Your electricity bill keeps climbing. You’re looking at solar, but the price tag seems steep. What if I told you the government covers a chunk of that cost?
In Kerala, you can install a rooftop solar system and pay significantly less through government subsidies.
The real question isn’t whether you can afford solar, it’s whether you can afford not to go solar. Let’s break down exactly what rooftop solar costs in Kerala after subsidy, by system size, so you can make a real decision.
What You’re Actually Paying: The Real Cost After Subsidy
Here’s the truth: solar prices in Kerala have dropped dramatically. What cost ₹2.5 lakhs five years ago now costs ₹1.85 to ₹2.15 lakhs for a 3 kW system.
But here’s the game-changer: the government subsidy brings your actual out-of-pocket cost down by ₹78,000.
That means a typical 3 kW system that costs ₹1.89 to ₹2.15 lakhs before subsidy?
You’re paying only ₹1.11 to ₹1.37 lakhs after the PM Surya Ghar subsidy is applied.
This is why Kerala has become one of India’s solar installation hotspots. Over 10 lakh homes have already gone solar, generating more than 3 GW of clean energy. They’ve figured out the math works.
System Size Breakdown: What Each Size Costs and Produces
Let’s get specific. The cost depends on what size system your roof can handle and what your electricity needs actually are.
| System Size | Cost Before Subsidy | Government Subsidy | Your Net Cost | Bimonthly Power Generation | Best For |
|---|---|---|---|---|---|
| 1 kW | ₹75,000–₹85,000 | ₹30,000 | ₹45,000–₹55,000 | 210–240 units | Small flats, minimal electricity needs |
| 2 kW | ₹1,50,000–₹1,70,000 | ₹60,000 | ₹90,000–₹1,10,000 | 456–480 units | Small families, 40-50% bill reduction |
| 3 kW | ₹1,89,000–₹2,15,000 | ₹78,000 | ₹1,11,000–₹1,37,000 | 684–720 units | Most popular, 50-70% bill coverage |
| 4 kW | ₹2,52,000–₹2,85,600 | ₹78,000 | ₹1,74,000–₹2,07,600 | 900+ units | Large homes with multiple ACs |
| 5 kW | ₹3,15,000–₹3,57,000 | ₹78,000 | ₹2,37,000–₹2,79,000 | 1,200+ units | Villas, 70-80% bill coverage |
Key Insights from the Table:
The subsidy cap at ₹78,000. Systems up to 3 kW get subsidies proportional to size. But at 4 kW and above, the government caps the subsidy at ₹78,000 meaning larger systems get slightly lower percentage savings.
The 3 kW sweet spot. Most Kerala families choose 3 kW because it covers 50-70% of household needs, the payback period is 3-4 years, and you get the maximum per-kW subsidy benefit.
Generation scales linearly. Double the system size roughly doubles your bimonthly generation. A 4 kW produces 900+ units versus 684–720 for a 3 kW.
Payback stays consistent. Across all sizes, the ROI timeline is 3-4 years in Kerala due to high electricity tariffs (₹8-₹9 per unit).
How the Government Subsidy Actually Works
The PM Surya Ghar: Muft Bijli Yojana isn’t some complicated rebate you apply for months later. The subsidy is deducted upfront.
Here’s how it flows:
- You apply on the National Portal for Rooftop Solar with a KSEB-approved vendor
- Technical feasibility is verified by KSEB to ensure your roof is suitable
- The vendor gets approval to install your system
- You pay the reduced price (total cost minus subsidy) at installation
- After inspection, the government reimburses the vendor
No waiting 6 months for a check. No complicated paperwork. The subsidy reduces what you pay on day one.
The government has allocated ₹75,021 crore for this nationwide, with over 1.28 lakh loans already sanctioned. Kerala is one of the leading states, with 35+ KSEB-approved solar companies ready to guide you through the process.
Kerala’s Specific Advantages (Why Solar Works Here)
Kerala isn’t just any state for solar. Your geography works in your favor.
High electricity tariffs: Kerala’s power costs are among India’s highest ₹8-₹9 per unit for residential consumers. Solar saves you more because you’re offsetting expensive power.
Consistent sunshine: While monsoon season reduces generation slightly, Kerala’s average daily solar potential is 4.5-5.0 kWh per square meter solid for consistent output.
Net metering support: Through KSEB, you can export excess power and earn credits. A 3 kW system on a sunny day generates more than you need. That extra goes back to the grid, and you get paid.
State coordination: Surya Thejus, Kerala’s state solar program, works alongside the central PM Surya Ghar scheme. Two layers of support.
Real Example: A 3 kW System in Kerala
Let’s use actual numbers. Your typical Kerala family spends ₹5,000-₹6,000 monthly on electricity.
- A 3 kW system costs ₹2,00,000 before subsidy. After the ₹78,000 government subsidy, you pay ₹1,22,000. That system generates 684-720 units bimonthly (let’s say 1,450-1,500 units annually).
- Your current annual bill: ₹60,000–₹72,000 (assuming ₹5,000-₹6,000 monthly). After solar: 60% reduction = ₹24,000–₹28,800 annually saved
- Payback period: ₹1,22,000 ÷ (₹60,000 saved annually) = 2 years. After 2 years, your solar system becomes free electricity. Over its 25-year lifespan, you save ₹15–₹18 lakhs.
What You Need to Know Before Installing
- Roof condition matters. Your roof needs to be structurally sound and face south-facing for optimal output. A technical survey (free with KSEB-approved vendors) confirms this.
- Space requirements: A 3 kW system needs about 300 square feet of unshaded rooftop. Most homes have this, but some apartments don’t.
- On-grid only (for subsidy). The government subsidy is only for on-grid systems connected to the KSEB grid. Battery backup systems aren’t eligible under this scheme.
- Financing options exist. Many vendors offer loans, and banks now offer dedicated solar loans at 6-8% interest. Effectively, your monthly EMI is less than your current electricity bill savings.
Your Next Move
You’ve seen the math. A 3 kW system costs ₹1,22,000 after subsidy and saves you ₹60,000+ annually. That’s less than 2 years to recover your investment, followed by 23 years of free electricity.
In Kerala, where power bills are crushing household budgets, solar isn’t a luxury it’s practical math.
Step 1: Find a KSEB-approved vendor in your area (35+ options exist).
Step 2: Request a free roof survey and quote.
Step 3: Apply for subsidy on the National Portal for Rooftop Solar.
Step 4: Get installed and start generating your own electricity.
The 10 lakh Kerala homes that have already gone solar?
They’re not waiting anymore. Neither should you.
FAQ: Your Remaining Questions Answered
Q: Can I get a subsidy if I hire a non-KSEB-approved installer?
No. Only KSEB-approved vendors process the subsidy. Choosing an unapproved installer means no government support.
Q: What happens in the monsoon season?
Generation drops by 20-30% during peak monsoon (June-August) but recovers well in other months. Annual figures already account for this.
Q: Can I sell extra power to KSEB?
Yes. Through net metering, excess power flows to the grid, and KSEB credits your account at the same rate you’re charged essentially banking free electricity.
Q: How long does installation take?
From application to activation: 4-6 weeks if all permissions are smooth. Some cases take 8 weeks due to the KSEB queue.
Q: Is ₹1,22,000 all I need upfront after subsidy?
Yes, that’s your total cost for a 3 kW system after the ₹78,000 subsidy is applied. Some vendors offer payment plans, making it even easier.
Q: Will my roof need repairs afterward?
Not usually. A proper installation uses high-quality mounting that doesn’t damage tiles. But inform your installer about any existing roof issues beforehand.