Home Solar Panel System Price and Subsidy in Kerala (2024)

Solar Panel Subsidy Kerala 2023

Kerala, a southern state in India, has been at the forefront of the country’s efforts to promote renewable energy and reduce its dependence on fossil fuels. With its abundant sunlight and high electricity demand, the state is well-suited for the adoption of solar energy systems, which can provide a clean, sustainable, and cost-effective alternative to traditional energy resources. 
The solar subsidy scheme in Kerala is encouraging the use of solar energy among homeowners and housing societies. This type of financial aid significantly reduces the upfront solar panel cost in Kerala and increases the return on investment. Subsidies have made solar energy systems more accessible and affordable for a wide range of customers. 

To avail solar subsidy in Kerala, the first step is to learn all about the eligibility criteria, application procedures, and benefits. Having the right information empowers a consumer to make informed decisions regarding the installation of solar energy systems on their property.

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Approx monthly electricity bill (INR)*

Solar Panel System Subsidy in Kerala

The Rooftop Solar Programme Phase – Ⅱ is a central government initiative in India that provides fixed financial aid to encourage the installation of grid-connected rooftop solar systems in residential properties, large villas, and housing societies. For example, a 5kW solar panel price in Kerala with subsidy is considerably lower than a 5kW solar panel price in Kerala that is not eligible under the subsidy scheme. These plants are regulated under the net metering guidelines. Net metering allows consumers to sell excess power generated by their solar system to the local grid and earn solar credits.

The recently introduced National Portal for Rooftop Solar has an important role in the processing and disbursement of solar panel subsidy in Kerala and all of India. The online portal provides a convenient, one-stop platform for consumers wanting to subsidize their solar panel price in Kerala. Under the simplified subsidy scheme, a fixed subsidy/CFA amount is offered based on your solar system size approved by the state DISCOM.

Rooftop Solar System Capacity Applicable Subsidy (₹)
Up to 3 kW 18,000/kW
Above 3 kW and up to 10 kW 9,000/kW*
Above 10 kW 1,17,000**
Resident Welfare Associations (RWA) / Group Housing Societies (GHS) Rs. 9,000/- per kW

For common facilities up to 500 kWp @ 10 kWp per house, with the upper limit being inclusive of individual rooftop plants already installed by individual residents in that GHS/RWA at the time of installation of RTS for common activity.

Note: *₹18,000/kW for the first 3 kW and ₹9,000/kW for the rest of the capacity up to 10 kW.

**The subsidy amount is fixed for rooftop solar systems above 10 kW capacity.

Solar System price in Kerala

Do you know the solar panel price in Kerala? Here are some numbers showing how much various residential solar systems cost on the market. With capacities ranging from 1kWp to up to 10kWp for household use, the size of your property and its energy consumption requirements are the key factors determining the right type of home solar power system and the components required to fit you and your family.

Solar System Size Price Range (Estimated)
1kW Solar System Rs. 75,000 – 85,000
2kW Solar System Rs. 1,50,000 – 1,70,000
3kW Solar System Rs. 1,89,000 – 2,15,000
4kW Solar System Rs. 2,52,000 – 2,85,600
5kW Solar System Rs. 3,15,000 – 3,57,000

Solar System price in Kerala with subsidy

The solar subsidy scheme in Kerala is available through the National Portal for Rooftop Solar. The initiative subsidises on-grid solar systems for households across all states of India. Eligible consumers can apply for subsidy online by registering on the portal from the comfort of their homes.

The Government of India offers a fixed amount of financial aid per kilowatt across the different capacity ranges. If you are considering solar energy for domestic use, you can expect the following on-grid solar system price in Kerala with subsidy.

Solar System Size Estimated Price Range Subsidy Applicable Prices After Subsidy
1kW Solar System Rs. 75,000 – Rs. 85,000 Rs. 18,000 Rs. 57,000 – Rs. 67,000
2kW Solar System Rs. 1,50,000 – Rs. 1,70,000 Rs. 18,000 x 2 = Rs. 36,000 Rs. 1,14,000 – Rs. 1,34,000
3kW Solar System Rs. 1,89,000 – Rs. 2,15,000 Rs. 18,000 x 3 = Rs. 54,000 Rs. 1,35,000 – Rs. 1,61,000
4kW Solar System Rs. 2,52,000 – Rs. 2,85,600 Rs. 18,000 x 3 + Rs. 9,000 x 1 = 63,000 Rs. 1,89,000 – Rs. 2,22,600
5kW Solar System Rs. 3,15,000 – Rs. 3,57,000 Rs. 18,000 x 3 + Rs. 9,000 x 2 = Rs. 72,000 Rs. 2,43,000 – Rs. 2,85,000
10kW Solar System Rs. 5,31,000 – Rs. 6,07,000 Rs. 1,17,000 Rs. 4,14,000 – Rs. 4,90,000

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Approx monthly electricity bill (INR)*

Steps to Apply for a Subsidy in Kerala

To install a grid-tied rooftop solar system under the simplified procedure, homeowners are required to apply through the National Portal for Rooftop Solar. All applications for Kerala solar subsidy or anywhere in India can be easily submitted on this online portal for fast, efficient, and transparent processing. 

