What does Solar Loan scheme Means ?
The solar Loan scheme or Surya Ghar – Muft Bijli Yojana was launched by Prime Minister Narendra Modi ji on 13 February 2024. The scheme was subsequently approved by the Union Cabinet on 29 February 2024 with the objective of promoting for solar energy adoption across residential households in India.
Under this ambitious initiative, the Government of India aims to install rooftop solar systems in one crore households, families to generate their own electricity and significantly reduce their power bills.
Therefore, scheme is designed to provide access to clean, affordable, and sustainable energy while supporting India’s renewable energy goals.
The government has allocated a substantial budget of ₹75,021 crore for the implementation of the scheme, which will remain in force until FY 2026-27. Through financial assistance, the program seeks to accelerate the adoption of rooftop solar systems across the country.
Key Features or Tracking of the Solar Loan Scheme
- Supports Clean Energy Adoption – Helps households switch to renewable energy while reducing electricity expenses.
- Attractive Interest Rate – Loan available at a competitive rate of interest.
- Reducing Balance Method – Interest is charged only on the outstanding loan amount, it helps to reduce the overall interest burden.
- Purpose of Loan – Financing available for the installation of a Residential Rooftop Solar On-Grid Photovoltaic (PV) System.
- Solar Capacity Covered – Eligible for rooftop solar systems up to 10 kW capacity.
- No Minimum Income Requirement: No minimum annual income criteria needed from the applicants.
- Relaxed Eligibility Norms – No Net Take Home (NTH) criteria applicable.
- Zero Processing Charges – No processing fee is charged on the loan.
- Flexible Repayment Tenure – Longer repayment period available for borrower convenience.
- Maximum Loan Amount – Loan facility available up to ₹2 lakh.
- Applicants Contribution – Minimum margin of 10% of the total project cost is required.
- Comprehensive Cost Coverage – Loan covers the cost of purchasing and installing Grid-Interactive Rooftop Solar Photovoltaic (PV) equipment.
- Supports Clean Energy Adoption – Helps households switch to renewable energy while reducing electricity expenses.
Interest Rates of Solar Loan Scheme
| Particulars | Details |
| Rate of Interest (ROI) | 6% per annum |
| Interest Calculation Method | Reducing Balance Interest Rate |
| Key Benefit | Interest is charged only on the outstanding principal amount |
| Interest Savings | Lower overall interest cost compared to flat-rate loans |
| Loan Tenure | Up to 6 months |
| EMI Planning | Borrowers can use a loan calculator to estimate EMIs |
| Interest Estimation | Helps calculate total interest payable before availing the loan |
| Repayment Estimation | Enables borrowers to know the total repayment amount in advance |
| Financial Planning | Assists in better budgeting and repayment management |
| Transparency | Clear understanding of loan obligations before applying |
| Purpose | Financing rooftop solar installations under PM Surya Ghar Yojana |
| Major Advantage | Affordable financing with a low interest rate and reducing balance method |
Solar Loan Scheme Eligibility Criteria
| Eligibility Parameter | Requirement |
| Eligible Applicants | Resident Indian Citizens, NRIs, PIOs, and OCIs |
| Employment Status | Salaried individuals, self-employed individuals, professionals, and creditworthy applicants |
| Canara Bank Employees | Existing and former Canara Bank employees are eligible |
| Minimum Age | 18 years |
| Maximum Age | 75 years |
| Applicants Above 65 Years | Loan to be sanctioned with a legal heir below 60 years as co-obligant |
| CIC/Credit Score | 680 and above |
| No Credit History Cases | Applicants with CIC score between -1 and 99 may be considered |
| Rooftop Rights | Applicant must have legal rights to install the rooftop solar system |
| Rooftop Area Requirement | Sufficient rooftop area as per MNRE guidelines |
| Electricity Bill Requirement | Latest electricity bill must be in the applicant’s name |
| Electricity Payment | Applicant should be regularly paying electricity bills |
Flexible Solar Loan Scheme Application Requirement
The Canara bank solar loan or PM Surya Ghar Yojana Scheme is designed to make rooftop solar installations affordable and accessible for households across the India. With flexible loan amounts, reasonable borrower contributions, and simple eligibility requirements, the scheme helps to those homeowners who want to clean the energy without significant financial strain.
Loans Up to ₹2.00 Lakh
For smaller solar projects, applicants can avail a loan of up to ₹2.00 lakh, inclusive of any eligible government subsidy such as –
- Loan Amount – Up to ₹2.00 lakh
- Purpose – Purchase and installation of rooftop solar photovoltaic (PV) systems up to 10 kW capacity
- Margin Requirement – Minimum up to 10% of the total project cost to be contributed by the applicant
- Income Criteria – No minimum annual income requirement
- NTH Requirement – No Net Take Home (NTH) criteria applicable
Note – This category facility is particularly beneficial for households seeking an easy and hassle-free financing solution with minimal eligibility conditions.
Loans Above ₹2.00 Lakh and Up to ₹6.00 Lakh
Those Homeowners who all are planning for larger rooftop solar installations can opt for loans ranging from above ₹2.00 lakh to ₹6.00 lakh, including eligible government subsidies.
