Kerala’s embrace of solar energy continues to grow as more residents see the benefits of reducing energy costs and adopting greener practices. Thanks to the Central Financial Assistance (CFA) offered by the Ministry of New and Renewable Energy (MNRE), installing solar power systems has become more affordable for homeowners in Kerala. This guide explores the solar panel subsidy in Kerala, eligibility, application process, and the cost-effectiveness of solar installations in the region.
Why Solar Power is Ideal for Kerala Homes
With high population density and a daily rise in power demand, solar energy has become a viable solution to Kerala’s energy needs. The state’s average of over 240 sunny days per year makes rooftop solar installations highly effective. Solar energy not only helps residents save up to 80% on electricity costs but also contributes to environmental conservation. Kerala’s adoption of solar energy has been particularly successful in projects like the Cochin International Airport, which operates entirely on solar power, showcasing the feasibility of large-scale solar generation.
Solar Panel Subsidy in Kerala: MNRE’s Central Financial Assistance
Under the PM Surya Ghar Solar Subsidy Scheme launched by MNRE, residential consumers across India can access financial support for rooftop solar installations, effectively reducing the cost of going solar. This national subsidy, available through local electricity companies in Kerala, offers significant savings based on system capacity. As of 2024, the CFA provides the following subsidy rates for rooftop solar systems:
| System Capacity | Average Units Generated (Bi-monthly) | Subsidy Amount |
| 1 kWp | 240 – 360 units | ₹30,000 |
| 2 kWp | 480 – 720 units | ₹60,000 |
| 3 kWp | 720 – 1080 units | ₹78,000 |
| 5 kWp | 1200 – 1800 units | ₹78,000 (fixed for systems above 3 kW) |
This subsidy, provided upfront by approved vendors, significantly lowers the initial installation cost, making solar power more accessible to residents throughout Kerala. Learn more about the PM Solar Yojana in India
Detailed Cost Breakdown: Solar System Installation Before and After Subsidy
The CFA subsidy program makes solar energy affordable, reducing upfront costs by up to 40%. Below is a comparative cost analysis for common rooftop solar system capacities in Kerala before and after applying the subsidy:
1 kWp System
- Total Cost (Before Subsidy): ₹50,000 – ₹70,000
- Subsidy: ₹30,000
- Final Cost After Subsidy: ₹20,000 – ₹40,000
2 kWp System
- Total Cost (Before Subsidy): ₹1,00,000 – ₹1,40,000
- Subsidy: ₹60,000
- Final Cost After Subsidy: ₹40,000 – ₹80,000
3 kWp System
- Total Cost (Before Subsidy): ₹1,50,000 – ₹2,10,000
- Subsidy: ₹78,000
- Final Cost After Subsidy: ₹72,000 – ₹1,32,000
5 kWp System
- Total Cost (Before Subsidy): ₹2,50,000 – ₹3,50,000
- Subsidy: ₹78,000 (fixed for capacities above 3 kW)
- Final Cost After Subsidy: ₹1,72,000 – ₹2,72,000
These savings make rooftop solar a cost-effective option for Kerala residents, providing quick returns on investment through reduced electricity bills.
How to Apply for the Solar Panel Subsidy in Kerala
The application process for the solar panel subsidy in Kerala is user-friendly. Here are the steps to apply for the PM Surya Ghar Solar Subsidy:
- Visit the National Portal for Rooftop Solar: Start by visiting the National Portal for Rooftop Solar to access subsidy information and find a list of approved vendors.
- Choose an MNRE-Approved Vendor: Only empaneled vendors are eligible to provide CFA-subsidized installations. Choose a vendor from the approved list to ensure you qualify for the subsidy.
- Submit Your Application: Once you’ve chosen a vendor, they can guide you through the application process and handle necessary paperwork. Applications require basic documentation, including identification proof and property details.
- Site Inspection and Approval: The vendor will conduct a site inspection to assess roof suitability and other technical factors.
- Installation and Final Inspection: Following approval, the vendor will install your rooftop solar system. An inspection is then carried out to ensure the installation meets all subsidy criteria.
- Upfront Subsidy Deduction: The subsidy amount is directly deducted from the total installation cost, meaning you pay the subsidized rate at the time of installation.
Frequently Asked Questions About Solar Panel Subsidy in Kerala
1. Who is eligible for the solar panel subsidy in Kerala?
The subsidy is available only for residential consumers opting for on-grid or hybrid (non-battery) systems. Commercial and industrial installations are not eligible.
2. Can I choose any solar panel for installation?
Only ALMM-approved (Approved List of Models and Manufacturers) Made-in-India solar panels qualify for the subsidy. These panels meet MNRE’s quality and performance standards.
3. Is there a maintenance period provided by vendors?
Typically, MNRE-approved vendors offer five years of maintenance with subsidized installations. This maintenance period ensures the system remains efficient.
4. Will I save on electricity costs by going solar?
Yes, a rooftop solar system can reduce your monthly electricity bills by up to 80%, depending on the size of your system and energy consumption.
5. What happens if I produce more energy than I consume?
Through net metering, excess energy can be fed back into the grid, earning you credits that reduce future bills.
Benefits of Installing Solar Panels in Kerala
Investing in solar power offers long-term financial and environmental advantages:
- Reduced Energy Bills: By generating your own electricity, you reduce reliance on grid power, which can significantly cut monthly expenses.
- High Return on Investment: With CFA subsidies and rising electricity tariffs, the cost of solar installations is quickly recouped, often within 5-6 years.
- Environmental Impact: Solar energy reduces carbon emissions and pollution, contributing to cleaner air and a healthier environment.
- Increased Property Value: Homes with solar installations often have higher market values, making them attractive to environmentally conscious buyers.
Future Prospects for Solar Power in Kerala
Kerala has ambitious renewable energy targets as part of India’s goal to reach 500 GW of power from renewable sources by 2030. As rooftop solar becomes more common, the state continues to invest in clean energy policies. Programs like PM Surya Ghar and CFA will be pivotal in achieving these goals, encouraging widespread adoption of solar installations.
ZunRoof Can Help You!
Navigating the subsidy process for solar panel in Kerala can be challenging without the guidance of a reliable solar provider. ZunRoof is here to simplify the transition to solar by offering:
- Assistance with Subsidy Applications: We help you through every step, ensuring all applications and documents are correctly filed.
- High-Quality Solar Systems: ZunRoof only uses BIS-compliant solar modules and components, guaranteeing top performance and long-lasting durability.
- End-to-End Service: From site survey to installation, net metering setup, and ongoing maintenance, ZunRoof takes care of the entire process, making it easy for you to reap the rewards of solar energy.
With ZunRoof, you can seamlessly leverage the solar panel subsidy in Kerala, ensuring you maximize savings while benefiting from clean, renewable energy.
Installing solar panel with subsidy in Kerala is an excellent way for homeowners to reduce their electricity bills and contribute to a greener planet. With government and central subsidies readily available, solar systems are now more affordable than ever. Given the potential to cut energy costs, earn solar credits, and improve property value, there’s never been a better time to invest in solar.
By choosing a trusted partner like ZunRoof, you can streamline the subsidy application, installation, and enjoy a brighter, solar-powered future for your home.
If you are looking to get a solar rooftop, then ZunRoof is the best choice for you. Stay tuned to our blog for more informative content.