Unlocking Home Solar Power: Price and Subsidy in Kerala

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(Last Updated on 10-03-2024)
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Nestled on the southwestern coast of India, Kerala, known for its lush landscapes, is not just a popular tourist destination but also a hub for renewable energy possibilities. Blessed with abundant sunlight year-round, the state is ready to tap into its solar power potential.

With a highly educated population valuing sustainability, Kerala’s residents are increasingly turning to solar energy solutions. Beyond cost savings, there’s a shared commitment to reducing dependence on fossil fuels and minimizing carbon footprints for a sustainable future. Kerala is poised to lead the way in solar energy adoption in the coming years.

The solar subsidy scheme in Kerala actively promotes solar energy adoption among homeowners. This financial assistance significantly cuts upfront costs for solar panels, making the technology more accessible and affordable for a diverse range of customers.

To take advantage of the solar subsidy in Kerala, understanding eligibility criteria, application procedures, and benefits is crucial. Consumers need to familiarize themselves with aspects such as solar on-grid (Grid-Tie) systems, Solar Panel Installation procedures, Feasibility and Net-Metering with KSEB, Project Completion Report, and the Application for Solar Subsidy. Armed with this information, consumers can make informed decisions about installing solar energy systems on their property.

Furthermore, the PM-Surya Ghar: Muft Bijli Yojana, a subsidy scheme introduced by the Central Government for all states in India, holds promising benefits for Kerala. Let’s delve into the features and advantages of this scheme to understand how Kerala stands to benefit fully.

What is PM-Surya Ghar: Muft Bijli Yojana?

PM-Surya Ghar: Muft Bijli Yojana, announced by Prime Minister Narendra Modi, aims to revolutionize energy consumption by providing rooftop solar solutions and granting free electricity, up to 300 units monthly, to one crore households. With an expansive budget of Rs.75,021 crore, the scheme targets the introduction of 30 GW solar capacity through rooftop installations in residential areas.

Key Benefits and Features:

  1. The scheme provides Central Financial Assistance (CFA), commonly referred to as Solar Subsidy or Solar Panel Subsidy, specifically for Residential Rooftop Solar Installations.
  2. Households gain access to collateral-free, low-interest loans, currently around 7%, for installing residential RTS systems up to 3 kW.
  3. In each district of the country, a Model Solar Village will be established to serve as a role model, encouraging the adoption of rooftop solar in rural areas.
  4. Urban Local Bodies and Panchayati Raj Institutions receive incentives to encourage RTS installations in their respective areas.
  5. Participating households can not only save on electricity bills but also generate additional income by selling surplus power to DISCOMs. A 3 kW system, on average, can produce more than 300 units monthly.
  6. The scheme is expected to create approximately 17 lakh direct jobs across various sectors, including manufacturing, logistics, supply chain, sales, installation, O&M, and other services.

Rooftop Solar Subsidy Structure for Kerala Households

Rooftop Solar Plant Capacity

Eligible Subsidy

1-2 kW

Rs. 30,000 to Rs. 60,000

2-3 kW

Rs. 60,000 to Rs. 78,000

Above 3 kW

Rs. 78,000

Stepwise Procedure for Installing a Solar Rooftop System in Kerala and Applying for Subsidy under "PM-Surya Ghar: Muft Bijli Yojana" Scheme:

Step 1: Register on the Portal

  • Go to the portal – https://pmsuryaghar.gov.in/
  • Select your State
  • Choose your Electricity Distribution Company
  • Enter your Electricity Consumer Number
  • Provide your Mobile Number and Email
  • Follow the directions from the portal

Step 2: Login and Apply

  • Log in using your Consumer Number and Mobile Number
  • Apply for the Rooftop Solar using the designated form

Step 3: Feasibility Approval by DISCOM (KSEB)

  • Your subsidy application is forwarded to your local DISCOM company (KSEB) for technical feasibility approval
  • Wait for the feasibility approval from DISCOM
  • Once approved, proceed with installation by registered vendors trained to meet specified technical standards under subsidy guidelines

