What is PM Surya Ghar Muft Bijli Yojana?
The PM Surya Ghar Muft Bijli Yojana is the Government of India’s flagship rooftop solar scheme aimed at helping households generate their own electricity and cut power bills.
The goal is simple:
Install rooftop solar → Get subsidy → Reduce electricity bill → Move toward free electricity.
The scheme aims to help 1 crore households install rooftop solar systems.
Subsidy Amount in 2026 (Latest)
Government subsidy is credited directly to your bank account after installation.
| Solar System Size | Subsidy Amount |
|---|---|
| 1 kW | ₹30,000 |
| 2 kW | ₹60,000 |
| 3 kW | ₹78,000 (most popular) |
Maximum subsidy: 40% of system cost
Most Indian homes install 3 kW, which can generate around 300 units per month.
This means many homes can achieve near-zero electricity bills.
Actual Cost After Subsidy
Typical rooftop solar cost in India:
| System | Market Cost | Cost After Subsidy |
|---|---|---|
| 2 kW | ₹1.6 lakh | ₹1 lakh |
| 3 kW | ₹2.2 lakh | ₹1.4 lakh |
Most households take a solar loan of ₹1–2 lakh to pay the remaining amount.
Solar Loan Benefits Under the Scheme
Government partnered with public sector banks to make solar loans easy.
Key benefits:
- Collateral-free loans up to ₹2 lakh
- Subsidised interest rates
- Long repayment up to 10 years
- Simple documentation
Typical interest range: 6.75% – 9%
Best Banks for PM Surya Ghar Solar Loan (2026 Ranking)
Ranking is based on:
- Interest rate
- Approval ease
- Documentation
- Processing charges
- Real approval success rate
🥇 Rank 1 — SBI (Best Overall & Easiest Loan)
Why SBI ranks #1:
- Interest starts around 8.65%
- No CIBIL score required up to ₹2 lakh
- New-to-credit customers eligible
- Collateral-free loan
- Loan up to ₹6 lakh
This makes SBI the easiest solar loan approval in India right now.
Best for:
- Salaried people
- First-time borrowers
- Middle-class households
Verdict: Best combination of low interest + easiest approval.
🥈 Rank 2 — Indian Bank (Lowest Interest Rate)
Why Indian Bank ranks #2:
- Interest starts around 6.75%
- Zero processing fee
- Tenure up to 10 years
- Special solar loan scheme
If your credit score is good, this becomes the cheapest EMI option.
Best for:
- Salaried professionals
- High CIBIL borrowers
Verdict: Lowest EMI bank.
🥉 Rank 3 — Canara Bank (Best for Self-Employed)
Why Canara Bank is popular:
- No strict income requirement
- Zero processing fee
- Easy documentation
- Long repayment tenure
Best for:
- Self-employed
- Small town applicants
- Farmers and shop owners
Verdict: Easiest documentation.
Rank 4 — Bank of India (Balanced Option)
Highlights:
- Tenure up to 10 years
- Only 5% margin required
- Good approval rates
Verdict: Safe backup option.
Rank 5 — Central Bank of India
Highlights:
- Loan up to ₹6 lakh
- Usually needs CIBIL 680+
Approval slightly stricter.
Rank 6 — IDBI Bank
Interest slightly higher compared to other PSU banks.
Best used as secondary option.
Rank 7 — NBFC Solar Loans (Fastest Approval)
Examples:
- Ecofy
- CreditFair
- Fintech solar lenders
Pros:
- Fast approval
- Minimal paperwork
Cons:
- Higher interest (up to 14%)
Best when bank loan is rejected.
Final Ranking Summary
Lowest Interest
- Indian Bank
- SBI
- Canara Bank
Easiest Approval
- SBI
- Canara Bank
- Bank of India
Fastest Approval
- NBFC lenders
- SBI
- Bank of India
Which Bank Should YOU Choose?
Choose based on profile:
- CIBIL below 700 → SBI
- CIBIL above 750 → Indian Bank
- Self-employed → Canara Bank
- Urgent loan → NBFC solar lender
For most households, SBI is the safest first choice, then comes PNB but no matter which bank you choose. At the end of the day, you are contributing to a cleaner world, Indian economy and reducing your own expenses.
