Kerala, a frontrunner in India’s push toward renewable energy, is rapidly advancing its solar power adoption. With abundant sunlight and high electricity demand, the state presents an ideal setting for residential and commercial solar installations. Solar power not only reduces dependency on fossil fuels but also offers a sustainable and cost-effective alternative for households.
To accelerate this transition, the solar subsidy initiative plays a crucial role in making solar panel systems more affordable. These subsidies significantly cut down installation costs, making solar energy systems accessible to a wider audience. By understanding the eligibility criteria, subsidy application process, and pricing, homeowners can make informed decisions about switching to solar.
Solar Panel System Subsidy in Kerala
The Rooftop Solar Programme (Phase II) is a government-backed initiative aimed at incentivizing residential solar installations. Under this scheme, grid-connected rooftop solar systems are eligible for financial assistance, making the transition to solar energy more feasible.
One key advantage of these systems is net metering, which allows homeowners to sell excess solar energy to the grid, earning solar credits and reducing their electricity bills.
Current Subsidy Rates for Rooftop Solar Systems in Kerala
| Solar System Capacity | Applicable Subsidy (INR) |
| Up to 3 kW | ₹18,000/kW |
| Above 3 kW and up to 10 kW | ₹9,000/kW* |
| Above 10 kW | ₹1,17,000** |
| RWAs / Group Housing Societies | ₹9,000 per kW for common areas up to 500 kWp |
Eligibility: Only residential rooftop solar systems qualify for this subsidy. Industrial and commercial setups are not covered under this scheme.
Solar System Prices in Kerala (2025)
Knowing the estimated solar panel prices in Kerala can help you determine the best system for your home. Pricing varies based on capacity, brand, and installation charges.
Estimated Solar Panel Costs in Kerala
| Solar System Size | Price Range (INR) |
| 1 kW | ₹75,000 – ₹85,000 |
| 2 kW | ₹1,50,000 – ₹1,70,000 |
| 3 kW | ₹1,89,000 – ₹2,15,000 |
| 4 kW | ₹2,52,000 – ₹2,85,600 |
| 5 kW | ₹3,15,000 – ₹3,57,000 |
| 10 kW | ₹5,31,000 – ₹6,07,000 |
Cost After Subsidy
| Solar System Size | Estimated Price (INR) | Subsidy (INR) | Final Cost (INR) |
| 1 kW | ₹75,000 – ₹85,000 | ₹18,000 | ₹57,000 – ₹67,000 |
| 2 kW | ₹1,50,000 – ₹1,70,000 | ₹36,000 | ₹1,14,000 – ₹1,34,000 |
| 3 kW | ₹1,89,000 – ₹2,15,000 | ₹54,000 | ₹1,35,000 – ₹1,61,000 |
| 4 kW | ₹2,52,000 – ₹2,85,600 | ₹63,000 | ₹1,89,000 – ₹2,22,600 |
| 5 kW | ₹3,15,000 – ₹3,57,000 | ₹72,000 | ₹2,43,000 – ₹2,85,000 |
| 10 kW | ₹5,31,000 – ₹6,07,000 | ₹1,17,000 | ₹4,14,000 – ₹4,90,000 |
How to Apply for Solar Subsidy in Kerala?
Applying for a solar subsidy in Kerala is now more accessible with the National Portal for Rooftop Solar. This platform streamlines the application and approval process, ensuring efficient subsidy distribution.
Step-by-Step Application Process
- Register on the National Portal: Download the SANDES app and sign up with your local DISCOM details.
- Submit Application: Provide electricity bill details, proposed solar system size, and address.
- Technical Feasibility Approval (TFR): Wait for DISCOM approval before proceeding.
- Installation: Engage a MNRE-empanelled solar vendor to install the system.
- Final Inspection & Net Metering: DISCOM verifies the setup.
- Receive Subsidy: Submit bank details for direct subsidy transfer within 30 days.
Key Requirement: The solar system must comply with BIS standards and use ALMM-listed solar panels to qualify for the subsidy.
Benefits of Solar Subsidy in Kerala
- Lower Costs – Reduces upfront investment and makes solar energy affordable.
- Energy Independence – Reduces reliance on grid electricity, leading to long-term savings.
- Eco-Friendly – Contributes to lower carbon emissions and supports India’s 40 GW renewable energy target by 2026.
Installation Process for Solar Systems in Kerala
- Assess Energy Needs: Calculate your daily electricity consumption.
- Vendor Selection: Choose an MNRE-approved installer.
- Site Survey: Evaluate roof space, shading, and orientation.
- Design & Proposal: Get a customized solar system plan.
- Obtain Permissions: Secure DISCOM & local authority approvals.
- Installation & Commissioning: Set up and connect the system.
- Ongoing Maintenance: Ensure regular servicing for efficiency.
What is Net Metering?
Net metering allows solar system owners to receive credits or compensation for excess electricity fed into the grid. This mechanism ensures that homeowners maximize savings while maintaining access to grid power when needed.
How It Works:
- If your solar system generates more power than you consume, the excess is exported to the grid.
- When you consume more than you generate, you draw power from the grid.
- The difference is calculated and adjusted in your electricity bill.
Frequently Asked Questions
1.What types of solar panels and inverters are employed in this subsidy system?
Solar panels and inverters used adhere to high-quality standards set by MNRE and KSEBL. They meet ALMM criteria and comply with BIS (Bureau of Indian Standards) requirements, representing brands authorized by the government after rigorous quality assessments.
2.How do I calculate the required amount of solar energy?
You might aim for a solar system capable of meeting your entire annual electricity needs. A 1kWp solar power plant generally generates between 90 to 120 units of electricity per month. Thus, to estimate the capacity of a solar power plant required for your home, divide your monthly electricity consumption (as indicated on your bills) by 90 or 120. Analyze your invoices from the past year or more to determine your electricity usage accurately. Alternatively, seek assistance from a solar company for guidance or, even better, a price estimate.
3.Who qualifies for the solar subsidy scheme in Kerala?
The eligibility criteria for solar panel subsidies in Kerala are detailed on the National Portal for Rooftop Solar and are consistent for all consumers nationwide. The subsidized 1kW solar panel price in Kerala is contingent upon factors including the solar system type, technical specifications, and safety standards. Typically, subsidies are accessible to homeowners and housing societies meeting the eligibility requirements and following the application procedures.
4.What sets apart grid-connected from off-grid solar panel systems?
Grid-connected solar panel systems facilitate the bi-directional flow of electricity between your home and the grid. In contrast, an off-grid solar panel system operates independently of the grid, relying on battery storage for electricity. Each system offers its own set of advantages and drawbacks, with the decision influenced by factors like electricity consumption, grid connectivity availability, and cost considerations. Opting for an on-grid setup allows for subsidy on your 2kW solar system price in Kerala, whereas selecting solar batteries and going off-grid does not make you eligible for the subsidy
5.Is it feasible to set up solar panels on a leased property in Kerala?
Indeed, installing solar panels on a rented property in Kerala is achievable, contingent upon the cooperation and approval of the property owner or landlord. In certain instances, solar panel installation may enhance property value and attractiveness, potentially resulting in reduced electricity expenses beneficial to both the tenant and the landlord.