The three most common home solar sizes in India in 2026 are 3 kW, 5 kW, and 10 kW — and each one finances very differently once you subtract the ₹78,000 PM Suryaghar subsidy. A 3 kW system on a 5-year SBI loan at 9% works out to an Equated Monthly Instalment (EMI) of around ₹1,806–₹2,221. A 5 kW system runs ₹3,779–₹4,298. A 10 kW system runs ₹8,762–₹9,801. In every case the EMI sits below the monthly bill the system replaces, which is the whole point of financing solar rather than paying upfront.
This guide gives you the actual EMI math — bank by bank, tenure by tenure — for each of the three sizes, after the PM Suryaghar subsidy is correctly applied. It covers SBI, HDFC, ICICI, Tata Capital, and Bajaj Finance, the five lenders most residential buyers compare in 2026.
Direct answer. After the ₹78,000 PM Suryaghar subsidy, a 3 kW system finances at an EMI of ₹1,806–₹2,243 (5-year, 9–9.5%), a 5 kW at ₹3,779–₹4,344, and a 10 kW at ₹8,762–₹9,900. SBI offers the lowest residential rate at 9% floating; Bajaj Finance is fastest to disburse but charges 11–12%. Monthly bill savings exceed EMI for all three sizes from month one, so cash flow stays positive.
If you’re sizing your loan right now, the most important rule is this: borrow against the net cost after subsidy, not the gross system cost. That single change saves ₹15,000–₹40,000 in interest over a 5-year tenure.
Why Solar EMI Calculation Needs to Subtract the Subsidy First
The single most common mistake we see across residential applications is borrowers sizing their loan against the gross system cost (₹1.65–₹5.5 lakh) instead of the net cost after the ₹78,000 PM Suryaghar subsidy lands. That subsidy is paid as a Direct Benefit Transfer (DBT) from the Ministry of New and Renewable Energy within 30 days of commissioning, and it lands directly in your Aadhaar-seeded bank account — not the installer’s, not the bank’s.
If you borrow the full gross amount, you pay EMI on ₹78,000 of principal that you don’t actually need. Over a 5-year SBI loan at 9%, that’s roughly ₹19,500 of avoidable interest. Over 7 years, it climbs past ₹26,000. The cleanest structure is a short bridge loan or a delayed disbursement so that the loan principal equals the post-subsidy net cost — which is what we walk through in the framework below.
Bank quotes also tend to assume gross cost because that’s what their underwriting templates default to. You have to push back. SBI, HDFC, and ICICI all accept a “net of subsidy” sanctioned amount once you provide the PM Suryaghar application reference number (ARN) and the projected DBT credit timeline.
The size-by-size breakdown that follows assumes the disciplined version — gross system cost minus ₹78,000 subsidy — so the EMI math reflects what you’ll actually be paying once the subsidy is processed by MNRE and credited to your account.
The 4-Variable Solar EMI Calculation Method
We call this The 4-Variable Solar EMI Calculation Method because every residential solar EMI is driven by exactly four numbers — and getting any one of them wrong changes the monthly outflow by ₹400–₹1,200. This is the same framework our finance team applies to every Heaven Green Energy quotation before it goes to the customer.
The four variables, in the order you must lock them down:
- Loan amount (net of subsidy). Take the gross system cost and subtract ₹78,000 for any system 3 kW or larger. For a 3 kW at ₹1.75 lakh gross, the net loan is ₹97,000. For a 5 kW at ₹2.85 lakh, it’s ₹2.07 lakh. For a 10 kW at ₹5.5 lakh, it’s ₹4.72 lakh. If you borrow more than this, you’re paying interest on subsidy money.
- Interest rate (fixed vs floating). SBI and HDFC offer floating rates linked to MCLR or RPLR; ICICI is similar. Tata Capital and Bajaj Finance offer fixed-rate solar loans, usually 1–2% higher but predictable. Floating starts cheaper but resets quarterly — build in a 1% buffer when projecting cash flow.
