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Rooftop solar in Karnataka: subsidy, net metering and KERC’s 2026 export tariffs

The central subsidy, what KERC’s DSPV Regulations 2026 changed for BESCOM and other ESCOM customers, the export tariffs set in August 2026, how monthly settlement works, sizing rules, and how to apply.

Last updated: 23 October 2026 · Luminity

Karnataka is one of India’s biggest renewable energy states, but it has been slow on home rooftop solar. By 31 July 2026 it had 23,185 systems installed under the central PM Surya Ghar: Muft Bijli Yojana, with 94.68 MW covering 35,683 households and ₹165.18 crore of central subsidy released, from 56,257 applications, according to figures the Ministry of New and Renewable Energy gave the Lok Sabha. Kerala, with a far smaller population, had more than 3 lakh installations. The state’s solar manufacturers’ association, KRESMA, has blamed Gruha Jyothi, the state scheme that gives households up to 200 units of free electricity a month, for dimming the case for rooftop solar.

The rules changed in August 2026. The Karnataka Electricity Regulatory Commission (KERC) notified the KERC (Grid Interactive Distributed Solar Photovoltaic (DSPV) Plants) Regulations, 2026 on 19 August, published in the Gazette on 24 August, replacing its 2016 rooftop regulations. They open net metering to every consumer category, and a tariff order dated 25 August set what ESCOMs pay for surplus power from plants commissioned between 25 August 2026 and 30 June 2029. KERC’s own figures show how much room there is: of 10,527.03 MW of solar in the state on 31 March 2026, distributed solar was about 899.53 MW.

As on 23 October 2026: central subsidy ₹30,000 per kW for the first 2 kW plus ₹18,000 for the third kW (maximum ₹78,000), with no state top-up for homes. Net metering is open to all consumers from 1 kW up to sanctioned load or 1,000 kW. Surplus is settled monthly at ₹1.96 to ₹2.58 a unit for subsidised home systems and ₹3.89 without subsidy. Figures can change; your ESCOM, KERC and the national portal have the final word.

What you get, by system size

Karnataka gets the standard central subsidy. The export tariff is what your ESCOM pays for each unit left over after netting in a billing month, and it is fixed for the 25-year agreement. The table covers domestic plants under net metering, net billing or gross metering commissioned from 25 August 2026.

System size	Central subsidy (₹)	Export tariff with subsidy (₹/unit)	Export tariff without subsidy (₹/unit)
1 kW	30,000	1.96	3.89
2 kW	60,000	1.96	3.89
3 kW	78,000	2.14	3.89
Above 3 kW, up to 10 kW	78,000 (maximum)	2.58	3.89

The subsidised rates are lower because KERC builds each tariff from a plant’s capital cost: for PM Surya Ghar homes it deducts the subsidy from the benchmark cost, while for unsubsidised home plants of 1 to 10 kW it assumes ₹45,000 per kW. For other plants, including homes above 10 kW, the tariff is ₹3.11 a unit with domestically made (DCR) cells and ₹2.34 without, and 75% of that under virtual or group net metering. DCR status is applied only after the ESCOM inspects and certifies the modules.

Either way, exported power earns less than the retail tariff you avoid by using solar power yourself, so the best returns come from a plant sized to your own daytime use.

What the 2026 regulations allow

The regulations offer six arrangements, and a consumer can switch once during the plant’s life, in the directions the rules allow:

Net metering: all categories, 1 kW up to sanctioned load or 1,000 kW, whichever is lower. These limits apply until the state’s combined net-metered, virtual and group net-metered solar capacity reaches 3 GW; ESCOMs must publish their cumulative capacity monthly and KREDL the state total.
Net billing: all categories, 1 kW up to sanctioned load. Imports are billed at your retail tariff and exports credited at the KERC tariff, in money rather than units.
Gross metering: all categories, 1 kW up to sanctioned load. You sell all generation to the ESCOM at the KERC tariff and pay for all consumption at the retail tariff.
Virtual net metering: for domestic consumers, including apartments (common areas and individual flats) and housing societies, plus charitable institutions and government buildings. Minimum 5 kW; the plant can be in the premises or elsewhere in the ESCOM’s area.
Group net metering: one consumer’s connections with the same name and category share one plant. Minimum 5 kW.
Behind the meter: no export at all. A reverse power relay is required, and anything that leaks into the grid is not paid for.

