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Solar Subsidy in Kerala for Homeowners: A Step-by-Step Guide

By Kalpesh Gavali September 15, 2026 / Solar Panel

Introduction

Electricity costs can influence how homeowners plan their monthly household budgets, making rooftop solar an increasingly attractive option. Government support can further reduce the initial cost of making the switch to solar energy.

For homeowners considering rooftop installation, understanding the solar subsidy in Kerala can help clarify the financial support available under the government’s solar programme. The subsidy structure depends on the installed system capacity and specific eligibility requirements, so knowing how the scheme works before starting an application can make the process easier. Let’s explore how the subsidy works, who can qualify, and what homeowners need to know before applying.

How Does the Solar Subsidy in Kerala Work?

The Government of India has introduced the PM Surya Ghar Muft Bijli Yojana to support rooftop solar adoption among households across India. In Kerala, the Kerala State Electricity Board (KSEB) participates in the programme.

The solar panel subsidy in Kerala is intended to reduce the upfront investment required for eligible rooftop solar installations. The central subsidy is calculated according to system capacity, with support available for the first 3 kW and a maximum central subsidy of ₹78,000.

What Is the Solar Subsidy Amount for Homeowners?

System CapacitySubsidy RateMaximum Subsidy
First 2 kW₹30,000 per kW₹60,000
Additional 1 kW from 2–3 kW₹18,000 per kW₹18,000
Above 3 kWNo additional subsidy₹78,000 total maximum

Who Is Eligible for Solar Subsidy in Kerala?

1. Individual Homeowners

The residential property must be owned by an individual citizen of India. The owner must also have a valid electricity connection from KSEB. Renters need approval from the property owner to proceed with the application.

These requirements make the applicant’s property ownership status and electricity connection important considerations before applying.

2. Housing Societies and Apartment Complexes

Housing societies and apartment complexes can also qualify for support for eligible common-area installations. The common areas must have one electricity connection, while the maximum system capacity can be 500 kW, subject to an allocation limit of 3 kW per unit.

Which Solar Systems Qualify for the Subsidy and Which Do Not?

1. Grid-connected Rooftop Systems

Rooftop solar systems connected to the electricity grid and equipped with net metering are eligible for the central subsidy under the PM Surya Ghar programme.

2. Standalone Off-grid Systems

These systems are not eligible for the central subsidy under PM Surya Ghar.

3. Hybrid Battery Systems

Hybrid systems with batteries are also not eligible under the programme. They may be considered under separate state energy agency programmes.

4. Check Eligibility Before Installation

Homeowners should confirm that their chosen system meets the programme requirements before installation to ensure they can access the applicable solar panel subsidy in Kerala.

What Equipment Is Required for Subsidy Eligibility?

1. Solar Panels

Solar panels must be listed under the Approved List of Models and Manufacturers (ALMM). This requirement applies to equipment used in installations seeking the central subsidy.

2. Inverters

Inverters must be certified by the Bureau of Indian Standards (BIS). Using compliant equipment is therefore an important part of meeting the scheme requirements.

3. Mounting Structures

Solar mounting structures must be made from galvanised iron or aluminium according to the source.

4. Net Meter and Approved Vendor

Net meters are installed by KSEB as part of the grid connection process. The installation vendor must also be listed on the national solar portal.

KSEB audits installations before and after construction, and failure to meet the required compliance can result in denial of the subsidy.

How to Apply for Solar Subsidy in Kerala?

1. Start the Application Online

All application forms must be submitted through the national solar portal at pmsuryaghar.gov.in.

2. Choose an Approved Installation Company

Applicants must use equipment and installation companies listed on the national solar portal. Installation companies must also be on the ALMM, with the required ALMM certificates supplied as part of the process.

3. Complete the Installation Requirements

The selected system and installation must meet the applicable equipment and compliance requirements. This includes using eligible solar panels, certified inverters, compliant mounting structures, and an approved vendor.

4. Complete the Net Metering Process

Net meters are installed by KSEB as part of the grid connection process. Since grid-connected and net-metered rooftop systems are the systems identified as eligible for the central subsidy in the source, this forms an important part of the installation process.

How Much Can a Rooftop Solar System Cost After Subsidy?

System SizeCost Before SubsidyAvailable SubsidyApproximate Cost After Subsidy
2 kW₹1.4–1.6 lakh₹60,000₹80,000–₹1 lakh
3 kW₹2–2.3 lakh₹78,000₹1.20–1.5 lakh
5 kW₹3–3.5 lakh₹78,000₹2.2–2.7 lakh

These figures are the cost estimates provided in the source and should be treated as indicative rather than universal installation prices.

What Benefits Can Homeowners Expect From Rooftop Solar?

  1. Lower Upfront Cost: An eligible rooftop solar system can reduce the initial financial burden through the available subsidy while supporting long-term electricity savings.
  2. Greater Energy Independence: Generating electricity from solar panels can reduce reliance on grid power and provide greater control over household energy use.
  3. Low Maintenance: Rooftop solar systems generally require limited routine maintenance, mainly involving regular panel cleaning and occasional inverter inspections.
  4. Long-term Energy Security: Solar generation can help households manage the impact of rising electricity tariffs over time while increasing their use of renewable energy.

Make the Most of the PM Surya Ghar Yojana With the Right Solar Solution

Understanding the solar subsidy in Kerala can help homeowners assess the financial support available before investing in a rooftop solar system. The PM Surya Ghar Muft Bijli Yojana can make eligible installations more affordable while encouraging households to generate their own renewable electricity.

Choosing a system that meets the scheme’s capacity, equipment, and installation requirements is important for accessing the available support. With Eastman, homeowners can work towards lower electricity costs and greater energy independence.

For those planning a rooftop solar installation, working with an experienced provider such as Waaree can simplify system selection, installation, documentation, and the applicable KSEB approval process.

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