Solar Loan EMI by Bank — SBI, PNB, BOB (3 kW Example)
Example: a 3 kW system costing ₹1,60,000 with 10% down payment, so a loan of ₹1,44,000. EMI ranges use each bank's rate range shown above. The ₹78,000 PM Surya Ghar subsidy comes to your bank account after installation; using it to prepay the loan cuts the EMI or tenure sharply.
| Bank | Interest rate | Tenure | Monthly EMI (₹1,44,000 loan) |
|---|
| SBI | 7% – 8.5% | 10 years | ₹1,672 – ₹1,785 |
| Bank of Baroda (BOB) | 7.5% – 9% | 10 years | ₹1,709 – ₹1,824 |
| Punjab National Bank (PNB) | 7.5% – 9.5% | 10 years | ₹1,709 – ₹1,863 |
| Canara Bank | 8% – 10% | 7 years | ₹2,244 – ₹2,391 |
At 7% the same loan is about ₹2,851/month over 5 years or ₹1,672/month over 10 years. A 3 kW system typically saves ₹2,000–₹3,000 a month on the bill, so a 10-year loan is usually covered by the savings. Rates are indicative; confirm with the bank before applying. For the full system cost, use the free solar calculator.
Frequently Asked Questions — Solar Financing in India
What is the PNB solar loan EMI for a 3 kW system?
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For a 3 kW system with a ₹1,44,000 loan, PNB's 7.5%–9.5% rate over 10 years gives an EMI of about ₹1,709–₹1,863 per month. Prepaying with the ₹78,000 PM Surya Ghar subsidy reduces it further.
What is the SBI solar loan EMI?
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At SBI's 7%–8.5% solar loan rate, a ₹1,44,000 loan over 10 years costs about ₹1,672–₹1,785 per month.
What is the Bank of Baroda (BOB) solar loan EMI?
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At Bank of Baroda's 7.5%–9% rate, a ₹1,44,000 loan over 10 years costs about ₹1,709–₹1,824 per month.
What is the interest rate for solar loans in India in 2026?
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Government banks like SBI offer solar loans at 7–8.5% per annum under the PM Surya Ghar scheme. Bank of Baroda and PNB offer rates between 7.5–9.5%. Private banks like HDFC charge 10–12% for unsecured loans. Overall, solar loan rates in India range from 7% to 12% depending on the lender and your credit profile.
How much PM Surya Ghar subsidy can I claim on a solar loan?
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Under PM Surya Ghar Muft Bijli Yojana, you get ₹30,000 for 1 kW, ₹60,000 for 2 kW, and ₹78,000 for 3 kW and above systems. This subsidy is credited directly to your bank account after installation and effectively reduces your loan principal.
Can my electricity savings cover the solar EMI?
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Yes, in most cases. A 3 kW system generates roughly 360 units/month and saves approximately ₹2,500–₹3,500/month depending on your tariff rate. If you opt for a 10–15 year loan at 7%, your EMI can be ₹1,500–₹2,500 — meaning electricity savings can fully cover the EMI, making solar effectively cash-flow positive from day one.
What documents are required for a solar loan in India?
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Typically: KYC (Aadhaar, PAN), income proof (salary slips or ITR for 2 years), bank statements for 6 months, property ownership proof, electricity bill, and a quotation from an empanelled solar installer. Government bank loans under PM Surya Ghar also require DISCOM approval and empanelled vendor quotation.
What is the maximum loan tenure for solar panels in India?
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SBI offers solar loans for up to 15 years. Bank of Baroda and PNB offer up to 10 years. Canara Bank and HDFC offer up to 7 years. A longer tenure reduces your monthly EMI but increases total interest paid. Most borrowers choose 7–10 year tenures for the best balance of monthly cash flow and total cost.
How to Finance a Solar System in India: A Complete Guide
Installing a rooftop solar system is one of the best financial decisions an Indian household can make in 2026 — but the upfront cost of ₹80,000 to ₹3,00,000 can be a barrier. Solar financing through a dedicated solar loan bridges this gap, letting you pay in manageable EMIs while saving on electricity from day one.
Understanding Solar Loan EMI
A solar loan EMI is calculated using the standard reducing-balance (flat-rate) formula:
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
Where: P = Loan Amount, r = Monthly Interest Rate (Annual Rate ÷ 12), n = Total Months
Because the outstanding balance reduces each month as you repay principal, the interest component of each EMI shrinks over time — this is the reducing-balance method used by all Indian banks.
PM Surya Ghar Subsidy and Your Solar Loan
The PM Surya Ghar Muft Bijli Yojana (launched 2024, active through 2026) offers central government subsidies up to ₹78,000 for residential rooftop solar installations up to 3 kW. This subsidy:
- Directly reduces the effective cost of your system
- Can be deducted from the loan principal, reducing your EMI
- Is credited to your bank account after installation — some banks offer bridge financing
Comparing Solar Loan Options
The choice of lender significantly impacts your total interest outgo. For a ₹1,00,000 loan over 7 years:
- At 7% (SBI): EMI ≈ ₹1,511, Total Interest ≈ ₹26,892
- At 9% (BOB/PNB): EMI ≈ ₹1,603, Total Interest ≈ ₹34,652
- At 11% (HDFC): EMI ≈ ₹1,699, Total Interest ≈ ₹42,716
The difference between the cheapest and most expensive loan for the same amount is over ₹15,000 in extra interest. Always opt for government bank solar loan schemes when possible.
When Does Solar Become Cash-Flow Positive?
The most compelling aspect of solar financing is that in most Indian states with tariffs above ₹6/unit, the electricity savings from a correctly-sized system exceed the monthly EMI. This means you are effectively getting a new electricity infrastructure that costs you nothing — or even pays you back — on a monthly basis.
Our calculator shows this EMI vs Savings comparison automatically. A 3 kW system saves approximately ₹2,520/month (3 kW × 4 units/day × 30 days × ₹7/unit). If your EMI is ₹2,000, your net monthly gain is ₹520 — the solar system generates positive cash flow from the very first month.
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