Calculate your solar loan EMI
Year-by-year repayment schedule
| Year | Principal paid | Interest paid | Balance at year end |
|---|
Reducing-balance method. Results are estimates for planning; the lender's Key Fact Statement is final. Insurance, legal and other charges are not included.
A rooftop solar EMI is partly paid by the fall in your electricity bill. Eligible residential systems may also get a government subsidy, which reduces the amount you need to borrow.
Solar Loan at a glance
The figures the calculator starts with come from these typical ranges. Change them to match the offer in front of you.
| Feature | What to expect |
|---|---|
| Typical loan amount | Roughly ₹1 lakh to ₹25 lakh, higher for commercial plants |
| Tenure | Usually 3 to 10 years, longer for some larger or secured loans |
| Indicative interest rate | Roughly 7% to 15% a year, depending on lender, scheme linkage and profile |
| Processing fee | Roughly 0% to 2% of the loan amount, plus 18% GST |
| Security / collateral | Often none for small residential loans, property or hypothecation of the plant for larger ones |
| Typical time to disbursal | Roughly 1 to 3 weeks, plus installation time |
From our Solar Loan guide. Ranges are indicative; your offer may differ.
Solar Loan EMI table at 10%
Monthly EMI for common solar loan amounts at an example rate of 10% a year, on the reducing-balance method lenders use. Read across a row to see how a longer tenure lowers the EMI, and remember that it raises the total interest: on ₹4.5 lakh, the interest is ₹97,832 over 4 years but ₹1,77,525 over 7 years.
| Loan amount | EMI for 4 years | EMI for 5 years | EMI for 7 years |
|---|---|---|---|
| ₹1.5 lakh | ₹3,804 | ₹3,187 | ₹2,490 |
| ₹3 lakh | ₹7,609 | ₹6,374 | ₹4,980 |
| ₹4.5 lakh | ₹11,413 | ₹9,561 | ₹7,471 |
| ₹6 lakh | ₹15,218 | ₹12,748 | ₹9,961 |
How the interest rate changes your solar loan EMI
Your rate depends on your credit score, income, the lender and the loan details. On ₹2.98 lakh over 5 years, the gap between the lowest and highest indicative rate is ₹71,199 in total repayment, which is why it pays to compare offers before you accept one.
| Interest rate | Monthly EMI | Total interest | Extra vs lowest rate |
|---|---|---|---|
| 7% | ₹5,891 | ₹55,951 | — |
| 10% | ₹6,321 | ₹81,760 | +₹25,808 |
| 12.5% | ₹6,693 | ₹1,04,088 | +₹48,137 |
| 15% | ₹7,078 | ₹1,27,150 | +₹71,199 |
Down payment: how it changes your solar loan EMI
The down payment decides how much you borrow. A larger one lowers both the EMI and the total interest, and it protects you from owing more than the system is worth. For a system cost of ₹3.5 lakh at 10% over 5 years:
| Down payment | Loan amount | Monthly EMI | Total interest | Total cost incl. down payment |
|---|---|---|---|---|
| 10% (₹35,000) | ₹3.15 lakh | ₹6,693 | ₹86,569 | ₹4,36,569 |
| 20% (₹70,000) | ₹2.8 lakh | ₹5,949 | ₹76,950 | ₹4,26,950 |
| 30% (₹1.05 lakh) | ₹2.45 lakh | ₹5,206 | ₹67,332 | ₹4,17,332 |
| 40% (₹1.4 lakh) | ₹2.1 lakh | ₹4,462 | ₹57,713 | ₹4,07,713 |
If your floating rate goes up
Long solar loans are often on a floating rate linked to an external benchmark such as the repo rate, so the rate can change during the loan. When it rises, lenders usually extend the tenure first and keep the EMI the same, which quietly adds interest. RBI rules require lenders to give you the choice of a higher EMI, a longer tenure or both. Here is what a rise would do to a loan of ₹2.98 lakh over 5 years:
| Rate rise | New EMI if tenure is kept | Extra time if EMI is kept |
|---|---|---|
| +0.5% (to 10.5%) | ₹6,394 (+₹73) | +1 month |
| +1% (to 11%) | ₹6,468 (+₹147) | +2 months |
| +1.5% (to 11.5%) | ₹6,543 (+₹222) | +3 months |
Choosing the higher EMI usually costs less in total. If the rate falls, ask for the EMI to stay the same so the tenure shortens.
The real cost of a solar loan: fees and APR
The EMI covers interest and principal only. Lenders also charge a processing fee, commonly around 0% to 2% of the amount on solar loans, plus 18% GST, and it is usually deducted from the money you receive. Because you pay the EMI on the full amount but receive less, the annual percentage rate (APR) is higher than the interest rate. For ₹2.98 lakh at 10% over 5 years:
| Processing fee | Fee incl. GST | Money in hand | APR |
|---|---|---|---|
| 0% + GST | ₹0 | ₹2,97,500 | 10% |
| 1% + GST | ₹3,511 | ₹2,93,990 | 10.51% |
| 2% + GST | ₹7,021 | ₹2,90,479 | 11.04% |
Every lender must show the APR and total repayable amount in the Key Fact Statement before you sign. Compare offers on that figure, not on the headline rate. At a 1% fee, this loan's APR is about 10.51%.
Can you afford this EMI?
