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☀️ PM Surya Ghar Yojana 2026: Up to ₹78,000 Central Subsidy is Now Available!

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Solar Loan EMI Calculator

Estimate monthly installments, interest rates, and loan amortization breakdowns.

🏦 Loan Parameters

E.g., System cost minus upfront subsidy.
Special solar bank rates range from 7% - 9%.
🏦 Note: Bank criteria usually fund up to 80-90% of the rooftop project cost.
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Compute Loan EMI Breakdown

Fill out the principal and interest details on the left to reveal monthly installment amounts, total interest loads, and annual amortization tables.

Solar Financing Guide: Interest Rates, Solar Loans & Payback Calculations

Solar finance loan EMI repayment amortization schedule table

Installing a rooftop solar panel system is a highly lucrative investment, but the upfront cost can be high. Fortunately, major public and private banks in India now offer cheap solar loans under the PM Surya Ghar national framework, with low interest rates and extended repayment tenures.

1. Understanding the Solar EMI Sizer

Solar loans are amortized using the standard reducing balance EMI (Equated Monthly Installment) formula. Calculating the monthly installment helps match your loan payment against your actual monthly electricity bill savings, making the installation cash-flow positive from day one:

EMI = [P × R × (1+R)^N] ÷ [(1+R)^N - 1]
P = Principal Loan Amount, R = Monthly Interest Rate, N = Tenure in Months

2. PM Surya Ghar Solar Loan Schemes

To encourage residential rooftop solar installations, the Ministry of New and Renewable Energy (MNRE) has partnered with leading banks (SBI, PNB, Bank of Baroda, Union Bank) to offer collateral-free solar loans:

3. Credit Evaluation & Approval Guidelines

To qualify for a solar loan, banks will evaluate your CIBIL score (usually 700+ is required), debt-to-income ratio, and verify that the property title deed is clean. Empanelled solar installers will assist in preparing the project report, layout drawing, and net-metering feasibility certificate required by the bank.

Frequently Asked Questions

Can I get a loan on the pre-subsidy or post-subsidy cost?
Banks usually finance the entire gross cost of the project (pre-subsidy). Once the installation is complete and the government subsidy is credited directly to your bank account, you can use that lump sum to partially prepay the loan, which reduces the tenure or monthly EMI.
What are the documents required for a residential solar loan?
Key documents include KYC details, address proof, electricity bill of the property, copy of the feasibility approval from the DISCOM, cost quotation from the empanelled installer, and bank salary slips/income statements.
Is there a prepayment penalty on solar loans?
Under public sector bank solar loan schemes, there are typically no prepayment charges, meaning you can pay off the loan early whenever you have excess funds.
Can commercial businesses apply for solar loans?
Yes. While commercial solar loans require collateral and have slightly higher interest rates (9% to 11%), businesses can write off 40% of system costs under Accelerated Depreciation, saving massive corporate income tax.