PM Surya Ghar Rooftop Solar Loan Interest Rates (SBI, PNB, Canara) 2026

Applied for the PM Surya Ghar subsidy already but stuck on how to fund the rest of your rooftop solar cost?

You’re asking the right question, because most homeowners get so focused on the ₹78,000 subsidy that they forget the remaining 60-70% of the cost still needs financing, and that’s exactly where PM Surya Ghar rooftop solar loan interest rates from banks like SBI, PNB, and Canara Bank become the real deciding factor in 2026.

Why Bank Loans Matter Alongside the Subsidy

The PM Surya Ghar Muft Bijli Yojana subsidy covers up to ₹78,000 for a 3 kW system, but the total installation cost for that same system typically runs ₹1.5–2 lakh, leaving a gap that most households bridge through a bank loan rather than savings.

This is why the government partnered with public sector banks to offer collateral-free solar loans specifically designed for residential rooftop installations under this scheme, with tenures up to 10 years and minimal processing fees. Without this financing layer, the subsidy alone would still leave many middle-income households unable to afford solar upfront, which defeats the scheme’s larger goal of mass rooftop adoption. That’s precisely why understanding loan terms is just as important as understanding subsidy eligibility.

Current Interest Rates: SBI, PNB, Canara Compared

Direct answer: as of 2026, SBI offers the lowest starting rate at 5.75% for loans up to ₹2 lakh, while PNB and Canara Bank fall in the 7-11% range depending on loan amount and tenure.

Bank	Interest rate	Max loan amount	Tenure	Collateral-free limit
SBI (Yono Surya Ghar)	5.75%–10.15%	₹6 lakh	Up to 10 years	Up to ₹2 lakh (for ≤3 kW)
PNB	~7.00% (5.75% up to ₹2 lakh)	₹6 lakh	Up to 10 years	Up to ₹2 lakh (for ≤3 kW)
Canara Bank	7.00%–10.95%	₹6 lakh	Up to 10 years	Up to ₹2 lakh (for ≤3 kW)
Bank of Baroda	7.00%–9.15%	₹6 lakh	Up to 10 years	Up to ₹2 lakh
Union Bank of India	7.00%–10.05%	₹6 lakh	Up to 10 years	Up to ₹2 lakh

Note that SBI recently revised its base rate to 7.25% per annum effective April 2026, though the concessional 5.75% slab for loans up to ₹2 lakh under PM Surya Ghar continues to apply for eligible applicants. Rates can vary slightly based on your credit profile and the specific branch you apply through, so it’s worth confirming the latest number directly with the bank before applying.

It’s also worth noting that these rates are reviewed periodically by the RBI’s repo rate movements, so a rate you see quoted today could shift by 25-50 basis points within a few months always ask your bank for the current effective rate rather than relying on older published figures.

Check Solar Loan Schemes in India 2026

SBI Solar Loan: A Closer Look

SBI’s Surya Ghar loan remains the most popular option among applicants largely because of its tiered pricing structure, which rewards smaller systems with the lowest rates.

• 5.75% per annum for loan amounts up to ₹2 lakh, ideal for a standard 3 kW residential system
• 7.90% per annum for loans up to ₹6 lakh, covering larger systems in the 5-8 kW range
• 9.95% per annum applicable for higher-risk profiles or extended tenures
• Collateral-free for systems up to 3 kW, meaning no property mortgage or guarantor required
• Age eligibility up to 65 years at loan maturity

This tiered structure makes SBI particularly attractive for households sizing their system exactly to their subsidy-eligible capacity of 3 kW, since that’s where the lowest rate slab applies. Applicants can apply for this loan through SBI’s YONO app or by visiting a branch directly, and the bank has streamlined its solar loan desk specifically to reduce approval time to under a week for straightforward applications with complete documentation.

PNB and Canara Bank: What Sets Them Apart

While SBI often gets the most attention, PNB and Canara Bank offer competitive alternatives, especially for applicants who already bank with these institutions or live in regions with limited SBI branch access.

