Solar Energy in Karnataka: Potential, Solar Policy and Subsidy (2025)

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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 can help you up to 80% of your monthly electricity expenses and reduce your carbon footprint.

Let’s explore the state’s solar energy portfolio and renewable energy policies, starting with the available solar subsidies.

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)

In addition, Group Housing Societies (GHS) and Resident Welfare Associations (RWA) are eligible for a subsidy of Rs. 18,000 per kW for common facilities, such as EV charging, up to a total capacity of 500 kW (at 3 kW per house).

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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 solar 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.

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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

Karnataka has immense solar potential, estimated at over 25 GW. The state enjoys an average of 240-300 sunny days per year, with solar radiation levels of 5.4 to 6.4 kWh/m²/day. As of September 30, 2024, Karnataka has a total installed solar capacity of 8.9 GW, making it the third-leading solar-powered state 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.

The state government is also developing three additional ultra-mega solar power projects, each with a capacity of 2,500 MW, in the Bidar, Koppal, and Gadag districts. Moreover, Karnataka has set an ambitious goal to add 19.2 GW of renewable energy by 2030, underscoring its commitment to a sustainable energy future.

These developments highlight the bright future of renewable energy in Karnataka.

Supplied by Ornate Solar

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

Frequently Asked Questions (FAQs)

What is the current solar subsidy available for residential consumers in Karnataka?2025-05-28T16:22:27+05:30

As of 2025, residential consumers in Karnataka can avail themselves of the Central Financial Assistance (CFA) under the PM Surya Ghar: Muft Bijli Yojana. The subsidy details are:

Up to 2 kW: ₹30,000 per kW

3 kW: ₹78,000

Above 3 kW: ₹78,000 (fixed)

How can I apply for the solar subsidy in Karnataka?2025-05-28T16:24:28+05:30

You can apply through the National Portal for Rooftop Solar by selecting an MNRE-registered vendor. The subsidy is disbursed directly to your bank account upon successful installation and inspection.

Are there any state-level subsidies for solar installations in Karnataka?2025-05-28T16:26:45+05:30

Currently, Karnataka does not offer a separate state-level subsidy. However, residents can benefit from the central government’s CFA scheme.

What incentives are available for businesses investing in solar energy in Karnataka?2025-05-28T16:28:16+05:30

Businesses can avail themselves of various incentives, including investment promotion subsidies, stamp duty and electricity duty exemptions, land conversion fee reimbursements, accelerated depreciation, and tax holidays.

What is the current installed solar capacity in Karnataka?2025-05-28T16:29:55+05:30

As of early 2025, Karnataka has an installed solar capacity of approximately 9 GW, making it one of the leading states in solar energy generation in India.

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 10 years of experience. By partnering with the best-in-class global solar brands, we bring the most reputed solar panels, solar inverter, and solar accessories to you and make your shift to solar cost-effective and easy.

We have also developed India’s first Integrated Rooftop Solar 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 18002026252.

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    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.

    2025-06-12T11:45:27+05:30January 10th, 2024|34 Comments

    34 Comments

    1. Joel January 22, 2025 at 6:22 pm - Reply

      I want to install he solar energy in my farm land located in Mariamangalam, Hanur Taluk, Chamarajnagar District

      • Ornate Solar January 30, 2025 at 5:20 pm - Reply

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    2. Vijaykrishna December 30, 2024 at 9:32 pm - Reply

      hi this is vijaykrishna from bidar baswakalyan district karanataka , interested in knowing solar installation cost of 10 acer of land & subsidies provided by government

      • Ornate Solar January 13, 2025 at 3:00 pm - Reply

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    3. basavaraj September 16, 2024 at 2:28 pm - Reply

      hi this is Basavaraj from vijaypura district karanataka , interested in knowing solar installation cost of 2 acer of land & subsidies provided by government

      • Ornate Solar October 1, 2024 at 3:11 pm - Reply

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    4. VIJAYKUMAR DHAREKAR February 28, 2024 at 7:09 pm - Reply

      hi this Vijay from Karnataka in vijaypura district , interested in knowing solar installation cost of one acer land .