- Tenure (3 / 5 / 7 / 10 years). This is the lever you control most. A longer tenure cuts the EMI by 25–30% but increases total interest paid by 20–30%. The 5-year tenure is the standard middle ground for residential solar — short enough to limit total interest, long enough to keep EMI under monthly bill savings.
- Prepayment plan. A planned prepayment at month 13 (when the subsidy DBT and the first year’s accumulated savings have landed) cuts total interest by 10–15% on a 5-year loan. Floating rate loans usually allow free prepayment after 12 EMIs; fixed-rate loans may charge 2–4% foreclosure.
Lock all four before you walk into the bank. EMI calculators on SBI, HDFC Bank, and ICICI Bank websites will give you the per-month number once you have these inputs ready. For a deeper comparison across all five lenders side-by-side, see our solar loan EMI comparison guide.
EMI for 3 kW Solar (₹87K–₹1.07L Net Loan After Subsidy)
A 3 kW grid-tied residential system costs ₹1.65–₹1.85 lakh all-in across most of north and west India, including panels, inverter, BOS (Balance of System), installation, net meter, and DISCOM coordination. After the ₹78,000 PM Suryaghar subsidy, your net loan amount sits between ₹87,000 and ₹1,07,000.
3 kW is the sweet spot for PM Suryaghar — it’s the smallest size that unlocks the maximum ₹78,000 subsidy, and it fits within the 3 kW sanctioned load that most Indian homes already have. Monthly generation runs around 420–450 kWh depending on irradiance, which offsets a ₹3,000–₹3,500 monthly electricity bill in most metros.
3 kW EMI by bank and tenure (after subsidy)
EMIs below are calculated on a representative ₹1.0 lakh net loan amount (mid-point of ₹87K–₹1.07L). Scale linearly within ±10% for your exact loan size.
| Lender | Rate | 3-year EMI | 5-year EMI | 7-year EMI | Notes |
|---|---|---|---|---|---|
| SBI Surya Shakti | 9.00% | ₹3,180 | ₹2,076 | ₹1,609 | Floating; nil prepayment after 12 EMIs |
| HDFC Solar Top-up | 9.50% | ₹3,203 | ₹2,098 | ₹1,632 | Floating; 2% foreclosure first 36 months |
| ICICI Solar Personal | 10.00% | ₹3,227 | ₹2,125 | ₹1,660 | Floating; nil prepayment after 6 EMIs |
| Tata Capital Solar | 10.50% | ₹3,250 | ₹2,149 | ₹1,684 | Fixed; 2–4% foreclosure |
| Bajaj Finance Solar | 11.50% | ₹3,297 | ₹2,200 | ₹1,738 | Fixed; fastest disbursal (3–5 days) |
A 3 kW system at the worst loan terms in the table (Bajaj fixed at 11.5% over 7 years) still costs only ₹1,738/month in EMI — well below the ₹3,350 monthly bill it replaces in a typical Jaipur or Ahmedabad home. Cash flow stays positive from the first billing cycle after commissioning.
For a deep look at the SBI product specifically, see our SBI solar loan guide. For HDFC, the HDFC solar loan breakdown covers the top-up versus standalone choice.
EMI for 5 kW Solar (₹1.82L–₹2.07L Net Loan)
A 5 kW grid-tied residential system costs ₹2.60–₹2.85 lakh all-in across mainstream metros. After the ₹78,000 PM Suryaghar subsidy, the net loan sits at ₹1,82,000–₹2,07,000. The subsidy is capped at ₹78,000 regardless of system size above 3 kW, so the marginal 2 kW above the base 3 kW is unsubsidised — which makes the net loan jump significantly.
5 kW is the right size for a 3- or 4-BHK with active air conditioning across two to three rooms, electric water heating, and a typical monthly bill of ₹5,000–₹6,000. Monthly generation runs around 700–750 kWh.
