Part of the complete guide: Solar subsidy (complete guide)
Quick answer
Banks offer concessional collateral-free loans for rooftop solar up to 3 kW under PM Surya Ghar (around 7% interest, subject to bank terms) and regular loans for bigger systems. Because bills fall by the amount of the EMI or more, solar can be nearly cash-flow neutral.
Loan options
- PM Surya Ghar linked loans for systems up to 3 kW from participating public-sector and other banks
- Green / home-improvement loans for larger systems
- Institutional term loans for schools, hospitals and trusts
- Agri loans and PM-KUSUM support for pumps
EMI example
Net cost ₹1.2 lakh at 7% over 5 years ≈ ₹2,380/month. A 3 kW system saves about ₹2,200–₹2,900 a month — so the loan is nearly self-funding.
Documents
ID and address proof, electricity bill, bank statements, income proof, installer quotation and PM Surya Ghar application number.
Avoid
- Loan agents charging an upfront 'processing' fee
- Paying the installer the full amount before the loan sanction
- Loans where the 'subsidy' is deducted from the quote but not actually applied