Step-1: The first step is to download the SANDES app and create your account on the National Portal. The applicant must carefully select the local DISCOM company and provide the current electricity connection details along with an active email id and mobile number.


Step-2: As a registered user, you can log into your account and submit your application for solar panel subsidy in Kerala for your intended installation of a grid-connected rooftop solar system. The applicant is now required to disclose further details such as an address, name on the electricity bill, the capacity of the proposed RTS plant, and details of an existing solar system (if any). Also, keep a copy of your latest electricity bills for submission. 

Step-3: Your subsidy application is transferred to your local DISCOM company for technical feasibility approval. It’s recommended that you commence your rooftop solar installation only after receiving the technical feasibility (TFR) approval.

Step-4: Once you have the TFR approval, the MNRE subsidy guidelines mandate that applicants only hire a registered or empanelled solar vendor to complete the RTS installation. The registered vendors have the training to uphold the specified minimum technical specifications and standards in every installation as required under the subsidy guidelines.

When choosing solar components, you can select ones of higher quality/efficiency rating. To be eligible under the solar subsidy scheme in Kerala, it is important to choose domestically-manufactured solar modules as listed in the ALMM. The solar inverter must be BIS-certified. Also, the MNRE recommends that the applicant and the chosen vendor sign the model agreement which is designed to protect consumers’ interests. All the relevant documents can be accessed under the Help Document section on the National Portal.

Also, empanelled vendors are obligated to provide 5 years of comprehensive maintenance on the residential on-grid RTS plants installed by them.

Step-5: After your RTS plant has been set up, submit the complete project details for inspection and net-metering process. The project details include wattage, type, and number of solar modules used, type and wattage of solar inverter used, solar vendor’s name, the installed system’s photograph, etc. The applicant is required to apply for net metering and to follow the instructions provided by the local DISCOM for the payment of the net-metering fee and other formalities as applicable.

Step-6: The assigned DISCOM authority will visit the site to inspect the system and integrate the net-meter mechanism. The inspection involves ensuring that the minimum technical specifications and standards are fulfilled in your RTS installation.

Step-7: A successful inspection visit leads to the issuance of a commissioning certificate. The certificate is generated online upon the approval of your local DISCOM and can be accessed by logging into the online portal.

Step-8: You can now easily receive the approved solar subsidy in Kerala by submitting bank details and a copy of the cancelled cheque on the online portal. A fund-handling agency responsible for central Government subsidy disbursement transfers the approved subsidy amount directly into the bank account within 30 days post installation.

Benefits of Solar Panel Subsidy in Kerala

The scheme for Kerala solar subsidy provides various benefits to consumers, including

Reduced cost: A homeowner considering a 5kW on-grid solar system price in Kerala can find better deals by factoring in solar subsidy. Subsidy reduces the upfront financial burden of switching to solar, making solar electricity more affordable for households. 

Energy independence: Solar systems become the primary source of electricity supply for your home. As you meet a majority of your daily energy needs from your on-site solar system, your dependence on grid-supplied electricity is reduced.

Environmentally friendly: Solar energy is a clean and green source of electricity, reducing greenhouse gas emissions and other forms of pollution. The government subsidy scheme aims to lower the solar system price in Kerala so that small to extensive residential properties can adopt solar and contribute to the country’s target of 40 GW by March 2026.

Process for installing Solar System in Kerala

The process for installing a solar system in Kerala can be summarised as follows:

Assess the energy needs: Determine the energy needs of your home or business, including the required capacity of the solar system, daily electricity usage, peak load, and other factors. These factors enable you to find competitive on-grid solar system prices in Kerala.

Choose a vendor: Research and choose a reputable vendor or installer of solar systems in Kerala, considering factors such as experience, quality of components used, and price.

Site survey: The vendor will conduct a site survey to assess the feasibility of installing a solar system at the location, considering factors such as roof space, shading, and orientation.

Design and proposal: The vendor will design a solar system customised to your energy needs and provide a detailed proposal outlining the system capacity, components used, cost, and expected performance. The vendor also helps you understand what constitutes your final 5kW solar system price in Kerala or any other system capacity for that matter.

Apply for subsidy: If applicable, apply for the subsidy under the relevant solar subsidy scheme in Kerala and obtain necessary approvals from the implementing agency.

Obtain necessary permissions: Obtain necessary permissions from the local authorities, including building permits, electrical permits, and site approvals.

Installation: The solar system will be installed by the vendor, including the mounting of solar panels, installation of inverters, and connection to the electrical grid or battery bank.

Commissioning: The solar system will be commissioned by the DISCOM authorities after ensuring that it is properly connected, functioning, and generating electricity as per design.

Maintenance and monitoring: The vendor will provide maintenance and monitoring services for at least 5 years to ensure the optimal performance of the solar system over its lifetime.

