Solar System Price and Subsidy in Tamil Nadu (2024)

Solar System Price and Subsidy 1kW onwards in Tamil Nadu

Over the past decade, solar panel prices have decreased sharply due to technological advancements in solar photovoltaic technology. Despite the high upfront investment, solar is proven to be the most beneficial and rewarding renewable energy source that supplies electricity free of cost for 25 years. Solar panels’ improved energy generation efficiency, monthly savings on energy bills, and solar subsidy in Tamil Nadu contribute to its even higher value proposition. 

Solar system prices in Tamil Nadu vary depending on the technology used, the type, the size, the extent of government subsidies, etc.

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Approx monthly electricity bill (INR)*

Solar Panel System Subsidy in Tamil Nadu

The New and Simplified Programme for Rooftop Solar Phase II is a powerful pan-India solar subsidy scheme that aims to promote the use of solar energy for domestic and residential power needs. Under the scheme, individual households and housing societies can adopt solar at a reduced 5kW solar panel price in Tamil Nadu or any other capacity chosen. Consumers opting for grid-tied solar PV systems designed using made-in-India solar components are eligible to avail solar system subsidy in Tamil Nadu.

Depending on the system size, you can receive a fixed per-kilowatt of Central Financial Assistance (CFA)/Central Government Subsidy by applying through the National Portal for Rooftop Solar.

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 Tamil Nadu

Wonder what is the 1kW solar panel price in Tamil Nadu? Solar power systems that are connected to the grid are known as on-grid systems and are eligible to apply for solar system subsidy in Tamil Nadu. The prices differ depending on the type of system you choose. An on-grid solar system is the most affordable option as this framework doesn’t have solar batteries. Consumers who wish to opt for solar batteries to maintain an on-site power reserve can go for a hybrid or off-grid solar system which is not eligible for subsidy aid.

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
10kW Solar System Rs. 5,31,000 – 6,07,000

Solar System Price in Tamil Nadu with subsidy (Table & Content)

MNRE has unveiled an online portal called the National Portal for Rooftop Solar that enables homeowners to apply for subsidies in a few simple steps. The entire subsidy processing and disbursement procedure has become quite convenient and easy. 

Since the CFA/subsidy amount is fixed across different system capacity slabs, calculating  solar panel price in Tamil Nadu while considering the subsidy can be easily done. For a more accurate estimation of solar system prices for your location and power needs. The best approach is to request a personalized quote from a reliable solar installation company.

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 Tamil Nadu

Installing an RTS plant under the new and simplified procedure requires you to apply through the National Portal for Rooftop Solar. The online portal welcomes all customers wanting to avail solar panel subsidy in Tamil Nadu or anywhere in India and ensures efficient application processing and disbursement.

Step-1: Install the SANDES app on their mobile phone and register on the National Portal. The new user registration process also requires the applicant to select the local DISCOM company and share electricity connection details along with an active phone number and email id.

Step-2: Simply log into the online portal to initiate the subsidy process. You can submit an application online which requires basic details like the name on the electricity bill, address, proposed RTS plant capacity, and details of an existing solar system (if any). Also, upload a copy of the latest electricity bill.

Step-3: The online application is assigned to the region’s DISCOM company for providing approval based on the technical feasibility of the intended RTS installation. Consumers must wait for the technical feasibility (TFR) approval before starting the installation work.

Step-4: After the TFR approval, the applicants can now select a vendor registered or empanelled with the local DISCOM company to carry out the RTS installation work. The solar subsidy guidelines accept subsidy claims for on-grid solar energy systems installed by an empanelled vendor and as per the minimum technical specifications and standards.

Also, to be eligible under the solar subsidy scheme in Tamil Nadu, you must also put together a system composed of domestically-manufactured solar modules (refer to the ALMM list on the online portal). Select only a BIS-certified solar inverter. The applicant and the chosen vendor must together sign a model agreement that protects consumers’ interests. The relevant information and the agreement are available on the National Portal, under the Help Document section.

Choosing an empanelled vendor is advantageous as the MNRE mandates the registered vendors to offer comprehensive maintenance services for at least 5 years on the residential on-grid RTS plants commissioned under the subsidy scheme.

