Here is the problem many people hit: your solar installer gives you a quote — say ₹1,60,000 for a 3kW system — and you want to finance it with a bank loan. But the PM Surya Ghar Muft Bijli Yojana changes your actual loan amount by deducting a government subsidy. The tricky part? That subsidy is not a flat number. It depends on your system size and follows a tiered structure. So your real loan principal — and therefore your exact EMI — keeps shifting as you resize. This calculator solves exactly that. Enter your system size, total cost, bank interest rate, and tenure. It auto-applies the correct subsidy tier and returns your actual monthly payment in seconds.
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PM Surya Ghar EMI Calculator

Central subsidy auto-applied per official tier structure

kW
₹
% p.a.
yrs
🏠 Central Subsidy Applied
2kW × ₹30,000 + 1kW × ₹18,000
₹78,000
Your Loan Breakdown
Subsidy
—
Govt. deduction
Loan Principal
—
After subsidy
Total Interest
—
Over full tenure
📅 Your Monthly EMI
—
—
ⓘ Results are estimates. Actual EMI may vary slightly due to processing fees, exact disbursal date, and bank rounding. Verify with your lender before signing.

How the PM Surya Ghar Subsidy Actually Works

The central subsidy under PM Surya Ghar Muft Bijli Yojana is not a flat amount. It follows a tiered structure based on the size of your rooftop solar system. A 1kW installation and a 5kW installation do not receive the same benefit.

Here is the official central government subsidy structure, simplified into a clear table:

System Size Subsidy Rate Maximum Central Subsidy
Up to 1 kW ₹30,000 per kW ₹30,000
Up to 2 kW ₹30,000 per kW ₹60,000
3 kW system ₹30,000 × 2kW + ₹18,000 for 3rd kW ₹78,000 (most popular)
Above 3 kW Capped — no extra benefit beyond 3kW ₹78,000 (flat cap)
💡 Key insight: Installing more than 3kW does not give you any additional central subsidy. A 5kW system and a 3kW system both receive the same ₹78,000. So choose your system size based on your actual electricity consumption, not to maximise the subsidy amount.

Some states — including Goa, Kerala, and Rajasthan — offer an additional state-level top-up subsidy on top of the central benefit. Always check with your State Nodal Agency (SNA) before finalising your order.

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For 1–2 kW Homes

A 1–2kW system suits smaller households with bills under ₹800/month. Subsidy is ₹30,000–₹60,000.

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3 kW is the Sweetspot

Most Indian families choose 3kW. It hits the subsidy cap of ₹78,000 and covers average monthly usage well.

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Above 3 kW

No extra central subsidy. Install bigger only if your electricity bills genuinely justify the higher system cost.

How to Use This Solar EMI Calculator

The tool above is built to be self-explanatory. Here is a quick guide to each input field:

  • System Capacity (kW): Enter the rooftop solar system size your installer quoted — typically 1kW to 5kW for a household. The subsidy badge updates live as you type.
  • Total System Cost (₹): Enter the full quoted price from your installer before any deductions. This is the number on your quotation letter or estimate sheet.
  • Annual Interest Rate (%): The rate offered by your bank. Nationalised banks empanelled under PM Surya Ghar typically offer solar loans between 7%–10.5% per annum. Try 9% as a middle estimate if unsure.
  • Loan Tenure (Years): How many years you want to repay. Shorter tenure means higher EMI but less total interest paid. Longer tenure lowers your monthly outgo but increases the overall cost of the loan.

Click "Calculate My Solar EMI" — the tool deducts the correct subsidy tier, computes your actual loan principal, and instantly returns your monthly payment along with total interest and total repayment.

Video: PM Surya Ghar Yojana — How to Apply & Get the Subsidy (Official Guide)
ⓘ A step-by-step walkthrough of the PM Surya Ghar application process, subsidy tiers, and how to register on the National Portal for Rooftop Solar at pmsuryaghar.gov.in.

Real-World Example: Financing a 3kW Solar Plant

Let's walk through the most common scenario — a mid-sized household in Odisha going solar for the first time.

