Solar Panel Subsidy in Tamil Nadu: What You Pay After ₹78,000

Last updated 30 October 2026

You own a house or a flat with a usable roof, your monthly bill is high, and you want to know what the government will actually knock off. How much solar panel subsidy in Tamil Nadu you receive depends on system size, an approved process and a registered vendor. Our PM Surya Ghar Yojana Chennai application guide covers eligibility in more depth.

Quick answer: The central PM Surya Ghar subsidy is ₹30,000 for 1 kW, ₹60,000 for 2 kW and ₹78,000 for 3 kW and above. For a 3 kW home system priced at ₹2.1–2.3 lakh, you pay about ₹1,32,000–₹1,52,000 after subsidy. We have not confirmed any separate Tamil Nadu top-up.

What the subsidy is and how it is calculated

The subsidy is a central government grant under the PM Surya Ghar Muft Bijli Yojana, paid per installation after the system is commissioned.

The structure is ₹30,000 per kW for the first 2 kW and ₹18,000 for the third kW. That gives ₹60,000 at 2 kW (2 × ₹30,000) and ₹78,000 at 3 kW (₹60,000 + ₹18,000). The cap is ₹78,000, so the amount does not rise beyond 3 kW.

The same rule answers size questions quickly. A 1 kW system receives ₹30,000, and a 5 kW system still receives only ₹78,000. Even a 500 kW commercial plant is not covered by this household rule, and such a plant would produce roughly 55,000–60,000 units a month at 110–120 units per kW. Always confirm which category your connection falls under before relying on the household figure.

Check the current rates on the official PM Surya Ghar portal before you sign, because scheme rules can change. These are the figures our own site lists as of October 2026.

What the central scheme gives

In 2026 the amount you can count on is the central subsidy, up to ₹78,000 per home installation. It is paid after commissioning, credited to the bank account you register on the portal, and is tied to one electricity service connection rather than to each person in the house.

What the state adds

We cannot confirm a current Tamil Nadu top-up from an official source, so we will not quote one. Ask the vendor to show it in writing with its source, and check with TANGEDCO or the state's renewable energy agency before relying on it.

What you still pay

Everything else: the system cost minus the central amount. The next section shows the sum.

What you pay after subsidy, worked out

For a 3 kW system, you pay roughly ₹1.32–1.52 lakh after subsidy, from a gross price of ₹2.1–2.3 lakh.

The subtraction is simple: ₹2,10,000 − ₹78,000 = ₹1,32,000, and ₹2,30,000 − ₹78,000 = ₹1,52,000. Check each line of the vendor's quote against these three numbers: gross price, subsidy and net cost.

Figures are indicative, as of October 2026. Final prices depend on roof type, structure height, inverter choice and cable runs; units use 110–120 a month per kW in Chennai.

For a 2 kW system the same sum is ₹1,90,000 − ₹60,000 = ₹1,30,000 up to ₹2,00,000 − ₹60,000 = ₹1,40,000. The full cost breakdown is in our Solar Panel Price in Chennai 2026 guide.

Which size makes sense for your bill

For most 2–3 BHK houses we recommend 3 kW, with 4–5 kW for larger houses that run several ACs.

Match size to units. Roughly 300–500 units per bi-monthly bill suits 2 kW, 500–750 units suits 3 kW, and 750–950 units suits 4 kW. The roof space needed is about 160–200 sq ft for 2 kW, 250–300 sq ft for 3 kW and 330–400 sq ft for 4 kW. Costs follow the worked example above.

How many panels for 3 kW

With modern 440–550 W panels, 3 kW is about 5 to 7 panels: roughly 5–6 at 550 W and 6–7 at 440–500 W. Exact count depends on the panel rating the installer specifies.

Our Chennai home sizing calculator guide helps you check this against your own bill.

Running ACs on 3 kW and 5 kW systems

A 3 kW system can run a 1.5-ton AC in daytime, and a 5 kW system can run two, with limits.

