How Much Can You Save with Solar in Kerala? (2026 Update)
Under the current KSERC LT-I domestic order, monthly use up to 250 units is charged telescopically at ₹3.35, ₹4.25, ₹5.35, ₹7.20 and ₹8.50 per unit across the five slabs. Above 250 units, separate non-telescopic rates apply to the full monthly consumption. Fixed charges and other approved bill components are additional.
This article walks through actual numbers for a typical Kerala home using 300–400 units per month. We'll show you the investment, the subsidy that slashes the upfront cost, the monthly savings, and the long-term 25-year picture.
Bottom line first: An eligible individual household can receive up to ₹78,000 CFA, but project cost, annual savings and payback must be calculated from the itemised quote, surveyed generation, actual bill and current KSEB accounting. They are not guaranteed scheme benefits.
Verified official references · Last checked 24 July 2026
Step 1 — What Does a Solar System Cost in Kerala?
Solar system prices in Kerala vary by capacity, panel brand, inverter type, and installer. Here are typical ranges for a quality on-grid system with Tier-1 panels (Adani, Waaree, REC, Longi) and a branded string inverter (Growatt, Solis, SolarEdge):
| System Size | Typical Price (before subsidy) | PM Surya Ghar Subsidy | Net Cost After Subsidy |
|---|---|---|---|
| 1 kW | ₹75,000–85,000 | ₹30,000 | ₹45,000–55,000 |
| 2 kW | ₹1,30,000–1,50,000 | ₹60,000 | ₹70,000–90,000 |
| 3 kW | ₹1,70,000–2,00,000 | ₹78,000 | ₹92,000–1,22,000 |
| 5 kW | ₹2,50,000–3,00,000 | ₹78,000 | ₹1,72,000–2,22,000 |
| 10 kW | ₹4,50,000–5,50,000 | ₹78,000 | ₹3,72,000–4,72,000 |
Note: For an eligible individual household, PM Surya Ghar CFA is ₹30,000 per kW for the first 2 kW, plus ₹18,000 for the third kW, capped at ₹78,000. A rooftop system may be larger than 3 kW, but no additional central CFA is calculated beyond the first 3 kW. Commercial connections are not eligible for this individual-household CFA.
Step 2 — How Much Electricity Will Your System Generate?
Solar generation in Kerala depends on your district. Kerala averages 4.7–5.5 peak sun hours per day across districts, with Palakkad (5.4 hrs) at the top and Wayanad (4.7 hrs) at the bottom due to forest cover and higher rainfall.
A standard rule of thumb: a 1 kW system generates approximately 4–4.5 units per day in Kerala.
| System Size | Daily Generation | Monthly Generation | Annual Generation |
|---|---|---|---|
| 1 kW | 4–4.5 units | 120–135 units | 1,440–1,620 units |
| 2 kW | 8–9 units | 240–270 units | 2,880–3,240 units |
| 3 kW | 12–13.5 units | 360–405 units | 4,320–4,860 units |
| 5 kW | 20–22.5 units | 600–675 units | 7,200–8,100 units |
Step 3 — Monthly Savings Calculation
KSEB's current net-metering method is more detailed than simply subtracting total monthly export from total monthly import. Import and export are accounted for by time zone where applicable, surplus is normalised before later offset, carried balance units have a 2% monthly banking charge, and fixed or other approved charges remain. Grid-support charges apply only where the regulations require them.
Illustrative planning case: 3 kW system, ₹3,500 monthly bill
Step 4 — Payback Period
Simple payback is the net project cost divided by verified annual savings. Build it from:
- The itemised installed-system price, including any likely replacement or maintenance cost.
- The CFA amount for which the household and installation are actually eligible.
- Generation estimated from the surveyed roof, shading, equipment and system losses.
- Self-consumption plus exported-energy value under the current KSEB accounting rules.
Do not accept a guaranteed payback period without a written assumption sheet. The calculator provides a first estimate, while the proposal should show the bill period, energy charges used, expected generation, degradation, downtime, current net-metering treatment and excluded charges.
Step 5 — The 25-Year Picture
A long-term projection should use the written product warranty for the selected panel and inverter, rather than a generic promise. It should also separate today's-rupee savings from any scenario that assumes future tariff changes.
| Projection input | What to use | Why it matters |
|---|---|---|
| Starting generation | Site-specific design estimate | Sets the first-year energy value |
| Degradation | Selected panel warranty curve | Reduces output over time |
| Tariff scenario | Current tariff baseline plus clearly labelled alternatives | Avoids presenting an assumed hike as fact |
| Maintenance and replacements | Written warranty and budget allowance | Prevents overstating net returns |
| Utility accounting | Current KSERC/KSEB rules, reviewed when they change | Changes the value of exported energy |
The FGE calculator now shows long-term savings in today's tariff terms and does not build in a guaranteed annual tariff increase. Treat it as an indicative comparison, not a promised financial return.
What About Commercial Properties?
Commercial projects need a separate analysis using the consumer's tariff category, contract demand, time-of-day load, self-consumption and applicable metering option. PM Surya Ghar individual-household CFA does not apply. The final KSERC 2025 regulations make net billing available to all consumers/prosumers, while net-metering eligibility and conditions are category-specific.
Tip: Use our free solar calculator to get a personalised estimate based on your actual bill amount, district, and roof size.
Factors That Affect Your Actual Savings
- Roof orientation and tilt: The available roof planes influence annual generation; model the actual layout rather than using a generic percentage.
- Shading: Trees, tanks and nearby structures can reduce output. A site survey should check the effect across the day and year.
- System quality: Use the selected module's published performance warranty and the inverter warranty in the financial model.
- Load profile: If you consume most power during daytime (AC, water heater), you maximise self-consumption and reduce grid import.
- KSEB connectivity: The design, feasibility, registration, testing, agreement and metering steps must be completed before grid-connected operation.
Conclusion
Rooftop solar can materially reduce grid-energy costs for a suitable Kerala home, but the result is site-specific. PM Surya Ghar can provide up to ₹78,000 CFA for an eligible individual household, while the remaining bill and exported-energy value follow current KSEB/KSERC rules. Verify the proposal rather than relying on a guaranteed bill reduction, payment date or payback period.
The right system size for your home depends on your consumption, roof area, and budget. FGE Solar offers a free site assessment and customised proposal — no obligation, no pushy sales calls.
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Our engineer visits, reviews the bill and roof, and provides an itemised project estimate.