On a humid afternoon in Perinjanam, a coastal panchayat in Thrissur district of the South Indian state Kerala, Susheela leads me into her kitchen and points upstairs to the metal roof. The small array of solar panels there has changed the family’s daily expenses. “Before 2016, our electricity bill was over Rs 1,000 every month. After that, it rarely crosses Rs 200,” she says, folding her hands as if to show how the burden has lifted. “Installing solar panels on the roof has been undoubtedly beneficial. We’ve seen clear savings on our bills,” Susheela says.

Perinjanorjam (Perinjanam Energy), the village’s community-driven rooftop solar initiative, now powers more than a thousand households like Susheela’s and has drawn attention across India. In 2016, the panchayat embarked on what was then an audacious experiment—combining government subsidies, cooperative-bank lending, and local mobilization to make an energy self-reliant village. The results were undeniable on the ground. But the very success that made Perinjanam a poster child has not translated into a replicable model across Kerala. Nine years since its launch, and three years after high-profile endorsements and study visits, other panchayats still hesitate. Why?

The Perinjanam solar project, driven by the collective efforts of local institutions and residents, is celebrated as a model for other panchayats. For a state like Kerala, which relies heavily on electricity from outside, rooftop solar projects are crucial. By involving ordinary families, they demonstrate the strength of a decentralized approach—while also advancing India’s clean energy transition.

At COP26, India pledged 500 GW of renewable capacity by 2030. Progress has been steady, with 235.7 GW already in place, but the pace must increase. Decentralized, community-driven initiatives like Perinjanam could help bridge the gap.

What is the Perinjanam Project?

It’s an alternative electricity generation and distribution model, with participation from the public, panchayat, cooperative bank, Kerala State Electricity Board (KSEB), and Solar Energy Corporation of India (SECI), carried out in Perinjanam gram panchayat, Thrissur. Perinjanam, the first panchayat in India to generate 700 kW of rural solar power for itself, is a model for local energy self-sufficiency. Daytime electricity from the solar panels is used for household needs; the surplus is supplied to KSEB’s common pool grid. At night, homes rely on KSEB power. Electricity bills reflect the difference between what is exported and what is imported. If the exported and imported electricity quantities are equal, the only charge is meter rent. The heart of Perinjanam project is a consumer committee set up for project implementation.

Launched in 2016 by then-panchayat president Sachith KK with the support of then Kerala State Electricity Regulatory Commission (KSERC) chairman TM Manoharan, Perinjanam’s solar initiative was born out of their vision, as said by then consumer committee head Noorrudheen to EdPublica. “Sachith learned about SECI’s 500 kW subsidized scheme for solar in Kerala through Manoharan. The idea to use this for local benefit was decisive,” Noorrudheen says.

Through numerous meetings and awareness campaigns, ward members reached out house-to-house to educate people about solar. Since the project started soon after a major solar scam in Kerala, skepticism lingered. The initial plan was for a 500 kW project covering 250 homes, with rooftop units typically ranging from 1 to 5 kW. For Perinjanam residents, many of whom faced financial hardships, participation in the novel project required financial support. Both the panchayat and the cooperative bank (then under CPI(M) leadership) decided after much discussion to give low-interest, collateral-free loans to participants. Noorrudheen credits this bank loan as the key factor that made the Perinjanam project a success. With Manoharan as an advisor, KSEB offered full support. Households with bills above Rs 500 were targeted first. An active, proactive panchayat president engaged the cooperative bank, registered a consumer committee as a one-stop solution for project management, and worked with SECI for subsidies. Thus, Perinjanam stands out as a unique community-driven project involving multiple stakeholders—a model found nowhere else.

According to latest estimates, Perinjanam section’s monthly generation stood at 3.16 MW, now including Kaypamangalam and Mathilakam panchayats. “There are 1008 connections under the Perinjanam section. The project covers 956 houses. The remaining are shops and other institutions. Today the project reached a capacity of 4,305 kW. The total generation is 316,823 units,” says KSEB Assistant Engineer Thara.

The project can produce enough electricity in a year to meet the needs of roughly 4,000–6,000 rural households. Perinjanam has around 5,342 households, according to the last Census report, and a typical rural home in Kerala uses about 97 units per month. That means the plant’s full annual potential—roughly 5.17–6.89 million units—could supply most, if not all, of the panchayat’s households. So far, it has generated 316,823 units, already enough for about a year’s supply to 270 homes, a figure expected to grow as the system completes more annual cycles—enough to power nearly all homes in one or two wards of Perinjanam.

Why Hasn’t Perinjanam Been Replicated?

