The biggest barrier to rooftop solar is usually not the decision, it is the upfront payment. A solar loan in Chennai spreads that cost into monthly EMIs. Under the PM Surya Ghar Muft Bijli Yojana, public sector banks offer collateral-free loans for home systems at some of the lowest rates available for any retail loan in India.
- Best option: a PM Surya Ghar loan from a public sector bank, applied through the JanSamarth portal.
- Interest: published 2026 rates for small home-solar loans (up to about ₹2 lakh) are roughly 6–7% a year; larger loans cost more. Rates are floating and change with the RBI repo rate.
- Collateral: not required for the smaller loans that cover typical home systems.
- Margin: you usually pay about 10% of the system cost yourself.
- EMI: about ₹2,300–3,000 a month for a 3 kW system over 7–10 years, lower if you use the subsidy to prepay.
The PM Surya Ghar solar loan
To make the scheme affordable, the government arranged concessional loans for residential rooftop solar through public sector banks. Banks including SBI, Indian Bank, Canara Bank and Union Bank offer them, and applications go through the government's JanSamarth portal.
- Who it is for: homeowners with their own domestic electricity connection installing a residential rooftop system under PM Surya Ghar.
- Interest rate: published rates in 2026 are roughly 6–7% for loans up to about ₹2 lakh, which covers most systems up to 3 kW. Larger loans for bigger systems carry a higher rate. Rates are linked to the RBI repo rate, so they move when it changes.
- Collateral: the smaller home-solar loans are collateral-free.
- Margin: typically around 10% of the system cost, paid by you.
- Tenure: up to about 10 years, depending on the bank.
- Disbursement: usually paid to the registered vendor against installation.
All solar loan options in Chennai compared
| Option | Typical cost | Good for | Watch for |
|---|---|---|---|
| PM Surya Ghar loan (public sector bank, via JanSamarth) | Lowest: roughly 6–7% for small loans | Most homes up to 3 kW | Needs DISCOM feasibility approval first; a few weeks of processing |
| Bank solar or green loan outside the scheme | Higher than the scheme rate | Larger homes, villas, systems above 3 kW | May need collateral or income proof for larger amounts |
| Personal loan | Usually 10–16%+ | Fast approval | Much higher total interest |
| Installer or NBFC EMI plan | Varies; check the effective rate | Convenience, one-stop paperwork | "No-cost EMI" can hide fees; ask for the APR |
| Home loan top-up | Close to home-loan rates | Existing home-loan customers | Longer tenure means more total interest |
| Credit card EMI | Often high | Small top-ups only | Avoid for the main system |
For most Chennai homeowners, the PM Surya Ghar loan is clearly the cheapest. Use the others only if you need speed or a system larger than the scheme loan covers.
EMI for a 3 kW solar system in Chennai
A 3 kW system costs roughly ₹2.1–2.3 lakh before subsidy in Chennai (see our solar panel price list). With about 10% margin, the loan is around ₹1.98 lakh. Approximate EMIs:
| Loan of ₹1.98 lakh | 5 years | 7 years | 10 years |
|---|---|---|---|
| At 6% (scheme rate) | ≈ ₹3,830 | ≈ ₹2,890 | ≈ ₹2,200 |
| At 7% (scheme rate) | ≈ ₹3,920 | ≈ ₹2,990 | ≈ ₹2,300 |
| At 10.5% (typical personal or NBFC loan) | ≈ ₹4,260 | ≈ ₹3,340 | ≈ ₹2,670 |
For a 5 kW system with a loan of about ₹3 lakh at 8%, the EMI is roughly ₹4,680 over 7 years or ₹3,640 over 10 years. These are illustrations; your bank's rate and fees decide the final figure.
Using the ₹78,000 subsidy to reduce your loan
The PM Surya Ghar subsidy is paid into your bank account after the system is commissioned and you submit your bank details on the portal. You can use it to prepay part of the loan:
- If ₹78,000 is prepaid early, the remaining balance on a ₹1.98 lakh loan falls to about ₹1.2 lakh. At 7% over 7 years, that is roughly ₹1,800 a month.
- Alternatively, keep the EMI and shorten the tenure, paying off the loan years earlier.
