This solar loan calculator works out the EMI and interest on a loan for a rooftop solar system. Type the amount you need to borrow after any subsidy, the rate and the tenure. Defaults: ₹2 lakh, 9.5%, 5 years. Below, a simple method shows how to set the EMI against the drop in your electricity bill, which is the real test of a solar loan.
Many households choose a tenure where the monthly saving roughly covers the EMI, so the system pays for itself from the first year.
At a glance
- Example₹2 lakh borrowed at 9.5% over five years
- EMI₹4,200 a month
- Total interest₹52,022
- Longer and cheaper₹2 lakh at 7% for 7 years: ₹3,019
- SubsidyCentral scheme for homes, paid to your bank account after installation
- Key testEMI vs monthly bill saving
How the solar loan calculator works
Solar loans work on a reducing balance like other term loans. Borrow ₹2 lakh for 5 years at 9.5% and the instalment is ₹4,200, with ₹52,022 of interest. At a lower rate of 7% over 7 years, the EMI drops to ₹3,019, with ₹53,557 of interest over the longer period.
Type the amount you actually need to borrow. Under the central rooftop solar scheme for homes, the subsidy is paid into your bank account after the system is installed and inspected, so you may borrow the full cost first and use the subsidy to prepay part of the loan later.
Solar EMI vs electricity bill savings
A rough way to check the numbers:
- Estimate monthly generation: each kilowatt of rooftop panels typically produces around 100 to 130 units a month in much of India, depending on location and season.
- Multiply by the rate you pay per unit, including the higher slabs that solar replaces.
- That is your approximate monthly saving.
- Compare it with the EMI.
Example: a 3 kW system producing about 360 units a month, replacing units that cost you ₹7 each, saves about ₹2,520 a month. Borrowing ₹1,50,000 after subsidy at 10% over five years means an EMI of ₹3,187. The gap is small, and once the loan ends the saving is yours for the remaining life of the panels, often 20 years or more.
Subsidy and low rate loans for rooftop solar
The government's rooftop solar programme for homes offers a subsidy that depends on system size, capped at a fixed amount per household, and links applicants with banks for loans at concessional rates on smaller systems. Applications, approved vendors and the current subsidy amounts are on the official portal. Use the vendor's quote and the subsidy amount shown there to work out what you need to borrow.
Solar EMI calculator: choosing the tenure
- Shorter tenure: higher EMI, less interest, and the system is yours sooner.
- Tenure that matches savings: EMI close to the bill saving, so the cost is roughly neutral each month.
- Prepay with the subsidy: when the subsidy arrives, use it to reduce the loan; check the lender allows part payment without a charge. See the prepayment calculator.
Other ways to fund solar
A top up on your existing home loan is another route, often at a lower rate. Others use a personal loan, which is quicker but usually costlier; compare on the personal loan EMI calculator. Businesses installing solar on a shop or factory use business or equipment loans; see the business loan EMI calculator. For other loan types, browse the EMI calculator.
Generation depends on roof direction, shade, dust and weather. Ask installers for a written generation estimate and warranty terms for panels and the inverter.
Frequently asked questions
What would ₹2 lakh borrowed for rooftop panels cost each month?
₹4,200 monthly over five years at 9.5%. At 7% for 7 years, ₹3,019.
Can a solar EMI be covered by bill savings?
Often largely, if the system is sized well and the tenure is long enough. Compare your estimated monthly saving with the EMI.
Is there a subsidy for rooftop solar?
Yes, a central scheme supports home rooftop systems, with the amount depending on capacity. Check the official portal for current figures.
Should I borrow before or after the subsidy?
The subsidy is usually paid after installation, so many people borrow the full amount and use the subsidy to prepay part of the loan.
How many units does a 1 kW solar system generate?
Roughly 100 to 130 units a month in much of India, depending on location, season and installation.
Can I prepay a solar loan?
Most lenders allow it. Individuals on floating rates face no RBI permitted penalty for paying early.