Kerala’s residential rooftop solar market has seen a strong demand for solar-plus-storage systems over the past year. Consumers who previously chose standard grid-connected rooftop solar systems are now showing interest in adding battery storage. Installers report that consumers are exploring hybrid systems to understand whether storage can help them meet their backup needs amidst rising household electricity demand.

Mohammed Fayaz Salam, CEO and Director of Moopens Energy Solutions, said sales of hybrid solar systems have increased by at least 100% in the past year.

According to Tinsu Mathew, Director and Managing Partner at El Sol Power Solutions, the trend is evident among financially stronger households, especially owners of new homes measuring 3,000 sq ft to 5,000 sq ft. These customers are willing to invest in systems that provide backup power to support higher standards of living.

Regulation is Accelerating the Shift

Kerala’s rooftop solar customers are closely watching the possible shift from net metering to net billing. Under net metering, households can export surplus solar generation to the grid and adjust it against later consumption. This has supported the adoption of residential rooftop solar by keeping the payback logic simple.

Net billing changes the value equation. If exported daytime solar power is valued lower than imported electricity during evening or peak periods, households gain more by consuming their own solar power directly rather than exporting it to the grid. Batteries help make that possible.

According to Terrance Alex, founder and CEO of Wattsun Energy India, the new regulations, though stayed by the courts, have changed customer thinking.

“The demand is mainly driven by the new regulations that have been published,” he said. “There is an expectation among consumers that if the stay is lifted, battery integration may become necessary.”

Alex noted customers are increasingly interested in storing surplus solar generation for later use, especially during peak periods when imported power may be more expensive.

Salam said the move from net metering to net billing could influence rooftop solar decisions because Kerala consumers closely calculate returns. If the power export-oriented economics of rooftop solar systems weaken, storage becomes more relevant for households seeking to increase self-consumption.

Mathew said the current regulatory discussion is prompting customers to better understand hybrid systems, while residential demand is being shaped by backup assurance and interest in newer technologies.

Wealthier Homes are Leading Adoption

Salam noted most hybrid systems being adopted are around 5 kW because they are usually purchased by wealthier customers with higher backup requirements.

Mathew also sees wealthier homes as a clear early market. He said such households are willing to invest in uninterrupted power and modern energy systems.

According to Mathew, a typical residential hybrid system in Kerala includes a 5 kW inverter and 5 kW of solar capacity, with storage varying based on backup requirements. Some systems can support up to around 10 kWh of storage, depending on the customer’s load and backup needs. In many cases, systems are designed to provide around two hours of full-load backup.

Alex pointed out that many households choose rooftop solar systems of around 3 kW to maximize subsidy benefits, while a 5 kWh lithium-ion battery is the most common storage option. Customers who require additional backup can scale up to 10 kWh by combining multiple battery units.

Together, these inputs suggest that Kerala’s residential storage market is forming around 3 kW to 5 kW rooftop systems, paired with 5 kWh to 10 kWh batteries, depending on the customer’s backup requirement.

Costs but Interest Growing

The upfront cost of batteries remains one of the main factors shaping customer decisions.

Mathew estimated that a 5 kW solar-plus-storage system costs around ₹500,000 (~$5,225) in Kerala. A similar 5 kW rooftop solar system without battery storage costs about ₹310,000 (~$3,239).

That cost gap explains why the first buyers are usually wealthier households. Still, installers noted customers are increasingly willing to evaluate storage when they see value in backup, self-consumption, and long-term energy independence.

Alex said customers continue to study payback periods and replacement costs, but conversations about storage have become more frequent.

Salam added that battery storage can increase the breakeven period compared with on-grid solar. However, he also pointed out that demand has continued to rise, especially among households seeking more backup and flexibility.

The Case for Storage

Kerala has traditionally had fewer power cuts than many other Indian states, but installers note backup power is increasingly factored into battery purchase decisions.

As of April 2026, Kerala’s electricity demand had surpassed a record 6,000 MW, with daily consumption topping 117 million units. The strain on the grid, driven by intense summer heat, rising air-conditioning use, and electric-vehicle adoption, has sharpened concerns about future energy security and encouraged more households to consider hybrid solar systems with battery storage.

Salam said recent power cuts have contributed to demand for hybrid systems. He also pointed to energy independence and the flexibility of using stored power during outages as factors encouraging households to consider batteries.

Some areas continue to experience voltage fluctuation issues, and customers seeking greater assurance are considering storage-backed systems.

Storage helps households use more of their own solar generation and provides backup power when the supply is interrupted. That combination is likely to matter more as residential electricity consumption rises due to air-conditioning, induction cooking, electric vehicles, and other appliances.

EVs and Induction Cooking are Widening the Opportunity

The growth of household electrification is strengthening the long-term case for batteries. Mathew said rooftop solar and electric vehicles are increasingly linked in customer thinking. “Everyone who thinks about EV is thinking about solar. Everyone who thinks about solar is thinking about EVs.”

While EV charging may not yet be the primary factor customers use to size batteries, installers point out it is changing how households think about electricity consumption. Consumers considering electric mobility are also more likely to evaluate rooftop solar as a way to manage future electricity use.

Induction cooking is another trigger. Mathew said demand for induction cookers increased sharply during February, March, and April, with many home appliance stores in Kerala running out of stock.

The war in West Asia and fears of fuel supply disruptions have added another layer to household energy decisions. With consumers already sensitive to liquefied petroleum gas prices and availability, induction cooking has become more attractive for some homes. Installers note this is driving demand for rooftop solar, as households that shift cooking loads to electricity also want backup assurance through hybrid solar systems with batteries.

Alex said induction cooking had already gained ground in Kerala, and rooftop solar helped some households reduce dependence on liquefied petroleum gas. Under net metering, customers could export solar power during the day and consume electricity at night, reducing cooking fuel expenses.

Approvals and Supply are Improving

The approval environment for rooftop solar with storage is evolving. Salam said the distribution company’s approach toward hybrid systems has not been negative and noted that the Kerala State Electricity Board has issued approvals for such installations. However, he said some field-level offices still need more clarity on documentation and technical requirements.

Alex described the approach as mixed, with some engineers supporting renewable energy and others taking more time to approve projects. He stated that systems are gradually improving.

The storage supply chain appears able to meet current demand. Alex noted there is no major shortage of batteries or hybrid inverters at present. Demand could grow quickly if the new regulations take effect.

This creates an opportunity for battery makers, inverter companies, and EPC firms. Kerala’s consumers are well-informed and closely follow policy developments, making the state a promising market for hybrid rooftop solutions.

Kerala’s rooftop solar market is entering a new stage. On-grid systems and net metering led the first phase. The next phase is likely to see more hybrid systems, lithium-ion batteries, and consumer interest in managing solar power at home.

Solar-plus-storage adoption is rising as wealthier households, regulatory expectations, electrification, and backup needs converge. Batteries are becoming integral to the future rooftop solar package in Kerala.

India’s rooftop solar capacity grew to 7.1 GW in the calendar year 2025, an over 123% year-over-year jump from 3.2 GW in 2024, according to Mercom India Research’s Q4 & Annual 2025 India Rooftop Solar Market Report.