Your solar loan
Solar loan rates in 2026
Home solar loans under PM Surya Ghar are linked to the RBI repo rate. With the repo rate at 5.25% since the August 2026 policy, public sector banks charge 5.75% a year on loans up to ₹2 lakh. Loans from ₹2 lakh to ₹6 lakh, for systems up to 10 kW, cost about 7.9% at SBI and more at some banks.
| Up to ₹2 lakh | ₹2 lakh to ₹6 lakh | |
|---|---|---|
| Interest (SBI, floating) | 5.75% a year | 7.90% a year |
| Your share of the cost | At least 10% | At least 10% |
| Income proof | Not required | At least ₹3 lakh a year |
| Longest term | 10 years, including 6 months with no EMI | 10 years, including 6 months with no EMI |
| Processing fee | Nil | Nil |
EMI for common system sizes
With 10% down, a 10-year term and a typical 2026 price:
| System | Typical price | Loan | Rate | EMI | EMI if the subsidy repays part of the loan |
|---|---|---|---|---|---|
| 1 kW | ₹1.25 lakh | ₹1.12 lakh | 5.75% | ₹1,235 | ₹906 |
| 2 kW | ₹1.85 lakh | ₹1.67 lakh | 5.75% | ₹1,828 | ₹1,169 |
| 3 kW | ₹2.35 lakh | ₹2.12 lakh | 7.9% | ₹2,555 | ₹1,613 |
| 5 kW | ₹3.5 lakh | ₹3.15 lakh | 7.9% | ₹3,805 | ₹2,863 |
Keep a 3 kW loan under ₹2 lakh
A typical 3 kW system needs a loan of about ₹2.12 lakh at 10% down, which falls into the 7.9% slab. Put about ₹11,500 more down so the loan stays at ₹2 lakh and the rate drops to 5.75%. The EMI falls from ₹2,555 to ₹2,195, and you pay about ₹31,644 less over ten years. The calculator flags this when it applies.
Use the subsidy to cut the loan
The PM Surya Ghar subsidy reaches your bank account after the DISCOM inspects the system and installs the net meter. Most banks let you pay it into the solar loan without a penalty. On a 3 kW system that is ₹78,000, which takes the EMI down by roughly a third for the rest of the term.
Loan or cash?
If the monthly bill saving is larger than the EMI, a loan costs you nothing out of pocket from the first month and your savings stay free for other uses. That is usually true for homes paying ₹7 or more a unit who use most of the solar power themselves. If your rate is low or your roof is small, the saving may cover only part of the EMI; the calculator shows the gap when you add your bill.
How to apply
- Register on pmsuryaghar.gov.in and get your DISCOM’s feasibility approval.
- Choose a registered vendor and get the quote in writing.
- Apply for the loan through the JanSamarth portal (linked from the PM Surya Ghar site) or at your bank branch, with the quote and your electricity bill.
- The bank pays the vendor directly once the loan is approved. The subsidy comes to your account after commissioning.
Frequently asked questions
What is the interest rate on a solar loan under PM Surya Ghar?
5.75% a year on loans up to ₹2 lakh at public sector banks, as of September 2026. Larger loans up to ₹6 lakh cost about 7.9% at SBI. Rates are floating and move with the RBI repo rate.
What is the EMI on a ₹2 lakh solar loan?
At 5.75% over 10 years, about ₹2,195 a month. If you repay ₹78,000 of it with the subsidy, the EMI drops to about ₹1,340.
Do I need collateral for a solar loan?
No property is needed. The bank takes a charge on the solar system itself. Loans up to ₹2 lakh also need no income proof.
Can I get a loan for a system above 3 kW?
Yes, up to 10 kW and ₹6 lakh at SBI, at about 7.9%. The subsidy stays at ₹78,000 whatever the size.
Is there a penalty for paying the loan early?
SBI charges no prepayment penalty on Surya Ghar loans, so you can clear it early with the subsidy or a bonus.
The formulas are on how we calculate. To see size and payback from your bill, use the solar calculator.