5 kW EMI by bank and tenure (after subsidy)
EMIs below are calculated on a representative ₹2.0 lakh net loan amount (mid-point of ₹1.82L–₹2.07L).
| Lender | Rate | 3-year EMI | 5-year EMI | 7-year EMI | Notes |
|---|---|---|---|---|---|
| SBI Surya Shakti | 9.00% | ₹6,360 | ₹4,152 | ₹3,219 | Floating; MCLR-linked |
| HDFC Solar Top-up | 9.50% | ₹6,406 | ₹4,197 | ₹3,265 | Floating; RPLR-linked |
| ICICI Solar Personal | 10.00% | ₹6,453 | ₹4,249 | ₹3,320 | Floating; quick approval |
| Tata Capital Solar | 10.50% | ₹6,500 | ₹4,299 | ₹3,367 | Fixed; predictable cash flow |
| Bajaj Finance Solar | 11.50% | ₹6,594 | ₹4,400 | ₹3,476 | Fixed; minimal documentation |
A typical 5 kW Jaipur or Vadodara home saves ₹5,250/month on electricity. Even at the worst loan terms (Bajaj 11.5%, 7-year), the EMI of ₹3,476 stays comfortably below savings. SBI at 9% over 5 years is the conventional residential choice — ₹4,152/month EMI against ₹5,250 of savings leaves ₹1,098/month of free cash, which most homeowners route into an annual prepayment.
Fast tip. If you’re financing 5 kW with floating-rate SBI, schedule a one-time prepayment of ₹40,000–₹50,000 at month 13 — that’s when your ₹78,000 subsidy DBT has landed and the first 12 months of bill savings are in your account. This single prepayment cuts your total interest by 12–15% over the remaining tenure.
For a complete walkthrough of zero-down options across the five lenders, read our guide on zero-down-payment solar in 2026. To compare the right system size for your home, see 3 kW vs 5 kW vs 10 kW home solar in 2026.
Get a free EMI plan. Our finance team builds a complete EMI projection with prepayment timing, lender comparison, and bill-savings cashflow — no cost, no obligation. Get your free quote →
EMI for 10 kW Solar (₹4.22L–₹4.72L Net Loan)
A 10 kW grid-tied residential system costs ₹5.0–₹5.5 lakh all-in. After the ₹78,000 PM Suryaghar subsidy, the net loan sits at ₹4,22,000–₹4,72,000. 10 kW is the residential ceiling under most state net metering frameworks — including Rajasthan’s RERC framework and Gujarat’s GERC — beyond which gross metering or net-billing takes over.
10 kW is the right size for a large independent house, a multi-AC load, electric vehicle (EV) charging, and electric water heating combined. Monthly generation runs around 1,400–1,500 kWh in the north and west belt, fully offsetting a ₹10,000–₹11,000 monthly bill.
10 kW EMI by bank and tenure (after subsidy)
EMIs below are calculated on a representative ₹4.5 lakh net loan amount (mid-point of ₹4.22L–₹4.72L).
| Lender | Rate | 3-year EMI | 5-year EMI | 7-year EMI | Notes |
|---|---|---|---|---|---|
| SBI Surya Shakti | 9.00% | ₹14,310 | ₹9,341 | ₹7,243 | Floating; collateral may apply above ₹10L |
| HDFC Solar Top-up | 9.50% | ₹14,413 | ₹9,444 | ₹7,346 | Floating; top-up faster for existing customers |
| ICICI Solar Personal | 10.00% | ₹14,516 | ₹9,548 | ₹7,449 | Floating; needs DISCOM sanction letter |
| Tata Capital Solar | 10.50% | ₹14,619 | ₹9,653 | ₹7,554 | Fixed; cleanest documentation |
| Bajaj Finance Solar | 11.50% | ₹14,826 | ₹9,865 | ₹7,768 | Fixed; fastest disbursal |
The 10 kW EMI gap between SBI floating and Bajaj fixed is ₹524/month on a 5-year tenure — that’s ₹31,440 over the loan life. For high-load homes that prepayment is worth a 9-day delay in disbursal, so SBI usually wins on total cost. For ICICI specifically, see our ICICI solar loan 2026 guide; for fixed-rate options, the Tata Capital and Bajaj Finance breakdowns cover documentation and disbursal speed.
A 10 kW Jaipur home saves ₹10,500/month on electricity. Even Bajaj at 11.5% over 7 years (₹7,768 EMI) sits ₹2,700/month below savings. The 5-year SBI choice leaves ₹1,159/month of free cash, ideal for an annual prepayment cycle.
