Solar Panel Subsidy in Karnataka

Karnataka Solar Policy & Incentive Brief (2026)

Karnataka is consistently ranked among India's top three states for rooftop solar adoption, driven by BESCOM's (Bangalore Electricity Supply Company) proactive implementation of net metering, strong solar irradiance averaging 5.2 peak sun hours across most of the state, and high residential electricity awareness in Bengaluru's IT-dominated population. The state is served by five electricity supply companies: BESCOM (Bengaluru and surrounding districts), MESCOM (coastal districts), CESC (Mysuru region), GESCOM (northern Karnataka), and HESCOM (Hubballi-Dharwad). Each follows the Karnataka Electricity Regulatory Commission's (KERC) unified net metering framework, ensuring consistent rules across the state. Karnataka does not offer a state-specific subsidy supplement beyond the PM Surya Ghar central subsidy. However, the state's strong solar irradiance, BESCOM's established net metering process, and the competitive installer market in Bengaluru ensure that the central subsidy alone produces a compelling financial case. KERC's net metering regulations allow surplus credits to be carried forward for 12 months and settled at the Average Power Purchase Cost (APPC) — typically ₹3.50–₹4.00 per unit — at the end of the financial year. Karnataka's BESCOM processes net metering applications faster than most state DISCOMs — most straightforward residential applications complete in 20–28 working days. The state government has set a target of 1GW of rooftop solar by 2027 and is actively incentivising group housing and commercial installations. Bengaluru's moderate climate (rarely below 15°C in winter, rarely above 35°C in summer) means panels here operate consistently near their rated efficiency throughout the year, without significant seasonal temperature derating.