Step-5: The next step after your RTS installation is to upload complete project information on the online portal to schedule your system’s on-site inspection and net-metering integration. The key details to be submitted include the installed system’s photograph, your solar vendor’s name, wattage, type, and the number of solar modules, type and wattage of solar inverter, etc. Now the applicant can submit the net-metering application. The local DISCOM will instruct you on the payment of the net-metering fee and other formalities as applicable.

Step-6: A field officer authorised by your local DISCOM company inspects your installed RTS plant for technical specifications and standards compliance. After the inspection, a net meter is integrated into your system.

Step-7: On successful inspection and the installation of the net-metering system, a commissioning certificate is generated. This certificate can be downloaded by logging into the online portal. This is the last step in your subsidy application procedure. 

Step-8: You can see approved subsidy details online as well as the CFA amount. To receive your approved rooftop solar subsidy in Tamil Nadu, you need to provide a copy of the cancelled cheque and the requested bank details on the online portal. The concerned fund handling agency makes the transfer directly to your bank account within 30 days post installation.

Benefits of Solar Panel Subsidy in Tamil Nadu

Tamil Nadu solar subsidy is a smart move towards building a sustainable future. In today’s technology-driven lifestyle, we are exhausting more and more of conventional energy resources which are available in finite quantities. The tariff rates have increased exorbitantly due to the high demand for electricity. 

Solar subsidy is encouraging consumers to consider renewable energy sources to meet their energy requirements. Solar panels capture freely available sunshine to generate electricity. Consumers getting solar systems under the subsidy scheme are protected under the subsidy guidelines which mandate the empanelled vendors maintain the RTS systems for at least 5 years.

More and more households are benefiting from subsidy for solar panel in Tamil Nadu, taking the country closer to its solar target installation.

Process for Installing Solar System in Tamil Nadu

Here is a step-by-step process of a successful rooftop solar installation:

Step 1 – Enquire with rooftop solar installers: Consumers should make sure the quality and standards are in line with those set forth by the Ministry of New and Renewable Energy (MNRE) before purchasing solar systems or components. Refer to the Help Documents available on the National Portal for Rooftop Solar under the Simplification Procedure section.

Step 2 – Site visit by solar installers: Understanding and calculating the necessary capacity and available shade-free rooftop area for installing the rooftop solar plant is a part of the solar installers’ site visit. During the site visits, additional needs for the rooftop solar system are assessed. 

Step 3 – Required capacity to be installed: According to TEDA’s specifications, 1kW of solar energy installation requires a space of about 12 square metres or 130 square feet. To ensure that the solar panel receives the most sunlight possible, the rooftop area should be clear of any obstructions such as tall buildings, trees, etc. In order to ensure that there is enough room for people to clean and service panels, they should be located at least 2 feet away from the parapet wall.

The capacity of the solar plant can be determined based on the electricity consumed on the premises over the past year. For this, refer to the information available on the physical copies of electricity bills through the online consumer portal of TANGEDCO.

Step 4 – Requesting quotations from different installers: It’s important to compare the numerous products and services offered and choose an appropriate installation. The best approach is to seek quotes from various solar installers so that you get the most competitive solar panel price in Tamil Nadu.

Step 5 – Assessing the technical feasibility of connecting with the TANGEDCO distribution network: A consumer who wants to build a rooftop solar PV system should contact TANGEDCO to find out how to connect the system to the utility’s distribution network or grid. TANGEDCO representatives determine whether it is technically possible to link the rooftop solar with the electric grid in the consumer’s location.

Step 6 – Meeting additional requirements: The installer may recommend additional requirements during the site visits, such as wires, and an additional base for the solar system. Apart from these, a consumer may have to provide space for storage of the panels and other components during the period between product delivery and the final installation dates.

Step 7 – Material purchase: A consumer may be required to pay a portion of the cost in advance to start the rooftop solar installation process, depending on the terms and circumstances stated by the installer in the estimate. Installer must supply the materials within the time frame specified in the quotation after the advance payment has been made. This adds to the solar system price in Tamil Nadu.