Tenure Trade-Off: 3 yr vs 5 yr vs 7 yr
The single biggest lever you control on your solar EMI is the tenure. The table below shows the trade-off for a representative ₹2 lakh loan at 9% — the same total principal at three different repayment horizons.
Total interest paid comparison (₹2 lakh @ 9%)
| Tenure | EMI | Total Paid | Total Interest | EMI vs 5-yr baseline |
|---|---|---|---|---|
| 3 years | ₹6,360 | ₹2,28,950 | ₹28,950 | +53% EMI |
| 5 years | ₹4,152 | ₹2,49,100 | ₹49,100 | Baseline |
| 7 years | ₹3,219 | ₹2,70,400 | ₹70,400 | –22% EMI |
| 10 years | ₹2,533 | ₹3,04,000 | ₹1,04,000 | –39% EMI |
The 5-year tenure is the residential standard for solar in India because it strikes the right balance — total interest stays under 25% of principal, EMI sits 25% below the 3-year option, and the loan closes well before any major component (inverter) might need replacement. The 7-year option lowers monthly outflow further but adds ₹21,300 to total interest versus 5-year. The 10-year option only makes sense if cash flow is genuinely tight or if you’re matching the loan to the panel warranty period.
For 3 kW and 5 kW systems, we recommend 5 years across SBI, HDFC, and ICICI. For 10 kW where the absolute monthly EMI gets larger, the 7-year option keeps the EMI comfortably below bill savings and gives more cushion for AC-heavy summer months.
⚠️ Watch out
Some Tata Capital and Bajaj Finance solar EMI quotes hide the foreclosure clause in the fine print — a 2–4% fee on principal outstanding if you prepay before tenure ends. Ask for the foreclosure terms in writing before signing, especially if you plan to use the PM Suryaghar DBT to part-prepay the loan in month 13.
Common Mistakes Solar EMI Borrowers Make
We’ve seen the same six errors repeatedly across the residential loans we process. Each one costs ₹15,000–₹50,000 in unnecessary interest or fees over the loan tenure.
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1
Borrowing the gross system cost instead of net-of-subsidy. You end up paying interest on ₹78,000 of subsidy principal for 5 years. Wastes ₹19,500 of interest on a 5-year SBI loan at 9%.
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2
Choosing 3-year tenure to "save interest" without checking EMI vs bill savings. If EMI ₹3,180 exceeds your bill savings of ₹3,350, you have no cushion for floating-rate increases or summer AC spikes. Cash flow goes negative.
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3
Picking Bajaj Finance for the speed without checking the rate. 11.5% fixed vs SBI 9% floating costs ₹10,400 extra interest on a 5-year ₹2 lakh loan. Worth the wait for the 9% SBI sanction in most cases.
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4
Skipping the bridge loan and pre-paying out of pocket. A 30-day bridge from the bank covers the ₹78,000 subsidy gap until DBT lands. Self-funding the gap drains your emergency reserves needlessly.
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5
Not negotiating the processing fee on existing-customer top-ups. HDFC home loan customers can negotiate the 0.50–1.00% processing fee down to 0.25% or zero. ICICI does similar for relationship customers.
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6
Forgetting to time the month-13 prepayment. The PM Suryaghar DBT plus year-one bill savings give you a ₹1.2–1.5 lakh prepayment opportunity at month 13. Schedule it — don't let the cash sit in a savings account at 3.5%.
For more on the documentation and disbursal flow specifically, see our zero-down-payment solar guide — it walks through the bridge loan structure that avoids most of these errors.
