Tamil Nadu has launched a new rooftop solar subsidy for domestic electricity consumers, providing a state-funded top-up of up to ₹22,000 over the central assistance available under the PM Surya Ghar Muft Bijli Yojana. For a 3 kW residential system, the combined central and state support can reach ₹1 lakh. The state has allocated ₹50 crore for the program and aims to cover one lakh households by March 2027.
The subsidy is structured according to system capacity. Households installing a 1 kW system receive ₹5,000 from Tamil Nadu in addition to the ₹30,000 central subsidy, taking the combined assistance to ₹35,000. For 2 kW systems, the state contribution is ₹10,000 alongside ₹60,000 from the central scheme, giving a total of ₹70,000. Systems of 3 kW and above are eligible for the maximum state contribution of ₹22,000, while the central assistance is capped at ₹78,000, resulting in total support of up to ₹1 lakh per household
A key feature of the Tamil Nadu program is that households do not need to submit a separate application for the state subsidy. The existing PM Surya Ghar application process is completed first, after which the relevant central subsidy information is transferred to the Tamil Nadu rooftop solar portal. The state system then verifies eligibility, installation, commissioning and bank details before releasing the additional amount through direct benefit transfer. The state portal currently specifies a 7 to 15 day window for the top-up after verification.
The support is linked to successful completion of the rooftop solar installation process rather than being paid at the application stage. The system must be installed, inspected, commissioned and connected through the prescribed process, with the central PM Surya Ghar subsidy also disbursed before the state top-up is released. This creates a single linked pathway between the national subsidy and Tamil Nadu's additional assistance.
The state has also specified technical and vendor conditions for subsidized systems. The Tamil Nadu portal states that residential rooftop systems covered by the program can have capacities up to 10 kW, but the combined subsidy reaches its maximum at 3 kW. Installations must use domestically manufactured content-compliant modules listed under the applicable Approved List of Models and Manufacturers requirements and must be carried out by vendors empaneled under the state program.
The scheme was announced in the Tamil Nadu Revised Budget for 2026-27 with a ₹50 crore allocation and was subsequently launched in Chennai on September 21. Consumers eligible for the central subsidy from August 5, 2026, are covered under the state top-up, according to the launch announcement. The new state portal also provides information on eligibility, subsidy amounts, installation procedures, application status and empaneled vendors.
The program is designed to operate in convergence with PM Surya Ghar, which provides central assistance of ₹30,000 per kW for the first 2 kW and ₹18,000 for the additional capacity up to 3 kW, subject to the scheme's conditions. The central program targets one crore residential rooftop solar installations nationally and supports systems that can generate electricity for household consumption while allowing surplus generation to be exported to the grid under applicable arrangements.
Tamil Nadu's approach therefore combines an additional state incentive with an existing national subsidy instead of creating a separate installation pathway. The automatic transfer of application information and direct bank payment are intended to reduce additional paperwork for households, while the vendor, module, metering and commissioning requirements keep the state incentive linked to the technical framework governing subsidized rooftop solar installations.