Solar Subsidy in Kerala in 2026: How to Apply and Cost Included

Electricity bills in Kerala are a major expense for every household. The obvious answer to not having to pay hefty bills for 25 years is installing a rooftop solar system. Currently, the central government of India is offering homeowners government financing for solar panels through the PM Surya Ghar solar subsidy in Kerala.

However, the PM Surya Ghar Muft Bijli Yojana subsidy scheme will not be offered forever. The central government will offer it only till it has solarized 1 crore homes in India under the scheme, making 2026 the best time to switch to rooftop solar and reduce your bills by 90% or more.

Read on to discover the ins and outs of solar subsidy in Kerala, including how much it is, the cost of a rooftop solar system in Kerala with subsidy, how to apply for a solar subsidy in Kerala, the documents required and the eligibility criteria homeowners must meet, and the benefits of installing a rooftop solar panel system at homes.

TL;DR

Here are the main topics covered in this blog on solar panel subsidy in Kerala in detail:

*Please note: The above-mentioned solar panel price in Kerala with subsidy is indicative and based on standard market research. The final cost of installing an on-grid rooftop solar system in Kerala depends on your city, DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Prices are subject to change.

Is There a Subsidy for Solar Power in Kerala for Homes?

The PM Surya Ghar solar subsidy scheme in Kerala, applicable to residential solar, is the government financing for solar panels offered by the central government of India. There is no separate state-level Kerala government solar subsidy in 2026.

The maximum solar subsidy in Kerala under the PM Surya Ghar Muft Bijli Yojana is capped at Rs. 78,000 for systems of 3 kWp or more.

PM Surya Ghar Muft Bijli Yojana Solar Panel Subsidy in Kerala in 2026

Here’s a snapshot of the PM Surya Ghar solar panel subsidy in Kerala in 2026 for homeowners:

What’s the Solar Panel Price in Kerala with Subsidy in 2026?

The solar panel price in Kerala with subsidy for rooftop on-grid solar systems gets significantly reduced in 2026. For instance, a 3 kW solar panel in Kerala that’s priced between ~Rs. 2 lakh* to ~Rs. 2.50 lakh* without a subsidy will cost between ~Rs. 1.22 lakh* to ~Rs. 1.72 lakh* with a subsidy.

Here’s a snapshot of the cost of rooftop solar installation in Kerala, both with and without a subsidy, in 2026 for different capacity solar energy systems:

*Please note prices are subject to change. The solar panel price in Kerala listed in the section above is indicative and based on standard market research. The final cost of installing an on-grid rooftop solar system in Kerala depends on your city, DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.

Why Does the Government Offer a Solar Subsidy in Kerala?

Kerala receives ~2,300 hours of uninterrupted sunshine each year. Hands down, it’s one of the sunniest Indian states where rooftop solar can generate enough solar electricity to take care of all home energy needs.

In order to meet its solar adoption target of becoming a 100% renewable energy-powered state by 2040 and a zero-carbon emission state by 2050 under the ESG policy, the Kerala government offers the PM Surya Ghar solar subsidy to encourage homeowners to install rooftop solar at subsidized rates.

When rooftop solar is subsidized, more and more people can afford it.

Benefits of Installing Rooftop Solar in Kerala

Offering a solar subsidy in Kerala is the Indian government’s way of encouraging homeowners to go solar. But what’s in it for you, you ask?

Well, when you install a properly-sized rooftop solar system, it can produce enough power to meet all energy needs at your home. The result is zero or near-zero bills. Given that electricity bills in India increase by 3-6% annually, not having to pay for power is a strong incentive.

Here’s a rundown of the multiple benefits you can reap by installing rooftop solar at your home:

• You can install solar at cheaper rates in 2026 as the government is offering the PM Surya Ghar Muft bijli yojana solar panel subsidy in Kerala.
• Your solar system will meet all your home energy needs. This will lower your bills by 90% or more.
• Since a well-designed tier-1 rooftop solar system lasts for 25+ years, the savings from solar will be in tens of lakhs of rupees.

You can use SolarSquare’s free solar savings calculator to find the approximate savings you can receive in your city.

