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Quick answer: Tamil Nadu has notified its state rooftop solar top-up through G.O. (Ms) No. 102, Energy Department, dated 19 September 2026. Residential consumers get ₹5,000 for a 1 kW system, ₹10,000 for 2 kW, and ₹22,000 for 3 kW and above — paid on top of the central PM Surya Ghar subsidy. For a 3 kW system that takes the total to ₹1,00,000 (₹78,000 central + ₹22,000 state). The top-up is limited to the first 1,00,000 applicants, and you must have registered on the PM Surya Ghar portal on or after 5 August 2026.
This is the notification that fills in the blanks left by the Tamil Nadu Budget announcement of 5 August 2026, which stated the ₹1 lakh ceiling but not the split, the slabs, or the process.
The Slabs
| System size | PM Surya Ghar (central) | Tamil Nadu top-up (G.O. 102) | Total subsidy |
|---|---|---|---|
| 1 kW | ₹30,000 | ₹5,000 | ₹35,000 |
| 2 kW | ₹60,000 | ₹10,000 | ₹70,000 |
| 3 kW and above | ₹78,000 | ₹22,000 | ₹1,00,000 |
Two things to read carefully here.
The central cap still bites at 3 kW. PM Surya Ghar pays ₹30,000/kW for the first 2 kW and ₹18,000 for the third, then stops. A 5 kW or 10 kW system receives the same ₹78,000 as a 3 kW one. The state top-up copies that logic — ₹22,000 is the ceiling, not a per-kW rate.
₹1 lakh is a 3 kW number, not a "solar is now ₹1 lakh cheaper" number. If you are sizing a 5 kW system because your bi-monthly TANGEDCO bill demands it, the extra 2 kW is unsubsidised on both the central and state side. Size for your consumption, not for the subsidy slab — our solar calculator now splits both subsidies in the cost breakdown so you can see this directly.
Who Qualifies
The G.O. sets out conditions that quietly exclude a fair number of people:
- Residential consumers only. Domestic TANGEDCO service connections. Commercial, industrial, institutional and agricultural connections are out — they continue to rely on accelerated depreciation and open access economics.
- PM Surya Ghar registration on or after 5 August 2026. This is the budget-announcement date, used as the cutoff. If you registered before it, you receive the central subsidy but not the state top-up. There is no retrospective benefit.
- Grid-connected systems installed through an empanelled vendor. Off-grid systems are ineligible by definition — no grid connection means no net metering and no PM Surya Ghar claim, so the state top-up has nothing to sit on top of.
- First 1,00,000 applicants. A hard cap, matched to the ₹50 crore allocation and the state's stated target of rooftop solar on one lakh homes by March 2027. At ₹22,000 a head, ₹50 crore covers roughly 22,000 full-slab claims — so the cap that actually binds may be the money, not the headcount.
How the Money Reaches You
The state top-up is not a discount your installer deducts from the quote. The sequence is:
- Register on the PM Surya Ghar portal (pmsuryaghar.gov.in) and get technical feasibility approval from TANGEDCO.
- Install through an empanelled vendor. Use the vendor list on the portal or the TNEB unified solar rooftop portal — an unregistered electrician disqualifies the whole claim, central subsidy included.
- Commissioning and inspection, then net meter installation by TANGEDCO.
- Central subsidy is credited to your bank account by the national scheme.
- State top-up is disbursed separately by TEDA (Tamil Nadu Energy Development Agency), coordinated with TNGECL, by Direct Benefit Transfer to the same beneficiary account.
You pay the full installed cost up front and are reimbursed. Plan cash flow accordingly — this is the single most common surprise for first-time buyers, and it is why solar loans are usually sized against the gross cost, not the net.
What a 3 kW System Actually Costs Now
Using our current Tamil Nadu installed pricing for a quality on-grid 3 kW system:
| Line item | Amount |
|---|---|
| Installed system cost (3 kW on-grid) | ₹1,80,000 |
| Less PM Surya Ghar subsidy | – ₹78,000 |
| Less Tamil Nadu top-up (G.O. 102) | – ₹22,000 |
| Net investment | ₹80,000 |
A 3 kW system in Coimbatore generates roughly 12–13 units a day, about 380 units a month. Against a two-month TANGEDCO bill in the ₹4,000–₹5,000 range, annual savings land near ₹27,000–₹30,000 — putting payback in the under-three-year band for the first time. Before the state top-up, the same system paid back in roughly 3.5–4 years.
The generation and savings side is unchanged by this G.O. Only the net investment moved, and it moved by ₹22,000.
Should You Wait, or Move?
