Rooftop Solar Subsidy vs Solar Loan: What You Repay
Rooftop solar subsidy vs solar loan in 2026: the PM Surya Ghar subsidy is not repaid, the bank loan is. Amounts, SBI rates, a 2 kW example and how to apply.
In this article
The subsidy under PM Surya Ghar: Muft Bijli Yojana is government money you do not repay: up to ₹78,000 for a home rooftop system (₹85,800 in special category states). A solar loan is a bank loan you must repay with interest, used to cover the rest of the cost. Most households need both: the subsidy arrives only after the plant is commissioned, so the loan (or your savings) pays the vendor first, and the subsidy later cuts what you owe.
This guide explains, as of October 2026, what you receive, what you repay, how they fit together and what to check. For the full scheme, see our PM Surya Ghar subsidy and loan guide.
Who this applies to
- Homeowners with a residential electricity connection in their own name and a usable roof.
- Households that have not taken a rooftop solar subsidy earlier on the same connection.
- Anyone deciding whether to pay cash, take a loan, or wait.
Tenants generally cannot claim the subsidy unless the connection and roof rights are in their name.
Subsidy vs loan: the difference in one table
| Feature | Rooftop solar subsidy (CFA) | Solar loan |
|---|---|---|
| What it is | Central Financial Assistance from MNRE | Bank loan, mainly from public sector banks |
| Do you repay it? | No | Yes, with interest |
| Amount | ₹30,000 (1 kW), ₹60,000 (2 kW), ₹78,000 (3 kW and above) | Up to ₹6 lakh at SBI, in two slabs |
| When you get it | After installation, net meter and DISCOM commissioning | Before installation, paid to the vendor |
| Where it goes | Your bank account, or your loan account if you borrowed | To the vendor |
| Applied through | pmsuryaghar.gov.in | Bank, or the JanSamarth portal |
| Security | None | Hypothecation of the solar system; no other collateral at SBI |
| Can it be taken back? | Only if obtained wrongly or rules broken | Default affects your CIBIL score and the bank can recover dues |
What assistance you receive (as of October 2026)
The subsidy is 60% of the benchmark cost for the first 2 kW and 40% for the third kW, capped at 3 kW:
| System size | General states | Special category states/UTs |
|---|---|---|
| 1 kW | ₹30,000 | ₹33,000 |
| 2 kW | ₹60,000 | ₹66,000 |
| 3 kW or more | ₹78,000 (max) | ₹85,800 (max) |
Special category states and UTs include the North Eastern states, Himachal Pradesh, Uttarakhand, Jammu and Kashmir, Ladakh, Andaman and Nicobar Islands and Lakshadweep. Some states pay an additional top-up; your DISCOM's page on the portal shows it. A bigger system is allowed, but the subsidy stops at the 3 kW amount.
What you must repay: the solar loan
SBI's PM Surya Ghar loan page (rates effective 15 October 2026) is a useful benchmark:
| Term | Up to ₹2 lakh | Above ₹2 lakh to ₹6 lakh |
|---|---|---|
| Interest rate | 6.00% (EBLR minus 2.15%) | 8.15% (EBLR) |
| Minimum income | Not stipulated | Net annual income ₹3 lakh |
| CIBIL score | No minimum, but no default or write-off | Minimum 650 |
| PAN | Not mandatory | Mandatory |
| Your margin | At least 10% of project cost | At least 10% |
| Tenure | Up to 120 months, including 6-month moratorium | Same |
| Processing fee | Nil | Nil |
| Prepayment penalty | None | None |
Rates are floating and move with the repo rate. Other banks' terms differ, so compare. SBI's page says the subsidy must be credited to the loan account when you take its loan. If you plan to borrow above ₹2 lakh, check your CIBIL score first.
Worked example: 2 kW system, loan vs cash
Assume a 2 kW system costs ₹1,30,000 installed in a general-category state (illustrative; prices vary by vendor and state).
| Item | With loan | Paying cash |
|---|---|---|
| System cost | ₹1,30,000 | ₹1,30,000 |
| Your upfront payment | ₹13,000 (10% margin) | ₹1,30,000 |
| Loan at 6% for 10 years | ₹1,17,000 | Nil |
| EMI before subsidy | ₹1,299 | Nil |
| Subsidy | ₹60,000 credited to the loan | ₹60,000 credited to your bank account |
| Loan after subsidy | ₹57,000 | Nil |
| EMI on ₹57,000 at 6% for 10 years | ₹633 | Nil |
| Interest over 10 years on ₹57,000 | about ₹18,900 | Nil |
| Your net cost | ₹13,000 + ₹57,000 + about ₹18,900 = about ₹88,900 | ₹1,30,000 − ₹60,000 = ₹70,000 |
So the loan costs about ₹18,900 more than paying cash, but it needs only ₹13,000 upfront. A 2 kW system typically generates around 240 units a month (about 4 units per kW a day). At an average ₹6 a unit, that is about ₹1,440 a month off the bill, comfortably above an EMI of ₹633. Generation, tariffs and net-metering rules differ by state, so treat this as illustrative. In practice, interest is charged on the full ₹1,17,000 until the subsidy arrives, and banks either reduce the EMI or the tenure after the credit. Ask which. Run your own figures in the EMI calculator.