Apart from achieving energy self-sufficiency through solar power, a 2022 report revealed that the Perinjanam Solar Initiative reduced carbon emissions by 192,000 kilograms. Inspired by Perinjanam’s outcomes, 37 panchayats in Tamil Nadu decided to implement similar projects, and in 2022, a 45-member delegation from Tamil Nadu visited Perinjanam to study the model.

Kerala Chief Minister Pinarayi Vijayan and Finance Minister K N Balagopal had publicly urged other panchayats to adopt the Perinjanam model. However, no other panchayat has followed suit so far. Let us look at the reasons behind this.

One major reason, as often pointed out, is that the Perinjanam Solar Project was not a flagship initiative of the panchayat itself. The panchayat acted only as a facilitator, while it was the consumer committee that took the lead in implementation. The project originated from the idea of the then panchayat president, who pushed it forward, but what truly set it apart was the proactive role of the consumer committee.

The Perinjanam model is in fact the most practical and replicable model for other panchayats. What makes it unique is the structure of its consumer committee, a 14-member registered body that oversees everything—including the maintenance of solar units and overall project management. Earlier, the panchayat president himself was part of the committee. However, with a change in the elected local body, the current panchayat committee appears less interested in the project. The consumer committee members are elected annually by the beneficiaries themselves. “It is this committee system that keeps the initiative alive,” explains Noorrudheen.

Our visit to the panchayat office confirmed this impression: informally, top officials acknowledged that the panchayat functions only as a facilitator. And the response reflects their lack of interest. “For Perinjanam’s success to spread elsewhere, what is needed most is government-level intervention,” says Sachith. He recalls that Finance Minister Balagopal even mentioned Perinjanam in his budget speech, urging local bodies to adopt such initiatives. “But that is not enough,” he argues. Each year, the government issues guidelines listing ten mandatory activities/action plans for local bodies. Unless rooftop solar—implemented with people’s investment, cooperative bank support, and government subsidies—is included in that framework, and unless it becomes part of the annual project plan, real expansion will not happen. “So far, no such directive has come. That is a big reason for the failure,” Sachith adds. “If each of Kerala’s 956 panchayats installed even one megawatt, which alone would add up to 956 MW. People are willing to invest their money; cooperative banks only need to support those who cannot afford the upfront cost. It requires far less effort and expense than building new power projects. But it must be made mandatory to install 1 MW of solar energy in every Panchayat,” he insists.

Another barrier is the lack of awareness. “People do not fully understand what green energy is, nor why shifting to it is important,” says the former panchayat president. “I installed a 4 kW rooftop solar unit at my house. I own an electric scooter and even an electric car. But very few people think about how far we can run an entire household on green energy.”

There is also the issue of local body leadership. Panchayat leaders often fail to think innovatively about the possibilities before them. “We once used CSR funds to power streetlights with rooftop solar. The panchayat, which had an electricity bill of Rs 90,000(approximately $1,015.50) , reduced it by nearly Rs 30,000 ($338.50),” recalls Sachith.

For N K Sathyanathan, who was the president of the local cooperative bank during the project’s rollout, the main barrier to replication elsewhere is lack of financial support mechanisms. “When we began Perinjanam Solar, cooperative banks technically had no provision to offer loans for rooftop solar. But with the support of the then panchayat president and Manoharan from KSEB, we devised a sub-rule to make it possible,” he explains. The bank allocated Rs 1 crore for loans, offering up to Rs 50,000 per individual with minimal collateral—family members could stand as mutual guarantors, without the need for extra security. The loans were offered at low interest and had a 36-month repayment period. Over 300 households received loans in the first phase, and almost all repaid ahead of schedule, without a single default.

Sathyanathan argues that if Kerala’s many cooperative banks adopt a similar loan framework, it could unleash a revolution in rooftop solar. He recalls even Tamil Nadu officials asking him how they managed it, and he shared their model of innovative lending. “When electricity demand rises, states often turn to nuclear or hydro projects. But rooftop solar is a viable alternative. If encouraged, Kerala would never need to depend on buying electricity from other states,” he says. “The government doesn’t lose a single rupee on this model.”

Noorrudheen adds that affordable financing is crucial to expand rooftop solar to low-income households. He also stresses that consumer committees are vital: since these are long-term projects, relying on elected panchayat bodies alone is risky, because changes in leadership after elections can disrupt continuity. Instead, projects should be run by independent consumer committees, supported by the panchayat. Ensuring the availability of technical experts even after the warranty period is another key requirement.

