Paying Less, Saving More: Understanding Solar Subsidies and Rooftop Incentives in Kerala
The demand for solar power in Kerala is growing faster than ever. With rising electricity costs and the state’s strong commitment to renewable energy, more homeowners and businesses are looking to install rooftop solar systems. But here’s the good news—you don’t have to bear the entire cost yourself. Government solar subsidies and rooftop incentives in Kerala make switching to solar much more affordable, helping you save both money and energy for years to come.
In this guide, we’ll break down what subsidies are available, how to apply, and what you can expect during the process. Whether you’re a homeowner planning your first solar project or a business owner aiming to reduce your power bills, this information will help you make an informed decision.
Why Kerala Is Promoting Solar Energy
Kerala has been proactive in encouraging clean energy adoption to reduce dependency on fossil fuels and tackle climate change. The state’s abundant sunlight throughout the year makes it ideal for solar power generation. By offering solar subsidies and rooftop incentives in Kerala, the government hopes to accelerate adoption among households, institutions, and businesses.
In addition, initiatives like net metering—where you can sell excess power back to the grid—make solar systems even more attractive. This means your investment not only lowers your electricity bills but can also create a small income stream over time.
What is a solar subsidy?
A solar subsidy is a financial incentive provided by the government to make installing solar systems more affordable. In India, the Ministry of New and Renewable Energy (MNRE) offers subsidies through state nodal agencies. In Kerala, the nodal agency is the Kerala State Electricity Board (KSEB), which oversees the application and approval process.
The subsidy amount depends on the capacity of the solar system you install. For residential rooftop solar, it can cover a significant percentage of the cost, reducing your upfront investment. This is especially helpful for families looking for long-term savings without straining their budgets.
Types of Rooftop Solar Systems Eligible for Subsidy
Before you apply, it’s important to know which solar systems qualify for subsidies:
On-Grid Solar Systems – These are connected to the state electricity grid. They are the most common and eligible for most subsidies. If you want to know more, check out our detailed guide on on-grid solar systems.
Hybrid Solar Systems—A combination of on-grid and battery backup systems. These offer the flexibility of storing energy for outages while still benefiting from grid connection.
Off-Grid Solar Systems – Standalone systems powered entirely by solar with battery storage. These are ideal for remote locations without grid access, though subsidies may differ.
How to Apply for Solar Subsidies in Kerala
Here’s a simple step-by-step guide to applying for subsidies in Kerala:
Choose a Registered Vendor—Only KSEB-approved vendors can install systems eligible for subsidies. Reputed providers like our solar company in Calicut ensure compliance with all requirements.
Submit Your Application – Applications are typically submitted online via KSEB’s portal. You’ll need documents such as proof of ownership, ID, and technical system details.
Inspection and Approval – Once the application is reviewed, KSEB inspects your site to confirm suitability.
Installation—After approval, the vendor installs your system according to MNRE specifications.
Claim Subsidy—The subsidy amount is credited to your bank account or adjusted against your total installation cost.
Key Benefits of Solar Subsidies and Rooftop Incentives
Lower Upfront Costs—Significant savings on initial installation expenses.
Faster Payback Period – Reduced costs mean your investment pays for itself sooner.
Increased ROI – Solar power systems can generate electricity for 20–25 years, giving you free power long after you recover your investment.
Boost to Property Value – Homes with solar systems are often more attractive to buyers.
Other Incentives to Know About
Apart from government subsidies, Kerala also offers:
Net Metering Benefits – Sell excess electricity back to the grid and earn credits.
Low-Interest Loans – Some banks provide special financing for solar installations.
GST Benefits – Reduced tax rates for renewable energy components.
For households looking to reduce their dependency on the grid and save more, combining subsidies with net metering can be a game-changer.
Common Myths About Solar Subsidies
Myth 1: Subsidies cover the entire cost.
Reality: They significantly reduce costs, but you’ll still need to invest part of the amount.
Myth 2: The process is complicated.
Reality: With a trusted vendor handling paperwork, it’s straightforward and hassle-free.
Myth 3: Only large systems qualify.
Reality: Even small rooftop systems can be eligible for subsidies.
Why Work with a Professional Solar Company?
Installing solar involves more than just placing panels on your roof. You need proper system design, quality components, and compliance with government norms to qualify for incentives.
Partnering with an experienced solar company in Calicut like String Solar ensures you get:
Expert guidance on subsidy eligibility
High-quality, long-lasting systems
Smooth application and installation process
We also provide a complete range of solutions, including hybrid solar systems and lightning arrest systems, to ensure your investment is safe and efficient.
Final Thoughts
Switching to solar is one of the smartest financial and environmental decisions you can make today. By taking advantage of solar subsidies and rooftop incentives in Kerala, you can significantly cut costs and enjoy the benefits of clean energy for decades.
If you’re ready to explore your options, connect with our expert team for a free consultation. Together, we can design a solar solution that meets your needs, maximizes savings, and contributes to a greener Kerala.