Panels no longer have to be on the roof. Facade-integrated panels on walls, mono- or bifacial panels on roofs, and elevated structures on the ground are all allowed, as long as building bye-laws and safety standards are met; elevated structures need at least 8 feet of clearance at the lowest point.

How billing works

Under net metering, your bill shows the plant’s generation, what you exported, what you drew from the grid and the net units you pay for. There is no annual banking: any surplus after netting in a billing month is bought by the ESCOM at your agreement tariff and settled that month.

If you are on a time-of-day tariff, consumption in each time block is first set off against generation in the same block. Leftover exports are then treated as if they were injected in the off-peak block, and anything still left after covering off-peak consumption is bought at the agreement tariff.

Exported units only offset energy you consume. You still pay fixed or demand charges and government levies every month, even in a month with surplus. The regulations let KERC set a grid support charge on solar generation in future orders, but they do not fix one.

If your solar or prosumer meter fails, the ESCOM estimates generation at a 19% capacity utilisation factor, or from your past data, until the meter is replaced.

Sizing and connection rules

Sanctioned load caps the inverter. The inverter’s AC capacity cannot exceed your sanctioned load. For homes up to 10 kW, panel (DC) capacity can be up to 10% above the applied capacity: on a 10 kW load with 540 W modules, 18 modules (9.72 kW) or 20 (10.8 kW) are both allowed with a 10 kW inverter.
Transformer limit. Plants below 150 kW connect to the transformer that already supplies you, and all solar on that transformer cannot exceed 80% of its rated capacity.
No arrears. Consumers with unpaid dues are not eligible; in a billing dispute you can go ahead after depositing the disputed amount.
Batteries are optional. You may add a hybrid inverter and battery for your own use. Homes with diesel generators can use a zero-export controller so solar never back-feeds the generator, after CEIG safety approval.
Adding capacity later. Expanding an existing plant means a new agreement for the whole capacity, at 90% of your existing tariff or the prevailing tariff, whichever is lower.
Moving house. You can shift the plant to a new address in the same ESCOM’s area and keep the agreement for its remaining term, up to the original capacity.

How to apply

Register on the national portal, pmsuryaghar.gov.in, with your electricity account number if you want the central subsidy, and pick a registered vendor. Our PM Surya Ghar guide has the steps.
Apply online on your ESCOM’s solar portal. BESCOM’s is srtpv.bescom.org; CESC Mysore, GESCOM, HESCOM and MESCOM run their own, listed on the national portal. For plants of 1 kW to 150 kW, submitting the application counts as approval to start work, and low-tension consumers up to 150 kW do not sign a separate PPA: the regulations’ terms form part of the application.
Install the plant and upload the work completion report within 150 days of applying.
The ESCOM must inspect and commission the plant within 5 working days of the report. If it does not, the officer concerned owes you ₹1,000 a day until commissioning, and you are entitled to deemed generation benefit. If you finish more than six months late, your tariff becomes the lowest of the agreed tariff, any revised KERC tariff, or 90% of the agreed tariff.
Billing under the new arrangement starts within 30 days of commissioning.

Plants above 150 kW follow a longer route: acknowledgement within 3 working days, site verification and approval within 10 working days, and a PPA within 5 working days of approval. A consumer can end the agreement with one month’s notice. The PM Surya Ghar national helpline is 15555.

