- If your TNPDCL (EB) bill has crossed 500 units a cycle, here’s some good news. Installing rooftop solar in Tamil Nadu has never been cheaper.
- On top of the central PM Surya Ghar subsidy of ₹78,000, the Tamil Nadu government now adds up to ₹22,000 more, bringing the total subsidy to ₹1,00,000 for a 3 kW home system.
- Add a solar loan at about 6% interest and electricity savings that aren’t taxed, and rooftop solar can pay for itself in roughly 3–5 years for many high-usage homes.
This guide shows the real numbers: what a 3 kW system costs after subsidy, how much you’ll actually save on your EB bill, and how to install with Kondaas before the state’s March 2027 target closes.
Quick answer: A 3 kW rooftop solar system in Tamil Nadu typically costs about ₹2–2.8 lakh before subsidy. After the combined ₹1 lakh subsidy, you pay about ₹1–1.8 lakh. Homes using 800–1,200 units per two-month cycle can save roughly ₹28,000-₹46,000 a year, which means the system can pay for itself in about 3–5 years.
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Tamil Nadu Rooftop Solar Subsidy 2026: How the ₹1 Lakh Works
The Tamil Nadu government under Chief Minister C. Joseph Vijay announced a state top-up subsidy in its 2026–27 budget, on top of the central PM Surya Ghar: Muft Bijli Yojana. The scheme was launched in September 2026, and Energy Minister Nirmalkumar set a target of at least 1 lakh rooftop solar installations by March 2027, with ₹50 crore allocated for the top-up.
| System Size | Central Subsidy (PM Surya Ghar) | Tamil Nadu Top-Up | Total Subsidy |
| 1 kW | ₹30,000 | ₹5,000 | ₹35,000 |
| 2 kW | ₹60,000 | ₹10,000 | ₹70,000 |
| 3 kW and above | ₹78,000 | ₹22,000 | ₹1,00,000 |
Good to know:
- The subsidy is capped at 3 kW. Bigger systems don’t get more subsidy, but they still save more on bills.
- You don’t apply separately for the state top-up. TEDA picks up your details from the PM Surya Ghar portal, and the top-up is credited by direct bank transfer after commissioning.
- Panels must be made in India with a DCR (domestic content requirement) certificate, installed by an MNRE-empanelled vendor like Kondaas.
What Does a 3 kW Solar System Cost in Tamil Nadu After Subsidy?
| Example Quote | Higher-End Quote | |
| 3 kW on-grid system (installed) | ₹2,30,000 | ₹2,80,000 |
| Less: central subsidy | – ₹78,000 | – ₹78,000 |
| Less: Tamil Nadu top-up | – ₹22,000 | – ₹22,000 |
| Your net cost | ₹1,30,000 | ₹1,80,000 |
Your actual price depends on panel brand and type (TOPCon or Mono PERC), inverter, roof structure, wiring distance and net-meter charges. Kondaas gives you an itemised quote after a free site survey, so there are no surprises.
For a full walkthrough of eligibility and TNPDCL procedures, see our Tamil Nadu solar subsidy guide.
How Much Will You Actually Save on Your EB Bill?
This is where most solar ads overpromise. Your savings depend on how many units you use, because Tamil Nadu charges more per unit as consumption rises.
- Since May 2026, domestic consumers using up to 500 units per two-month cycle get 200 units free. Above 500 units, only 100 units are free, and rates climb from ₹8.40 to ₹11.55 per unit. Solar cuts the most expensive units first.
- A 3 kW system typically generates about 4 units per kW per day, or roughly 720 units in a two-month billing cycle (actual output varies with sunlight, roof direction and shading).
| Your Usage (per 2-month cycle) | Bill Today* | Bill With 3 kW Solar* | Yearly Saving | Payback on ₹1.3 Lakh Net Cost |
| 500 units | ₹1,570 | ₹0 | ₹9,400 | About 14 years |
| 800 units | ₹4,770 | ₹0 | ₹28,600 | About 4.5 years |
| 1,000 units | ₹6,870 | ₹376 | ₹39,000 | About 3.3 years |
| 1,200 units | ₹9,180 | ₹1,444 | ₹46,400 | About 2.8 years |
What this means for you:
- Using 800+ units per cycle?
Solar is one of the best financial decisions you can make for your home, with payback in about 3-5 years and 25+ years of panel life. - Using 500 units or less?
Tamil Nadu’s 200 free units already keep your bill low, so payback is much slower. A smaller system, or waiting until your usage grows (a new AC, EV charging, more family members), may make more sense.
Our team will tell you honestly if solar isn’t worth it for your home yet.
For a component-by-component breakdown, read our solar panel installation cost guide.
The Return: Why Solar Can Beat Fixed Deposits
Let’s look at the 1,200-unit home from the table:
- Net investment: ₹1,30,000 after subsidy
- Yearly saving: about ₹46,400
- Simple yearly return: about 35%, and the system has paid for itself in under 3 years
The tax angle: There’s no income tax deduction for buying home solar.
