The electricity tariff in Karnataka has gone up by ₹2.89/unit! This will be one of the biggest hikes introduced by the state government.

But, Instead of worrying about the ever-increasing energy bills, why not take this opportunity to switch to solar power? It’s a smart move that can help you up to 80% of your monthly electricity expenses and reduce your carbon footprint.

Solar Subsidy in Karnataka

In 2022, the union ministry launched a uniform Central Financial Assistance (CFA) scheme. MNRE also raised this incentive recently under the new PM Surya Ghar Muft Bijli Yojana.

The Karnataka government does not provide a separate subsidy, but residential consumers installing grid-connected rooftop solar systems can avail CFA through the national portal for rooftop solar. The details are the subsidy are as follows:

Capacity Subsidy
Up to 2kWp ₹30,000/ kW
For 3kWp ₹78,000
For Capacities above 3kWp ₹78,000 (Fixed)

Karnataka RE Policy 2022-27

The development of renewable energy capacity is one of the prime priorities for the Karnataka government. And the ambitious RE policy launched by the state is a testament to that commitment.

In March 2022, the state government approved the Karnataka Renewable Energy Policy form 2022-27. For solar energy, the policy states a target of achieving 1000MW of grid-connected rooftop solar projects by 2027.

The other key targets specified by the policy are:
• Increase grid-connected rooftop installations over public and private buildings
• Raise floating solar installations over existing dams and reservoirs
• Set up ground-mounted and rooftop PV plant for EV charging
• Develop the ecosystem for distributed solar by solarizing agricultural pumps and feeders.
• Promote wind-solar hybrid installations

To achieve these goals, the state government has taken the following measures under the new policy:

• Allow RE developers to sell the generated energy within and outside the state (while adhering to the electricity guidelines)
• Make the process of procuring land for RE projects easier
• Promote rooftop installation over residential, commercial, and industrial buildings through net metering and gross metering.
• Promote peer-to-peer trading between grid-connected parties.
• Allocate water bodies on a long-term lease/rental basis for floating solar projects.
• Additionally, the state cabinet will help 10,000 farmers build solar power systems through PM KUSUM Yojana category-B.

Looking for efficient and reliable solar solutions in Karnataka?

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Potential for Businesses in Karnataka

In recent years, many businesses have started investing in Karnataka’s solar segment. Recently e-commence giant Amazon announced plans to build a wind-solar hybrid project in the state. Moreover, Tata Power Renewable Energy will invest over ₹3000 crores to develop solar projects.

Like these two, many organizations have either invested in Karnataka’s RE industry or have announced plans to do so. The reason why the state is attracting investors in the clean energy segment is because of its favorable policies.

For example, to encourage clean energy development, the state offers incentives such as an investment promotion subsidy, up to 100% exemption on stamp duty, and 100% exemption on electricity duty for 8 years.

For larger enterprises investing in clean energy, Karnataka provides Up to 2.25% of turnover as an investment promotion subsidy for 6-10 years and Up to 100% reimbursement on land conversion fees.

The government also provides some financial benefits to consumers with an installed solar capacity of 1MW. These include, 40% accelerated depreciation on the system and 10 year Tax holiday on solar projects.

Moreover, the state has been increasingly promoting open-access systems. Based on a recent report, Karnataka had the highest open-access capacity solar installations in the first half of 2022. The government also gives preference to green open-access projects over traditional open-access projects.

Solar Energy Generation in Karnataka

The solar potential of Karnataka is over 25 GW. The state receives an average of 240-300 sunny days, with solar radiation of 5.4 to 6.4kWh/m2/day. The state has a total installed solar capacity of 9.3 GW (as of 31st October 2023) .

What’s more, Karnataka stands 3rd in the list of the top solar-powered states in India!

The Pavagada Solar Park (or Shakti Sthala) in the Tumakuru district of Karnataka is India’s second-biggest solar power plant, having previously been the world’s largest of its kind, with a production capacity of 2,050MW.


In September 2023, the Karnataka Energy Department also announced plans to expand the capacity of the solar park by 3 GW. The state government aims to make the solar park the largest in Asia again.

Moreover, the state government is developing three more ultra-mega solar power projects, each with a capacity of 2,500 MW in the Bidar, Koppal, and Gadag districts.

These numbers showcase the bright future of solar in Karnataka.

Solar Installations in Karnataka

Company Name Location Size
Qualcomm India Pvt Ltd. Bengaluru 48.6 kW
Sobha Dewflower Apartment Bengaluru 82.8 kW
Veerashaiva Lingayata Samskrutika Samudhaya Bhavana Vijayapura 22.5 kW
Vayunandana Layout Bengaluru 27.6 kW
How Can We Help?

If you are looking to install solar at your home, Ojas is the fastest and most reliable option. With just 4 hours of your time, 3 tools, and 2 people installation team, we will give you a solution that will generate free electricity for more than 25 years!

Ornate Solar is India’s leading solar company with 8 years of experience. By partnering with the best-in-class global solar brands, we bring the most reputed solar panels, inverters, and solar accessories to you and make your shift to solar cost-effective and easy.

We have also developed India’s first Integrated InRoof system- which turns solar panels into the roof and eliminates the need for sheet roofing.

We deliver across India.

For more information, please give us a call at 011 4353 6666.

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    kamini ornate

    About The Author

    Kamini Gupta is the Content Developer at Ornate Solar. She is a solar enthusiast and has worked with several well-known solar brands and experts in India. She is also a poet and a storyteller and has performed in many open mics events.

    kamini ornate

    About The Author

    Kamini Gupta is the Content Developer at Ornate Solar. She is a solar enthusiast and has worked with several well-known solar brands and experts in India. She is also a poet and a storyteller and has performed in many open mics events.