Solar Loans & EMI: Go Solar With Little Upfront
PM Surya Ghar concessional loans, bank and NBFC options, real EMI examples, and how the subsidy pays down your loan.
Rainbow Solar Energy Team
6 min read
Updated
In this article
Key takeaways
- Under PM Surya Ghar, public-sector banks offer collateral-free, concessional loans for home systems up to 3 kW.
- Banks and NBFCs also finance larger systems at standard loan rates.
- Using the ₹78,000 + ₹22,000 subsidy to prepay your loan can cut the EMI sharply.
- For many homes, the EMI is lower than the monthly bill savings.
The biggest barrier to solar is usually the upfront cost, not the return. Solar loans fix that: you pay in instalments while the system cuts your bill from the first month.
Your loan options
| Option | Typical interest | Collateral | Best for |
|---|---|---|---|
| PM Surya Ghar loan (public-sector banks) | Concessional, around 7% (repo-linked) | None for up to 3 kW | Home systems up to 3 kW |
| Bank solar / home improvement loan | About 9 – 11% | Usually none for small amounts | Systems above 3 kW |
| NBFC / partner finance | About 11 – 15% | None | Fast approval, flexible documents |
| Top-up on home loan | Your home-loan rate | Existing property | Existing home-loan customers |
Indicative. Rates and limits depend on the lender, your credit profile and the current repo rate.
EMI examples
Take a 3 kW system costing ₹1.8 lakh, financed at 7%. Once the ₹78,000 + ₹22,000 subsidy arrives, use it to prepay, leaving about ₹0.80 lakh:
| Loan amount | Tenure | Approx. EMI | Typical monthly savings (3 kW) |
|---|---|---|---|
| ₹1.80 lakh (before subsidy) | 5 years | ~₹3,560 | ₹2,300 – ₹3,000 |
| ₹0.80 lakh (after prepaying subsidy) | 5 years | ~₹1,585 | ₹2,300 – ₹3,000 |
| ₹0.80 lakh (after prepaying subsidy) | 10 years | ~₹930 | ₹2,300 – ₹3,000 |
At 7% a year. Savings depend on your tariff slab and usage.
With a 10-year tenure, the EMI can be well under half your monthly savings, so you're better off from the very first bill.
Documents usually needed
- Aadhaar and PAN card
- Latest electricity bill in your name
- Proof of property ownership
- Bank statements (6 months) and income proof (salary slips or ITR)
- The solar quotation from a registered vendor
How to apply
- Get a quoteYour vendor gives a quotation with system details, which the bank needs.
- ApplyFor PM Surya Ghar loans, apply through the national portal or the bank; for others, apply directly or through us.
- Approval and disbursalThe bank pays the vendor, usually in stages.
- Prepay with the subsidyWhen the subsidy reaches your account, use it to reduce the loan.
Check your EMI options
We'll show the EMI next to your monthly savings and help with the loan paperwork.
See how subsidy and price work together in the PM Surya Ghar guide and the Tamil Nadu price guide.
Written by our solar engineers and subsidy specialists, who design and install rooftop systems for homes, societies and businesses across Tamil Nadu. Figures are indicative and reviewed regularly; your free site survey gives exact numbers for your roof.
