Solar Loan Schemes in India 2026: SBI, PNB & Canara Bank Compared for Tamil Nadu & Kerala Homeowners

Thinking about installing a rooftop solar system in Tamil Nadu or Kerala, but worried about the upfront cost and the solar loan process? In 2026, leading banks like SBI, PNB and Canara Bank are offering dedicated solar loan schemes under the PM Surya Ghar – Muft Bijli Yojana to help homeowners finance their rooftop solar power system with easy EMIs and government subsidy support.

In this guide, I’ll walk you through how a solar loan works, the key features of SBI, PNB and Canara solar loan schemes in India 2026, and the exact documents and steps needed to apply online for a Loan for Solar RoofTop in Tamil Nadu and Kerala.

How does a solar loan work?

A solar loan is a dedicated financing product that helps you pay for your rooftop solar system over time, instead of paying the full amount upfront. The bank pays the empanelled solar vendor/installer directly, and you repay the loan in monthly EMIs, often over a tenure of up to 10 years.

Under PM Surya Ghar – Muft Bijli Yojana, you also receive central government subsidy (up to ₹78,000 for residential systems up to 3 kW) which is credited to your loan account, effectively reducing your total payable amount and EMI burden. This combination of solar loan + subsidy is what makes it possible for many families in Tamil Nadu and Kerala to finance your rooftop solar power system with minimal upfront payment.

PM Surya Ghar rooftop solar scheme: quick snapshot for TN & Kerala

The PM Surya Ghar – Muft Bijli Yojana is a central scheme, but implementation happens through state DISCOMs and the national portal.

Key points relevant to Tamil Nadu and Kerala homeowners:

• Subsidy structure:
  • 1 kW: ₹30,000
  • 2 kW: ₹60,000
  • 3 kW and above: capped at ₹78,000 for residential users.
• Application: You apply through the national portal (pmsuryaghar.gov.in / solarrooftop.gov.in) and your DISCOM (e.g., TANGEDCO in Tamil Nadu, KSEB in Kerala) verifies technical feasibility.
• Credit of subsidy: After installation and net metering approval, subsidy is credited to your loan account using the loan number you provided during application.

This is the same base scheme used by SBI, PNB and Canara Bank in their residential rooftop solar loan products.

SBI, PNB & Canara solar loan schemes compared (India 2026)

Below is a simple comparison table of the main residential rooftop solar loan schemes under PM Surya Ghar in 2026.

Feature	SBI PM Surya Ghar – Loan for Solar Roof Top	PNB Scheme for Financing Rooftop Solar Power Systems	Canara Rooftop Solar CRTS – PM Surya Ghar Yojana
Max system size (residential)	Up to 3 kW for core scheme	Up to 10 kW (with slabs 0–3 kW & 3–10 kW)	Residential rooftop up to 3 kW (CRTS up to ₹2 lakh), extended variant up to 10 kW via CRTS above ₹2 lakh
Max loan amount	Up to ₹2 lakh including subsidy for up to 3 kW	Up to ₹2 lakh (≤3 kW), up to ₹6 lakh for >3 kW–10 kW	Up to ₹2 lakh including subsidy for up to 3 kW; higher amounts for 3–10 kW under extended CRTS product
Margin (borrower contribution)	Minimum 10% of project cost	10% for loans ≤₹2 lakh; 20% for ₹2–6 lakh	Minimum 10% of total project cost
Interest rate (indicative, 2026)	Around 7% p.a. for ≤3 kW (EBLR – 2.15%)	Typically ~7–9.25% p.a. depending on ticket size and profile	Around 7% p.a. for up to 3 kW, 9.15%+ p.a. for 3–10 kW depending on CIBIL score
Tenure	Up to 120 months (10 years) including moratorium	Up to 10 years including moratorium	Up to 10 years, with 6-month moratorium possible[
Processing fee	Nil processing fees for PM Surya Ghar rooftop loans	Nil processing fees under the scheme	Nil service & other charges for CRTS PMSGY scheme
Security	Hypothecation of rooftop solar assets (panels, inverter, etc.)	Hypothecation of equipment; third‑party guarantee above ₹2 lakh	Hypothecation of equipment; collateral generally waived for small ticket CRTS loans
Application journey	Through bank + PM Surya Ghar portal, disbursement to vendor	Digital sourcing via Jan Samarth portal with in‑principle sanction, then branch verification	Bank branches and PM Surya Ghar portal; often linked to empanelled vendors like Tata Power Renewable Energy