Move, for three reasons.
The cap is real. 1,00,000 applicants against a ₹50 crore pot is a first-come-first-served race, and Tamil Nadu's rooftop solar registrations have been running hot since PM Surya Ghar launched. Nothing in the G.O. promises a second tranche.
The cutoff is behind you, not ahead. Registrations from 5 August 2026 onward qualify. There is no benefit to waiting for a "better" scheme — waiting only moves you further down the queue.
Panel and inverter prices are not falling fast enough to offset ₹22,000. Module prices have been broadly flat through 2026. Waiting six months to save 2% on hardware while risking the entire state top-up is bad arithmetic.
The one genuine reason to pause: if your roof needs structural work or waterproofing, do that first. Retrofitting under an installed array costs more than doing it in the right order.
What Changed for PM-KUSUM Too
Separately from the rooftop scheme, the agricultural solar programme has moved. MNRE extended the PM-KUSUM completion deadline to 31 March 2027 for projects where the power purchase agreement or letter of intent was issued on or before 31 December 2025. Component B (standalone solar agriculture pumps) and individual pump solarisation under Component C carry their own commissioning milestones within that window.
The subsidy structure itself is unchanged: 30% central assistance + minimum 30% state subsidy, with the farmer covering the balance — typically 10% up front plus a 30% bank loan in Tamil Nadu. TEDA administers PM-KUSUM in the state with TANGEDCO as the sole DISCOM.
PM-KUSUM and the G.O. 102 rooftop top-up are separate schemes with separate portals. An agricultural service connection cannot claim the residential top-up, and a home cannot claim a KUSUM pump subsidy. If you hold both a domestic and an agricultural connection, they are assessed independently.
FAQ
How much is the Tamil Nadu state solar subsidy in 2026?
₹5,000 for a 1 kW system, ₹10,000 for 2 kW, and ₹22,000 for 3 kW and above, notified under G.O. (Ms) No. 102 dated 19 September 2026. It is paid over and above the central PM Surya Ghar subsidy, taking the maximum combined benefit to ₹1,00,000 for a 3 kW residential system.
Can I get ₹1 lakh subsidy for a 5 kW or 10 kW solar system?
Yes, but not more than ₹1 lakh. Both the central and state subsidies cap out at 3 kW — ₹78,000 central plus ₹22,000 state. Capacity above 3 kW receives no additional subsidy from either government, so a 10 kW system gets the same ₹1,00,000 as a 3 kW one.
I registered on PM Surya Ghar before August 2026. Do I get the ₹22,000?
No. G.O. 102 requires registration on the PM Surya Ghar portal on or after 5 August 2026. Earlier registrations still receive the central subsidy in full but are outside the state top-up. The scheme has no retrospective provision.
Who pays the Tamil Nadu solar subsidy and how long does it take?
TEDA disburses it by Direct Benefit Transfer to the beneficiary's bank account, coordinated with TNGECL, after the system is commissioned and inspected and the net meter is installed. It arrives separately from the central subsidy. Budget for paying the full installed cost up front.
Is the ₹22,000 Tamil Nadu subsidy available to everyone?
No. It is limited to the first 1,00,000 eligible applicants and is backed by a ₹50 crore allocation. It applies only to residential grid-connected rooftop systems installed through an empanelled vendor.
Does the state subsidy apply to off-grid or hybrid solar systems?
Off-grid systems are not eligible — they have no grid connection, no net metering and no PM Surya Ghar claim for the state top-up to attach to. Grid-connected hybrid systems with battery backup remain eligible, since MNRE permits hybrid inverters under PM Surya Ghar. See our on-grid vs off-grid vs hybrid comparison.
Can commercial or industrial buildings claim the ₹22,000 top-up?
No. G.O. 102 covers domestic service connections only. Commercial and industrial rooftop solar economics in Tamil Nadu rest on accelerated depreciation, GST input credit and open access, not capital subsidy.
Sources & Updates
Based on G.O. (Ms) No. 102, Energy Department, Government of Tamil Nadu, dated 19 September 2026, the Tamil Nadu Budget 2026-27 announcement of 5 August 2026, and MNRE PM-KUSUM scheme guidelines including the timeline extension notified in 2026.
Subsidy amounts, eligibility conditions and scheme availability can change, and the applicant cap may be exhausted without further notice. Confirm current status on pmsuryaghar.gov.in and with TEDA/TANGEDCO before committing to a purchase. Slab-wise subsidy, tariff, GST and net metering figures are maintained on our Tamil Nadu solar tariff & subsidy tracker.
Last verified: 22 September 2026.
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