- Under RBI rules, banks do not charge foreclosure or prepayment penalties on floating-rate loans to individuals for personal purposes. Confirm the terms in your sanction letter.
Work out your subsidy with the Chennai solar subsidy calculator.
How to apply for a solar loan in Chennai, step by step
Register on PM Surya Ghar
Apply on pmsuryaghar.gov.in with your EB consumer number, exactly as on your bill.
Get DISCOM feasibility approval
TNPDCL (formerly TANGEDCO) checks your connection and approves the application. Banks need this approval for the scheme loan.
Choose a registered vendor and get a quote
The vendor must be registered on PM Surya Ghar for Tamil Nadu. Here is how to check a vendor. The bank will need the quotation.
Apply on JanSamarth
Choose the PM Surya Ghar loan, select a bank, and upload your documents.
Sanction and installation
Once the loan is sanctioned and you pay the margin, the vendor installs the system.
Net metering and commissioning
TNPDCL installs the net meter and commissions the system. The bank releases payment as per its terms.
Claim the subsidy and prepay
Submit your bank details on the portal, receive the subsidy, and use it to prepay the loan if you choose.
Documents banks usually ask for
- Aadhaar and PAN
- Latest EB bill showing your consumer number
- Proof of ownership of the house or flat
- PM Surya Ghar application and DISCOM feasibility approval
- Quotation from a registered vendor
- Bank statements; income proof may be asked for, especially for larger loans
- For flats: the association NOC for terrace space (see solar for a 3 BHK flat)
For the subsidy paperwork itself, see the documents required for the rooftop solar subsidy in Tamil Nadu.
Is a solar loan worth it in Chennai?
Compare the EMI with what solar takes off your bill. A 3 kW system in Chennai produces roughly 330–360 units a month. Tamil Nadu bills every two months and charges more per unit in higher slabs, so homes with large bi-monthly bills save the most. For many such homes, monthly savings come close to a 7–10 year EMI, which means the system largely pays for itself while you repay. After the loan ends, the savings are yours for the rest of the system's life.
Estimate your own savings with our guide to how much solar saves a Chennai home, size the system with the solar size calculator, and see the best rooftop solar setup for independent houses.
Frequently asked questions
Which bank gives the best solar loan in Chennai?
For home systems, the PM Surya Ghar loan from public sector banks such as SBI, Indian Bank, Canara Bank and Union Bank is usually cheapest, at roughly 6–7% for small loans in 2026. Compare current rates and fees on JanSamarth before choosing.
What is the interest rate on a PM Surya Ghar solar loan?
Published 2026 rates for loans up to about ₹2 lakh are roughly 6–7% a year; larger loans cost more. Rates are floating and linked to the RBI repo rate, so confirm the current rate with the bank.
Do I need collateral for a solar loan?
Not for the smaller PM Surya Ghar loans that cover typical home systems up to 3 kW. Larger loans may need collateral or more documentation.
What is the EMI for a 3 kW solar system?
For a loan of about ₹1.98 lakh at 7%, the EMI is roughly ₹2,990 over 7 years or ₹2,300 over 10 years. Prepaying the ₹78,000 subsidy can bring it down to about ₹1,800 over 7 years.
Can I get a solar loan and the subsidy together?
Yes. The loan funds the installation, and the subsidy is paid to your bank account after commissioning. Many homeowners use the subsidy to prepay part of the loan.
How long does a solar loan take to approve?
After DISCOM feasibility approval, bank processing typically takes one to a few weeks, depending on the bank and how complete your documents are.
Can flat owners get a solar loan?
Yes, if they have their own domestic EB connection and an association NOC for terrace space. The bank will ask for the NOC along with the usual documents.
Get a solar quote with EMI options
Arka Solar Energy, a solar company in Chennai, prepares the bank-ready quotation, handles the PM Surya Ghar application and TNPDCL net metering, and helps you through the JanSamarth loan process.
Loan terms are summarised from public 2026 sources and change with the RBI repo rate and each bank's policy. EMIs are illustrative. Confirm current terms with the bank or on jansamarth.in. Comparing installers? See the best residential solar companies in Chennai.