PM Surya Ghar Muft Bijli Yojana has become the single biggest driver of residential solar demand in Kerala. For a dealer or installer, it is also the single biggest source of operational risk — because the scheme ties your reputation to timelines you only partly control.
Kerala has now crossed 1,282 MW of rooftop capacity across roughly 3.37 lakh homes, placing the state fourth nationally, with about ₹2,224 crore in subsidy disbursed to consumers. But the state has also received around 4.36 lakh applications. That gap — roughly 99,000 homes that applied and are still waiting — is the number every installer should be thinking about.
The subsidy structure, precisely
The central subsidy is fixed by system size, not by what you charge. Getting this right in your quotation prevents the most common customer dispute in the business.
| System size | Central subsidy | How it is calculated |
|---|---|---|
| 1 kW | ₹30,000 | ₹30,000 per kW |
| 2 kW | ₹60,000 | ₹30,000 per kW for the first 2 kW |
| 3 kW | ₹78,000 | ₹60,000 for 2 kW, plus ₹18,000 for the third |
| Above 3 kW | ₹78,000 | Capped — no further subsidy above 3 kW |
The practical consequence is that the subsidy stops growing after 3 kW while your customer's cost keeps rising. A 5 kW system receives exactly the same ₹78,000 as a 3 kW one. Say this out loud during the site visit, because a customer who discovers it after signing will assume you concealed it.
Who actually qualifies
Rejections almost always trace back to eligibility, not to paperwork quality. Screen for these before you invest a site visit:
- The applicant must own the property and hold rooftop rights — tenants are excluded, which rules out a surprising share of walk-in enquiries.
- There must be an active grid-connected KSEB domestic connection in the applicant's name.
- No rooftop solar subsidy may have been claimed previously under any government scheme for that connection.
- Roughly 80 to 100 sq ft of shade-free roof per kW. A 3 kW system needs about 300 sq ft that stays clear through the day, not just at noon.
That last point deserves a real measurement rather than an eyeball. Kerala rooftops are unusually prone to afternoon shading from coconut palms, and a neighbour's tree that is inconvenient in September becomes a generation problem in December when the sun sits lower.
The process, end to end
The sequence below is where most of your working capital gets tied up, so it is worth knowing which steps you control and which you merely wait on.
- The consumer registers at pmsuryaghar.gov.in using mobile OTP, entering their state, DISCOM and consumer number.
- They select the capacity they want and submit for DISCOM feasibility approval.
- KSEB feasibility takes roughly 15 to 30 working days. Nothing you do accelerates this — set the expectation early rather than absorbing the blame.
- The consumer selects a registered vendor from the empanelled list for their district. If you are not on that list for the district, you cannot take the job.
- You complete the site survey, finalise the BOM and install.
- You apply for the net meter and the inspection.
- After commissioning, the consumer submits bank details and a cancelled cheque.
- Subsidy is credited by DBT, typically within 30 working days of a clean submission.
Two of those eight steps are yours. The rest are queues. Installers who plan cash flow around the official timeline rather than the optimistic one stay solvent through the busy season.
The delivery obligation nobody reads
In August 2026, MNRE imposed a one-month restriction on 66 vendors who had accepted consumer applications through the portal but failed to install within the required window. The restriction blocks new applications for 30 days; those vendors can still complete jobs already in hand.
This is worth understanding properly, because it reframes what registration means. Accepting an application on the portal is not lead capture — it is a delivery commitment with a clock attached. A vendor who accepts more applications than they can physically install is not building a pipeline; they are accumulating a suspension.
What this means for how you take work
- Accept applications against confirmed stock availability, not against hoped-for stock.
- Track each application's age from the day you accept it, not from the day the customer first called.
- Keep the fast-moving configurations — typically 3 kW and 5 kW residential — in standing stock rather than ordering per job.
- If feasibility approval is delayed at the KSEB end, document it. It protects you when timelines are reviewed.
The scheme is currently running toward a deadline in FY 2026–27, which places roughly the first half of 2027 as the effective horizon for the present programme period. Confirm the live position on the portal before making commitments that run past that window.
Common questions
How much subsidy does a 5 kW rooftop system get under PM Surya Ghar?
₹78,000 — the same as a 3 kW system. The central subsidy is capped at ₹78,000 for any system of 3 kW or above, so capacity beyond 3 kW receives no additional central support.
Can a tenant apply for PM Surya Ghar?
No. The applicant must own the property and hold rights over the rooftop. Tenants are not eligible, though a landlord may apply for a property they own.
How long does KSEB feasibility approval take in Kerala?
Typically 15 to 30 working days from submission. This step sits with the DISCOM and cannot be accelerated by the installer, so it should be built into the timeline quoted to the customer.
Why were 66 solar vendors banned under PM Surya Ghar?
MNRE imposed a 30-day restriction on vendors who accepted consumer applications through the portal but failed to install the systems within the required timeframe. They may still complete existing installations but cannot accept new applications during the restriction.