Empowering a
Kerala Solar Energy Initiative:
Empowering a Sustainable Future
Kerala, a southern Indian state blessed with abundant sunlight, is actively advancing the use of renewable energy to reduce its dependence on fossil fuels. Among renewable sources, solar energy stands out as a highly efficient, sustainable, and cost-effective solution, especially with Kerala's high electricity demand and ideal climatic conditions for solar power generation.
Solar Subsidy Scheme in Kerala
On March 8, 2019, the Ministry of New and Renewable Energy (MNRE) launched Rooftop Solar Programme Phase-II with the objective of achieving 40 GW of rooftop solar capacity. The program provided Central Financial Assistance (CFA) for the installation of Grid Connected Rooftop Solar systems in the residential sector. To ease out the implementation of the Programme, a National Portal was developed which was launched by Hon'ble Prime Minister on 30.07. 2022.
The Kerala government provided subsidies for solar panel installations through two key initiatives: the Soura program, implemented by the Kerala State Electricity Board (KSEB) and the Surya Thejus scheme, promoted by the Agency for Non-conventional Energy and Rural Technology (ANERT). Both programs offered subsidies to end customers. Additionally, the Ministry of New and Renewable Energy (MNRE) allocated around 200 MW of solar capacity for Kerala in the fiscal year 2021-22.
In Kerala, the latest solar subsidy initiative, which is a part of the larger PM Surya Ghar Yojana, provides Central Financial Assistance (CFA) for rooftop solar installations. The subsidies range from 30,000 to 78,000 rupees, depending on the system's size, aiming to encourage both homeowners and housing societies to switch to solar energy.
The PM Surya Ghar: Muft Bijli Yojana is a government initiative designed to provide free electricity to households in India. Launched by Prime Minister Narendra Modi on February 15, 2024, the scheme offers a subsidy for installing solar panels on household roofs, covering up to 40% of the cost. It is expected to benefit 1 crore households nationwide and save the government approximately Rs. 75,000 crores annually in electricity expenses.
Key Features & benefits of the Scheme
The key features of the PM Surya Ghar Yojana include:
01
Free Electricity
The scheme aims to provide free electricity to households by encouraging the installation of rooftop solar panels
02
Subsidy for Solar Panels
Households are offered a subsidy covering up to 40% of the cost of installing solar panels on their roofs.
03
Target Beneficiaries
The scheme is expected to benefit 1 crore households across India, particularly those in rural and underserved areas.
04
Promotes Renewable Energy
The initiative supports the government's push towards renewable energy sources, reducing dependence on traditional power grids and promoting environmental sustainability.
05
Cost Savings
It is anticipated that the scheme will save the government about Rs. 75,000 crores annually in electricity costs
06
Boost to Solar Energy Adoption
The scheme encourages wider adoption of solar energy at the household level, helping individuals and communities generate their own clean energy.
07
Implementation through Financial Assistance
The scheme operates by providing Central Financial Assistance (CFA) to cover part of the costs for eligible households to install solar panels
08
Strengthening Energy Security
By promoting solar power at the grassroots level, the scheme aims to improve energy security and reduce the strain on the national grid.
Kerala's solar subsidy scheme is crucial in promoting renewable energy, reducing the state's reliance on fossil fuels, and fostering a greener future. By making solar energy more affordable, it empowers consumers to invest in clean energy solutions, offering both economic and environmental benefits.
| Capacity (kWwp) | Applicable Subsidy of Solar Power Plant (Price Per kWp) |
| For System up to 2 kW |
₹ 3.000/kW |
| For additional capacity up to 3kW |
₹ 18.000 per kW |
| For system larger thatn 3kW | ₹ 78.000/kW |
Here is an overview of the applicable subsidies for different rooftop solar system capacities
For Residential Welfare Associations (RWA) & Group Housing Societies (GHS): ₹7,294 per kW for common facilities up to 500 kWp.
Solar Power Plant Prices in Kerala - January 2025 (Pre-Subsidy Rates):
To estimate the cost of a solar system in Kerala, the following price ranges apply for residential systems before subsidies:
| Solar Plant kWp Capacity | Price Range (without subsidy) |
| 1 kWp |
₹85.500 - ₹95.000 |
| 2 kWp |
₹1.60.000 - ₹1.80.000 |
| 3 kWp | ₹1.99.000 - ₹2.35.000 |
| 4kWp | ₹2.62.000 - ₹2.95.600 |
| 5 kWp | ₹3.35.000 - ₹3.77.000 |
| 10 kWp | ₹6.35.000 - ₹8.00.000 |
Steps to apply for the
Surya Ghar Solar Scheme
1
Check Eligibility
Ensure you qualify for the scheme.
2
Register Online
Fill out the application form by visiting the PM Surya Ghar Muft Bijli Yojana’s official website at https://solarrooftop.gov.in
3
Submit Documents
Provide necessary documents like identity proof, address proof, and bank details.