It is important to choose a reputable vendor, follow all necessary procedures and guidelines, and ensure that the solar system is properly installed and commissioned for safe and reliable operation.

What is net metering?

Net metering is a billing arrangement that allows solar energy system owners to receive credits or compensation for the excess electricity they generate and export to the grid. It is designed to regulate the interaction between solar panels and the grid. Under net metering, the solar energy system is connected to the electric grid, and any excess electricity generated by the system that is not immediately consumed by the owner is exported to the grid. The owner receives credits or compensation for this excess electricity, which can be used to offset their electricity bills. It’s mandatory to connect your solar system to the grid as per the solar subsidy scheme in Kerala.

The credits or compensation are typically calculated based on the difference between the amount of electricity generated and the amount of electricity consumed by the owner over a given period, such as a month. If the solar energy system generates more electricity than is consumed, the excess energy is transferred to the grid. If the system generates less than what is consumed in your home, the owner pays the difference at the retail rate.

How to apply for a net meter in Kerala?

Only eligible consumers can seek subsidy on 3kW solar panel price in Kerala or any system capacity up to 500kW. To apply for a net meter in Kerala, you can follow these steps:

Step 1 – Portal Registration: Register on the Solar Rooftop Portal – KSEB to Apply

Step 2 – Application: Select ‘Apply With Subsidy’ or ‘Apply Without Subsidy’. Only eligible consumers can apply for the subsidy. Fill and submit the application form online and remit ‘Application Fees’.

Step 3 – Technical feasibility: Technical Feasibility Review by KSEB.

Step 4 – Plant registration: Submit Documents and remit the registration fee.

Step 5 – Installation: Start the system installation after successful registration of the system and complete it within one year.

Step 6 – PCR submission: Submit the ‘Project Completion Report’ online and upload supporting documents along with the energization certificate from Kerala Electrical Inspectorate.

Step 7 – Intimation of testing date: Review of documents and Intimation of the testing date.

Step 8 – Testing: KSEB officers shall visit the site and test the SPV system installed.

Step 9 – Issuance of Test Certificate: The test certificate will be issued after the completion of testing successfully. 

Step 10 – Agreement and meter installation: Agreement signing, meter installation and joint inspection.

Step 11 – PCR submission to MNRE: KSEB shall submit PCR to the MNRE SPIN portal.


In conclusion, the schemes for solar panel subsidy in Kerala provide an opportunity for homeowners and housing societies to transition to clean and sustainable energy sources, while also enjoying financial benefits and contributing to the reduction of carbon emissions. By availing the subsidies, individuals and entities can significantly reduce their initial investment costs and increase their system’s return on investment. It also promotes the growth of the solar energy industry and creates new job opportunities. 

It is important to note that the subsidies are subject to eligibility criteria and availability, and the procedures for applying for and obtaining the subsidies can vary depending on the scheme and the implementing agency. Therefore, it is advisable to do thorough research and seek guidance from trusted experts before making any decisions regarding solar panel installation and subsidy applications in Kerala.

Frequently Asked Questions

What kind of solar panels and inverters are utilised in this system of subsidies?

Solar panels and inverters are of high quality in accordance with MNRE and KSEBL standards. They comply with ALMM criteria and BIS (Bureau of Indian Standards) requirements and are brands that have been given government approval following rigorous quality checks. 

How can I determine the amount of solar energy I’ll need?

You may want a solar system that can supply all the electricity you require on an annual basis. A 1kWp solar power plant typically produces 90 to 120 units of electricity per month. Therefore, to get an approximate idea of the capacity of a solar power plant needed in your home, divide the consumed units on your electricity bills by 90 or 120. Examine your invoices from the past year or longer to calculate how much electricity you use. You can even ask a solar company for assistance or better yet, a price estimate.

Who is eligible for the solar subsidy scheme in Kerala?

The National Portal for Rooftop Solar outlines the eligibility criteria for solar panel subsidies in Kerala. These criteria are standard for all consumers across India. The 1kW solar panel price in Kerala with subsidy depends on factors such as the type of solar system, the technical specifications, and the safety standards. The subsidies are typically available to homeowners and housing societies that meet the eligibility criteria and comply with the application procedures.

What is the difference between grid-connected and off-grid solar panel systems?

Grid-connected solar panel systems allow both the export and import of electricity between your home and the grid. An off-grid solar panel system is not connected to the grid and relies on battery storage for electricity. Both systems have their advantages and disadvantages, and the choice depends on factors such as electricity demand, availability of grid connection, and cost. In an on-grid framework, you can avail subsidy on your 2kW solar system price in Kerala whereas the subsidy is not available if you opt for solar batteries and go off the grid.

Can I install solar panels on a rented property in Kerala?

Yes, it is possible to install solar panels on a rented property in Kerala, but it requires the cooperation and consent of the property owner or landlord. In some cases, the installation of solar panels may increase property value and appeal and may lead to lower electricity bills, which can benefit both the tenant and the landlord.

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