Step 4: Plant Details Submission and Net Meter Application

  • After installing the Rooftop Solar System, submit plant details
  • Apply for a net meter

Step 5: Inspection and Commissioning

  • The assigned DISCOM (KSEB) authority will inspect the system and integrate the net meter
  • The inspection ensures compliance with minimum technical specifications and standards in your RTS installation
  • Receive a commissioning certificate from the portal

Step 6: Subsidy Disbursement

  • Once you obtain the commissioning report, submit bank account details and a cancelled cheque through the portal
  • Expect subsidy disbursement in your bank account within 30 days

Process for Installing Solar System in Kerala

As MNRE approved Solar Installer, Exilon is committed to guiding you through the process of installing a rooftop solar power system and accessing solar subsidies.

  1. Power Consumption Evaluation: We begin by assessing your average monthly energy consumption in units (Kilowatt-Hours). Providing up to 12 months’ worth of electricity bill data ensures accuracy, accounting for seasonal variations. Based on this data, we design an initial system tailored to your needs.
  2. Site Visit: Our professionals conduct a thorough evaluation of your property to determine the optimal location, orientation, and shading of your roof or land. This assessment informs the placement and size of solar panels and other equipment.
  3. System Customization: We prioritize your preferences when designing your solar solution. Solar panels must be ALMM approved, and Solar Inverters must be BIS approved to qualify for subsidies.
  4. Installation and Commissioning: Professional solar installers adhere to Ministry of New and Renewable Energy (MNRE) guidelines during installation. The system is thoroughly tested and commissioned to ensure optimal performance. Additionally, a monitoring system is set up to track its performance.
  5. Permitting and Interconnection (Net Metering): We obtain necessary permits and approvals from electricity authorities based on system size. The system is designed to connect to the grid. We assist you in obtaining Project Completion Report or Commissioning Certificate from KSEB authorities for subsidy disbursal. Subsequently, we guide you through the National Portal of PM Surya Ghar Yojana for subsidy disbursal.
  6. Post Sale Support: Exilon provides ongoing support, guiding you through self-maintenance of solar panels, troubleshooting, issue resolution, and warranty claims for installed products.

Benefits of Solar Panel Subsidy in Kerala

  • Reduced initial expense: One of the primary advantages of availing the solar panel subsidy in Kerala is the substantial reduction in upfront costs. The financial support provided under the subsidy scheme significantly eases the financial burden on homeowners and encourages the widespread adoption of solar energy solutions.
  • Energy Independence: By harnessing solar power through subsidized installations, residents in Kerala can achieve a level of energy independence. Reduced reliance on traditional energy sources contributes to a more stable and resilient energy supply, empowering households to generate their electricity sustainably.
  • Sustainable Solution: Embracing solar energy through subsidies promotes environmentally friendly practices. Solar power is a clean and renewable energy source that minimizes carbon footprints and contributes to a healthier environment. The subsidy scheme thus aligns with Kerala’s commitment to sustainable living and environmental conservation.
  • Financial Savings: In addition to the initial cost reduction, solar panel subsidies in Kerala result in substantial long-term financial savings. As households generate their electricity, they not only significantly lower their monthly energy bills but also have the opportunity to sell surplus energy to KSEB, earning an additional income. This dual benefit not only promotes sustainable living but also enhances the economic viability of solar energy adoption in the state.

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Frequently Asked Questions

What is Net Metering in Kerala?

Net Metering in Kerala is a solar energy billing arrangement that allows solar system owners to receive credits on their electricity bills for the excess energy they generate and feed back into the grid. This process involves a bidirectional meter that measures both the electricity consumed from the grid and the surplus energy sent back. The credits accumulated during times of excess production can offset the electricity drawn during periods when the solar system is not generating enough power.

From October 1st to September 30th of the following year, energy export and import data are scrutinized. Solar system owners are compensated for additional energy units exported to the grid at a rate determined by the Kerala State Electricity Board (KSEB) regulatory commission.