Solar EMI vs Savings — When EMI < Bill Saving
The cleanest test of whether solar financing actually works for you is the EMI-vs-savings comparison. If EMI is less than monthly bill savings, you have positive cash flow from month one and the system pays for itself out of the electricity you would have paid the DISCOM. Here’s how that math looks for all three sizes at the standard 5-year SBI tenure at 9%.
| System | Net loan | EMI (5-yr, 9%) | Bill savings/mo | Net cash flow |
|---|---|---|---|---|
| 3 kW | ₹97,000 (mid) | ₹2,014 | ₹3,350 | +₹1,336 |
| 5 kW | ₹2,00,000 (mid) | ₹4,152 | ₹5,250 | +₹1,098 |
| 10 kW | ₹4,50,000 (mid) | ₹9,341 | ₹10,500 | +₹1,159 |
In every case the homeowner ends the month with cash in pocket relative to the no-solar baseline. Over a 5-year tenure that’s ₹65,000–₹80,000 of accumulated positive cash flow, ignoring the system’s continued generation through years 6–25 when it’s debt-free.
Pros and cons of stretching the tenure
- Lower monthly EMI — 22–39% below 5-year option
- More cushion for floating-rate increases
- Frees monthly cash for prepayment or other savings
- EMI stays comfortably below bill savings even in low-generation months
- Total interest 25–40% higher than 5-year tenure
- Floating-rate exposure stretches across more interest cycles
- Loan can outlast the inverter's standard warranty (5–10 years)
- Reduces flexibility for future loans (higher debt-to-income ratio)
Verdict on tenure choice
Verdict. For 3 kW and 5 kW residential systems, the 5-year SBI Surya Shakti loan at 9% floating is the right default. EMI stays below savings, total interest is contained under 25% of principal, and the prepayment-at-month-13 option closes the loan in 4 years effectively. For 10 kW where absolute EMI is larger, a 7-year HDFC top-up at 9.5% floating gives more breathing room and still produces positive cash flow. Avoid fixed-rate Bajaj or Tata Capital unless your floating-rate sanction has been delayed and timing matters more than total cost.
How Heaven Green Energy Helps with EMI Planning
Heaven Green Energy is MNRE-empanelled across Rajasthan, Gujarat, and Madhya Pradesh and has structured over 2,000 solar loans across SBI, HDFC, ICICI, Tata Capital, Bajaj Finance, and IREDA. We don’t sell loans — we recommend the right lender for your profile based on rate, speed, documentation match, and prepayment flexibility.
What our finance team does on every residential loan:
- Net-of-subsidy loan sizing. We compute the right net loan amount for your gross system cost and prevent the ₹78,000 over-borrow that most installers ignore.
- Five-lender quote comparison. We pull live rate quotes from SBI, HDFC, ICICI, Tata Capital, and Bajaj for your specific loan amount and tenure.
- Bridge loan structuring. We arrange a 30-day bridge to cover the gap between commissioning and PM Suryaghar DBT — at zero additional interest in most cases.
- Month-13 prepayment planning. We schedule the optimal first prepayment so your subsidy DBT plus year-one savings close the loan 12–18 months early.
- CIBIL score pre-check. Before any application, we pull your bureau score to qualify you for the lowest-rate tier (typically 750+ for SBI’s 9% MCLR-linked floating).
- Document pre-validation. DISCOM sanction letter, ownership proof, ITR — checked and clean before the bank ever sees them.
Explore the services that match your project:
- Residential Solar — 3 to 10 kW rooftop systems with EMI structuring and PM Suryaghar handled end-to-end.
- Solar Calculator — enter your bill and see EMI vs savings for SBI, HDFC, and ICICI in 60 seconds.
- Contact Heaven Green — book a free 24-hour site visit and 48-hour custom EMI proposal.
Call our finance specialist at +91 63904 05060 or request a callback. We will recommend the right lender, structure the loan, and walk you through the DBT timeline before you sign anything.
Frequently Asked Questions
What is the EMI for a 3 kW solar system after the PM Suryaghar subsidy in 2026?
After the ₹78,000 PM Suryaghar subsidy, a 3 kW system carries a net loan of ₹87,000–₹1,07,000. At SBI’s 9% floating rate over 5 years, the EMI works out to ₹1,806 on the ₹87,000 lower bound and ₹2,221 on the ₹1.07 lakh upper bound. HDFC at 9.5% adds ₹18–₹22 to the monthly EMI. The EMI sits well below the ₹3,350 monthly bill savings the system generates in Jaipur, Ahmedabad, or Pune.
