Kerala Mandates Rooftop Installations for High Power Consumers

In a significant move towards sustainable energy, the Kerala government has introduced a mandate requiring households consuming over 500 units of electricity monthly and possessing roof areas exceeding 100 square metres to install rooftop solar systems with a minimum capacity of 1 kilowatt.

This directive forms a key pillar of the state's Draft Power Policy 2025, aiming to bolster renewable energy adoption and reduce dependency on conventional power sources.

The policy outlines a comprehensive plan to add 3.5 GW of solar capacity by 2030, comprising 1 GW from utility-scale projects and solar parks and 2.5 GW from decentralised solar initiatives. Additionally, the state targets the development of 1.5 GW from non-solar renewable sources. To accommodate this surge in renewable energy, Kerala plans to upgrade its transmission infrastructure to handle a peak load of up to 10 GW by the decade's end.

Commercial establishments are also subject to new requirements: those occupying over 100 square metres must install rooftop solar systems of at least 3 kW, while those with more than 400 square metres must install systems of at least 5 kW. The policy supports various business models for solar adoption, including capital and operating expenditure, lease, utility-owned, roof rental, and build-own-operate-transfer models.

In a bid to streamline the adoption process, rooftop solar systems below 500 kW will no longer require inspection or approval by the electrical inspectorate. Net metering will remain available for all eligible consumers until the renewable purchase obligations are fulfilled, provided the project capacity remains up to 1 MW.

Recognising the importance of energy storage in maintaining grid stability, the policy mandates that all new renewable energy projects, including solar and wind, integrate storage systems into their design. A minimum of 10 percent of the total installed capacity of these projects must be allocated for battery energy storage systems (BESS), with the potential for this requirement to increase as technologies and needs evolve. By 2030, Kerala anticipates the need for approximately 2 GW/4 GWh of storage capacity to manage peak demand and stabilise the grid.

The Kerala State Electricity Regulatory Commission estimates an investment requirement of INR 522.38 billion by 2030 to upgrade energy infrastructure and effectively integrate renewable energy sources. Under a business-as-usual scenario, the state's annual electricity requirement is projected to rise to 38,000 million units (MU) by 2030, 52,000 MU by 2040, and 71,000 MU by 2050. In a carbon-neutral scenario, the energy requirement could be up to 70 percent higher.

This ambitious policy positions Kerala as a leader in India's renewable energy landscape, setting a precedent for other states aiming to transition towards sustainable energy solutions.