But money you save on electricity isn’t taxable income. If you’re in the 30% tax slab, earning an extra ₹46,400 after tax would need about ₹67,000 of pre-tax income (including cess). A fixed deposit earning 6–7% is taxed at your slab rate; your solar savings are not.
These returns are estimates for a high-usage home. Your actual return depends on your consumption, system cost and how well the panels are maintained.
Finance It at About 6%: Solar Loans Under PM Surya Ghar
You don’t need to pay the full amount upfront. Public sector banks offer special rooftop solar loans under PM Surya Ghar:
| Lender (example) | Interest Rate | Key Terms |
| SBI Surya Ghar Loan | 6.00% for loans up to ₹2 lakh; 8.15% above ₹2 lakh (as of 15 Oct 2026, floating) | Up to 10 years (incl. 6-month moratorium), 10% margin, no prepayment penalty, panels hypothecated, no other collateral |
| Indian Bank | Linked to repo rate; varies by customer | Up to ₹2 lakh for systems up to 3 kW, up to 120 months, nil processing fee |
How it works with the subsidy: you take the loan for the system cost, the ₹1 lakh subsidy is credited to your account after commissioning, and you can use it to prepay the loan. Since there’s no prepayment penalty, your EMI drops sharply.
Why the Timing Matters
- The state target runs until March 2027. Tamil Nadu has set a goal of at least 1 lakh installations by the end of March, with ₹50 crore allocated for the top-up. According to the Energy Minister, CM Vijay has allowed the department to seek additional funds if demand crosses the target, but extra funding isn’t guaranteed.
- PM Surya Ghar’s current phase also runs to March 2027.
- Installation takes time. Portal registration, TNPDCL feasibility, installation, net-meter fitting and commissioning usually take several weeks. Starting early avoids the March rush.
How to Install Rooftop Solar with Kondaas: 6 Simple Steps
- Book a free site survey. Our engineer checks your roof space, shading, orientation and your last few EB bills to recommend the right system size.
- Get an itemised quote. Panels, inverter, structure, wiring and net meter are listed clearly, with subsidy deducted.
- We register you on the PM Surya Ghar portal using your TNPDCL consumer number and help you complete the feasibility process.
- Installation by trained Kondaas teams, using DCR-certified panels as required for the subsidy.
- Net meter and commissioning. TNPDCL inspects the system and fits the net meter; the portal issues your commissioning certificate.
- Subsidy in your bank account. The ₹78,000 central subsidy and the ₹22,000 state top-up are both credited directly to your account after verification.
Need a loan?
We’ll help you with the paperwork for your bank’s PM Surya Ghar solar loan.
See what our customers say on our testimonials page
Why Homeowners Choose Kondaas
- Solar experience since 1995, with over 30 years in the industry
- MNRE-empanelled rooftop solar installer, eligible for PM Surya Ghar subsidies
- 4.8★ Google rating from 7,400+ reviews
- Service across Tamil Nadu, including Coimbatore, Chennai, Madurai, Salem, Tiruchirappalli, Tirupur and Erode
- End-to-end support: survey, portal registration, installation, net metering, subsidy follow-up and after-sales service
Ready to Go Solar? Book Your Free Site Survey Today
With up to ₹1 lakh in subsidy, solar loans at about 6% and electricity savings that aren’t taxed, there’s rarely been a better time to install rooftop solar in Tamil Nadu, especially if your EB bill is high. The state’s target runs until March 2027, so start early to avoid the rush.
Frequently Asked Questions
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How much subsidy will I get to install a 3 kW rooftop solar system in Tamil Nadu?
Up to ₹1,00,000: ₹78,000 from the central PM Surya Ghar scheme and ₹22,000 from the Tamil Nadu government’s top-up. Both are credited to your bank account after the system is commissioned.
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Do I need to apply separately for the Tamil Nadu ₹22,000 top-up?
No. You apply once on the PM Surya Ghar portal. TEDA collects your details from the central portal and credits the state top-up after verification.
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Is rooftop solar worth it if I get 200 free units?
It depends on your usage. If you use 500 units or less per two-month cycle, your bill is already low, so payback can take over 10 years. If you use 800 units or more, savings are much higher, and payback is typically 3–5 years.
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Can I get a loan to install solar panels at home?
Yes. Banks like SBI and Indian Bank offer PM Surya Ghar rooftop solar loans. SBI’s rate is 6% for loans up to ₹2 lakh (as of October 2026), with tenure up to 10 years and no prepayment penalty.
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How long does installation take?
The physical installation of a 3 kW system usually takes 1–3 days. The full process, including portal registration, TNPDCL feasibility, net metering and commissioning, usually takes a few weeks, depending on TNPDCL timelines.
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Does solar work during power cuts?
A standard on-grid system, which is the type eligible for subsidy, shuts off during power cuts for safety. If you need backup, ask us about hybrid systems with batteries. Note that subsidy rules apply to grid-connected systems.
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Is the Tamil Nadu solar subsidy available for apartments?
Individual homes with their own rooftop and TNPDCL connection qualify. For apartments, resident welfare associations and housing societies have a separate common-infrastructure subsidy. Contact us to check your building’s eligibility.