1.5-ton AC on 3 kW

One ton of cooling draws roughly 1 kW, so a 1.5-ton AC draws about 1.5 kW while cooling. A 3 kW system covers that with room left for fans, lights and a fridge, but only while the sun is up.

Two ACs on 5 kW

Two 1.5-ton ACs draw about 3 kW together, which a 5 kW system can supply at midday alongside normal loads. Night use comes from the grid, so net metering matters. Our guide on whether solar can run your AC goes further.

How subsidy and net metering work together

The subsidy cuts what you pay upfront; net metering cuts what you pay every month.

Net metering credits surplus daytime units back to the grid through TANGEDCO, so your bill reflects only what you draw beyond that. A 3 kW system gives about 330–360 units a month, which is the saving you can set against your bill.

For payback, divide your net cost by yearly bill savings. Your net cost divided by your real yearly bill savings gives the number of years. Your own figure depends on your tariff slab, so use real bills. See how much a Chennai home can save with solar.

Claiming the subsidy step by step

You claim through the PM Surya Ghar portal, with a registered vendor, and the subsidy follows commissioning.

1. Register on the portal with your electricity service number and mobile.
2. Apply for rooftop solar and choose an approved vendor.
3. Get TANGEDCO feasibility and install the system.
4. Apply for net-metering and inspection.
5. Submit bank details and a cancelled cheque; subsidy is credited after commissioning.

Timelines vary with approvals, so ask the vendor for dates rather than assuming. Our documents checklist lists what to keep ready, starting with a recent TANGEDCO bill.

Arka Solar Energy handles the entire PM Surya Ghar subsidy application and the TANGEDCO net-metering approval.

Mistakes that delay or lose the subsidy

Most losses come from skipping the approved process before installing.

Installing before registering

Buying and fitting a system first can leave you outside the scheme. Register and get approval before work starts.

Using an unverified vendor

Subsidy is tied to approved vendors. Ask for registration details and check them yourself; our guide on approved PM Surya Ghar vendors in Chennai explains how.

Accepting a quote without the arithmetic

A vendor who cannot explain gross price, subsidy and net cost line by line is a warning sign. Ask for all three written separately.

Flats without association consent

Apartment owners need permission for roof use. See solar for apartments in Chennai.

Drawbacks to weigh before you commit

Solar has real limits, and a fair decision counts them.

• Upfront cost is still above ₹1.3 lakh after subsidy.
• Output falls on cloudy and monsoon days.
• Roof space and shade limit size.
• Panels need periodic cleaning in dusty, humid air.
• Inverters may need replacement within the system's life.
• Without a battery, there is no backup in a power cut on most grid-tied systems.
• Subsidy is paid after installation, so you fund the full cost first.
• Approvals take time.
• Rules and rates can change.
• Savings depend on your tariff and usage.

Some of these limits can be managed. Ask the installer how often panels should be washed and who does it, since dust and coastal humidity reduce output between cleanings. Ask for the inverter warranty period in writing and what happens when it ends, so a replacement cost does not surprise you later.

What customers mention

Reviews of Arka Solar Energy talk about clear explanations and smooth installs.

One customer wrote that the team "explained everything clearly and made the entire process smooth and hassle-free". Others mention on-time completion and the quality of inverter, panels and structure. For Chennai neighbourhoods, see our pages on rooftop solar in Velachery, Anna Nagar and Adyar.

Frequently asked questions

Does the subsidy apply per person or per house?

It is per installation, tied to one electricity connection. Ask the vendor how it applies to your service number.

Is the subsidy paid to me or the vendor?

Under the portal process it is credited after commissioning, to the bank account you register. Confirm this in your written quote.

Can a 4 kW system get more subsidy than 3 kW?

No. The amount stays at ₹78,000 for 3 kW and above, as the worked example shows.

Related guides

• Solar Loan in Chennai
• Solar Panel Warranty in India
• Best Residential Solar Companies in Chennai (2026)

This article is general information, not financial advice for your situation.