Common pitfalls

Assuming a state top-up. Karnataka households get the central subsidy only. Treat any extra “state subsidy” promised by a vendor with caution.
Oversizing for export. Surplus is settled monthly at ₹1.96 to ₹2.58 a unit for subsidised systems, well below the retail tariff you save by using solar power yourself.
Ignoring your sanctioned load. The inverter cannot exceed it, so raise your load with the ESCOM first if you want a bigger plant.
Finishing late. Missing the 150-day completion window by more than six months can cut your tariff to 90% for 25 years.
Unregistered behind-the-meter plants. If you install without telling the ESCOM, you must inform it within three months or pay a one-time penalty of ₹1,000 per kW.
Paying agents to “register” you. Registration on the national portal is free.

Questions people ask

How much subsidy does a Karnataka household get for rooftop solar?

The central PM Surya Ghar subsidy: ₹30,000 per kW for the first 2 kW and ₹18,000 for the third kW, capped at ₹78,000 for systems of 3 kW and above. Karnataka does not currently add a state cash top-up for homes.

Is net metering still allowed in Karnataka?

Yes, and more widely than before. The KERC (Grid Interactive Distributed Solar Photovoltaic (DSPV) Plants) Regulations, 2026, in force since they were published in the Karnataka Gazette on 24 August 2026, allow net metering for every consumer category, from 1 kW up to the sanctioned load or 1,000 kW, whichever is lower. Those limits stay until the state’s combined net-metered, virtual and group net-metered solar capacity reaches 3 GW.

What do I get paid for surplus power?

Surplus left after netting your imports in a billing month is bought by your ESCOM at the tariff in your agreement and settled monthly. For domestic plants of 1 kW to 10 kW commissioned from 25 August 2026, KERC set ₹3.89 a unit without subsidy. With the PM Surya Ghar subsidy it is ₹1.96 for 1 to 2 kW, ₹2.14 for above 2 kW up to 3 kW and ₹2.58 above 3 kW. The tariff holds for the 25-year agreement.

Why is the export tariff lower if I take the subsidy?

KERC sets these tariffs from a plant’s capital cost. For subsidised homes it deducts the subsidy from the benchmark cost, so the tariff that repays the investment is lower. Without subsidy it assumes ₹45,000 per kW.

Do I have to install a battery?

No. Batteries with a hybrid inverter are optional, and stored power is for your own use. KERC will review whether prosumers need storage after two years from notification or once state capacity reaches 3 GW, whichever comes first.

How big a system can I install?

The inverter’s AC capacity cannot exceed your sanctioned load. For homes up to 10 kW sanctioned load, the panels (DC) can be up to 10% larger than the applied capacity: on a 5 kW load with 540 W modules you could fit 9 modules (4.86 kW) or 10 (5.4 kW), with a 5 kW inverter.

How long does approval take?

For plants of 1 kW to 150 kW, submitting the online application counts as approval to start work, and low-tension consumers do not sign a separate PPA. You upload the work completion report within 150 days; the ESCOM must inspect and commission within 5 working days, or the officer pays you ₹1,000 a day and you get deemed generation benefit. Billing starts within 30 days of commissioning.

Sources

Metering options, capacity limits, the 3 GW threshold, settlement, sizing, transformer, battery and application rules are from the KERC (Grid Interactive Distributed Solar Photovoltaic (DSPV) Plants) Regulations, 2026, notified on 19 August 2026 and published in the Karnataka Gazette on 24 August 2026. Export tariffs and capital costs are from KERC’s tariff order of 25 August 2026. Installation figures are from the annexure to Lok Sabha unstarred question 2806, answered on 5 August 2026. Central rates are from the national portal.

Related reporting is on the solar and policy pages. Other state guides: Uttar Pradesh (a ₹15,000-per-kW top-up, up to ₹30,000), Rajasthan (₹17,000 and 150 free units), Maharashtra (the SMART scheme), Gujarat (central subsidy only), Tamil Nadu (up to ₹22,000), Delhi (up to ₹78,000, with free plants for homes up to 400 units) and Kerala (time-of-day net metering rules since January 2026). If a number here disagrees with your ESCOM, KERC or the national portal, theirs wins. Corrections: [email protected].