Documents required
For the subsidy (portal): electricity consumer number and latest bill, mobile number and email, Aadhaar-linked identity details, roof ownership, bank details with a cancelled cheque or passbook copy.
For the loan: KYC (Aadhaar, and PAN for loans above ₹2 lakh), latest electricity bill, the registered vendor's quotation and feasibility report, proof of house ownership, and income proof for the higher slab.
How to apply for both
- Register on pmsuryaghar.gov.in with your state, DISCOM and consumer number.
- Apply for rooftop solar and wait for the DISCOM's feasibility approval. Do not install before this.
- Choose a registered vendor and get a written quotation; see our guide on choosing a rooftop solar vendor.
- Apply for the loan (optional) through JanSamarth or your bank with the quotation.
- Installation, net meter and inspection by the DISCOM, which issues the commissioning certificate on the portal.
- Submit bank details (or the loan account number) on the portal to claim the subsidy.
Status tracking
Your portal login shows each stage: application, feasibility, installation details, inspection, commissioning and subsidy. Loan status is in the bank's app or on JanSamarth. If the subsidy is late after commissioning, read solar subsidy pending after installation.
Common problems and fixes
- Loan EMI did not fall after the subsidy: the bank may have cut the tenure instead. Ask for a revised schedule.
- Subsidy credited to savings instead of loan account: inform the bank; it may ask you to transfer it to the loan.
- Name mismatch between electricity bill, bank and Aadhaar: correct it before claiming.
- Installed before feasibility approval: usually not eligible for the subsidy.
How to complain
For the subsidy, raise a grievance from your portal login or call the national helpline 15555. For the loan, use the bank's grievance channel, then the RBI Integrated Ombudsman at cms.rbi.org.in after 30 days. Unresolved scheme issues can go to CPGRAMS (pgportal.gov.in) addressed to MNRE. Registration is free; never pay anyone for "subsidy approval". Report fraud at cybercrime.gov.in or 1930.
Key takeaways
- The rooftop solar subsidy is a grant (₹30,000 to ₹78,000, up to ₹85,800 in special category states) and is not repaid.
- The solar loan is repaid with interest; SBI charges 6.00% up to ₹2 lakh and 8.15% for ₹2-6 lakh as of 15 October 2026.
- With a loan, the subsidy goes into the loan account after commissioning and cuts the EMI or tenure.
- In the illustrative 2 kW example, a loan costs about ₹18,900 more than cash but needs only ₹13,000 upfront.
- Apply only on pmsuryaghar.gov.in and through your bank; never pay agents.
Frequently asked questions
Do I have to repay the rooftop solar subsidy?
No. The PM Surya Ghar subsidy is a grant, not a loan. It can be recovered only if it was obtained wrongly, for example with false details, a duplicate claim on the same connection or a system that does not meet scheme rules.
How much is the rooftop solar subsidy in 2026?
As of October 2026, the central subsidy is ₹30,000 for 1 kW, ₹60,000 for 2 kW and ₹78,000 for 3 kW or more. Special category states and UTs get up to ₹85,800. Some states add their own subsidy.
What is the interest rate on a solar loan under PM Surya Ghar?
SBI's rates effective 15 October 2026 are 6.00% for loans up to ₹2 lakh and 8.15% for ₹2-6 lakh, floating and linked to its external benchmark. Other public sector banks offer similar collateral-free loans; confirm the rate in your sanction letter.
Where does the subsidy go if I take a solar loan?
If you take a loan, banks such as SBI require the subsidy to be credited to the loan account. That reduces the principal, so either the EMI or the tenure comes down.
Can I take only the subsidy without a loan?
Yes. The loan is optional. You can pay the vendor yourself, and the subsidy is credited to your own bank account after commissioning.
Is a solar loan worth it?
It can be when the monthly saving on your electricity bill is higher than the EMI. Check your actual units consumed, your state's tariff and net-metering rules, and the EMI after the subsidy is credited before deciding.
This article is for general education and is not personalised financial, tax or legal advice. Rates and rules are as of 26 Oct 2026; confirm current terms with your lender, AMC or a qualified adviser.
