Kerala has been actively expanding its renewable energy goals, and the recent policies reflect the state’s ambition to accelerate solar adoption — both on rooftops and utility-scale. The draft and notified policy documents suggest a clear push for solarisation, battery storage, and rooftop systems in residential & commercial segments.
Policy Targets & Scope:
• Under the draft policy for 2025, Kerala aims to add around 5 GW of renewable capacity by 2030 — including a significant portion from solar.
• The policy proposes that rooftop solar systems become mandatory for certain categories of consumers: households consuming over 500 units/month or with a large roof area, and commercial buildings with a large roof area.
• The policy also emphasizes energy storage, EV-charging station solarisation, agricultural dual-use solar, and government buildings’ solarisation.
Key Provisions & Features:
🔹 Mandatory Rooftop Solar (Draft)
• The draft states that residential homes consuming over ~500 units/month and having a roof space of ~100 m² must install a minimum of 1 kW solar plant.
• Commercial consumers with a roof area > 400 m² are required to install at least 5 kW of solar capacity.
🔹 Policy Models & Business Options
• Multiple deployment models are to be permitted: CAPEX (owner installs), OPEX /RESCO models, roof-rentals, build–own–operate models.
• Solar systems (including rooftop) up to specified sizes may be exempted from some inspections to ease rollout.
🔹 Incentives & Subsidies
• Kerala offers subsidies via central schemes for rooftop solar systems, e.g., under the PM Surya Ghar: Muft Bijli Yojana and other state-level programs. For example, subsidies up to ₹78,000 for certain system sizes in 2025.
• Special considerations for agricultural solarisation, dual-use applications (solar + agriculture) are included.
🔹 Regulatory & Tariff Considerations
• The state had imposed a generation duty on solar power produced by rooftop systems (raised to 15 paise/unit), which generated consumer protests.
• Later, the government decided to refund/waive that duty for prosumers.
• Net-metering and other mechanisms are expected to continue, but may see revision in the new policy.
What It Means for Homeowners & Businesses:
• Homeowners: If you consume >500 units/month or your roof area is large, you may soon be required to install a rooftop solar system under the policy. With subsidies available, installation becomes financially viable sooner.
• Businesses/Commercial Buildings: With rooftop mandates for large buildings and models allowing OPEX/RESCO, commercial entities can deploy solar with minimal upfront cost.
• Agriculture & Dual-Use: For farmers or landowners, the dual-use (agri + solar) models create new income/energy savings opportunities.
• State Government & PSUs: The policy mandates that government buildings/PSUs solarise their electricity needs as far as possible by 2030.
Challenges & Things to Note:
• Although targets are ambitious, policy is still partly in draft form — certain rules (e.g., mandatory rooftop norms) may change during finalization.
• Recent issues around duties and tariffs (generation duty, net metering modifications) mean rooftop system owners should keep an eye on regulatory changes.
• Roof suitability, structural strength, shading, and cost of storage (if required) are important for economics in Kerala’s climatic context.
• While subsidies reduce upfront cost, the payback period will depend on the consumption pattern, export/usage ratio, and system size.
• For large penetration of rooftop solar, grid infrastructure and storage support become important — the policy addresses this, but implementation will matter.
The Road Ahead:
Kerala’s solar & power policy signals a significant shift: moving from voluntary adoption to mandatory deployment in many cases, integrating storage, and opening more business models. With effective implementation, the state could see a surge in rooftop solar, commercial solar, and distributed solar systems.
