Why 2025 Is the Best Year to Go Solar: Government Subsidies, Net Metering & Future Savings
With electricity tariffs at an all-time high across India, especially in Tamil Nadu, 2025 represents a peculiarly opportune moment to switch over to solar energy. Thanks to updated government policies, attractive subsidies, improved net metering rules, and new tax benefits, homeowners and businesses can maximize their savings with Aurorawatt’s solar solutions, ensuring a strong return on investment.
Attractive Government Subsidies Boost Affordability
The rooftop solar subsidy program of the Indian government in 2025 gives enormous financial support, with a big thrust for residential installations. Subsidy – under PM Surya Ghar Muft Bijli Yojana, Tamil Nadu householders get subsidized ₹78,000 for rooftop solar systems above 3 kW. Smaller systems (1-2 kW) receive about ₹30,000 per kW as subsidy, which drastically cuts the initial investment.
Improved Net Metering Policy in Tamil Nadu
The net metering policy of Tamil Nadu still provides for export credit to the residential consumers against surplus solar power fed into the grid. Domestic consumers are eligible for Generation Based Incentives along with the benefits of net metering, which drastically cuts down their electricity bills. Aurorawatt ensures your system is optimally sized and integrated to leverage these local benefits fully.
Reduced GST and tax benefits increase savings. From September 2025, the GST levied on solar panels has been brought down from 12% to 5%, thus reducing the upfront cost of a solar installation for both homeowners and businesses in Tamil Nadu. Besides, accelerated depreciation for commercial setups and tax deductions against the interest on loans taken for solar installations make it more viable. Rising Electricity Tariffs Make Solar a Smart Hedge Electricity tariffs are on the rise in Tamil Nadu due to regulatory changes coupled with rising power procurement costs. Industry experts estimate residential tariff at around ₹ 5.8 per unit, with a projected rise over the next few years. By transitioning to solar now, you lock in lower energy costs for decades, thus protecting yourself from unpredictable grid price increases.
Aurorawatt: Your Trusted Local Solar Expert Aurorawatt is uniquely positioned to help residents in Tamil Nadu with expert consultation, designs, and installation of new solar policies and incentives. Our local presence ensures speedier, compliant setups that maximize government benefits, with guaranteed performance in the Tamil Nadu climate.
Ready to switch? Our solar consultants at Aurorawatt are ready to help you work out your actual ROI and select the panel system that will best suit your needs in Chennai, Salem, Coimbatore, and Madurai.