SBI PM Surya Ghar – Loan for Solar Roof Top: highlights

SBI’s PM Surya Ghar – Loan for Solar Roof Top focuses on residential rooftop systems up to 3 kW and targets mass adoption with simple eligibility and pricing.[sbi.bank]

Key points for homeowners in Tamil Nadu and Kerala:

• Purpose: Installation of rooftop solar systems up to 3 kW for personal use under PM Surya Ghar.
• Loan amount & margin: Up to ₹2 lakh including subsidy, with minimum 10% of project cost contributed by the borrower.
• Interest & tenure: Net interest rate around 7% p.a., with maximum tenure of 10 years (120 months) including moratorium; no pre-payment penalty.
• Security & charges: Hypothecation of solar assets; processing charges typically NIL for this scheme.

Because SBI is widely present in both Tamil Nadu and Kerala, many rooftop solar vendors (including players like Kondaas, Tata Power Solar, Waaree, Adani and Loom Solar) actively coordinate with local branches to help customers complete the solar loan process quickly.

PNB Scheme for Financing Rooftop Solar Power Systems: highlights

Punjab National Bank has a detailed residential rooftop solar scheme that supports system capacities from small (≤3 kW) up to 10 kW for individual homeowners.

Important points:

• Eligible borrowers: Individuals singly or jointly with immediate family (parents, spouse, earning children/daughter‑in‑law) who own the property and rooftop rights.
• Loan amount:
  • Up to 3 kW: maximum loan ₹2 lakh.
  • Above 3 kW up to 10 kW: maximum loan ₹6 lakh (₹50,000–₹70,000 per kW benchmark cost).
• Margin & income:
  • Loans up to ₹2 lakh: 10% margin, no minimum income requirement.
  • Loans ₹2–6 lakh: 20% margin and minimum annual income of ₹3 lakh; EMIs must keep total deductions ≤50% of gross income.
• Tenure & security: Tenure up to 10 years; hypothecation of equipment, with third‑party guarantee for loans above ₹2 lakh.
• Digital journey: Applications sourced via Jan Samarth portal with digital in‑principle sanction; final sanction after document verification at branch.

For Tamil Nadu and Kerala homeowners looking at slightly larger rooftop systems (4–6 kW or even 8–10 kW), PNB’s higher loan ceiling can be attractive, especially if you want one bank to finance your rooftop solar power system fully rather than mixing personal savings and loans.

For Tamil Nadu and Kerala homeowners Should Know – Solar Subsidy Update 2026

Canara Rooftop Solar CRTS – PM Surya Ghar Yojana: highlights

Canara Bank’s CRTS – PM Surya Ghar Yojana scheme is designed to provide collateral‑free funding for small residential systems, with variants for larger capacities up to 10 kW.

Core CRTS features (up to 3 kW):

• Loan quantum: Maximum ₹2 lakh including subsidy for rooftop systems up to 3 kW.
• Margin & tenure: Minimum 10% margin contribution by borrower; tenure up to 10 years with EMI-based repayment, and a possible 6‑month repayment holiday from first disbursement.
• Eligibility: Resident Indian citizens, NRIs, PIOs and OCIs; salaried and non‑salaried individuals; minimum entry age 18 years, maximum 75 years.
• Charges: No processing charges or service charges under CRTS PMSGY; security is hypothecation of solar equipment.

Canara also supports loans for systems between 3–10 kW with slightly higher interest rates starting from around 9.15% p.a. based on CIBIL score, which is useful if you plan a larger rooftop plant to offset more of your TN or Kerala electricity bill. Their partnership with vendors like Tata Power Renewable Energy is aimed at quick approval and disbursal for rooftop solar loans, with clear targets for installations up to 2027.

Solar loan process: step‑by‑step for Tamil Nadu & Kerala

If you are wondering “how does solar loan work” and “what is the solar loan process,” here is a simple flow you can follow with SBI, PNB or Canara Bank in 2026.