Premlal, convener, consumer committee, thinks that the lack of interest from agencies like KSEB is also a factor. “The Perinjanam project happened due to a confluence of many factors—the vision of the then panchayat leadership, intervention by the KSEB regulatory commission chairman, Manoharan’s initiative, and crucially, cooperative bank financing. Many residents also invested from their own pockets. Unless such elements come together, replication elsewhere will remain difficult.”

“At that time, about 500 people in Perinjanam were aware of solar. It was significant that a 1 kW system could be installed for Rs 45,500 (approximately $664–$684 USD at 2016 exchange rates),” says Sachith. The project was implemented by a 14-member solar consumer committee chaired by the panchayat president, with the panchayat serving as facilitator and eligible houses enrolled. SECI sanctioned a Rs 19,500 subsidy per kW, bringing the actual cost per kW to Rs 65,000; consumers paid only Rs 45,500. The committee handled documentation, SECI coordination, and contracting, freeing consumers from hassles. Contractors were selected through competitive quotations. GPR Power Solutions (Chennai) was contracted for implementation, and the consumer committee continues to manage maintenance. Loans to the tune of Rs 1.3 crore were taken from the cooperative bank for the project.

Lives Transformed

“Rooftop units range from 1 to 5 kW, with the initial target being 500 kW; it’s presumed now to exceed 4,000 kW. Perinjanam’s success inspired others, and the project is a global model—environmentally, too, its benefits are clear. People are very satisfied,” says consumer committee convener Premlal, a fact confirmed by the EdPublica team’s field visit.

Still, people have some anxieties about new regulations. “We installed our solar unit at launch, with Manoharan’s advice. Our bills now are just Rs 130–200. But there are rumors of rule changes, and that worries us,” says Susheela, a Perinjanam homemaker. Recently, bill amounts have increased, which she and others have brought up with the committee. She adds: “We’ve never had any problem with the solar unit. When the panel broke, it was replaced free.” Susheela’s family installed a 2 kW unit via loan; the process was smooth and the amount repaid in two years.

Rahimabi, another resident, notes that bills initially came down to Rs 250 but are now as high as Rs 1,000 again, which concerns her. Bharathan, a Gulf returnee, has a 2 kW unit and says he’s never had a maintenance issue. He worries about a possible rule requiring battery storage for units above 3 kW and says his panel may soon need replacing. His monthly bill, once Rs 900–Rs 1,000, is now just Rs 300, but he laments the low compensation from KSEB and the risk of full supply loss in a power cut.

Prajitha and Sreekanth’s family, among the first solar homes in the panchayat, added battery storage alongside their unit because of concerns about rising bills. “Earlier, my bill was Rs 900. Now, we pay only the meter rent—Rs 140. There have been no maintenance issues so far.”

Premlal also reports quick payback and additional income for higher producers, and Sathyan master, another resident, claims he got back as much as Rs 2,000 after use. One house, for instance, produces 17 units per day, and some households that both produce and consume solar energy (prosumers) have earned up to Rs 9,000 by selling power back to KSEB. At the same time, the reality is that the project has not yet reached everyone in the panchayat. “I have never heard about such a solar initiative,” says Raphael, a mason and resident of Perinjanam. Sukanya, a homemaker from Perinjanam, adds, “I had no awareness of such a project, and when I first heard about it, it seemed like something that would cost a lot of money.”

Why Kerala Needs Rooftop Solar

According to the Ministry of New and Renewable Energy, Kerala currently ranks 13th in the country in terms of installed renewable energy capacity. Across India, nearly 80% of newly added renewable units are solar-based. Government figures show that India has overtaken Japan to become the world’s third-largest solar producer. As of July 2025, the country’s cumulative solar capacity stands at 119.92 GW—of which 19.88 GW comes from grid-connected rooftop systems and 5.09 GW from off-grid installations. Notably, Kerala does not figure among the regions identified by the Centre as high-potential zones for renewable energy.

States like Rajasthan, Gujarat, and Madhya Pradesh have tackled the solar energy challenge by setting up vast solar farms spread across thousands of hectares. Kerala, however, does not have such an option due to its limited land availability. “But there is immense potential for rooftop solar here,” says Sreekanth, an independent researcher in the field.

According to official government reports, Kerala’s installed solar capacity stands at 1,792.34 MW. Of this, the installed rooftop solar capacity is just 24.93 MW. Data released by the Ministry of New and Renewable Energy (MNRE) shows that the state’s total renewable energy capacity is 4,106.78 MW. This means rooftop solar contributes only 1.39% of Kerala’s total solar capacity, and just 0.61% of the overall renewable energy capacity.

