Kerala is promoting renewable energy to reduce fossil fuel reliance, with solar power offering a clean, cost-effective solution due to the state's abundant sunlight and high electricity demand
On March 8, 2019, the Ministry of New and Renewable Energy (MNRE) launched Phase-II of the Rooftop Solar Programme with the goal of reaching a rooftop solar capacity of 40 GW. This program provided Central Financial Assistance (CFA) for the installation of grid-connected rooftop solar systems in residential sectors. To facilitate the implementation of the program, a National Portal was developed, which was officially launched by the Prime Minister on July 30, 2022.
The Kerala government has also supported solar panel installations through two major initiatives: the Soura program, managed 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. Furthermore, the Ministry of New and Renewable Energy (MNRE) allocated approximately 200 MW of solar capacity to Kerala for the fiscal year 2021-22.
The most recent solar subsidy initiative in Kerala, part of the broader PM Surya Ghar Yojana, provides Central Financial Assistance (CFA) for rooftop solar installations. Subsidies range from 30,000 to 78,000 rupees, depending on the size of the system, aiming to encourage both individual homeowners and housing societies to adopt solar energy.
Understanding On-grid Solar
On-grid solar, also known as grid-tied solar, is a solar power system that is connected to the local electricity grid. It generates electricity from solar panels, which is used to power your home or business. Any excess energy produced by the system is fed back into the grid, often resulting in credits through net metering. This allows users to reduce their electricity bills by offsetting the cost of power drawn from the grid when their solar system isn’t generating enough energy (e.g., during the night or on cloudy days). On-grid systems do not require batteries, making them a more cost-effective option for many, as they rely on the grid for backup power.
Various components of an On-grid Solar System
An on-grid solar system includes several key components:
- Solar Photovoltaic (PV) Modules: Capture sunlight and convert it into electricity.
- Inverters: Convert DC electricity produced by the panels into AC electricity for home use.
- Module Mounting Structures (MMS): Secure and position the solar panels at the optimal angle.
- Bi-directional Meters: Track energy consumption and credits for excess power sent to the grid.
- Cables: Connect various components of the system for efficient electricity flow.
- Safety Devices: Ensure the system operates safely and protects against electrical hazards.
- Tools for Balance of System: Include various accessories and components that support system installation and operation.
What loads/equipment can be connected to an on-grid solar power plant?
Since the on-grid solar system is connected to the utility grid, any shortfall in energy (e.g., at night or on cloudy days) is automatically drawn from the grid, ensuring uninterrupted power supply for all connected loads. All this happens in a smooth synchronized manner and no user intervention in needed for any of this. Hence, high load equipment such as Air Conditioners, Electrical Motors, Pumps, Refrigerators, Electric Cars, Electric Scooters, Induction Cookers etc. can be connected to on-grid solar without any issues. However, the size of the solar system determines how much of the total electricity demand it can meet.
What are the differences between on-grid & off-grid solar system?
On-grid solar systems are connected to the utility grid, enabling you to use grid electricity when solar power isn't sufficient and even sell surplus energy back. In contrast, off-grid systems operate independently, relying solely on battery storage.
Here's a more detailed comparison:
| On-grid Solar System | Off-grid Solar System | |
| Energy Storage | Does not require batteries. Energy surplus is sent back to the grid, and when solar power is not enough, the grid supplies the required power | Requires batteries to store excess energy for use during periods when solar generation is low (e.g., at night or on cloudy days). |
| Connection to the Grid | Connected to the local electricity grid. Excess solar power is sent back to the grid, and power is drawn from the grid when solar generation is insufficient | Not connected to the electricity grid. It operates independently, relying entirely on the solar panels and battery storage for power. |
| Cost | Generally, less expensive as it doesn't require batteries or complex storage solutions. | More expensive due to the need for batteries and additional equipment for energy storage and management. |
| Power Supply | Relies on the grid as a backup power source during times when solar generation is not enough (e.g., night time or bad weather). | Does not have access to the grid; the system is entirely self- reliant, using stored energy from the batteries. |
| Suitability | Ideal for areas where the grid is accessible and stable, and where net metering (credit for excess energy fed to the grid) is available. | Best for remote areas without access to the electricity grid, where grid connection is impractical or unavailable. |
| Maintenance | Easier to maintain, as it doesn't require battery replacement and additional storage management. | Requires more maintenance, including monitoring and maintaining battery health and charging systems. |
Subsidy For On-grid Solar for
Domestic Consumers in India - January 2025
The Indian government, through the Ministry of New & Renewable Energy (MNRE), offers solar subsidies called Central Financial Assistance (CFA). These subsidies are provided as a percentage of the Benchmark price set for each on-grid project capacity. Currently, the CFA subsidies are available only to domestic consumers. It's important to note that the subsidy is limited to the lower value between the MNRE-established Benchmark price and the price determined through the tender process, which can vary by state. The following outlines the benchmark price and central financial assistance/subsidy for on-grid project capacities per kWp:
| Project Capacity | Central Finance Assistance/Subsidy |
| 2 kWp | ₹ .60,000 |
| 3 kWp | ₹ .78,000 |
| >10 kWp | Totally ₹ .78,000 |
For capacities above 10 kWp on-grid projects, the CFA subsidy is available for domestic consumers, but limited to the first 10 kWp only
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 | Central Finance Assistance/Subsidy |
| 1 kWp | ₹ 85, 500 - ₹ 95,000 |
| 2 kWp | ₹ 1,60, 000 - ₹ 1,80,000 |
| 3 kWp | ₹ 1,99, 000 - ₹ 2,35,000 |
| 4 kWp | ₹ 2,62, 000 - ₹ 2,95,600 |
| 5 kWp | ₹ 3,35, 000 - ₹ 3,77,000 |
| 10 kWp | ₹ 6,35, 000 - ₹ 8,00,000 |
Installing a Home Solar System
Assess the energy efficiency of your home by having a professional energy audit conducted by a certified electrician. This will help you understand your electricity usage and highlight areas where energy is being wasted. Also, review your lighting and appliances to see if they are outdated or inefficient, and consider replacing them with more energy-efficient models.
