The single biggest barrier to going solar in India is the upfront cost — even after subsidies, a 5 kW residential system costs ₹1.5–2.5 lakh out of pocket. But you don't have to pay it all at once. In 2026, solar-specific loans from PSU banks and NBFCs make it possible to go solar with zero or minimal upfront payment and still come out ahead each month.
Types of Solar Financing Available in India
1. PSU Bank Loans (SBI Surya Shakti, PNB Solar, Canara Bank)
- Interest rate: 6.5–7.5% per annum (reducing balance)
- Tenure: up to 10 years
- Processing fee: 0.5–1%
- Collateral: typically required for above ₹10 lakh; unsecured below that
- Best for: homeowners who want the lowest EMI over a long tenure
2. NBFC / Solar-Specific Loans (Ecofy, Aerem, Creditseva)
- Interest rate: 7.99–11% per annum (flat rate)
- Tenure: 1, 3 or 5 years
- Approval: 48–72 hours; fully digital
- No collateral required up to ₹25 lakh
- Best for: salaried professionals who want quick approval and flexible tenure
3. On-Bill Financing (DISCOM-linked, select states)
Delhi and a few other states allow the EMI to appear directly on your electricity bill. You pay slightly more each month, and the surplus generation offsets that cost. Effectively zero-upfront solar in eligible areas.
Real EMI Comparison: ₹2 Lakh Net Cost, Various Options
| Lender Type | Rate | Tenure | Monthly EMI | Total Interest |
|---|---|---|---|---|
| SBI (reducing) | 7% | 10 yr | ₹2,323 | ₹78,760 |
| SBI (reducing) | 7% | 5 yr | ₹3,960 | ₹37,600 |
| NBFC (flat 8%) | 8% flat | 5 yr | ₹4,667 | ₹80,000 |
| NBFC (flat 8%) | 8% flat | 3 yr | ₹6,111 | ₹40,000 |
Assuming ₹2 lakh net cost after ₹78k central + ₹30k state subsidy on a ₹4.1 lakh system.
Is the EMI Covered by Solar Savings?
For a Delhi homeowner with a ₹7,000/month bill, a well-sized solar system typically saves ₹4,000–5,000/month. With an SBI 10-year loan at ₹2,323 EMI, you're cash-positive from day one — solar saves more than the loan costs you every single month.
Commercial Financing: The 40% Depreciation Advantage
Businesses and firms (not individuals) can claim 40% accelerated depreciation on the solar asset under the Income Tax Act. In the first year, you write off 40% of the asset value — worth ₹8–12 lakh on a ₹50 lakh system for a company in the 25–30% bracket. This makes commercial solar one of the best tax-efficient capital investments available.
How to Apply Through Vermson India
We have tie-ups with SBI, PNB, Canara Bank, Ecofy and Aerem. When you book a site survey with us, our finance team walks you through the best option for your income profile and preferred tenure — and we handle the loan application paperwork alongside the installation proposal. No separate bank visits required.