4
Site Inspection
The service provider may inspect your property.
5
Approval and Subsidy
Once your application is approved, the subsidy will be allocated, and you will receive the financial assistance for solar panel installation.
6
Solar Panel Installation
The provider installs the panels.
7
Final Verification
After installation, a final inspection may be conducted to ensure everything meets the required standards. Once verified, the solar system will be connected to the grid, and you can start using solar energy.
Eligibility Criteria for
PM Surya Ghar Yojana
Citizenship
You must be a permanent resident of India.
Property Ownership
You need to own a residential property with a roof suitable for installing solar panels.
Electricity Connection
A valid electricity connection is mandatory for the household.
No Prior Subsidy
You cannot have previously received any other subsidy for solar panels.
The Solar National Portal Subsidy & Tender-Based Solar Subsidy Program in Kerala
From January 2025, Kerala offers both a National Portal subsidy (PM Surya Ghar) and a tender- based solar subsidy program (Soura), with key differences in how subsidies are claimed and pricing:
PM Surya Ghar Solar Portal Subsidy:
- Consumers pay the full system cost upfront, and the subsidy is reimbursed directly to their bank account after installation.
- Prices may vary depending on the solar developer, equipment brand, and technology used.
State-Level Tender-Based Portal Subsidy (Soura Scheme):
- Pricing is determined through a tender process, and all participants must adhere to a standard price for system specifications
- The subsidy amount is deducted upfront from the total cost, eliminating delays in reimbursement.
On-Grid Solar Subsidy for Residential Consumers (January 2025):
The Indian government, through MNRE, offers Central Financial Assistance (CFA) for on-grid solar projects, available exclusively for domestic consumers. The subsidy is calculated based on the benchmark price and system capacity, with limits for systems over 10 kWp
| Project Capacity | Benchmark Price/kWp Kw Excluded) |
Central Financial Assistance/ Subsidy % |
Central Financial Assistance/ Subsidy Amount/kwp |
| Upto 3 kWp | Rs.36.470 | 40% | Rs.14.588/kWp |
| >3 kWp Upto 10 kWp | Rs.36.470 | 20% | Rs.7.294/kWp |
| >10 kWp | Subsidy is available | But it is limited to the first 10 kWp | Rs. |
For on-grid projects with capacities exceeding 10 kWp, the CFA subsidy is available to domestic consumers, but it is capped at a maximum of 10 kWp of the system.
Space and Roof Area Requirements for Solar Panel Installation:
- For every 1 kWp of solar capacity, about 100 square feet of shade-free area is required, ideally with direct sunlight and a south-facing orientation.
FAQ's
Solar - Frequently Asked Questions
What subsidy is available under the scheme?
The subsidy provided depends on the capacity of the solar panel system
- For systems up to 3 kW: 60% subsidy
- For systems between 4-10 kW: 40% subsidy
- For systems above 10 kW: No subsidy beyond 10 kW (subsidy is capped at a maximum of 10 kW).
Are housing societies eligible to apply for the scheme?
Yes, housing societies can apply to install solar panels on common rooftops, allowing all residents to benefit from the system.
Can my electricity bill be completely free each month?
If your solar system generates enough electricity to cover your monthly usage (up to 300 units), your electricity bill could be significantly reduced, or potentially even become zero.
What costs are not covered by the subsidy?
The subsidy does not cover additional costs for slanted roofs, obstructions, the net meter, or any extra cable requirements exceeding 50 meters. These costs are borne by the customer.
What does net metering mean for a household solar system connected to the grid?
Net metering allows a household solar system to send excess power back to the grid, earning credits. When solar generation is low, electricity is drawn from the grid. Your bill is based on the net difference between energy used and energy sent back, helping offset costs.
Can I sell excess solar energy to the grid?
Yes, with an on-grid solar system, any excess energy produced by your solar panels can be sold back to the grid for credits through net metering. This can help offset your electricity bills.
Can I Get a Loan for Solar Installation?
Under the PM Surya Ghar scheme, consumers can avail of up to 90% of the total investment as a loan from any nationalized bank in India, subject to the bank's terms and the consumer's CIBIL score.
What is the installation timeline for the system?
The typical installation and activation process takes between 30 to 60 days from the approval of your application. This includes site inspection and subsidy disbursement.
What is the difference between the National Portal and Soura Scheme?
In the National Portal Scheme, you pay the full project cost upfront, and the subsidy is reimbursed to you after installation. In the Soura Scheme, the subsidy is deducted upfront, and you pay only the reduced amount. KSEB releases the subsidy to the developer after installation and inspection.
How can I get more information or assistance regarding the scheme?
For further details, you can visit the official website or contact the toll-free helpline at 15555
For More Details
CONTACT US
70347 88882
NORTH KERALACalicut Regional Office
70259 88885
MIDDLE KERALACochin Head Office
+91 99467 88886
SOUTH KERALATrivandrum Regional Office