Solar Subsidy & Policy
Complete Details About Solar System Price and Subsidy in Tamil Nadu
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 encourages widespread residential solar adoption across India. Under this scheme, affordable solar solutions for households in Tamil Nadu become possible by reducing costs through subsidies.
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.
Planning solar?
Get a free site survey and subsidy guidance
Our engineers size the system to your bill and roof, handle the subsidy paperwork and install it end to end.
What size solar system does my home need?
Divide your average monthly units by about 120 to get a rough kW size (1 kW makes around 4 units a day in most of India). A home using 300–400 units a month usually needs 3 kW. We confirm the size after a free site survey.
How much subsidy can I get for a home system?
Under PM Surya Ghar: Muft Bijli Yojana, homes get a central subsidy of ₹30,000 per kW for the first 2 kW and ₹18,000 for the third kW, up to ₹78,000 for systems of 3 kW and above. Some states add their own top-up. We register your application on the national portal and handle the DISCOM paperwork.
How much roof space is needed?
Plan roughly 80–100 sq ft of shade-free roof per kW. A 3 kW system needs about 250–300 sq ft.
Keep reading
Related articles
Government Solar Subsidy Explained: Benefits of the Pradhan Mantri Surya Ghar Yojana
Solar Panels for Hillside Homes: Understanding Costs and Considerations
Complete details about Solar Panel Subsidy in Jharkhand
Free site survey · Written quote
Planning solar? Get a free site survey
Share your monthly electricity bill and roof size. Our engineers size the system, explain the subsidy and send a written quote.