Solar Panel Price and Subsidy in Tamil Nadu - 2025

As India continues its journey towards renewable energy, Tamil Nadu stands at the forefront of this green revolution. Known for its progressive policies on wind and solar power, Tamil Nadu has become a leading state in solar energy adoption. With abundant sunshine and strong government support, both homeowners and businesses are making the shift towards solar energy to reduce their dependence on grid electricity and contribute to a sustainable future.

For those living in Tamil Nadu, this comprehensive guide covers everything you need to know about solar panel prices, available subsidies (central & state), cost savings before and after subsidies, and how to apply for these benefits.

Let’s explore how solar energy can transform your electricity expenses while promoting clean, green energy for a brighter tomorrow.

Why Go Solar in Tamil Nadu?

Tamil Nadu receives ample sunlight for around 300 sunny days a year, making it one of the best states in India for installing solar panels. The increasing electricity tariffs, along with a strong push from both the central and state governments, make now the perfect time to install a solar rooftop system in Tamil Nadu.

Whether you are a homeowner, small business owner, or run a large industry, installing a solar energy system can provide:

• Significant savings on electricity bills

• Long-term energy independence

• Contribution to a greener environment

• Access to government subsidies

Solar Panel Price in Tamil Nadu (2025)

The cost of a solar rooftop system in Tamil Nadu depends on several factors, such as:

• Type of solar panels (Mono PERC, Mono PERC, TOPCon)

• System capacity (1 kW to 10 kW and above)

• Inverter quality (Normal vs Hybrid)

• Structure material (MS, GI, Aluminium)

• Installation complexity
  
  

Approximate Solar Panel System Prices in Tamil Nadu

Note: Larger systems have lower per-kilowatt costs. Using high-efficiency panels (like Mono PERC or TOPCon) may increase upfront costs but will deliver more power and faster ROI (Return on Investment).

Subsidies on Solar Panels in Tamil Nadu

One of the major advantages of going solar in Tamil Nadu is the financial assistance from the government in the form of subsidies.

1. Central Government Subsidy (PM Surya Ghar Muft Bijli Yojana 2025)

The PM Surya Ghar Muft Bijli Yojana is India’s flagship scheme to promote residential rooftop solar installations across the country, including Tamil Nadu.

 Central Subsidy Details:

• Eligibility: Only for residential properties.

• Mode of Payment: Directly credited to the applicant’s bank account.

• Benefit: Free electricity up to 300 units/month for homes with 2 kW+ systems.
  
  

2. Tamil Nadu State Subsidy

Currently, Tamil Nadu does not offer any additional subsidy for residential rooftop solar installations. However:

• Farmers and agricultural users can benefit from subsidies under the KUSUM Yojana for installing solar pumps.

• Businesses and industries can avail accelerated depreciation benefits and GST credits on solar projects.

It’s recommended to regularly check with TANGEDCO (Tamil Nadu Generation and Distribution Corporation) for any new subsidy announcements or schemes.

Before and After Subsidy Cost Comparison

Here’s a typical example to understand savings clearly:

Example for 3 kW Rooftop System:

• Cost Before Subsidy: ₹2,10,000

• Central Subsidy (₹78,000): ₹2,10,000 - ₹78,000 = ₹1,32,000

• Your Annual Savings on Electricity Bills: ₹25,000 – ₹30,000

• Break-even Period: 4-5 years, followed by free electricity for the next 20 years

How to Apply for Solar Subsidy in Tamil Nadu

Step-by-Step Process:

1. Register on National Portal for Rooftop Solar: https://solarrooftop.gov.in

2. Submit property and personal details.

3. Choose an MNRE-approved vendor for installation.

4. Install the system and upload installation photos and necessary documents.

5. Net Meter Installation by TANGEDCO.

6. After approval, the subsidy amount is credited directly to your bank account.

It’s recommended to take assistance from your solar vendor for the complete subsidy application process.

Benefits of Installing Solar Panels in Tamil Nadu

• Free Electricity up to 300 units per month (under PM Surya Ghar Yojana)

• Save ₹25,000 – ₹60,000 per year depending on system size

• Reduce dependency on rising electricity tariffs

• Eco-Friendly – Cut down your carbon footprint

• Increased property value – Homes with solar panels are considered premium

• Energy Independence – Generate your own power for 25+ years

Frequently Asked Questions (FAQs)

What is the price of a 1 kW rooftop solar system in Tamil Nadu?

₹65,000 to ₹75,000 before subsidy and ₹35,000 to ₹45,000 after subsidy.

Can I get a subsidy for my commercial building?

No. Central subsidies are available only for residential properties. However, commercial setups can benefit from tax incentives.

Tamil Nadu offering additional state subsidy for rooftop solar?

No. Tamil Nadu currently relies on the central government subsidy only for residential users.

How much electricity will a 5 kW system generate in Tamil Nadu?

Around 18 to 20 units/day, which equals approximately 6,500 to 7,000 units/year.

Can I install solar panels myself to save costs?

It is highly recommended to use MNRE-approved installers to ensure eligibility for subsidy and proper installation.

How do I maintain my solar panels after installation?

Clean the panels once every 2-3 months with water and a soft cloth. Avoid harsh chemicals.

What’s the payback period for solar installations in Tamil Nadu?

4 to 6 years on average, depending on usage, subsidies availed, and installation cost.

Which type of solar panels is best for Tamil Nadu’s climate?

Mono PERC or TOPCon solar panels are ideal due to their higher efficiency in warm climates like Tamil Nadu.

Conclusion

Switching to solar in Tamil Nadu in 2025 is not just a wise investment but also a commitment to clean energy and environmental responsibility. With central subsidies up to ₹78,000, reduced system costs, and excellent solar generation potential, Tamil Nadu residents can enjoy free electricity for decades while contributing to India’s solar mission. For a hassle-free experience, always choose certified solar installers and trusted solar panel manufacturers in Tamil Nadu to ensure quality and long-term benefits.