Home / Loan and financing · Updated 2026-11-04

Loan for Rooftop Solar Under PM Surya Ghar: How Financing and the Subsidy Work Together

You pay for the system first, so many households take a loan. The portal lists loan products from banks and financial institutions through the Jan Samarth portal, and the guideline expects low-interest loans at about the repo rate plus 0.5% for systems up to 3 kW. If you take a loan, the subsidy is paid into your loan account first.

Why a loan can help

The residential subsidy works on the capex model: you fund the installation first, from your own money or from a loan, and the subsidy is paid after the DISCOM's approval. A loan bridges the gap between paying the vendor and receiving the subsidy.

Where to find loans

  • On the national portal: the loan products of various banks and financial institutions are listed, and you can choose one through the Jan Samarth portal integration.
  • Directly: you can also go to a financial institution yourself.
  • For systems above 3 kW, where the subsidy stops, the guideline also expects standard loan products from banks and institutions, published on the portal.

How the subsidy is paid if you took a loan

  1. You add your loan account details to your portal profile, or they come through the bank's integration.
  2. After the DISCOM approves your application and your documents are in, the e-token is activated in your profile and you redeem it.
  3. The subsidy goes to your loan account, up to the amount of the loan outstanding.
  4. If the subsidy is more than the outstanding loan, the remainder goes to your bank account.
  5. The subsidy is processed within 15 days of the DISCOM's approval.

What to ask the bank

  • The interest rate and whether it is fixed or linked to the repo rate.
  • The processing fee and any prepayment charge. You will want to prepay when the subsidy arrives.
  • Whether the loan needs collateral.
  • How the bank will link the loan account to your application on the portal.
  • The repayment period and the monthly instalment.

Work out the real cost

Put the vendor's quote in the calculator to see the cost after subsidy. The calculator's payback ignores loan interest, so add the interest you will pay before you decide.

Also keep your bank proof ready for the portal: a cancelled cheque, a bank e-statement or a passbook scan.

Common questions

Can I get a loan for PM Surya Ghar rooftop solar?

Yes. The portal offers loan products from banks and financial institutions, linked to the Jan Samarth portal, and you can also approach any financial institution directly.

What interest rate will I pay?

The guideline says standardised low-interest loans are envisaged at about the repo rate plus 0.5% for residential systems up to 3 kW. The actual rate comes from the bank you choose, so ask for it in writing.

Where does the subsidy go if I have a loan?

Into your loan account, up to the amount still outstanding. If the subsidy is bigger than the outstanding loan, the rest is paid into your bank account.

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