What is the EMI for a 5 kW solar system after the PM Suryaghar subsidy in 2026?
After the ₹78,000 subsidy, a 5 kW net loan is ₹1.82–₹2.07 lakh. At SBI 9% over 5 years, EMI is ₹3,779 on ₹1.82 lakh and ₹4,298 on ₹2.07 lakh. ICICI at 10% adds about ₹50/month. Monthly bill savings of around ₹5,250 in north India keep cash flow positive by ₹950–₹1,500/month. The 5-year tenure remains the residential standard for this size.
What is the EMI for a 10 kW solar system after the PM Suryaghar subsidy in 2026?
After the ₹78,000 subsidy, a 10 kW net loan is ₹4.22–₹4.72 lakh. At SBI 9% over 5 years, EMI is ₹8,762 on ₹4.22 lakh and ₹9,801 on ₹4.72 lakh. For this size we usually recommend the 7-year HDFC top-up at 9.5%, which brings EMI to ₹6,887–₹7,705 and gives breathing room against the ₹10,500/month bill savings.
Should I borrow the gross system cost or only the post-subsidy amount?
Always borrow the post-subsidy net amount. The PM Suryaghar ₹78,000 lands in your bank within 30 days of commissioning via DBT from MNRE. If you over-borrow by ₹78,000, you pay roughly ₹3,500/year of needless interest on a 5-year 9% loan. Ask your bank for a “net of subsidy” sanction once you provide the application reference number from the PM Suryaghar portal.
Which bank offers the lowest solar EMI for residential systems in 2026?
SBI Surya Shakti at 9.0% floating is the lowest residential rate in 2026, followed by HDFC at 9.5% and ICICI at 10.0%. Tata Capital and Bajaj Finance come in higher at 10.5–11.5% but offer fixed-rate stability and faster disbursal (3–5 days versus 7–15 days for SBI). For pure rate hunting, SBI wins; for speed, Bajaj wins.
How does prepayment affect my solar EMI loan?
A planned prepayment at month 13 — when the ₹78,000 PM Suryaghar DBT has landed and 12 months of bill savings have accumulated — cuts total interest by 10–15% on a 5-year SBI floating-rate loan with no prepayment penalty. HDFC charges 2% foreclosure within the first 36 months, so plan accordingly. Tata Capital and Bajaj fixed-rate loans typically charge 2–4% foreclosure fees.
Is a 3-year tenure better than 5-year for total interest paid?
A 3-year tenure saves around ₹20,000 in total interest on a ₹2 lakh loan at 9%, but raises EMI by 53% versus the 5-year option. For most homes, that higher EMI eats into the cushion above monthly bill savings — you lose flexibility for floating-rate hikes or peak-summer AC bills. The 5-year tenure remains the disciplined residential default; use the lower 5-year EMI plus planned prepayments to capture the interest savings without the cash-flow squeeze.
Can I get a solar loan without putting any money down?
Yes — SBI, HDFC, and ICICI all offer 100% financing of the post-subsidy net amount for residential solar systems up to ₹10 lakh, subject to a CIBIL score above 700 and stable income. The ₹78,000 PM Suryaghar subsidy effectively serves as the “down payment” since it lands within 30 days of commissioning. For the full structure, see our zero-down-payment solar guide.
Are solar EMIs eligible for income tax deduction?
For residential homeowners, solar loan interest is not deductible under Section 24 (which covers home loan interest) unless the solar system is part of the original home loan or a top-up against the existing home loan principal. For self-employed and businesses, the loan interest can be deducted as a business expense, and the system itself attracts 40% Accelerated Depreciation. Always consult a chartered accountant for your specific tax position.
What happens to my EMI if RBI changes the repo rate during my floating-rate loan?
Floating-rate solar loans from SBI (MCLR-linked) and HDFC (RPLR-linked) reset every 3 or 6 months based on benchmark changes. A 25-basis-point repo rate hike typically translates to a 25-bp loan rate increase, which adds about ₹25/month to the EMI on a ₹2 lakh 5-year loan. Build a 1% cushion when planning — if your EMI stays under bill savings even at rate + 1%, you’re insulated against normal cycles.
