As the demand for renewable energy continues to rise in India, Kerala stands out with its proactive approach to adopting solar energy solutions. With plentiful sunlight and high electricity tariffs, the state is becoming increasingly favorable for solar energy. Homeowners, commercial establishments, and housing societies are recognizing solar power plants as a smart investment for long-term savings and sustainability.
However, one key question remains: What will it actually cost to install a solar power plant in Kerala in 2025? This blog will break down the costs, the factors that influence them, available subsidies, and the financial benefits associated with solar installations in the state.
Understanding the Cost of Solar Power Installation in Kerala
The cost of installing a solar power plant primarily depends on the system’s capacity, the types of components used, and whether you choose an on-grid, off-grid, or hybrid system. In general, the more electricity you want to generate, the greater the system’s capacity, which results in a higher cost.
Here’s a breakdown of typical costs in Kerala:
Solar System Size Estimated Cost (Before Subsidy)
1 kW ₹75,000 – ₹85,000
2 kW ₹1,50,000 – ₹1,70,000
3 kW ₹1,89,000 – ₹2,15,000
5 kW ₹3,15,000 – ₹3,57,000
10 kW ₹5,31,000 – ₹6,07,000
The Role of Subsidy in Reducing Cost
The PM Surya Ghar Muft Bijli Yojana, a central government initiative, makes solar more affordable by offering generous subsidies for residential rooftop installations. In Kerala, eligible homeowners can receive up to ₹78,000 as a direct benefit.
System Capacity Applicable Subsidy
1 kW ₹30,000
2 kW ₹60,000
3 kW and above ₹78,000
This subsidy is processed via the National Portal for Rooftop Solar, where homeowners can register and track their application. The subsidy is either reimbursed or adjusted in the final payment depending on the provider.
Ongrid vs Offgrid: What’s the Price Difference?
In Kerala, many residential consumers favor on-grid solar systems because they are affordable and allow users to earn credits through net metering. However, in regions where power outages occur frequently, off-grid or hybrid systems are more popular, even though they come at a slightly higher cost due to the need for battery backups.
Return on Investment & Monthly Savings
Installing a solar power plant in Kerala isn’t just about going green—it’s also a financially smart decision. Here’s what you can expect in terms of savings:
System Size Monthly Generation Estimated Savings (Bimonthly)
2 kW 240 – 260 units ₹2,200 – ₹2,700
3 kW 360 – 390 units ₹4,700 – ₹5,200
5 kW 600 – 650 units ₹9,200 – ₹10,200
10 kW 1200+ units ₹18,200 – ₹20,200
With these savings, most residential systems pay for themselves in 3 to 4 years, after which all generated electricity is free.
How to Begin Your Solar Journey in Kerala
- Choose an MNRE-approved vendor like Moopens Solar.
- Apply for a subsidy and get site inspection.
- Get the system installed and tested.
- Receive the subsidy after system activation and inspection.
Final Thoughts
Kerala’s solar potential is immense, and with government subsidies and falling solar technology prices, there has never been a better time to switch to solar. Whether you’re a homeowner, business owner, or part of a housing society, installing a solar power plant cuts down your electricity bill and contributes to a cleaner, greener future.
Looking to install a solar power plant in Kerala?
Connect with Moopens Solar – Kerala’s trusted name in commercial and residential solar EPC solutions.
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