There is a lot written about the rooftop solar subsidy and not much of it states the amounts plainly. So, plainly:
| System size | Subsidy |
|---|---|
| 1 kW | ₹30,000 |
| 2 kW | ₹60,000 |
| 3 kW and above | ₹78,000 |
Those are the figures under PM Surya Ghar: Muft Bijli Yojana, from the Government of India announcement of 1 March 2024. The structure behind them is 60% of the system cost up to 2 kW, plus 40% of the additional cost between 2 and 3 kW.
The subsidy stops at 3 kW. A 5 kW system gets the same ₹78,000 as a 3 kW one. A 10 kW system also gets ₹78,000. This single fact changes the sums more than anything else on this page, and it is the one most often left out of a sales conversation.
What that means for sizing
If you are close to the line, it is worth doing the arithmetic properly.
Going from 2 kW to 3 kW costs you the price of one more kilowatt but gains you ₹18,000 of subsidy, so the real cost of that extra kilowatt is small. Going from 3 kW to 5 kW gains you nothing in subsidy at all — you pay the full difference.
That does not mean 3 kW is automatically right. If your consumption genuinely needs 5 kW, a 5 kW system is still the correct system; you just should not expect the government to help with the top half of it. What it does mean is that 3 kW is the sweet spot, and anyone recommending 5 kW should be able to show you from your bills why you need it.
Who qualifies
The scheme is for residential rooftop systems. Broadly you need to be a homeowner with a rooftop you control, a valid electricity connection in your name, and a grid-connected on-grid system installed by a registered vendor with net metering approved.
Three things commonly disqualify people, and none of them is obvious:
Off-grid systems do not qualify. The scheme exists to put power into the grid. A battery system with no grid connection is outside it entirely.
Commercial premises do not qualify under this scheme. A shop, a clinic or a godown is a different conversation.
Buying the equipment yourself and having someone fit it does not qualify. The installation has to go through a registered vendor and be recorded properly in the national portal.
The order of the paperwork matters
This is where it goes wrong for people, and it is nearly always the same mistake: the panels go up before the approval comes through.
The sequence that works:
- Register on the national portal and apply.
- Wait for feasibility approval from KSEB.
- Then install, through a registered vendor.
- Apply for the net meter and have it installed and tested.
- Submit the commissioning certificate.
- Subsidy is paid into your bank account.
Installing at step 3 before you have step 2 is the single most common way a subsidy claim fails. The system will work fine — you just will not be paid for it. We will not start an installation before the approval is in hand, even when a customer is in a hurry, and that is why.
How long it takes
Longer than anybody would like. The application and feasibility stage is usually the slowest part, then the net meter, then the payment. Anyone who promises you a specific number of days for the whole cycle is guessing — it depends on the section office and the load on it at the time.
What we can tell you honestly is which stage you are at and what is blocking it, because we do the paperwork rather than handing you a folder and wishing you luck.
Verify the current figures before you commit
Subsidy schemes change. The amounts above are from the March 2024 announcement and were the operative figures at the time of writing. Before you sign anything, check the current position on the official portal, or ask us and we will tell you what we are seeing on live applications this month.
Be careful with any quote that shows the subsidy already deducted from the price with no mention of the approval process. The subsidy is paid to you, after commissioning, if the paperwork is right. It is not a discount at the point of sale.
What a 3 kW system actually costs
Our 3 kW on-grid systems start from ₹2,10,000 before subsidy, which is where most Kerala homes land. What moves it from there is roof type, cable run, the condition of the existing wiring and whether the meter position needs work.
We size from your last twelve months of bills, not from a phone call. Send a photo of your latest KSEB bill and we will tell you the size, the likely subsidy and what it leaves you paying.