How to Apply for a Solar Subsidy in Kerala? Step-by-Step Breakdown

Homeowners in Kerala can register on the PM Surya Ghar Muft Bijli Yojana National Portal for Rooftop solar to apply for and receive a subsidy straight into their bank accounts.

Here are the simple steps you can follow to receive a solar subsidy in Kerala:

• Step 1 – Visit the National portal for rooftop solar: Head to the official PM Surya Ghar Muft Bijli Yojana website and click the rooftop solar application option to begin.
• Step 2 – Set up your profile: Pick your state, district, and DISCOM from the dropdown menus, then register an account using the Customer Account number printed on your electricity bill.
• Step 3 – Fill in the application: Add basic personal details like your name and age, along with the relevant figures from your most recent electricity bill.
• Step 4 – Share your bank details: Upload the supporting documents as mentioned on the portal and attach a cancelled cheque for verification.
• Step 5 – Pick an empanelled installer: Browse the portal’s list of DISCOM-approved vendors and choose the installer you want to work with.
• Step 6 – Upload the signed agreement: Read through the installer agreement properly, sign it, and upload the signed copy back to the portal.
• Step 7 – Net meter installation: Once your rooftop system is installed, the DISCOM fits a bi-directional net meter or smart meter that records both the units you import and the ones you export.
• Step 8 – Receive the commissioning certificate: The DISCOM inspects the PV system and then issues your Solar Commissioning Certificate.
• Step 9 – File your subsidy claim: Sign back into the portal and upload the commissioning certificate to start the subsidy process.
• Step 10 – Get the subsidy credited: Once your claim clears verification, the subsidy lands directly in the bank account you registered within 30 days.

Who is Eligible for the PM Surya Ghar Muft Bijli Yojana Solar Subsidy Scheme in Kerala?

You can receive the PM Surya Ghar Muft Bijli Yojana solar subsidy in Kerala if you meet the eligibility criteria listed below:

• You must be an Indian citizen installing ALMM-approved, made-in-India solar panels.
• You are the owner of the roof where the PV system will be installed.
• You have an active electricity connection in your name with your local DISCOM.
• You have never received a solar subsidy in Kerala under any scheme for systems up to 3 kW before.

Documents Required to Apply for a Solar Subsidy in Kerala

If you meet the eligibility conditions listed above, you require only a few basic documents to apply for a solar panel subsidy in Kerala:

• Technical details of the solar system
• Copy of your latest electricity bill
• Basic net meter agreement between you and your discom

Conclusion

A solar subsidy in Kerala is the government’s way of making rooftop solar affordable for everyone. Since electricity costs rise by 3-6% annually, going solar in Kerala makes a lot of sense, especially before the solar subsidy is no longer offered. The PM Surya Ghar subsidy will cease once the government has solarized 1 crore Indian households under this scheme.

Although SolarSquare is currently not operational in Kerala, we will make an official announcement soon upon launching our services in your state. In the meantime, if you’re from MP, Maharashtra, UP, Gujarat, Karnataka, Delhi, or Tamil Nadu, and you’re looking to go solar, book a free solar consultation call with SolarSquare today.

FAQs

What is the solar fencing subsidy in Kerala?

Solar fencing subsidy in Kerala is not offered under a single statewide scheme. Instead, it’s available through agriculture or forest-related programs. Usually, farmers can receive partial financial assistance of around 50% to install solar fences for crop protection.

What is the solar water heater subsidy in Kerala?

Solar water heater subsidy in Kerala is provided through ANERT (state renewable energy agency) under periodic schemes, offering around 30% of the system cost as a subsidy.

Is there any state-level government financing for solar panels in Kerala?

No, there is no state-level solar panel Kerala government subsidy in 2026. The Kerala solar subsidy of up to Rs. 78,000 is the financial help offered by the central government to all Indian citizens.

How many ACs can run on a 3 kW solar system in Kerala?

A 3 kW solar system can power one 1.5-ton AC in a 2-3 BHK home. If you have two 1.5-ton ACs, you will need a 5 kW solar system instead.

Is net metering available in Kerala?

Yes, net metering of up to 20 kW is available in Kerala for residential connections.

Is a battery mandatory with rooftop solar in Kerala?

As per the latest news, a battery will be mandatory for solar systems above 5 kW in Kerala that will be commissioned after April 1 2027.

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