SolarCalculatorsHome Loan Top-Up vs Solar Loan for Rooftop Solar (2026)
The Two Options
| Rooftop solar loan | Home loan top-up | |
|---|---|---|
| Who offers | Public sector and some private banks | Your existing home loan lender |
| Typical tenure | Up to 5–10 years | Up to remaining home loan tenure |
| Collateral | Usually none for small home systems | Your house (already mortgaged) |
| Paperwork | Installer quote, portal application | Top-up request, property papers already with bank |
| Interest | Check current bank rate | Usually close to your home loan rate |
Interest rates change often; the figures below are worked examples, not quotes.
EMI Example for a 3kW System
A 3kW system costs about ₹1.6–2.1 lakh. Many buyers borrow around ₹1.4–1.6 lakh. For a ₹1,50,000 loan:
| Option | Rate | Tenure | Approx. EMI | Total interest |
|---|---|---|---|---|
| Solar loan | 7% | 5 years | ₹2,970 | ₹28,200 |
| Solar loan | 9% | 5 years | ₹3,114 | ₹36,800 |
| Home loan top-up | 8.5% | 15 years | ₹1,477 | ₹1,15,900 |
The top-up has a lower EMI because it is spread over many more years, but you pay far more interest in total. With a 3kW system saving about ₹2,000–3,000 a month, a 5-year solar loan EMI is close to the monthly saving, so the system largely pays for itself during the loan.
Where the Subsidy Fits
The PM Surya Ghar subsidy (up to ₹78,000 for 3 kW) is credited to your bank account after installation and inspection, usually weeks after you have paid the installer. Ask your bank whether you can prepay the loan with the subsidy amount without a penalty; that cuts the interest a lot.
Which Should You Choose?
- Solar loan if you have no home loan, or want the solar cost kept separate and paid off quickly.
- Top-up if your home loan rate is low, you need the smallest EMI, and you are comfortable paying more interest overall.
- Cash plus subsidy is cheapest of all if you can afford it.
Use our solar loan EMI calculator to compare your exact rate and tenure.
PM Surya Ghar Loan: What to Ask Your Bank
- Current interest rate for rooftop solar up to 3 kW and above 3 kW.
- Maximum tenure and whether collateral or a guarantor is needed.
- Margin money (your own contribution, often 10–20%).
- Processing fee and prepayment charges.
- Whether the loan is linked to the PM Surya Ghar portal application.
Solar Loan EMI by System Size
| System | Approx. loan | EMI at 7%, 5 yrs | Monthly saving |
|---|---|---|---|
| 2 kW | ₹1,00,000 | ₹1,980 | ₹1,300–2,000 |
| 3 kW | ₹1,50,000 | ₹2,970 | ₹2,000–3,000 |
| 5 kW | ₹2,25,000 | ₹4,455 | ₹3,300–5,000 |
Savings depend on your tariff (₹6–8 per unit assumed). Compare bank options on our solar loan EMI calculator and solar on EMI pages, and see the full cost on the 3kW and 5kW solar panel price pages.
Tax Point for Home Loan Top-Up
Interest on a top-up used for repairs or improvement of a self-occupied house may count under the Section 24(b) limit, together with your home loan interest. Rules depend on how the bank records the purpose, so check with your tax adviser before assuming a deduction.
Before you talk to installers, run your numbers on our free solar calculator to see the system size, cost after subsidy and payback for your bill.
Frequently Asked Questions
Is a home loan top-up cheaper than a solar loan?
Its EMI is lower because the tenure is longer, but the total interest is usually much higher. A short solar loan normally costs less overall.
Do I need collateral for a rooftop solar loan?
Most banks offer small home solar loans without collateral, but terms vary by bank. Confirm with your lender.
Can I prepay my solar loan with the subsidy?
Many banks allow it. Ask about prepayment charges before you sign, because using the subsidy to prepay reduces your interest.
What is the EMI for a 3kW solar system?
For a ₹1.5 lakh loan, about ₹3,000 a month over 5 years at 7–9%, close to the ₹2,000–3,000 monthly saving.