1. Check rooftop feasibility
   • Confirm you have clear roof space and rooftop rights (ownership) on your house in Tamil Nadu or Kerala.
   • Get a basic site check from an empanelled vendor (e.g., Kondaas, Tata, Waaree, Adani, Loom Solar) who can suggest system size (kW) and expected units per month.
2. Apply on PM Surya Ghar / National rooftop portal
   • Register on the national portal (pmsuryaghar.gov.in or solarrooftop.gov.in) with your consumer number and DISCOM details (TANGEDCO / KSEB).
   • Choose an empanelled vendor from the list and submit an initial application for rooftop solar.
3. Get feasibility report and quotation
   • DISCOM issues a technical feasibility report after site inspection.
   • Vendor provides a detailed quotation (system size, cost, components) aligned with MNRE benchmarks.
4. Apply for Loan for Solar RoofTop with your bank
   • Visit SBI, PNB or Canara branch (or use online portals like Jan Samarth for PNB) and submit loan application with feasibility report and quotation.
   • The bank checks your CIBIL score, income and property documents, then issues a sanction order.
5. Disbursement and installation
   • Bank disburses loan amount and your margin contribution directly to the vendor/EPC contractor once documents are executed.
   • Vendor installs the rooftop solar system and coordinates net metering with TANGEDCO/KSEB.
6. Subsidy and EMI start
   • After commissioning and approval, you or the vendor claim subsidy through the national portal linked to your loan account number.
   • Subsidy is credited to the loan account, and EMIs start as per schedule (after any moratorium period).

This is the typical solar loan process you’ll follow whether you choose SBI, PNB or Canara Bank to finance your rooftop solar power system in Tamil Nadu or Kerala.

Documents required for a solar panel financing application

To keep approvals smooth and quick, prepare these basic documents required for a solar panel financing application before you approach the bank.

• Identity & KYC: PAN, Aadhaar, photographs of applicant and co‑applicant.
• Property & ownership: Recent property tax receipt, sale deed or other proof showing you own the house and rooftop rights.
• Electricity bill: Latest electricity bill in your name (for Tamil Nadu or Kerala address) to link DISCOM consumer details.
• Income proof:
  • For smaller loans (≤₹2 lakh), some banks like PNB have no minimum income requirement.
  • For larger loans, you’ll need ITR/Form 16 for at least one year and last 6 months’ bank statements.
• Vendor quotation and feasibility report: Detailed quotation from empanelled vendor and technical feasibility report from DISCOM.

Having these ready reduces back‑and‑forth and supports quick approval and disbursal.

Application process for government‑backed solar power loans

Government‑backed rooftop solar loans under PM Surya Ghar are closely integrated with portals like Jan Samarth and the national rooftop solar portal.

For example:

• PNB: All applications are sourced through Jan Samarth, where you can complete a self‑sourced or assisted digital journey and receive an in‑principle sanction based on self‑declared details, followed by branch verification.
• SBI & Canara: Applications are often tied to PM Surya Ghar portal registrations; disbursements go directly to empanelled vendors after submission of feasibility reports mandated by MNRE.

This design ensures your solar loan is linked to subsidy eligibility and net metering approvals, avoiding issues later when claiming government benefits.

Find solar loan schemes with quick approval and disbursal

In 2026, one clear trend in the Indian solar financing space is the push for faster, more digital approval processes. Banks are using portals and simplified documentation so that most standard residential rooftop solar loans can receive in‑principle approval within days and final disbursal soon after feasibility and vendor documents are checked.

To find solar loan schemes with quick approval and disbursal in Tamil Nadu and Kerala:

• Look for banks with digital journeys (Jan Samarth for PNB, SBI online application routes, Canara’s vendor tie‑ups).
• Choose empanelled vendors who already know each bank’s documentation format and can help you file correctly the first time.
• Keep your documents clean and updated so the credit team doesn’t need multiple clarifications.

Portals like SolarSquare’s rate comparison guides and other 2026 solar loan interest rate comparison blogs show that major players are competing heavily on interest rate (around 7–9% p.a.) and approval speed, which benefits homeowners.

How to choose the right solar loan scheme (SBI vs PNB vs Canara)

Here is a simple way to choose between these three for your rooftop solar loan process:

• Pick SBI if:
  • You want a straightforward Loan for Solar RoofTop for up to 3 kW with a strong branch network and stable interest around 7%.
  • You prefer long‑term relationships with SBI and want easy branch access in Tamil Nadu or Kerala.
• Pick PNB if:
  • You plan a system larger than 3 kW (for example 5–8 kW), and need a loan up to ₹6 lakh with flexibility for higher capacity.
  • You are comfortable documenting your income (ITR, bank statements) and using Jan Samarth portal for digital sanction.
• Pick Canara Bank if:
  • You want collateral‑free funding up to ₹2 lakh with minimal charges for a 2–3 kW system.
  • You like the idea of vendor partnerships (e.g., Tata Power Renewable Energy) where the bank and installer coordinate closely for quick disbursal and installation.

In all three cases, remember that PM Surya Ghar subsidy is central, so your focus should be on interest rate, processing simplicity, service quality and how smoothly the bank and vendor handle paperwork with DISCOMs in Tamil Nadu and Kerala.

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