How can I determine the appropriate capacity of a Solar Rooftop System in KW to meet my needs?

To gauge the right capacity for your Solar Rooftop System, consider your annual electricity consumption. On average, a 1kWp solar power plant generates approximately 100 to 120 units of electricity per month. Review your electricity bills from the past year to calculate your electricity usage accurately and make an informed decision.

What are the eligibility criteria for obtaining solar subsidy for a home in Kerala?

To qualify for solar subsidy in Kerala, the following criteria must be met:

  • The applicant must be an Indian citizen with a valid electricity connection.
  • The household must not have availed any other subsidy for solar panels.
  • The solar panels used in the Residential Rooftop Solar (RTS) system must be listed in the Approved List of Models and Manufacturers (ALMM List) as mandated by the Ministry of New and Renewable Energy (MNRE).
  • The solar inverter (Solar On-Grid or Grid-Tie Inverter) employed in the system must be Bureau of Indian Standards (BIS) approved.
  • The RTS system should adhere to all the necessary standards prescribed by MNRE. Fulfilling these criteria ensures eligibility for the solar subsidy, making your home in Kerala eligible for financial support in adopting solar energy solutions.

What is 3kW solar system price in Kerala?

3 KW solar panel price in kerala is determined by various factors, including the make and type of solar panels, the make, model, and warranty type (on-site or off-site) and warranty duration of the solar inverter used, as well as the complexity of the Solar Mounting Structure, Walkway, and Ladder System for cleaning and maintenance of solar panels.

Depending on the grades of the components selected, the price typically ranges between Rs 1,90,000 to 2,25,000. This cost includes the Module Mounting Structure (MMS) or simply Solar Panel Mounting Structure.

It’s important to note that customers meeting the eligibility criteria can benefit from a Rs 78,000 solar subsidy in Kerala, enhancing the affordability and economic viability of adopting solar energy solutions. For optimal performance and longevity, we recommend selecting high-quality components, such as MonoCrystalline Halfcut PERC or above panels.

What is 5kW solar system price in Kerala?

Much like the 3kW system, the cost of a 5kW solar system in Kerala is shaped by various factors mentioned earlier. Depending on the grades of the components chosen, the cost typically falls within the range of Rs 3,10,000 to 3,50,000. This price includes the Module Mounting Structure (MMS) or Solar Panel Mounting Structure. Customers meeting the eligibility criteria can avail themselves of a Rs 78,000 solar subsidy in Kerala through the PM-Surya Ghar: Muft Bijli Yojana Subsidy Scheme.

Can Solar Off-Grid Systems with Solar Battery Backup avail subsidy in Kerala?

No, currently, only Residential Rooftop Solar On-Grid Systems are eligible for subsidy under the “PM-Surya Ghar: Muft Bijli Yojana” scheme in Kerala. Solar Off-Grid Systems with Solar Battery Backup have not been considered for subsidy at this time.

Can solar rooftop installations in commercial properties be eligible for Solar Subsidy?

No, under the “PM-Surya Ghar: Muft Bijli Yojana” scheme in Kerala, solar rooftop installations in commercial properties are not eligible for Solar Subsidy. This particular subsidy scheme is currently exclusive to residential properties.

Is solar subsidy under PM SuryaGhar Yojana applicable to Palakkad, Malappuram, and Thrissur?

Yes, solar panel subsidy is applicable to Palakkad, Thrissur, Malappuram, and all other districts of Kerala State.


In conclusion, the journey towards embracing solar energy in Kerala is marked by a promising array of opportunities and benefits. From the affordability brought about by subsidies under the “PM-Surya Ghar: Muft Bijli Yojana” scheme to the potential for financial savings and environmental sustainability, the decision to install solar rooftop systems is both a practical and forward-thinking choice.

By understanding the eligibility criteria, installation processes, and available subsidies, individuals and businesses can seamlessly integrate solar solutions into their properties. The commitment to renewable energy not only aligns with the global push for sustainable practices but also positions Kerala at the forefront of the clean energy revolution.

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