The government is launching the Pradhan Mantri Surya Ghar: Mufti Bijli Yojana and the Kerala State Electricity Regulatory Commission (KSERC) has recently announced some new rules that everyone is talking about. If you are thinking about solar power, the financial benefits look pretty good, but the new policies also bring some new complications.
Let’s start with the big one – Pradhan Mantri Surya Ghar: Mufti Bijli Yojana. This is the main solar subsidy for the people of Kerala, and frankly, it is a game-changer. The goal? Bring solar panels to one crore homes across India by March 2027. And they are not messing around with the benefits.
Here is how the subsidy breaks down:
- Up to 2 kW: You will get ₹30,000 per kW, so if you buy 2 kW, you will get ₹60,000.
- Next 1 kW (2 to 3 kW): Rs 18,000 more per kW of electricity.
- Maximum subsidy: Total Rs 78,000 for a 3 kW power system (Rs 60,000 for the first 2 kW, then Rs 18,000 for the next 1 kW).
- Free electricity: Up to 300 units per month, if you install a large enough power system (usually 2 to 3 kW, depending on your usage).
- Easy loans: You can get collateral-free, low-interest loans (around 7%) for power systems up to 3 kW—a huge relief for middle-class and low-income families.
- Direct payment: The subsidy goes directly to your Aadhaar-linked bank account within 30-45 days of the power company verifying your setup. No middlemen, no extra hassle.
Worried that you won’t be eligible? Don’t worry. The rules are pretty simple. You need to be an Indian citizen, reside in Kerala, own your own house (and roof), have an active electricity connection, and not be availing any other solar subsidy before.
The application process is completely online and quite simple:
- Register on the national portal (choose your state and power company, type your customer number and mobile).
- Log in and fill out the rooftop solar application.
- Wait for the power company to give you the green signal.
- Choose an MNRE-approved vendor and install your system (and net meter).
- Upload your documents – photos, invoices, net meter proof – on the portal. Once the company checks everything, they will send the subsidy money directly to your account.
Now, about the new KSERC rules – this is where things get interesting. KSERC’s new solar rules (formally known as the Renewable Energy and Related Matters Regulation, 2025) have sparked much controversy and even some legal challenges.
Here are the changes:
- More metering options- Instead of just net metering, you can now choose what works for you.
- Net metering: Still there, and now allowed for systems up to 20 kW (which is actually more generous than the previous draft).
- Net billing: Available for systems from 1 kW to 500 kW. With net billing, you pay a fixed rate for the electricity you use from the grid, but any excess solar energy you send back is paid at a fixed feed-in tariff.
- Gross metering: You sell all your solar energy at a fixed rate and buy all your electricity from the grid at a fixed price.
- New models: There are virtual net metering (great for apartments or shared setups) and group net metering.
- Grid Support Charges (GSC): These are new charges, but you can only pay them if you use more grid electricity than the electricity stored by your solar panels.
Some customers (basically, solar panel owners who use small systems and feed power into the grid) will get discounts.
Here’s the thing now. Bigger incentives, more choice, and yes, a bit more regulation. But if you’re thinking of going solar in Kerala, 2025 is going to be a pretty good year to jump on the bandwagon.