Most of what is said about this scheme on doorsteps is true. It is just incomplete in ways that happen to favour whoever is doing the talking.
What you get, and where it stops
The subsidy is paid per kilowatt — but only up to a point.
- 1 kW
- ₹30,000
- 2 kW
- ₹60,000
- 3 kW and above
- ₹78,000
Look at that ladder for a moment, because it contains the single most useful fact in this whole scheme.
A 2 kW system gets ₹60,000. A 3 kW system — half as big again — gets ₹78,000.
You are giving up ₹18,000 of subsidy to have fifty percent less roof. Anyone quoting you a 2 kW system should be explaining this before you sign, and if they are not, it is worth asking why.
Above 3 kW the subsidy simply stops growing. A 5 kW system gets the same ₹78,000 as a 3 kW. That does not make bigger systems a bad idea — it means the decision above 3 kW stops being about subsidy and starts being about your own consumption.
Who pays whom, and when
This is where confusion is most often useful to somebody.
You pay your installer the full project amount. After the system is commissioned and inspected, the government credits ₹78,000 directly into your own bank account — the one registered on the portal, in the name on your KSEB connection. It does not pass through the company that built your roof.
In our experience that takes fifteen to thirty working days after the commissioning report is accepted. Sometimes faster. We quote the longer figure because we would rather you were pleasantly surprised.
You may be offered an arrangement where you pay less upfront and hand over a post-dated cheque for ₹78,000 to be banked when the subsidy lands. It sounds accommodating. It ties your money and the installer's together for months, and it is where a great many disputes begin. We do not do it, and we would think carefully before accepting it from anyone.
The loan
- Amount
- Up to ₹2,00,000
- Collateral
- None
- Rate
- Around 6% p.a.
- Typical EMI after subsidy
- ≈ ₹1,350 / month
Two things worth knowing before you sign anything.
First, when your subsidy arrives you can put it straight into the loan. Most banks then reduce your EMI — but some shorten the tenure instead and leave the monthly figure where it is. Both are legitimate. They feel very different if you were expecting the first one. Ask which yours does before you sign, not after.
Second, the loan is capped at ₹2,00,000 whatever size you build. On a 3 kW system that leaves around ₹40,000 to find upfront. On a 5 kW it is closer to ₹1,45,000 — the EMI is identical, but the cash needed at the start is four times higher. That surprises people who assumed a bigger system simply meant a bigger loan.
The conditions nobody mentions
The subsidy comes with obligations about keeping the system in place and in use. Removing it, dismantling it or selling it off within the specified period can mean the money is recovered from you.
The logic is reasonable enough once you see it: this is not a gift for installing panels, it is public support for generating power. The scheme assumes the plant stays working. Which quietly makes the case for building something that will still be working in year fifteen — but that is our bias, and you should weigh it as such.
Does the installer affect the subsidy?
Only in two ways: they must be registered under the scheme, and they must file the paperwork correctly and promptly. The commissioning report is the piece that actually releases your money, and a careless installer can sit on it for weeks after the panels are up.
The amount itself is the same whoever builds it. Which is rather the point — the ₹78,000 should not be the thing that decides your choice. It is identical across every quote you collect. What differs is what ends up on the roof.
A reasonable way to think about it
- Treat ₹78,000 as a fixed discount available to everyone, not as a selling point.
- If you are being quoted below 3 kW, ask why, given the subsidy ladder.
- Check the upfront cash, not just the EMI.
- Ask your bank whether prepaying reduces the EMI or the tenure.
- Be wary of any arrangement where your subsidy passes through the installer.
The full subsidy and loan page
NRG SOLUTIONS · SULTHAN BATHERY, WAYANAD