- Loan Amount – Above ₹2.00 lakh and up to ₹6.00 lakh
- Purpose – Financing the purchase and installation of rooftop solar PV systems up to 10 kW capacity
- Margin Requirement – Minimum 20% of the total project cost to be contributed by the borrower
- Minimum Annual Income – ₹3.00 lakh per annum
- NTH Requirement – 25% of gross monthly income or ₹10,000, whichever is higher
Note – These eligibility norms are structured to ensure that borrowers have the financial capacity to manage repayments while continuing to make solar energy financing accessible and affordable.
Whether you are installing a basic rooftop solar setup or a larger system, the scheme offers a practical financing solution to help you to reduce electricity costs and embrace sustainable energy.
Solar Loan Scheme Government Subsidy Benefits
- Attractive Government Support – Eligible homeowners can receive a government subsidy for installing rooftop solar systems under the PM Surya Ghar Muft Bijli Yojana.
- Maximum Subsidy Amount – Subsidy of up to ₹78,000 is available for eligible rooftop solar installations.
- Eligible Solar Capacity – Subsidy benefits are available for solar systems ranging from up to 3 kW and above 3 kW up to 10 kW.
- Reduced Financial Burden – The subsidy helps to lower the overall cost of installing a rooftop solar system.
- Direct Benefit Transfer (DBT) – The approved subsidy amount is directly credited to the applicants bank account.
- Lower Loan Outstanding – The subsidy can be used to reduce the outstanding loan amount.
- Reduced EMI Burden – Lower loan balance translates into more affordable monthly EMI payments.
- Online Application Process – Borrowers must apply for the subsidy through the National Portal for Rooftop Solar.
- Easy Access to Benefits – Subsidy is released after successful installation and verification of the rooftop solar system.
- Promotes Clean Energy – Encourages households to adopt renewable energy and reduce electricity costs.
Subsidy Support Based on Electricity Consumption
| Average Monthly Electricity Consumption | Recommended Solar Plant Capacity | Subsidy Support | Subsidy Support for North Eastern States |
| 0–150 Units | 1–2 kW | ₹30,000 – ₹60,000 | ₹33,000 – ₹66,000 |
| 150–300 Units | 2–3 kW | ₹60,000 – ₹78,000 | ₹66,000 – ₹85,800 |
Why Choose Canara Bank for Solar Loan Scheme?
- Trusted Public Sector Bank – Canara Bank is one of the India’s leading public sector banks with a strong presence across the country.
- Dedicated Solar Loan Scheme – Specially designed Canara Rooftop Solar – PM Surya Ghar Yojana Loan Scheme for financing rooftop solar installations.
- Competitive Interest Rates – Affordable interest rates help reduce the overall borrowing cost.
- Government Subsidy Support – Applicants can avail eligible subsidies under the PM Surya Ghar Muft Bijli Yojana.
- Easy Access of Financing – It Helps to homeowners to manage the upfront cost of installing rooftop solar systems.
- Flexible Loan Options – Multiple loan slabs available based on project requirements and applicant eligibility.
- Customer-Friendly Eligibility Criteria – Simplified eligibility norms make the loan accessible to a wider range of applicants.
- Minimal Documentation – Streamlined application process with reduced paperwork requirements.
- Hassle-Free Processing – Quick and convenient loan processing for eligible applicants.
- Supports Clean Energy Adoption – Encourages households to switch to renewable energy and reduce dependence on conventional power sources.
- Lower Electricity Bills – Financing enables homeowners to install solar systems and achieve long-term savings on electricity expenses.
- Promotes Energy Independence – Helps to families to generate their own power and reduce reliance on grid electricity.
- Suitable for Various Household Needs –Financing available for rooftop solar systems up to 10 kW capacity.
- Transparent Loan Structure – Clear terms and repayment conditions for better financial planning.
- Nationwide Reach – Extensive branch network provides easy access to solar loan services across the India.
Documents Required for Solar Loan Scheme
| Document | Purpose |
| Duly Filled Loan Application Form | Required to initiate the loan application process |
| Passport-Size Photographs | Two recent photographs of the applicant and co-applicant(s), if applicable |
| KYC Documents | Identity and address proof as per the bank’s KYC guidelines |
| Latest Electricity Bill | Verification of electricity connection and installation address |
| Self-Declaration of Income | Assessment of the applicant’s repayment capacity |
| Technical Feasibility Report (TFR) | Confirms the suitability of the rooftop solar installation, issued by the concerned DISCOM |
| Vendor Quotation | Cost estimate from an empanelled vendor approved by SNA, DISCOM, or MNRE |
| Additional Documents (if required) | Any other documents requested by the bank during loan processing |
Conclusion
As India moves steadily toward a cleaner and more sustainable energy for future access. The Canara bank Solar loan or PM Surya Ghar Yojana Loan Scheme is designed to support this transition by offering competitive interest rates, flexible repayment options, zero processing charges, and seamless integration with government subsidy benefits.
Whether your goal is to reduce monthly electricity bills or achieve greater energy independence. This loan scheme provides a practical and convenient financing solution. It’s simple eligibility criteria, customer-friendly features, and transparent loan structure make the journey toward solar energy easier for homeowners.
By combining affordable credit with the benefits of the PM Surya Ghar Muft Bijli Yojana, Canara Bank is helping to more families embrace clean energy and build a sustainable future.