Kerala has set ambitious targets: to achieve 100% renewable energy by 2040 and to become a net carbon-neutral state by 2050. The Kerala State Action Plan on Climate Change 2023–2030 (Kerala SAPCC 2.0), released by the Chief Minister, outlines several programmes and strategies designed to help the state reach these goals.

In this journey, rooftop solar projects will have a decisive role to play. Kerala now has 152,000 rooftop units (946.9 MW), a top growth record under the PM Surya Ghar programme—yet only 2 percent of its 13 million energy consumers use rooftop solar. Critics say new policies have raised fresh challenges, even as KSEB imports about 70% of its electricity from outside. Solar remains the best alternative.

Rising Challenges

Noorrudheen points out a growing concern: because of the current approach of the government and KSEB, solar power is becoming a less attractive option for ordinary people.

KSEB, however, argues that there is another side to the issue raised earlier by Bharathan. According to the utility, grid-connected solar units can impose additional costs on consumers. In Kerala, peak electricity demand occurs between 6 p.m. and 11 p.m., whereas households that both produce and consume solar energy (prosumers) use only about 36% of the power they generate. The rest is exported to the grid. But at night, they draw back about 45% of their supplied energy. On average, KSEB purchases only 19% of the solar power generated daily.

This mismatch adds financial pressure: because electricity costs rise during peak hours, KSEB estimates that the power banking arrangement could result in losses of nearly Rs 500 crore in FY 2024–25. This translates into a 19-paise increase per unit of electricity for Kerala’s 13 million consumers.

If rooftop solar systems above 3 kW are installed without battery storage, this burden is expected to rise further in coming years. KSEB projects that by 2034–35, consumers may face an additional 39 paise per unit due to this imbalance. These figures form the basis of the argument for making battery storage mandatory, though such a move poses another serious challenge for scaling up rooftop solar projects. At present, Kerala ranks fourth in India in terms of installed rooftop solar capacity, behind Gujarat, Maharashtra, and Rajasthan.

Regulatory Impacts on Rooftop Solar Adoption

The regulatory framework may further affect adoption. The Kerala State Electricity Regulatory Commission (KSERC) has proposed restricting net metering to systems under 3 kW, down sharply from the earlier 1 MW limit. Larger consumers would instead fall under net billing or gross metering, which are far less favourable.

Financial implications are significant. Under net billing, exported solar power is priced at the Solar Energy Corporation of India (SECI) discovered tariff, often as low as Rs 2–2.5 per kWh, compared to the Rs 3.59 per kWh retail tariff that consumers pay when buying from the grid. This pricing difference reduces savings and extends the payback period of rooftop solar investments. Moreover, households may need to install costly battery storage systems, which are not subsidized and can cost Rs 16,000–18,000 per kWh of capacity.

Market Consequences

Impact on adoption has already become visible. Reports suggest that Kerala’s monthly rooftop solar installation rate has dropped from 15 MW to just 5–6 MW since the draft regulations were introduced. While regulators argue the changes are necessary to ensure grid stability and minimize utility losses, the burden of balancing the grid has effectively been shifted to individual consumers. This risks discouraging both new and existing users from investing in rooftop solar, potentially slowing down Kerala’s progress toward its 2040 renewable energy and 2050 carbon-neutrality goals.

Perinjanam’s New Phase

“As part of the next stage of growth, Perinjanam is set to introduce battery storage as a new model,” says Sachith. A Battery Energy Storage System (BESS) in solar refers to a sophisticated system that stores electrical energy generated from solar panels in advanced rechargeable batteries for later use. This allows energy to be captured during peak solar production, stored when the sun isn’t shining, and then discharged during times of high demand or low solar output. BESS systems improve grid stability by balancing supply and demand, provide backup power during outages, and enhance the integration of intermittent renewable energy sources like solar.

“In our model, the electricity we generate will be stored and then supplied to KSEB during peak hours. At present, we receive just Rs 2.83 per unit, but with this system it could increase to as much as seven rupees,” Sachith explains. He stresses that such storage models must be widely implemented across Kerala. The Perinjanam project is already moving forward with this plan. The first unit will have a 500-kilowatt capacity, with an investment of around Rs 1.5 crore for battery storage. Of this, 10% will be contributed by the consumer committee, while the remaining 90% will come from a mix of 50% subsidy and 40% viability gap funding. The committee has also demanded a 20% profit margin.

With the successful implementation of this initiative, Perinjanam Solar is expected to gain greater recognition and be discussed at a much larger scale…

(This story was produced with support from Internews Earth Journalism Network)