Rooftop solar is becoming a practical choice for many homeowners looking to reduce their dependence on grid electricity. With electricity costs going up and government support available for residential solar installations, more households in Kerala are exploring whether solar is a good option for them.
The PM Surya Ghar: Muft Bijli Yojana provides Central Financial Assistance (CFA) for eligible residential rooftop solar systems. This financial support can help bring down the initial cost of installing solar panels at home.
However, getting a solar subsidy is not as simple as installing panels and applying for the money. The solar system, equipment, vendor, approvals, installation, and required documents all need to meet the applicable requirements.
In this guide, we’ll cover how solar subsidy works in Kerala, who can apply, how much assistance may be available, the main benefits of rooftop solar, and the steps involved in the application and installation process.
Understanding Solar Subsidy in Kerala
The main central support available for residential rooftop solar comes under the PM Surya Ghar: Muft Bijli Yojana. The scheme encourages households to install grid-connected rooftop solar systems and generate their own electricity.
With a rooftop solar system, your home can generate electricity during the daytime and use it for regular household needs. Depending on the applicable metering arrangement, any extra electricity generated can also be sent back to the grid.
The subsidy can help reduce the upfront amount you need to spend on an eligible rooftop solar installation.
How Much Solar Subsidy Can You Get in Kerala?
For eligible residential installations, the Central Financial Assistance is structured as follows:
| Solar System Size | Central Subsidy |
| Up to 1 kW | ₹30,000 per kW |
| 1 kW – 2 kW | ₹30,000 per kW |
| 2 kW – 3 kW | ₹18,000 for the additional kW |
| 3 kW and above | Maximum ₹78,000 |
The central subsidy is capped at 3 kW. If you need a bigger system because your household uses more electricity, you can still install one, but the central subsidy will not go up after 3 kW.