    5. RajivGandhi February 19, 2024 at 2:04 am - Reply

      3.5 land plant details

    6. prasad January 3, 2024 at 3:27 pm - Reply

      We are having medium scale industry at Bellary , interested in solar power project

      • Ornate Solar January 4, 2024 at 5:02 pm - Reply

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        • Prasad K G November 26, 2024 at 10:25 pm - Reply

          Hello, I have a house in Kerala and I also want to build a solar park on 2 acres of land in Karnataka. What will it cost and how much subsidy will I get? Can you please give me all the details?

          • Ornate Solar December 20, 2024 at 11:36 am - Reply

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    7. GLADIS November 2, 2023 at 4:29 pm - Reply

      How to get financial assistance for residential 3kw ongrid rooftop solarsystem

    8. A. John October 29, 2023 at 5:36 pm - Reply

      I am an architect. I have already installed solar system and providing the system in our projects. Your integrated Inroof system can be used for our projects, in Kerala. Pl send the details of the integrated In roof system, including it’s cost.

      • Ornate Solar October 30, 2023 at 11:48 am - Reply

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    9. Kushal ramannavar October 23, 2023 at 1:38 pm - Reply

      Kushal s r from gadag district, karnataka I would like to know the detailed project for 6 acres of agriculture land

      • Ornate Solar October 26, 2023 at 11:14 am - Reply

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        • Mrutyunjaya December 1, 2023 at 1:49 pm - Reply

          Sir
          Give how much amount required for 10KWP installation ofter subsidy.

          • Ornate Solar December 5, 2023 at 5:05 pm - Reply

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    10. Dadaso Mangave September 22, 2023 at 7:57 pm - Reply

      Kheti ke liye 10hp moterpump set

    11. Vishwanath June 28, 2023 at 2:51 pm - Reply

      1mw solar ongrid system

      • Ornate Solar June 28, 2023 at 4:37 pm - Reply

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        • RajivGandhi February 19, 2024 at 2:03 am - Reply

          RajivGandhi i s r from Raichur district, karnataka I would like to know the detailed project for 3.5 acres of agriculture land

          • Ornate Solar February 20, 2024 at 5:37 pm - Reply

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      • Nk Krishna Reddy September 6, 2023 at 7:06 am - Reply

        I want to install a roof top solar as panel.
        Please give the details of representative the Raichur district

        • Ornate Solar September 6, 2023 at 11:14 am - Reply

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          • Sangamesh December 17, 2023 at 8:10 pm - Reply

            Hi Sangamesh,
            From Vijaypur District
            I would like to know the detailed project for 7 acres of agriculture land

            • Ornate Solar December 18, 2023 at 5:38 pm

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        • mallikarjun. v harihar November 13, 2024 at 4:49 pm - Reply

          Hello sir. i am resident of dharwad district. annigeri Taluk. in karnataka state. Sir 5hp to 10 hp capacity food processing motor unit solar system cost.subsidy. document and related information in kannada or English please . and 4 Acre solar system instalation cost.

          • Ornate Solar November 14, 2024 at 12:49 pm - Reply

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    12. sunil June 15, 2023 at 9:26 pm - Reply

      Hello, i am resident of Davangere district in Karnataka, interested in knowing solar installation cost of one acer land.

      • Ornate Solar June 19, 2023 at 12:43 pm - Reply

        Hello Sunil, thank you for connecting with us. Kindly share your contact details, and our sales representative will help you better.
        Also, you can get in touch with us @ 011-4353 6666

    13. K Nagaraj May 26, 2023 at 7:12 pm - Reply

      I am a resident of Bangalore. I am interested in installation of 3 Kw (grid connection ) on the roof top of my own house. (Independent house)

      • Ornate Solar May 30, 2023 at 10:33 am - Reply

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