Subsidy for Solar Panels in Kerala: Complete Guide to PM Surya Ghar Muft Bijli & MNRE Schemes

Are you tired of seeing your KSEB electricity bill spike every other month?

You are not alone. With the introduction of telescopic pricing and rising tariffs in Kerala, middle-class households are feeling the pinch.

But there is good news. 2025 is the best year to switch to solar energy in Kerala. The Government of India has launched the PM Surya Ghar: Muft Bijli Yojana, a scheme designed to make solar affordable for everyone. Imagine running your AC, washing machine, and lights all day, and paying almost zero for electricity.

This guide simplifies everything you need to know about the solar subsidy in Kerala, how to apply, and why choosing the right partner like Kondaas makes all the difference.

What is the Solar Subsidy?

A solar subsidy is financial help provided by the government to reduce the cost of installing solar panels on your home.

Previously, subsidies were complicated. Today, under the PM Surya Ghar scheme, the process is transparent and fast. The government provides Central Financial Assistance (CFA) directly to your bank account after you install the system. This isn’t a loan; it’s a direct grant to help you adopt green energy.

For a typical Kerala household, this subsidy can cover 30% to 40% of your total installation cost.

Why is the government doing this?
Simple. They want to reduce the load on the grid and promote clean energy. By installing panels on your roof, you become a “prosumer”, someone who produces and consumes their own electricity.

Eligibility Criteria for Solar Subsidies under the PM Surya Ghar Muft Bijli Yojana (in Kerala)

Not everyone qualifies automatically. To grab this subsidy, you need to tick a few simple boxes:

1. Residential Consumer: The subsidy is only for homes (individual houses, flats). Offices, factories, and commercial shops do not qualify for this specific residential subsidy.
2. On-Grid System: Your solar system must be connected to the KSEB grid with a “Net Meter.” Off-grid systems (with batteries only) are usually not covered under this central scheme.
3. Ownership: The electricity connection must be in your name (or the property owner’s name).
4. Made in India: You must use solar panels that are “Made in India” (DCR – Domestic Content Requirement). Imported panels do not get a subsidy.
5. Approved Vendor: The installation must be done by a registered vendor listed on the National Portal for Rooftop Solar. You cannot install it yourself.

MNRE SOLAR SUBSIDY FOR ONGRID SOLAR (DOMESTIC CONSUMERS IN INDIA)

How much money will you actually get? 

The Ministry of New and Renewable Energy (MNRE) has simplified the rates for 2025. The subsidy is based on the capacity of the system you install.

The best part?
The subsidy amount is fixed based on capacity, so you know exactly what you will get.

Here is the breakdown of the subsidy for solar panels in Kerala::

System Capacity	Subsidy Amount (Direct to Bank)
1 kW System	₹30,000
2 kW System	₹60,000
3 kW System (and above)	₹78,000 (Maximum Cap)

Note: If you install a 5 kW or 10 kW system, the maximum subsidy you receive is still ₹78,000. This makes the 3 kW system the “sweet spot” for most Kerala homes, offering the highest return on investment.

How it Works: Net Metering Explained

You might be wondering,
“What happens when it rains in Kerala?” or “Do I need expensive batteries?”

The answer lies in Net Metering. You don’t need batteries for an On-Grid system.

1. Generation: Your panels absorb Kerala’s abundant sunlight and convert it into electricity.
2. Usage: Your home uses this power first. It runs your fans, lights, and fridge for free.
3. Export: If you generate more than you use (e.g., at noon when everyone is at work/school), the excess power flows back to the KSEB grid.
4. Billing: At the end of the month, KSEB checks the Net Meter. They subtract the units you “gave” them from the units you “took.” You only pay for the difference.

If you gave more than you took, your bill could be zero, and you might even get credit for next month!

How to Apply (Step-by-Step Guide)

Gone are the days of running to government offices. The entire process is now online.

1. Register on the Portal: Go to the National Portal for Rooftop Solar. Select ‘Kerala’ and your DISCOM (KSEB).
2. Apply for Feasibility: Submit your electricity consumer number. KSEB will check if your local transformer can handle the solar load.
3. Choose a Vendor: Once approved, pick a registered vendor (like Kondaas) from the list on the portal.
4. Installation: The vendor installs the system and applies for the Net Meter.
5. Inspection: KSEB officials inspect the system to ensure safety standards.
6. Get Subsidy: Once the net meter is live, the portal approves your details, and the money (₹30,000 to ₹78,000) is credited to your bank account within 30 days.

Which Capacity Fits Your Home?

Choosing the right size is crucial for maximizing savings.

• Low Consumption (Under 150 units/month): A 1 kW to 2 kW system is sufficient. It will cover your lights, fans, and TV.
• Medium Consumption (200 – 300 units/month): Go for a 3 kW system. This is ideal for homes with a fridge, washing machine, and occasional AC usage. It maximizes the subsidy benefit.
• High Consumption (Over 400 units/month): If you run multiple ACs regularly, consider a 5 kW system. While the subsidy is capped at ₹78,000, the savings on your high-tier KSEB tariff bills make it worth it.

Why Choose Kondaas?

Installing solar panels is a 25-year commitment. You need a partner who will be there for the long haul, not just for the installation day. This is where Kondaas stands out as a leader in South India.

• Experience That Matters: With over 25 years of expertise and more than 100,000 satisfied customers, Kondaas is a veteran in the industry. They understand Kerala’s unique weather, heavy monsoons and humidity and use components designed to withstand it.
• Subsidy Experts: Dealing with government portals can be tricky. Kondaas has a dedicated team that handles the KSEB feasibility and subsidy paperwork for you, ensuring your application doesn’t get rejected.
• Leak-Proof Installation: Kerala roofs (sloping or tiled) require specialized care. Kondaas uses advanced mounting structures that ensure your roof stays waterproof and secure.
• Service Promise: Solar needs maintenance. Kondaas offers robust after-sales support with a 20-year service promise, ensuring your system generates peak power year after year.

Conclusion

The solar subsidy in Kerala is a limited-time opportunity to secure your energy future. With rising electricity tariffs, waiting only costs you more money every month. By taking advantage of the PM Surya Ghar Muft Bijli Yojana, you are not just buying a solar system; you are buying 25 years of free electricity for the price of a small car.

Ready to say goodbye to high electricity bills?
Contact Kondaas today, and let’s turn your roof into a power plant.