Kerala's domestic electricity tariff is ₹5.8/kWh and the net-metering buyback rate is ₹3/kWh, via KSEB. Here's what that means for a home going solar. Data updated January 2026.
A 3 kWp on-grid system in Kerala generates roughly 3,843 units per year at local irradiance. At ₹5.8/kWh, if you use most of it yourself, that's around ₹22,289 saved annually. After the ₹78,000 PM Surya Ghar subsidy, payback lands near 5.2 years — before counting any export income.
| Item | Estimate for Kerala |
|---|---|
| System size | 3 kWp (typical home) |
| Gross cost | ~₹1,95,000 |
| PM Surya Ghar subsidy | − ₹78,000 |
| Net cost | ~₹1,17,000 |
| Annual generation | ~3,843 units |
| Annual saving (self-use) | ~₹22,289 |
| Estimated payback | ~5.2 years |
Your distribution company is KSEB. To go solar with net metering, you apply for feasibility approval, install through a registered vendor, and get a bi-directional meter. Surplus units you export earn ₹3/kWh — lower than the ₹5.8 you pay, which is why self-consuming your generation is always worth more than exporting it.
At ₹5.8/kWh, Kerala sits in the middle band — solar pays back solidly, especially if you consume most of your generation during the day. Combined with 4.5 peak sun hours a day, the numbers are workable, though generation is more seasonal. Use the solar calculator for Kerala to size a system against your own bill.
Tariffs and buyback rates change at state borders, which is why payback can differ a lot between neighbours. Here is how Kerala (₹5.8/kWh) compares, or see all state electricity tariffs.
This link opens the calculator with Kerala's tariff, buyback rate and sunshine already filled in — enter your appliances or bill for a precise number.
Open the Kerala solar calculator →