (electricity provider).
- Installation – Once approved, hire an MNRE-empanelled solar vendor for installation.
- Inspection & Verification – DISCOM officials inspect and approve the installed system.
- Subsidy Disbursement – The subsidy amount is credited directly to your bank account.
Benefits of Installing a Solar System in Tamil Nadu
- Huge Cost Savings – Save up to 80% on electricity bills by switching to solar.
- High Return on Investment (ROI) – A payback period of 5-7 years, followed by 18+ years of free electricity.
- Government Incentives – Reduce upfront costs significantly through MNRE subsidies.
- Environmentally Friendly – Reduce carbon footprint by switching to renewable energy.
- Energy Independence – Avoid power cuts and high electricity tariffs.