PNB mirrors SBI’s concessional rate of around 5.75-7% for loans up to ₹2 lakh, with the same collateral-free provision for systems under 3 kW, making it functionally similar in cost for smaller installations. Canara Bank’s rate band is slightly wider at 7-10.95%, which means larger loan amounts or lower credit scores can push your effective rate higher compared to SBI or PNB. If you’re deciding between the three purely on interest rate, SBI and PNB generally offer marginally better terms for loans up to ₹2 lakh, while Canara Bank remains a solid choice if you already have an existing relationship with the bank that could ease documentation.

Beyond interest rates, it’s worth comparing processing fees and prepayment charges too. Most PM Surya Ghar-empanelled banks, including PNB and Canara, waive processing fees entirely for loans under this scheme, and prepayment penalties are typically nil, which means you can close the loan early without extra cost if your finances improve down the line.

Check Which Is Better for Rooftop Solar Financing in South India (2026)

How Loan Amount Affects Your EMI

Understanding how loan size translates into monthly repayment helps you plan your budget before signing any paperwork.

System size	Approx. loan amount (post-subsidy)	Interest rate	Tenure	Approx. EMI
1 kW	₹40,000–50,000	5.75%–7%	10 years	₹450–550/month
2 kW	₹80,000–1,00,000	5.75%–7%	10 years	₹900–1,100/month
3 kW	₹1.2–1.5 lakh	5.75%–7.90%	10 years	₹1,800–2,200/month
5 kW	₹2.5–3 lakh	7.90%–9.95%	10 years	₹3,500–4,200/month

EMIs starting around ₹1,800 a month for a standard 3 kW system are often lower than what many households already spend on their monthly electricity bill, which is the core financial argument for financing rather than waiting to save up the full amount. Shorter tenures reduce total interest paid but increase monthly EMI, so it’s worth running your own numbers based on comfortable monthly outflow rather than simply choosing the maximum available tenure by default.

Documents and Eligibility You’ll Need

Before applying, most banks under this scheme ask for a fairly standard set of documents, and having these ready in advance speeds up approval significantly.

1. Aadhaar card and PAN card for identity verification
2. Latest electricity bill showing your consumer account number
3. Proof of property ownership or rental agreement for the installation site
4. Income proof (salary slips or ITR) for loan eligibility assessment
5. Registration confirmation from the PM Surya Ghar portal (pmsuryaghar.gov.in)

Applicants can also apply through the Jansamarth portal (jansamarth.in), which acts as a single-window platform connecting borrowers to all PM Surya Ghar-empanelled banks, including SBI, PNB, Canara Bank, Bank of Baroda, and Union Bank. This portal is particularly useful if you want to compare multiple bank offers side by side without visiting each branch individually, since it aggregates rate and eligibility information in one place.

Step-by-Step Application Process

Getting your loan sanctioned involves a fairly linear sequence, and following it in order avoids unnecessary delays.

1. Register on the PM Surya Ghar portal and complete your rooftop solar eligibility check
2. Get your installer’s quotation and technical feasibility approval from your DISCOM
3. Choose your preferred bank (SBI, PNB, or Canara) based on rate and existing relationship
4. Submit your loan application with the required documents, either via Jansamarth or directly at the branch
5. Receive loan sanction, typically within 5-10 working days for complete applications
6. Complete installation, after which the subsidy amount is credited directly to your account, reducing your outstanding loan balance or being paid out separately depending on your arrangement.

Choosing the Right Bank for Your Situation

If you’re weighing SBI against PNB or Canara Bank, the decision often comes down to where you already have an existing banking relationship, since that can speed up approval and sometimes unlock preferential rates beyond the standard scheme pricing.

For a straightforward 3 kW residential system, SBI’s 5.75% slab and 10-year tenure currently offers the most cost-effective path, but it’s always worth getting a quote from at least two banks before finalizing, since branch-level variations in processing time and documentation requirements can meaningfully affect your overall experience even when headline rates look similar.

Ultimately, the right choice depends less on chasing the absolute lowest rate and more on finding a bank that processes your application quickly, keeps fees minimal, and fits comfortably within your monthly budget once the EMI kicks in.

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