Tamil Nadu Solar Subsidy 2026: PM-Surya Ghar, TANGEDCO Net Metering & Rooftop Solar Costs
A complete 2026 guide to rooftop solar subsidies in Tamil Nadu — the ₹78,000 PM-Surya Ghar subsidy, TANGEDCO net metering, 3kW/5kW/10kW system costs, payback period, and how to apply.
Tamil Nadu is one of India's best states for rooftop solar — 280 to 320 sunny days a year, 5.5 hours of average peak sun, and among the highest electricity tariffs in the country. Combined with the central PM-Surya Ghar subsidy of up to ₹78,000 and TANGEDCO net metering, a home solar system in Tamil Nadu pays for itself in under four years.
This guide covers every rooftop solar subsidy, incentive, and cost a Tamil Nadu homeowner or business needs to know in 2026 — from the central subsidy to net metering to system pricing for Chennai, Coimbatore, Madurai and every other TN city.
Tamil Nadu Solar at a Glance (2026)
| Item | Detail |
|---|---|
| Central subsidy (PM-Surya Ghar) | Up to ₹78,000 for residential rooftop (up to 3kW) |
| State top-up subsidy | None currently — TN relies on net metering returns |
| Net metering | TANGEDCO, residential systems up to 10 kW |
| 3kW system cost | ₹1.8L–₹2.4L installed · ₹1L–₹1.6L after subsidy |
| Payback period | 3.5–4.5 years for most TN homes |
| Peak sun hours | 5.5 hours/day average |
| Panel warranty | 25 years (Tier-1 panels) |
PM-Surya Ghar Subsidy in Tamil Nadu
PM-Surya Ghar: Muft Bijli Yojana is the central government's residential rooftop solar scheme. It is the single largest subsidy available to Tamil Nadu homeowners, and the amount is fixed nationally — there is no separate Tamil Nadu state subsidy on top of it.
The subsidy is tiered by system size:
- ₹30,000 per kW for the first 2 kW
- ₹18,000 per kW for the third kW
- No additional subsidy beyond 3 kW
So a 1kW system gets ₹30,000, a 2kW system gets ₹60,000, and a 3kW (or larger) system gets the maximum ₹78,000. For most Tamil Nadu households, a 3kW system is the sweet spot — it covers a typical monthly consumption of 300–400 units and captures the full subsidy.
To qualify, your installer must be registered on the PM-Surya Ghar national portal, and the system must be grid-connected with a TANGEDCO net meter. Reputable installers handle the entire subsidy application and disbursement on your behalf.
TANGEDCO Net Metering — Tamil Nadu's Real Solar Advantage
Net metering is what makes solar genuinely profitable in Tamil Nadu, not just subsidised. TANGEDCO (Tamil Nadu Generation and Distribution Corporation) provides net metering for residential systems up to 10 kW.
Here is how it works: when your panels generate more electricity than your home uses (typically midday), the surplus flows back to the grid and your meter runs backward. At night or on cloudy days, you draw from the grid and the meter runs forward. You are billed only on the net consumption.
Because TANGEDCO residential tariffs run ₹4–₹7 per unit on higher slabs, every unit your solar system offsets is worth that full retail rate. This is why Tamil Nadu solar payback is faster than in states with cheap electricity — you are not just saving on a subsidy, you are replacing expensive grid power.
Cost of Rooftop Solar in Tamil Nadu
Installed prices for grid-connected residential solar in Tamil Nadu in 2026:
| System size | Installed cost | After PM-Surya Ghar | Suitable for |
|---|---|---|---|
| 3 kW | ₹1.8L – ₹2.4L | ₹1.0L – ₹1.6L | Homes using 300–400 units/month |
| 5 kW | ₹3.0L – ₹3.8L | ₹2.2L – ₹3.0L | Larger homes, 500–650 units/month |
| 10 kW | ₹5.5L – ₹7.0L | ₹4.7L – ₹6.2L | Villas, small commercial |
Note that the PM-Surya Ghar subsidy caps at ₹78,000 (3 kW), so systems of 5 kW and 10 kW receive the same ₹78,000 — the rest is at full cost. Even so, the net-metering savings on a larger system usually justify it for high-consumption homes.
How to Apply for Solar Subsidy in Tamil Nadu — Step by Step
- Register on the PM-Surya Ghar portal with your TANGEDCO consumer number and electricity bill.
- Choose a registered installer. Browse verified rooftop solar installers in your city — see solar installers in Chennai, Coimbatore, and Madurai, or your own city on the Tamil Nadu solar page.
- Site survey and design. The installer assesses your roof, shading, and consumption, then designs the system.
- TANGEDCO application. The installer files the net-metering and feasibility application with your local TANGEDCO section office.
- Installation and commissioning. Once approved, panels are mounted and the system is wired — typically 1–2 days for a residential setup.
- Net meter installation. TANGEDCO installs the bidirectional meter and commissions the connection.
- Subsidy disbursement. After commissioning, the ₹78,000 subsidy is credited directly to your bank account.
End to end, the process takes 45–60 days. It moves faster when your installer has dedicated TANGEDCO liaison staff.
Commercial Solar in Tamil Nadu — Section 32 Depreciation
Tamil Nadu's industrial electricity tariffs are among the highest in India, which makes commercial and industrial (C&I) rooftop solar especially attractive. Businesses do not get the PM-Surya Ghar residential subsidy, but they get something often worth more: accelerated depreciation under Section 32 of the Income Tax Act.
Businesses can claim 40% accelerated depreciation on solar PV systems in the first year. At a 30% corporate tax rate, that is a tax shield worth roughly 12% of the system cost in year one. For a ₹50 lakh industrial solar plant, that is about ₹6 lakh of tax saved in the first year alone — on top of the net-metering savings.
Why Tamil Nadu Homes Should Act in 2026
Three things line up in Tamil Nadu right now: a fixed ₹78,000 central subsidy, TANGEDCO net metering that pays retail rate for surplus power, and some of India's strongest solar irradiation. The result is a payback period of 3.5–4.5 years on a system warrantied for 25 years — meaning roughly two decades of near-free electricity after payback.
For a deeper look at the national scheme, see our PM-Surya Ghar subsidy guide. To estimate your own savings, use the solar savings calculator on the homepage.
Get a Free Solar Quote in Tamil Nadu
Ready to go solar? Browse verified installers and request a free, no-obligation quote on the Tamil Nadu rooftop solar page. Every installer in our directory handles PM-Surya Ghar paperwork end to end, uses Tier-1 panels with 25-year warranties, and has active TANGEDCO net-metering experience across Chennai, Coimbatore, Madurai and beyond.