Solar Loan EMI Calculator India 2026
Work out the real monthly EMI on a rooftop solar loan under PM Surya Ghar — system cost minus subsidy, at your interest rate and tenure — and see honestly how the EMI compares to your electricity savings. No teaser "₹0 down" maths.
1 System & subsidy
A 3 kW residential system typically runs ₹1.5–1.9 lakh installed. Enter your actual quote.
Auto-filled from the scheme: ₹30,000/kW for the first 2 kW, +₹18,000 for the 3rd kW, capped at ₹78,000 for 3 kW and above. Edit if you qualify for a state top-up or special-category rate.
Some states add their own (e.g. UP ~₹15,000/kW). Check your state portal and enter it here.
2 Loan
SBI Surya Ghar is ~7.15% (RLLR-linked) as of May 2026; some banks (Canara, Union) go as low as ~6.5%. Rates float with the RBI repo rate — confirm with your bank.
3 Compare to savings — optional
Roughly your current bill that solar offsets. Leave as-is for a rough check, or use the full India savings calculator first.
Indicative estimates only — not a loan offer. Rates are floating (RLLR/repo-linked) and vary by bank, CIBIL score, tenure and amount; actual EMI is set by your lender. The "bill-balanced" comparison uses your own savings estimate. Confirm all figures with your bank before borrowing.
How this is calculated
EMI = P·r·(1+r)ⁿ / ((1+r)ⁿ − 1), where P is the principal, r is the monthly rate (annual ÷ 12 ÷ 100), and n is the number of months.Subsidy timing matters. Under PM Surya Ghar the central subsidy is usually credited to your account ~30–45 days after commissioning — so in the realistic "prepay" mode the loan starts at the full cost and you prepay the subsidy against principal once it arrives (no penalty at most public-sector banks), which lowers your EMI from then on. Only choose "reduces loan from day one" if your lender actually nets the subsidy off before disbursing.
"Bill-balanced" honestly: installers often say solar is "free" because the EMI ≈ your bill savings. That's sometimes true — so this shows your EMI next to your savings and tells you whether you're net-positive or net-negative each month, rather than assuming it. Verify rates and subsidy with your bank and the PM Surya Ghar portal.
Financing solar in India: how EMIs really work
A solar loan turns a large one-time cost into manageable monthly payments, and under PM Surya Ghar, collateral-free solar loans are available through public-sector banks at attractive rates. The appeal is obvious — your monthly EMI can be close to (or below) the electricity bill the system replaces, so solar can feel almost self-funding. But the honest picture has nuances that the "zero down, pay from savings" marketing skips, and understanding them helps you borrow sensibly rather than optimistically.
This calculator uses a true reducing-balance EMI and models the real timing of the PM Surya Ghar subsidy, rather than assuming a best-case scenario.
How EMI is calculated
A loan EMI uses the reducing-balance method: each payment covers the interest on the outstanding balance plus a slice of principal, so early payments are mostly interest and later ones mostly principal. The EMI depends on three things — the amount borrowed, the interest rate, and the tenure. A longer tenure lowers the monthly payment but increases total interest paid; a shorter tenure does the reverse. The calculator shows both your monthly EMI and the total interest, so you can see that trade-off clearly rather than just chasing the lowest monthly figure.
The subsidy-timing nuance the ads skip
This is the honest heart of solar financing in India. The PM Surya Ghar subsidy (up to ₹78,000) is credited to your bank account after your system is installed and the net meter is fitted — not at the time of purchase. So in practice you usually finance the full system cost first, then prepay the subsidy against your loan principal once it arrives (public-sector banks generally allow this without penalty), which lowers your EMI from that point on. The "₹0 down, EMI from day one matches your savings" framing glosses over this: your initial EMI is based on the full amount, and only drops after the subsidy lands. The calculator defaults to this realistic sequence and lets you compare it with the upfront-subsidy case.
Is the EMI really covered by savings?
Often it's close, but "free solar" is a simplification. Whether your EMI is fully covered by your electricity savings depends on your system size, your tariff, your loan rate and tenure, and the subsidy timing. The calculator puts your estimated monthly savings next to your EMI so you can see whether you're genuinely net-positive each month or paying a modest gap during the loan term — after which, once the loan is repaid, the savings are entirely yours. That honest comparison is more useful than a blanket "it pays for itself" claim.
Frequently asked questions
Collateral-free loans are offered through public-sector banks at rates linked to the repo rate, which move over time. Use a current quoted rate from your bank as the input here rather than assuming a fixed figure, since rates float and vary by bank, amount and tenure.
Loans can cover most or all of the cost, so little upfront cash may be needed — but the subsidy arrives after commissioning, so you typically finance the full amount first and prepay the subsidy later. The headline EMI is based on the full cost until you do, which the "₹0 down" framing tends to omit.
A longer tenure lowers your monthly EMI but increases total interest; a shorter tenure costs less overall but more each month. If your goal is for the EMI to stay within your electricity savings, a longer tenure helps the monthly maths, at the cost of more total interest. The calculator shows both figures.
Yes. Once the subsidy is credited, prepaying it against your loan principal (usually penalty-free at public-sector banks) reduces the outstanding balance and lowers your EMI for the rest of the term. This is the realistic path the calculator models by default.