🏠 Scenario: 3kW Rooftop System, Odisha

1
You receive a quote from an empanelled installer: ₹1,60,000 for a 3kW rooftop solar system including panels, inverter, and installation charges.
2
Central subsidy for 3kW: ₹30,000 × 2 + ₹18,000 = ₹78,000
₹1,60,000 − ₹78,000 = ₹82,000 loan principal
3
You approach an empanelled bank (e.g. Bank of Baroda or SBI). They offer 9% per annum over 5 years (60 months).
4
EMI formula: EMI = P × r(1+r)ⁿ / [(1+r)ⁿ−1]
P = ₹82,000  |  r = 0.75% monthly  |  n = 60 months
Your actual monthly EMI
₹1,702
Total interest: ₹20,110  ·  Total repayment: ₹1,02,110

At just ₹1,702 per month, and with average electricity bill savings of ₹1,500–₹2,500 per month for a 3kW system in Odisha, this setup can be cash-flow neutral or even cash-flow positive from month one. The system typically pays for itself within 4–6 years and continues generating free power for 20+ years after that.

💡 Odisha tip: CESU and SOUTHCO consumers in Bhubaneswar and Cuttack can now register for net metering directly through the DISCOM portal. Excess power exported to the grid gets credited against your bill, reducing your effective electricity cost further. Ask your DISCOM office for the net metering form when you apply for PM Surya Ghar.

Frequently Asked Questions

Is the subsidy amount credited to my bank account or the loan account?
The PM Surya Ghar central subsidy is credited directly to your bank account — not to the installer and not automatically to the loan. The subsidy is disbursed after successful commissioning of the solar system and inspection by your DISCOM. This process typically takes 30–60 days after installation. You are expected to pay the installer's full bill (via your own funds or your bank loan), and the government subsidy is then reimbursed into your linked bank account. Once received, you can use it to prepay a portion of your loan principal — most PM Surya Ghar empanelled banks allow this without any prepayment penalty.
What are the standard interest rates for solar loans in India?
Several nationalised and private banks have been empanelled under PM Surya Ghar to offer dedicated rooftop solar loans. Indicative rates as of early 2026:

• State Bank of India (SBI): ~7.25%–9.75% p.a.
• Bank of Baroda: ~9.00%–10.50% p.a.
• Canara Bank: ~8.50%–10.00% p.a.
• Indian Bank: ~8.50%–9.50% p.a.

Rates vary based on your credit score, loan amount, income, and tenure. Always compare at least 2–3 empanelled banks on the official PM Surya Ghar portal before finalising. Visit pmsuryaghar.gov.in for the updated lender list.
Can I claim the subsidy if I install more than 3kW?
Yes, you can install a system larger than 3kW — say 5kW or 10kW — but the maximum central subsidy remains capped at ₹78,000 regardless of size. There is no additional central benefit for capacity beyond 3kW. However, a larger system generates more electricity, which means bigger monthly bill savings and potentially higher net metering credits. Some states also offer a separate state-level subsidy for higher capacity — consult your State Nodal Agency (SNA) for current guidelines in your state.
Does the EMI start before or after the subsidy is credited?
Your EMI schedule will be based on the full loan amount disbursed by the bank, which typically covers the total system cost before subsidy. Once the government subsidy (usually ₹30,000–₹78,000) is credited to your account after 30–60 days post-commissioning, you can use that money to make a partial prepayment of the loan principal. Most empanelled banks allow prepayment without penalty. After you prepay, your remaining EMIs or tenure will reduce accordingly. The calculator above models the post-subsidy principal for planning — it assumes you immediately apply the subsidy toward the loan.
Who can apply for PM Surya Ghar Yojana?
Any Indian household that owns a home with a valid electricity consumer number can apply. The rooftop must be structurally suitable for solar panel installation. Applicants must register on the National Portal for Rooftop Solar at pmsuryaghar.gov.in, select an empanelled vendor in their area, and apply through their local DISCOM. The scheme is available across all states and union territories. There is no income ceiling for the central subsidy.

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