Solar Panel System Price and Subsidy in Andaman and Nicobar Islands (2025)

Andaman and Nicobar Islands are known for their natural beauty, clean environment, and remote geographical location. But because these islands are far from mainland India, the cost of electricity generation is very high. Most of the power still depends on diesel-based generators, which increases pollution and makes electricity expensive. That is why solar energy has become one of the best solutions for homes, shops, hotels, and government buildings in Andaman and Nicobar.

To help people shift to solar, the central government and local administration offer strong incentives and subsidies. In this detailed guide, you will learn everything about the solar panel price and subsidy in Andaman and Nicobar Islands, along with benefits, price range, installation tips, and eligibility rules.

Why Solar Energy Is Important for Andaman & Nicobar Islands

1. High Electricity Cost: Electricity in the islands is one of the most expensive in India due to diesel transportation and power generation expenses. Solar reduces monthly electricity bills drastically.

2. Remote Location: A reliable power supply is sometimes challenging. Solar rooftop systems ensure stable energy for homes and businesses.

3. Abundant Sunlight: Andaman receives 5–6 peak sunlight hours daily — perfect for rooftop solar generation.

4. Reduced Dependence on Diesel: Diesel generators harm the environment and raise carbon emissions. Solar is clean, green, and sustainable.

5. Government Subsidy Support: The government is pushing solar adoption aggressively, offering subsidies for grid-connected systems.

Solar Panel Price in Andaman and Nicobar Islands (2025)

Solar panel prices in the Andaman and Nicobar Islands may be slightly higher than mainland India due to transportation and logistics costs. However, with subsidies, the final cost becomes affordable.

Average Solar Panel System Price in Andaman & Nicobar (Before Subsidy)

Types of Solar Systems in Andaman & Nicobar

1. On-Grid Solar System

• Connected to the electricity grid

• Best for homes and shops

• Eligible for government subsidy

• Helps reduce electricity bill to almost zero
  
  

2. Off-Grid Solar System

• Works without electricity grid

• Includes batteries

• Ideal for remote islands with power issues

• No subsidy available
  
  

3. Hybrid Solar System

• Grid + battery

• Best for areas with frequent power cuts

• Not covered under subsidy

Solar Panel Subsidy in Andaman and Nicobar Islands (2025)

The subsidy in Andaman & Nicobar comes under the PM Surya Ghar Muft Bijli Yojana and MNRE Rooftop Solar Program Phase-II. All subsidies are for on-grid solar systems only.

Solar Panel Subsidy in Andaman and Nicobar (Central Govt.)

Below is the official subsidy structure applicable in 2025:

Solar Subsidy Table (Residential Rooftop)

*Subsidy is capped at ₹78,000 for all systems above 3 kW.

For example:

• 3 kW system → You get the maximum subsidy of ₹78,000

• 5 kW system → Subsidy is still ₹78,000

• 10 kW system → Subsidy remains ₹78,000
  
  

Net Metering in Andaman and Nicobar

Net metering allows you to sell extra solar electricity back to the grid and reduce your electricity bill further.

Benefits:

• Lower electricity bills

• Earn credits for surplus solar energy

• Perfect for homes and commercial buildings

Net metering is available through the Andaman & Nicobar Electricity Department. After installation, the solar company will handle the application process.

Final Solar System Cost After Subsidy

Here is the estimated final price after applying the central subsidy:

Which Solar Panels Are Best for Andaman?

Due to high humidity, saltwater exposure, and tropical climate, people in the islands need durable and long-lasting solar modules.

Recommended Solar Panels:

✔ N-Type TOPCon Solar Panels
✔ Mono PERC Solar Panels
✔ Bifacial Solar Panels (for open areas and resorts)

Why These Panels?

• Higher efficiency
• Better performance in humid climate
• Long lifespan
• Better low-light performance
• Salt-mist resistant

Benefits of Installing Solar Panels in Andaman & Nicobar

1. Up to 90% Savings on Electricity Bill: Most households can reduce their bill to almost zero if they choose on-grid systems.
2. Long-Term Savings: Solar gives free electricity for 25 years, making it a lifetime investment.
3. Easy Maintenance: Periodic cleaning and basic checks are enough.
4. Increased Property Value: Homes with solar systems sell faster and at higher prices.
5. Eco-Friendly: Solar reduces carbon emissions and protects Andaman’s fragile ecosystem.
6. Government Subsidy & Financial Support: Subsidy brings down total cost, making it budget-friendly.

Who Can Apply for Solar Subsidy in Andaman & Nicobar?

Eligibility Criteria

• Must be an Indian resident
• Property must be residential
• Solar system must be on-grid
• Install panels from MNRE-approved vendors
• Net meter installation is mandatory
• Rooftop space should be shadow-free

How to Apply for Solar Subsidy in Andaman and Nicobar

Follow these steps:

Step 1 — Register on the National Portal

Go to the National Portal for Rooftop Solar  (Signup with details and property ID)

Step 2 — Choose a Registered Vendor

Select MNRE-approved installers.

Step 3 — Install Solar System

Installation is done as per government rules.

Step 4 — Net Metering Approval

Solar providers help in documentation and metering.

Step 5 — Inspection

A government officer inspects the system.

Step 6 — Subsidy Disbursement

Subsidy is transferred directly to your bank.

Subsidy for Hotels, Shops & Commercial Buildings

Commercial and industrial users do NOT get subsidy, but they can enjoy:

• 40%–60% reduction in electricity bill
• Accelerated depreciation (40%)
• Lower PAYBACK period of 3–4 years
• High savings for resorts and guesthouses
  
  

Best System Size for Different Users

Important Tips Before Installing Solar in Andaman

1. Choose salt-mist resistant panels
2. Prefer N-Type TOPCon modules for higher efficiency
3. Check shadow-free rooftop space
4. Use high-quality inverters with humidity protection
5. Always hire MNRE-approved installers
6. Clean panels regularly because of salty air

Conclusion

Solar energy is one of the most practical and beneficial investments for people living in Andaman and Nicobar Islands. Even though transportation costs make the system slightly expensive, the solar panel subsidy in Andaman and Nicobar significantly reduces your overall cost. With abundant sunlight, high electricity expenses, and government support, switching to solar is a smart long-term decision.

Whether you are a homeowner or run a resort, solar power gives you continuous savings and reliable electricity for more than 25 years.