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As energy bills continue to rise and sustainability becomes a priority for households and businesses alike, rooftop solar power is emerging as a smart investment in Tamil Nadu. In 2026, government incentives like the solar subsidy scheme are making it easier and more affordable than ever for residents of Erode to adopt clean energy, reduce electricity costs, and contribute to a greener future. This guide explains the key subsidies available, how they work, and how you can benefit.

What Is the Solar Subsidy Scheme in Tamil Nadu?

The flagship central government initiative driving rooftop solar adoption across India is the PM Surya Ghar Muft Bijli Yojana. Under this scheme, subsidies are provided to homeowners and residential consumers to offset part of the cost of installing a rooftop solar system on their property. In Tamil Nadu, this central subsidy is complemented by coordinated efforts through state agencies, giving residents a valuable opportunity to reduce upfront installation costs and accelerate their return on investment.

Solar Subsidy Details for 2026

Under the rooftop solar subsidy framework:

• ₹30,000 per kW for up to 2 kW capacity
• ₹18,000 per kW for the next 1 kW (totaling ₹78,000 subsidy for 3 kW or above systems)
• Subsidy is credited directly to the beneficiary’s bank account upon successful installation and approval.
  For example, a 3 kW rooftop solar system installed in Erode could receive up to ₹78,000 in subsidy, making solar far more affordable for homeowners aiming to reduce monthly electricity expenses. 

Why Solar Subsidy Matters for Erode Residents

Tamil Nadu has seen a remarkable surge in rooftop solar adoption, highlighting growing awareness and government support. In districts like Tiruchy, rooftop solar capacity installations jumped by 272% in 2025, largely thanks to subsidy support and outreach efforts.
For Erode residents, this means:

• Lower electricity bills with clean solar energy
• Faster payback period due to reduced upfront costs
• Contribution to sustainable energy targets
• Opportunity to generate surplus power and benefit from net metering

This trend not only reflects cost savings but also a shift towards energy independence in Tamil Nadu.

Net Metering: How It Adds Value

Net metering lets homeowners export excess solar electricity they don’t use back to the grid in exchange for credits on their electricity bill. For many households, this can significantly increase the financial benefits of rooftop solar by lowering total annual energy costs even further.

If your solar generation exceeds your usage, those units can roll over as credits, effectively reducing your electricity expenses throughout the year.

Step-by-Step Guide to Claiming Solar Subsidy in Erode

1. Check Eligibility
   You must be an Indian citizen with a valid residential electricity connection in your name. The rooftop system must be installed using BIS-certified modules and an approved vendor. 
2. Register Online
   Visit the official PM Surya Ghar subsidy portal and register using your electricity connection details, Aadhaar, and bank information.
3. Choose an Approved Vendor
   Choose from the list of empaneled solar vendors who can manage installation and documentation.
4. Installation & Inspection
   Get your rooftop solar system installed according to specifications. After installation, your system will be inspected by the distribution company.
5. Receive Subsidy
   Once approved and commissioned, the subsidy amount will be transferred directly to your bank account — often within 15–30 days if documentation is complete. 

This straightforward process ensures that you get the benefit without unnecessary delays.

Benefits Beyond Subsidy

While the subsidy significantly reduces upfront costs, rooftop solar offers long-term advantages:

• Energy independence: Generate your own electricity.
• Lower bills: Reduce or even eliminate monthly electricity expenses.
• Environmental impact: Solar adoption reduces carbon footprint.
• Increased property value: Homes with solar systems tend to attract higher resale value.

These benefits are why more Tamil Nadu residents are choosing solar.

Conclusion

For residents of Erode, the 2026 solar subsidy scheme in Tamil Nadu offers a compelling opportunity to switch to renewable energy at a reduced cost, achieve long-term savings, and contribute to environmental sustainability. With the right planning and timely action, homeowners can enjoy both financial and ecological gains.

If you’re ready to explore how much you can save with rooftop solar, contact Sanjay Green Systems today for a free assessment and customized subsidy guidance. Transitioning to solar has never been more affordable or impactful.