Evaluate your home’s solar potential as well. While modern solar technology can capture both direct and scattered sunlight, some homes may not have enough sunlight exposure to make solar installation worthwhile. Check if your roof gets enough sun throughout the day and look for any nearby trees or structures that may cause shading. Additionally, older homes may require roof repairs or replacement soon, which could affect the installation. If your property is governed by a homeowner’s association, make sure to confirm that installing solar panels is allowed.
Benefits of a Home Solar System
The future of home energy lies in solar power! Solar energy benefits both the environment and our finances. The main reason households opt for this sustainable technology is the potential for significant energy savings.
- Lower Bills: Reduces or eliminates electricity costs.
- Renewable Energy: Clean and eco-friendly, reducing carbon footprint.
- Energy Independence: Provides control over your energy supply.
- Increased Property Value: Boosts home value with energy-efficient features.
- Low Maintenance: Minimal upkeep with long-lasting panels.
- Government Incentives: Subsidies and tax credits reduce upfront costs.
- Long-Term Savings: Savings on bills offset installation costs over time.
- Energy Security: Reliable, sustainable energy supply.
- Grid Integration: On-grid systems can earn credits for excess energy.
- Environmental Impact: Helps reduce greenhouse gases and supports sustainability.
The Solar National Portal Subsidy & Tender-Based Solar Subsidy Program in Kerala (January 2025)
In the Rooftop Solar National Portal Subsidy Scheme, customers pay the full project cost to the solar developer and the subsidy is reimbursed directly to their bank account within a stipulated time (usually around a month or more). The prices quoted by each developer may vary, as there is no standardized pricing. The costs depend on factors such as the technology and brands used by the developer.
In contrast, the State Level Tender-Based Portal Subsidy Scheme (Soura) by KSEB involves prices that are determined through a tender process in the state. All participating companies must adhere to the same pricing for standard system specifications. The list of approved companies is published on KSEB's website. Under this scheme, customers pay only the system price minus the subsidy amount, receiving the subsidy benefit upfront. KSEB then releases the subsidy to the developer once the installation is completed and the system is inspected and approved for quality, minimizing risk for the customer.
Space/Roof Area Needed for Fixing Solar Panels
The amount of roof space required for solar panels depends on system size, panel efficiency, and sunlight exposure. On average, a 1 kW solar system needs around 8-10 square meters of shade free space, while a 5kW system requires about 40-50 square meters, and a 10kW system needs roughly 80-100 square meters. These requirements can vary based on factors like panel type, roof orientation, and location, so it's best to consult a professional for a more accurate estimate.
How to apply for solar subsidy?
Applying for a subsidy in Kerala involves several steps:
Step 1
Download and register on the SANDES app and the National Portal for Rooftop Solar.
Step 2
Provide the necessary information, including your electricity connection details and personal contact information.
Step 3
Submit the subsidy application, providing your address, proposed system capacity, and details of any existing solar system.
Step 4
Await technical feasibility approval from the local DISCOM company. system.
Step 5
Once approved, him a registered or empanelled solar vendor to install the rooftop solar system
Step 6
Choose high-quality solar components and domestically manufactured solar modules.
Step 7
Sign the model agreement to protect consumer interests.
Step 8
After installation, submit project details for inspection and net-metering.
Step 9
The DISCOM authority will inspect the system and integrate the net-meter mechanism
Step 10
Receive the commissioning certificate and submit bank details to receive the approved subsidy amount within 30 days.
Who Is Eligible for a Solar Subsidy in Kerala?
To qualify for the Kerala solar subsidy, applicants must meet specific criteria set by the Kerala State Government and the Ministry of New and Renewable Energy (MNRE). You need to be a permanent resident of India. Additionally, you must own a residential property with a roof that is suitable for installing solar panels. A valid electricity connection is mandatory for the household, and you should not have previously received any other subsidy for solar panel installations. These conditions ensure that the scheme is accessible to eligible homeowners who can benefit from solar energy adoption.
FAQ's
Solar FAQ – Answers
What is a solar subsidy in Kerala?
A solar subsidy is financial assistance offered by the government or organizations to lower the cost of installing solar power systems. Its purpose is to make solar technology more accessible and encourage its adoption by reducing the upfront installation expenses. The subsidy can come as direct rebates, tax credits, or grants
What is an on-grid solar system?
An on-grid solar system is connected to the local electricity grid. It generates solar power during the day and uses excess energy to offset your electricity bills. When solar power is insufficient (e.g., at night), it draws energy from the grid.
Are there any additional charges for fixing solar?
If the roof is slanted or has any obstructions, the consumer will be responsible for the additional structural costs as needed. The cost of the net meter and any additional cable requirements (beyond 50 meters) are also not included in the base price.
What does net metering mean for a household solar system connected to the grid?
A net-metered solar system allows you to draw power from the grid when solar generation is low and sell excess energy back to the grid for credits. The net meter tracks energy flow in both directions and reflects this in your monthly bill.
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.
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.
Can I get a loan for solar installation?
Under the PM Surya Ghar scheme, up to 90% of the total investment can be availed as a loan from any nationalized bank in India, based on the bank's terms and the consumer's CIBIL score. This initiative aims to benefit 2 crore households across India.
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.
How can I get more information or assistance regarding the solar subsidy scheme?
For more information, you can visit the official website (National Portal for Rooftop Solar) or reach out to the toll-free helpline at 15555
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