Solar Loan for Homes Under PM Surya Ghar (2026)

Solar loan under PM Surya Ghar: the numbers in one answer

Homeowners installing rooftop solar up to 3 kW can finance it with a collateral-free bank loan at repo rate + 50 basis points — 5.75% per annum as of the government's March 2026 update — over a tenure of up to 10 years, applied through the Jan Samarth portal. The subsidy itself (₹78,000 maximum at 3 kW) is credited to your loan account first, cutting the amount you actually repay.

TL;DR

• Rate: repo + 50 bps = 5.75% p.a. (PIB, March 2026); the rate floats with the repo.
• Tenure: up to 10 years; collateral-free for systems up to 3 kW.
• Apply via the Jan Samarth portal using your PM Surya Ghar application ID; SBI's flow remits 70% to the vendor after documentation and the rest on commissioning.
• The CFA lands in your loan account first — any excess comes to you.
• In Delhi, the zero-upfront ULA route may make a loan unnecessary for homes using up to 400 units/month.

Who this loan is actually for

Financing matters most in two situations. First, homes outside Delhi — in Noida, Ghaziabad, Faridabad or Gurugram — where the central CFA is the main subsidy and the household funds the balance of a ₹1.5–1.8 lakh system. Second, homes buying beyond 3 kW, where the subsidised capacity is fully covered but extra capacity (which attracts no CFA) still costs money. Delhi households using up to 400 units/month should first check the zero-upfront Delhi route: if the government is installing your 3 kW free, a loan is redundant. Delhi homes above 400 units/month pay only a capped contribution of about ₹5,000/kW under the ULA model — again, usually small enough to skip a loan. The Delhi NCR home solar guide compares all four routes.

The loan in numbers

MNRE's scheme design envisages standardised low-interest loan products at benchmark rates — repo + 50 bps — for residential systems up to 3 kW, with the March 2026 PIB release putting the rate at 5.75% per annum and the tenure at 10 years. Banks list their loan products on the national portal itself, and non-subsidised segments (systems above 3 kW) get similar standardised products.

Illustrative EMIs (simple amortisation at 5.75% p.a., 10 years — your bank's actual schedule governs):

Set against the bill savings — Delhi government illustrations put a 3 kW system's average additional monthly benefit at roughly ₹1,659–₹2,143 — a loan-financed system is designed to be cash-flow positive from an early stage, with the subsidy further shrinking the repayment leg. Treat every figure as planning arithmetic, not a quote.

How to apply, step by step

The nationalised-bank flow (SBI's published SOP is representative) runs in parallel with your solar application:

1. Register on the national portal (pmsuryaghar.gov.in) and complete your application — this generates your application ID. Our PM Surya Ghar apply-online guide walks through every field.
2. Log in at jansamarth.in with your registered mobile number or email, choose the bank's solar loan, and submit your PM Surya Ghar application ID, discom ID and mobile number.
3. Fill basic, financial, vendor and bank details. A digital in-principle approval letter is generated for the customer.
4. Sanction and first disbursal. Once sanctioned, 70% of the amount is remitted to the vendor after documentation; the balance follows installation milestones.
5. Install, commission, claim. The vendor installs; the discom fits the net meter and generates the commissioning certificate on the national portal; you submit bank details and a cancelled cheque.
6. Subsidy to loan account. The CFA, released through the e-token within 15 days of discom approval, is credited to your loan account. If it exceeds the outstanding loan, the surplus goes to your bank account.

How the subsidy interacts with the loan

This is the part borrowers most often miss. Under MNRE's guidelines, when you finance the system, the CFA is transferred to your loan account — up to the outstanding amount — rather than to your savings account. Only the excess, if any, reaches you. Two practical consequences: the loan effectively amortises only the post-subsidy cost, and you should not double-count the subsidy when budgeting the EMI. If you later prepay, the loan account is simply smaller than the system price suggested.

Frequently Asked Questions

What is the interest rate on a PM Surya Ghar solar loan?

Repo rate + 50 basis points — 5.75% p.a. at the government's March 2026 update — for collateral-free loans on residential systems up to 3 kW, with a 10-year tenure. Because it floats with the repo, confirm the prevailing rate on the Jan Samarth portal or with your bank when you apply.

Do I need collateral or a guarantor?

No. The scheme's design is collateral-free loans for residential systems up to 3 kW, distributed through nationalised banks and the Jan Samarth portal. Banks still run their own credit assessment of your income and repayment capacity.

Can I finance a system larger than 3 kW?

The standardised concessional products target the subsidised segment up to 3 kW, but the guidelines also envisage standardised products for non-subsidised segments — including residential systems above 3 kW. Terms for those are set by individual banks, so compare offers on the national portal.

Where does the subsidy go if I take a loan?

To your loan account, up to the outstanding amount — not to your savings account. Any CFA exceeding the outstanding loan is disbursed to your bank account. This is set out in MNRE's scheme guidelines and applies to all financed installations.

Is the loan available for the Delhi free-solar (ULA) route?

It's usually moot: homes averaging up to 400 units/month get the system at zero upfront cost, and homes above 400 units contribute a capped ₹5,000/kW under the same model. The loan route is for self-financed CAPEX installations through the national portal — Delhi homes outside those thresholds and homes in other NCR states.

Can I prepay the solar loan early?

Loan-specific terms apply, but nothing in the scheme prevents prepayment; the subsidy credited to your loan account simply reduces the principal the repayments are measured against. Check your sanction letter for any prepayment conditions.

---

Sun Wave Technologies publishes independent, source-checked guides on rooftop solar economics for Delhi-NCR homes and businesses. For help planning a project end to end — sizing, subsidy paperwork and installation — contact Sun Wave.