Free solar panel loan calculator with ROI and break-even analysis. Includes PM Surya Ghar subsidy. Find your monthly savings vs EMI.
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A solar rooftop system is fundamentally different from every other major purchase you will finance. Unlike a car (which depreciates to zero), a wedding (which creates memories, not income), or consumer appliances (which only consume electricity), solar panels generate a measurable financial return every single month for 25-years. The question is not whether solar makes financial sense — the question is whether the loan cost is covered by the savings and how quickly you reach the break-even point.
India's flagship rooftop solar scheme offers direct financial subsidies to residential customers installing grid-connected rooftop solar systems. The subsidies are credited directly to your bank account after installation verification by the DISCOM (power distribution company):
System Size Subsidy Amount Approximate Net Cost After Subsidy
Up to 1kW: ₹30,000 ₹45,000 – ₹60,000
1–2kW: ₹60,000 ₹65,000 – ₹90,000
2–3kW: ₹78,000 ₹95,000 – ₹1,30,000
Above 3kW: ₹78,000 (capped) ₹1,50,000+ depending on size
A 3kW system is appropriate for a home consuming 250–350 units monthly (typical for a 3-bedroom apartment with one AC). Here is a complete financial model at current prices:
System cost (installed, 2025): ₹1,75,000 – ₹2,00,000
PM Surya Ghar subsidy: −₹78,000
Net cost / loan amount: ₹1,00,000 – ₹1,22,000
Loan: ₹1,10,000 at 10.5% for 5 years:
Monthly EMI: ₹2,376
Monthly electricity saving (typical): ₹2,800 – ₹4,200
Net monthly outgo during loan: Near-zero to ₹1,824 saving
Post-loan (from Year 6): Pure monthly saving ₹2,800–₹4,200
10-year cumulative saving: ₹2.8L–₹4.2L (after loan repaid)
Several states offer incentives beyond the central government subsidy:
Delhi: Flat ₹2,000 per kW subsidy. Competitive bidding platform for installation. Zero road tax on EV purchase if you also install solar (combined benefit).
Gujarat: ₹10,000 additional subsidy. Strong net metering policy.
Maharashtra: Accelerated depreciation benefit for commercial solar. MSEDCL net metering at 1:1 ratio.
Rajasthan: 30% additional state subsidy for rural rooftop solar.
Grid-connected solar systems export excess power to the grid when generation exceeds consumption (typically during daytime when the family is away). Under net metering, this exported electricity is credited against future electricity bills at a defined rate. Most states offer 1:1 net metering — every unit exported offsets one unit consumed later. This significantly improves the financial model for households that are away during peak solar hours.
Several banks and NBFCs now offer dedicated solar loans at preferential rates. SBI's Solar Power Loan: up to ₹1 crore, 8.5–10% rate. Bank of Baroda's Solar Home Loan: 9–10.5%. IREDA (Indian Renewable Energy Development Agency): dedicated green energy financing at competitive rates. State Bank of India and Canara Bank have specific solar loan products for PM Surya Ghar scheme beneficiaries with simplified documentation and faster processing aligned with the government scheme timeline.