Step 8 – Installation of the plant: The installers must complete installation after the material is delivered within the time frame given in the estimate. In order to capture the most solar energy, solar panels are not kept level but are instead positioned at an angle. Depending on the locale, the angle varies, and other factors, it often ranges from 5 to 15 degrees.

What is net metering?

The net meter paired with your solar panels is designed to monitor and record the flow of energy to and from the local grid as well as manage the surplus solar electricity. Under net metering, solar-equipped households can sell off surplus energy to the grid for solar credits. Given that you choose the right system size, your system may give surplus units during peak sunshine hours. 

On the other hand, you may experience an inadequate supply of solar electricity when the solar panels don’t receive the required sunshine. A net-metered household can still get the required electricity from the grid.

If the imported energy is greater than the exported energy, the beneficiary pays the utility based on the net metre reading which is the difference between the imported and exported energy. The utility pays the recipient for the net exported energy if the exported energy is more than the imported energy. It’s important that an additional fee is levied for installing a net meter, which is outside of the 3kW solar panel price in Tamil Nadu or any system size you might select.

How to Apply for a Net Meter in Tamil Nadu?

To apply for a net meter in Tamil Nadu, follow these steps:

Step 1: Contact the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to obtain the net meter application form.

Step 2: Fill out the form with information associated with the RTS system and your personal details, including your name, address, connection details, and solar system capacity.

Step 3: Attach the necessary documents, including a copy of your electricity bill, ID proof, address proof, and a letter from your solar installer stating the capacity of your solar system.

Step 4: Submit the completed application form and documents to the TANGEDCO office in your area, along with the processing fee. 

Step 5: TANGEDCO will review your application and inspect your premises to ensure that the installation meets safety and technical standards.

Step 6: If your application is approved, TANGEDCO will install the net meter, which will measure the electricity you generate and feed into the grid as well as the electricity you consume from the grid. You can then start benefiting from net metering, which allows you to receive credits for excess electricity generated by your solar system. These savings eventually offset your initial solar investment and future electricity bills.

Conclusion

Financial support for the renewable energy sector is necessary if India aims to switch to clean energy. Therefore, we should plan for subsidy programmes for the residential sector to continue in the near future.

Although the residential sector has been slow to adopt rooftop solar systems. It is predicted that things will improve, as the state government improves the way subsidies are allocated, and future home solarization will rise.

The rooftop solar subsidy in Tamil Nadu presents the perfect opportunity to go solar. At Amplus Solar, we have years of experience installing attractive, remarkably durable, grid-connected rooftop solar solutions that are customised to each customer’s needs. If you need help calculating the 1kW solar panel price in Tamil Nadu for your home or any higher system size, we strongly advise you to schedule a consultation with us right away.

Frequently Asked Questions

How much area is required for a 1 kW rooftop Solar PV system?

A 1kW rooftop system generally requires 10 sq. meters of shadow-free area. Actual sizing, however, depends on local factors of solar radiation and weather conditions, the efficiency of the solar system, the shape of the roof etc.

How much capacity can one install?

The beneficiary may choose the capacity depending on the authorised demand of the existing service, the load requirements of the beneficiary, and the availability of a shadow-free rooftop area. Check out the 2kW solar panel price in Tamil Nadu to plan your solar transition.

Who will conduct the feasibility analysis?

The concerned Executive Engineer/O&M will complete the feasibility analysis of distribution transformer capacity based on the verification by the Assistant Executive Engineer/O&M concerned. After receipt of the feasibility report from the Executive Engineer/O&M, the same has to be informed to TEDA for the issue of a work order to the vendor to install the plant as per the technical standards.

How is the subsidy paid out?

The customer must select the vendor from the list of empanelled vendors after registering their applications on the unified National Portal for Rooftop Solar. Following the issuance of the technical feasibility report, the vendor can install the approved RTS plant capacity. The customer must pay the vendor in full and claim the applicable subsidy by submitting the RTS-related documents on the portal. Upon approval, the subsidy payment is credited directly into the beneficiary’s account.

How do we get power during the nights/monsoon through the Grid Connected RTS System?

Grid Connected RTS System cannot generate electricity during the night. In the absence of generation during night/monsoon, households can draw the required power from the grid.

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