Introduction
Many Tamil Nadu residents are interested in installing solar panels but hesitate due to initial costs. What if we told you that the government is ready to share a part of this investment with you?
In this blog, we’ll explain the subsidy schemes provided by the Tamil Nadu government and MNRE (Ministry of New and Renewable Energy), including who is eligible, how much you can get, and how to apply.
1️⃣ Why Does the Government Provide Subsidies?
Tamil Nadu has committed to increasing the share of renewable energy in its electricity mix. Subsidies make solar systems more affordable and accelerate adoption.
Benefits of subsidies:
Reduce upfront costs
Encourage middle- and low-income households to go solar
Boost state renewable capacity
Reduce load on the state grid
2️⃣ Central Government Subsidy – MNRE
The Government of India, through MNRE, offers a Central Financial Assistance (CFA) for residential rooftop solar installations.
As per the Rooftop Solar Programme Phase II, here are the current subsidy rates:
| System Capacity | Subsidy % on Benchmark Cost |
|---|---|
| Up to 3 kW | 40% |
| Above 3 kW and up to 10 kW | 20% |
| Above 10 kW | No subsidy |
| Group Housing Societies / RWAs | 20% for common facilities (up to 500 kW) |
Important Note:
Subsidy is available for residential users only (not for commercial or industrial).
You must buy panels from MNRE-approved vendors.
3️⃣ Tamil Nadu State Subsidy
In addition to central subsidies, the Tamil Nadu government offers incentives through TEDA (Tamil Nadu Energy Development Agency).
Some key highlights:
✅ Tamil Nadu Solar Energy Policy 2019 sets a target of 3600 MW of rooftop solar by 2023.
✅ Net Metering allows you to export excess power to TANGEDCO.
✅ For certain residential and institutional buildings, additional state subsidies or incentives may apply periodically (e.g., block-level or district-specific schemes).
Note: State subsidies vary depending on annual budget provisions and notifications.
4️⃣ How to Apply for Subsidy
Step-by-Step Process:
✅ Register on the National Rooftop Solar Portal https://solarrooftop.gov.in/
✅ Submit the application with all required details.
✅ Get approval from TANGEDCO (Tamil Nadu Generation and Distribution Corporation).
✅ Install the system through an empanelled vendor.
✅ Inspection and commissioning.
✅ Claim the subsidy after successful installation.
Pro Tip: Always choose an approved vendor to avoid rejection.
5️⃣ Example Calculation
Suppose you want to install a 3 kW solar system:
Benchmark Cost (approx.) = ₹60,000 per kW x 3 kW = ₹1,80,000
Central Subsidy (40%) = ₹72,000
Net Cost = ₹1,08,000 (before any additional state incentives)
6️⃣ Frequently Asked Questions
Q1: Is there subsidy for commercial installations?
No, central subsidies are limited to residential systems.
Q2: How long does the process take?
From application to commissioning, typically 2–3 months.
Q3: Can I get a loan?
Yes, many banks provide loans under priority sector lending for rooftop solar.
7️⃣ Subsidy Table – Summary
| Capacity (kW) | Central Subsidy | State Subsidy |
|---|---|---|
| Up to 3 kW | 40% | Periodic Incentives (varies) |
| 3–10 kW | 20% | Periodic Incentives (varies) |
| Above 10 kW | None | None |
8️⃣ Environmental & Financial Benefits
By investing in solar with subsidies:
Save 50–80% on your power bills.
Reduce carbon emissions.
Achieve payback in 4–6 years.