Lenders usually keep all your EMIs together within about 40% to 50% of net monthly income. For an EMI of ₹6,321 with no other loans, that means a take-home income of at least ₹13,000 at the 50% limit, and about ₹16,000 to stay within a more comfortable 40%. Existing EMIs, including credit card EMIs, reduce what is left for this one.
Compare the EMI with the expected monthly bill saving. When the saving covers most of the EMI, the system is close to paying for itself.
Prepay to cut the interest
Paying a lump sum towards the principal reduces the interest for the rest of the loan. On ₹2.98 lakh at 10% over 5 years, a part-prepayment of ₹30,000 after the first year:
- with the EMI kept at ₹6,321, closes the loan about 6 months early and saves roughly ₹13,595 of interest;
- with the tenure kept, cuts the EMI to about ₹5,560 and saves roughly ₹6,522 of interest.
Keeping the EMI and shortening the tenure saves more. Floating-rate loans to individuals cannot carry prepayment charges; fixed-rate loans may, so check your agreement first.
How solar loan EMI is calculated
Lenders use the reducing-balance formula: EMI = P × R × (1 + R)N ÷ ((1 + R)N − 1), where P is the loan amount, R is the yearly rate divided by 12 and by 100, and N is the number of monthly instalments.
For ₹2.98 lakh at 10% over 60 months, R is 0.008333 and the EMI comes to ₹6,321. In the first month, ₹2,479 of it is interest and ₹3,842 repays principal. Each month the balance falls, so the interest part shrinks and the principal part grows. In the first year you pay about ₹27,577 in interest, which is 36% of what you pay in that period. The year-by-year schedule in the calculator shows the full split.
Before you apply for a solar loan
The calculator tells you what the loan costs. Before you apply, check whether you qualify, what documents lenders ask for and the mistakes borrowers most often make.
Related EMI calculators
Planning tools
Solar Loan EMI: frequently asked questions
What is the EMI for a solar loan of ₹2,97,500?
At 10% a year for 5 years, the EMI is ₹6,321 and the total interest is ₹81,760. Over 4 years the EMI rises to ₹7,545 but the interest falls to ₹64,678.
How is solar loan EMI calculated?
With the reducing-balance formula EMI = P x R x (1+R)^N / ((1+R)^N - 1), where R is the monthly rate and N the number of months. Interest is charged only on the balance still outstanding, so the interest part of each EMI falls over time.
Does the solar loan EMI include the processing fee?
No. The EMI covers interest and principal. The processing fee, usually around 0% to 2% of the amount plus 18% GST, is generally deducted upfront. Use the APR in the Key Fact Statement to compare total cost.
How much down payment do I need for a solar loan?
Lenders set their own limit. Many ask for at least about 10% of the system cost. On ₹3,50,000, moving from 10% to 30% down cuts the EMI from ₹6,693 to ₹5,206.
What happens to my solar loan EMI if the rate rises by 1%?
On ₹2,97,500 over 5 years, a 1% rise takes the EMI from ₹6,321 to ₹6,468 if the tenure is kept. If the lender keeps the EMI instead, the tenure stretches. You can ask the lender to choose a higher EMI.
How can I reduce my solar loan EMI?
Choose a longer tenure, borrow less by paying a bigger down payment, or get a lower rate by improving your credit score or comparing lenders. A longer tenure lowers the EMI but raises the total interest, so pick the shortest tenure you can comfortably afford.
Is the rate in this calculator my actual solar loan rate?
No. 10% is an example within the indicative range of about 7% to 15%. Your rate depends on the lender, your credit score, income and the loan details. Enter the rate in your own offer for an exact EMI.
Does prepaying a solar loan save money?
Yes. Here, prepaying ₹30,000 after one year saves roughly ₹13,595 of interest if you keep the EMI. Floating-rate loans to individuals cannot carry prepayment charges; fixed-rate loans may.
Rates, fees and limits are indicative ranges for India, reviewed on the date above. KhatuLoans is not a lender and does not decide approval or pricing. Read our editorial policy and how we make money.
Official sources and further reading
These guides are written from Reserve Bank of India rules and official scheme pages. Rules, rates and scheme terms change, so check the current position on these sites and in your lender's Key Fact Statement before you apply.
- Government announcement: PM Surya Ghar Muft Bijli Yojana. The rooftop solar scheme announcement from the Prime Minister's Office.
- RBI: Key Facts Statement (KFS) for loans and advances. The Reserve Bank of India notification that tells lenders to give every borrower a plain-language statement of the full cost of a loan.
- RBI Complaint Management System. Where to take a complaint against a bank, NBFC or other regulated lender if the lender does not resolve it.
- RBI (Pre-payment Charges on Loans) Directions, 2025. Bars pre-payment charges on floating-rate loans taken by individuals for non-business purposes, for loans sanctioned or renewed from 1 January 2026.
- Reserve Bank - Integrated Ombudsman Scheme, 2021. The single complaint scheme for customers of banks, NBFCs and other RBI-regulated lenders.
- RBI: Free Annual Credit Report to Individuals. Credit bureaus must give you one free full credit report with score every calendar year.
- RBI Financial Education. Consumer guidance from the Reserve Bank of India on borrowing, fraud and your rights as a customer.
Edited by Hemant Kumar. Rates on this site are indicative ranges, not offers.