How does the 'Zero Out-of-Pocket' solar loan model work?

If your home power bill is currently ₹4,500/month, installing a 3 kW solar plant eliminates that bill. By taking a 5-year loan at 7% interest, your monthly EMI will be approximately ₹2,350. You save ₹4,500, pay ₹2,350 as loan EMI, and pocket an extra ₹2,150 every single month from Day 1!

How is the PM Surya Ghar subsidy adjusted against the loan amount?

Banks can either fund the net cost (Project Cost minus ₹78,000 Subsidy) OR disburse the full project cost, allowing you to prepay the ₹78,000 subsidy into the loan account without any foreclosure charges once MNRE credits it to your bank.

7% Concessional Clean Energy Financing

Solar Loan & EMI Comparison (2026)

Under the PM Surya Ghar partnership, leading PSU banks (SBI, PNB, Canara) offer special solar financing at just 7.00% to 7.50% p.a. with zero collateral up to ₹2 Lakhs.

PM Surya Ghar Solar EMI Calculator

Calculate monthly installments under 7% concessional PSU bank rates

Zero Collateral up to ₹2 Lakhs

Solar Loan Amount (Net Investment)₹1,20,000

₹30,000₹1.5 Lakh₹3 Lakh₹5 Lakh

Annual Interest Rate (% p.a.)7%

Loan Tenure5 Years (60 Months)

1 Year3 Years5 Years7 Years10 Years

Your Current Monthly Electricity Bill₹3,500

Estimated Monthly Payment

₹2,376/ month

Immediate Cash-Flow Positive

Your monthly electric bill savings (~₹3,500) exceed your loan EMI (₹2,376).

Net Monthly Surplus:+₹1,124 / mo

Principal Loan:₹1,20,000

Total Interest:₹22,569

Total Repayment:₹1,42,569

Compare Top Solar Financing Schemes in India (2026)

Official PSU bank tie-ups under Ministry of New & Renewable Energy (MNRE)

State Bank of India (SBI)Most Popular

SBI Surya Ghar Special Solar Loan

Interest Rate7% - 7.5%

Max Tenure10 Years

Max Loan₹6,00,000

Concessional 7% p.a. interest rate for systems up to 3 kW
No collateral or third-party guarantee required
Repayment tenure up to 120 months (10 years) keeps EMI below current power bill
Direct integration with PM Surya Ghar National Portal

Zero Processing Fee (Special MNRE tie-up)

Punjab National Bank (PNB)Fast Sanction

PNB Solar Rooftop Scheme

Interest Rate7.15% - 7.65%

Max Tenure7 Years

Max Loan₹5,00,000

Digital sanction within 48 hours for salaried & self-employed
Loan covering up to 90% of total project cost (after subsidy calculation)
Zero foreclosure or pre-payment penalty

Nil for PM Surya Ghar verified applicants

Canara Bank

Canara Solar Green Initiative

Interest Rate7.1% - 7.75%

Max Tenure7 Years

Max Loan₹6,00,000

Affordable EMIs tailored for Tier-2 and Tier-3 cities
Flexible moratorium period during installation and net-meter setup
Available across 9,500+ branches pan India

0.25% or Nil for central portal applicants

Aerem / Ecofy Green NBFC100% Digital

Instant Solar Financing by Green Fintechs

Interest Rate8.99% - 10.5%

Max Tenure5 Years

Max Loan₹15,00,000

Instant paperless in-principle approval in 10 minutes
Finances high-capacity residential (up to 15 kW) and small C&I setups
Disbursement linked to verified installer milestones

1% + GST

The Financial Math

Why Rooftop Solar Loans Put Cash in Your Pocket from Month 1

Status Quo (No Solar)

You pay ₹4,500 every month to the power company. Over 5 years, you throw away ₹2,70,000 with 0% return on investment.

With 7% Solar Loan

Your electric bill drops to near ₹0. You pay ~₹2,350 EMI to the bank. You save ₹2,150 surplus cash every single month.

After 5 Years (Loan Paid)

Loan is completely settled. You now enjoy 100% FREE electricity for the next 20+ years of panel life!

Solar Financing & Loan FAQs

No collateral is required for residential solar loans up to ₹2,00,000 under the PM Surya Ghar government initiative. The solar equipment itself serves as the hypothecated asset. For higher capacities (up to ₹6 Lakhs), public sector banks offer clean unsecured loans backed by Credit Guarantee schemes.