Solar Loan in India 2026 — Interest Rates, EMI and How to Apply in Delhi

A solar loan lets you install rooftop solar with a small down payment and repay it from the electricity bill you no longer pay. Under the PM Surya Ghar Muft Bijli Yojana, banks offer collateral-free loans of up to ₹2 lakh at around 7% for home systems up to 3kW. For Delhi households, the subsidy and GBI can cover a large part of the repayment.

This guide explains how a solar loan works in 2026, the interest rates to expect, a worked EMI example for a Delhi home, and the exact steps to apply. Rates and terms change often, so treat the figures here as a guide and confirm them with your bank.

How a Solar Loan Works Under PM Surya Ghar

The central government scheme encourages banks to offer a special solar loan for residential rooftop systems. The loan is collateral-free, which means you do not have to pledge property. You pay a margin (your own contribution), the bank funds the rest, and the subsidy is credited to your account after commissioning.

In practice, the timeline looks like this:

1. You register on the national portal and get feasibility approval.
2. You choose a registered installer and get a quotation.
3. The bank sanctions a loan against the quotation.
4. The installer completes the system and the DISCOM commissions the net meter.
5. The central subsidy of up to ₹78,000 is credited by Direct Benefit Transfer (DBT) to your bank account.

Solar Loan Interest Rates and Limits in 2026

Public sector banks and some private lenders offer these loans. The scheme-linked terms generally look like this.

Feature	Systems up to 3kW	Systems above 3kW up to 10kW
Maximum loan	Up to ₹2 lakh	Up to ₹6 lakh
Typical interest rate	Around 7% per year	Around 8.4% to 10.8% per year, varies by bank
Margin money	About 10%	About 20%
Collateral	Not required	Generally not required
Tenure	Up to 10 years	Up to 10 years

Home-loan customers of some banks get slightly different rates. Rates, margins and eligibility are set by each bank and can change, so compare two or three lenders before deciding.

Solar Loan EMI Example for a 3kW Home in Delhi

Let us take a 3kW system that costs ₹2,00,000 before subsidy. In Delhi, the total subsidy at this size is ₹1,08,000 (₹78,000 central plus ₹30,000 state). See our solar subsidy in Delhi guide for how this works.

• System cost: ₹2,00,000
• Margin (about 10%): ₹20,000 paid upfront
• Loan amount: ₹1,80,000 at about 7% for 7 years
• Approximate EMI: about ₹2,700 a month

Now compare that with what the system gives back. A 3kW system in Delhi generates roughly 4,300 units a year. At an average saving of ₹7 per unit, that is about ₹30,000 a year in bill savings. The Generation Based Incentive adds about ₹12,900 a year for five years. Together that is about ₹3,500 a month, which is already more than the EMI.

When the subsidy arrives, many borrowers use it to make a part-prepayment. This cuts the outstanding loan, shortens the tenure, and reduces the total interest. Ask your bank whether there is a prepayment charge.

Who Can Get a Solar Loan?

• The applicant should own the house and hold the electricity connection in their name.
• A satisfactory credit history is normally required, though the scheme loans below ₹2 lakh are designed to have simple documentation.
• The system must be installed by an installer registered on the PM Surya Ghar portal, using ALMM-listed panels.
• The sanctioned load should support the system size.

Tenants cannot usually claim the subsidy or the loan, because the connection and the roof belong to the owner.

Documents Usually Needed for a Solar Loan

• Aadhaar and PAN of the applicant.
• Latest electricity bill showing the consumer number and sanctioned load.
• Proof of property ownership.
• Bank statements for a recent period, or income proof as asked by the bank.
• Installer quotation and the feasibility approval.
• Passport-size photographs and a cancelled cheque.

How to Apply for a Solar Loan in Delhi: Step by Step

1. Register on the PM Surya Ghar portal using your DISCOM and consumer number.
2. Apply for feasibility approval. Do not buy equipment before you receive it.
3. Select a registered installer and get a component-wise quote.
4. Apply for the loan on the portal or at your bank branch with the quote and documents.
5. After sanction, the installer completes the work and the DISCOM installs the net meter.
6. Submit the commissioning certificate and bank details. The subsidy is released by DBT.

Is a Solar Loan Worth It in Delhi?

For most Delhi households, yes, provided the system is sized correctly. Delhi has high tariffs, a state subsidy and a five-year GBI. Your monthly benefit can match or exceed the EMI from day one, so you effectively get solar without spending savings.

However, a loan is not always the best choice. If you have spare savings and your bill is small, paying upfront avoids interest altogether. If your consumption is low, a smaller system with a smaller loan is wiser. Our solar ROI calculator guide helps you check the numbers, and our sizing guide for a 3BHK home shows how to avoid over-buying.

Mistakes to Avoid With a Solar Loan

• Taking the loan before the feasibility approval is in place.
• Borrowing for a bigger system than your consumption needs.
• Ignoring the margin, processing fee and prepayment charges.
• Name mismatch between the bank account, Aadhaar and electricity connection, which delays the subsidy.
• Choosing an installer who is not registered on the national portal.

Conclusion

A solar loan under PM Surya Ghar makes rooftop solar affordable for most Delhi homes, with loans of up to ₹2 lakh at around 7% for systems up to 3kW and larger loans for bigger systems. When you combine the subsidy, the GBI and your bill savings, the monthly benefit can exceed the EMI. Compare lenders, check the fees, and size the system to your actual consumption.

Get a Free Quote from Solar Squad

Solar Squad helps Delhi customers choose the right system size, prepare the quote that banks need, and complete the subsidy and net-metering process. Contact us for a free assessment and a written quotation you can take to your bank.

Official Sources and Further Reading

• PM Surya Ghar Muft Bijli Yojana — national portal
• Delhi Solar Portal — state subsidy and GBI

FAQs

What is the interest rate on a solar loan in India?

Under the PM Surya Ghar scheme, loans for systems up to 3kW are offered at around 7% per year. For systems above 3kW up to 10kW, rates are higher and vary by bank, commonly in the range of about 8.4% to 10.8%. Always confirm the latest rate with your bank.

Do I need collateral for a solar loan?

The scheme-linked home solar loans are designed to be collateral-free for systems up to 3kW. Terms for larger systems vary by lender.

How much down payment is needed for a solar loan?

Margin money is typically about 10% for systems up to 3kW and about 20% for systems above 3kW, depending on the bank.

Can I use the subsidy to repay the solar loan?

Yes. The central subsidy is credited by DBT after commissioning. Many borrowers use it as a part-prepayment to cut interest and shorten the tenure.

Can I get a solar loan for a commercial or industrial system?

Commercial systems do not qualify for the residential PM Surya Ghar subsidy or its scheme loans. Businesses usually use term loans or lease structures. Read our guide to solar panel installation and speak to your bank about business financing.