PM Surya Ghar Solar Loan: Households Can Borrow Up to ₹6 Lakh for Rooftop Panels

Installing rooftop solar can reduce a household’s dependence on grid electricity, but the initial cost often discourages families from making the switch. The PM Surya Ghar: Muft Bijli Yojana aims to address this problem by combining government subsidies with access to bank financing for residential solar projects.

Eligible homeowners may receive a central subsidy of up to ₹78,000, while selected banks offer rooftop solar loans of as much as ₹6 lakh for larger systems. The actual loan amount, interest rate and approval conditions depend on the bank, the capacity of the proposed installation and the borrower’s financial profile.

What is a green loan for rooftop solar?

A green loan is financing intended for projects that support clean energy, energy efficiency or environmental sustainability. Under PM Surya Ghar, participating lenders provide loans specifically for installing grid-connected rooftop solar systems at residential properties.

This arrangement allows a household to finance most of the installation cost instead of paying the entire amount upfront. The borrower repays the loan through monthly instalments, while the solar plant can help lower future electricity purchases from the distribution company.

These loans are not identical across banks. Each lender may set its own limits for interest rates, repayment periods, borrower age, income documentation, credit score and customer contribution.

Can applicants really get a ₹6 lakh solar loan?

Yes, some banks offer loans of up to ₹6 lakh for residential rooftop installations with a capacity of up to 10 kilowatts. For example, SBI’s solar rooftop loan permits financing of up to ₹6 lakh and covers systems as large as 10 kW.

SBI states that loans above ₹2 lakh and up to ₹6 lakh require a minimum annual net income of ₹3 lakh. A CIBIL score of at least 650 is also prescribed for this loan category. Loans of up to ₹2 lakh do not have a specified minimum credit score, although applicants with defaults or written-off accounts may be ineligible. The bank also requires registration on the PM Surya Ghar portal and the JanSamarth platform. SBI’s official loan information

Bank of Baroda similarly lists a maximum loan of ₹6 lakh for residential rooftop systems of up to 10 kW. Its conditions include a customer contribution, or margin, of 10% for loans up to ₹2 lakh and 20% for larger loans up to ₹6 lakh. Bank of Baroda’s solar-loan terms

Therefore, ₹6 lakh should be understood as a maximum offered by certain lenders—not a guaranteed amount for every applicant.

How much subsidy is available?

The central financial assistance under PM Surya Ghar is linked to the capacity of the rooftop solar system:

• A 1 kW system can qualify for ₹30,000.

• A 2 kW system can qualify for ₹60,000.

• A system of 3 kW or more can qualify for a maximum of ₹78,000.

Subsidy support is calculated at ₹30,000 per kW for the first 2 kW and ₹18,000 for the additional capacity up to 3 kW. No additional central subsidy is normally provided for capacity beyond 3 kW, meaning a 5 kW or 10 kW installation does not automatically receive more than ₹78,000. Government subsidy details

Where the installation is financed through a bank, the subsidy may be credited to the loan account in accordance with the lender’s conditions. Borrowers should confirm this arrangement before signing the loan agreement.

What interest rate will borrowers pay?

There is no single interest rate applicable to every PM Surya Ghar loan. Rates differ by lender, loan size and borrower profile, and many are floating rates that can change over time.

Bank of Baroda, for example, currently lists a rate of 5.75% a year for loans of up to ₹2 lakh. For loans above ₹2 lakh and up to ₹6 lakh, its listed starting rate is 7.90% and is linked to the applicant’s credit profile. SBI also lists 7.90% annually for loans above ₹2 lakh and up to ₹6 lakh.

Applicants must check the latest rate, EMI, processing charges, margin requirement and repayment term directly with the bank before borrowing.

Who may apply for the scheme?

The government’s stated eligibility conditions require the applicant to be an Indian citizen, own a residential property with a suitable roof, have a valid electricity connection and not have already received another solar-panel subsidy for the same household. Official PM Surya Ghar overview

Loan approval involves an additional assessment by the lender. Depending on the requested amount, the bank may examine income, employment or business history, existing liabilities, repayment capacity and credit record.

Commonly requested documents may include:

• Aadhaar and PAN

• Address and identity proof

• A recent electricity bill

• Bank-account statements

• Income documents or income-tax returns

• A quotation from a registered solar vendor

• Property or rooftop-ownership documents

• The approval or application generated through the relevant government portal

Requirements can vary, particularly between loans below and above ₹2 lakh.

How to apply for rooftop solar financing

Applicants should begin by registering on the official PM Surya Ghar National Portal and selecting their state and electricity distribution company. They can then enter their consumer details, submit the rooftop-solar application and choose a registered vendor.

After feasibility approval from the distribution company, the applicant can finalise the system capacity and vendor quotation. Those requiring finance can proceed through the linked lending process, including the JanSamarth portal where applicable.

Once the bank approves the loan, the system is installed by the selected vendor. The distribution company then inspects the installation, completes the required metering formalities and issues the commissioning certificate. The household can subsequently submit its bank details and request the eligible subsidy.

Will rooftop solar eliminate the electricity bill?

A correctly sized solar plant can substantially reduce electricity expenses, but a zero bill is not guaranteed. Savings depend on local sunlight, system performance, household consumption, electricity tariffs, maintenance and the state’s net-metering rules.

The phrase “up to 300 units of free electricity” refers to the potential benefit from solar power generated under the scheme. It should not be interpreted as an unconditional promise that every participant will receive 300 free grid units or never pay another electricity bill.

Before choosing a system, households should compare their average monthly consumption with the proposed solar capacity, obtain quotations from registered vendors and calculate the total cost after subsidy. They should also compare loan offers carefully because a lower advertised rate may apply only to a particular loan amount or borrower category.

Disclaimer: This article is for general information only. Subsidies, lending rates, credit requirements and eligibility conditions may change. Applicants should verify the latest details on the official PM Surya Ghar portal and with the chosen bank before making a financial commitment.