PNB Solar Loan Scheme in India: Is Solar Financing From PNB Worth It?

As power bills in India climb by 3-6% annually, more households are turning to rooftop solar as a practical way to reduce hefty bills. In 2024, the central government introduced the PM Surya Ghar Muft Bijli Yojana to reduce installation costs through a subsidy. However, the remaining upfront investment remained a hurdle in the way of mass-scale solar adoption.

Therefore, the government included Public Sector Undertaking (PSU) banks, such as PNB, in the PM Surya Ghar scheme to offer solar loans to homeowners. The PNB solar loan scheme is a government-backed financing scheme that offers homeowners a solar loan at very low interest rates:

• PNB solar panel loan interest rate for a loan up to Rs. 2 lakh: 5.75% per annum
• PNB solar panel loan interest rate for a loan above Rs. 2 lakh: 8-9% per annum

Under the PNB solar loan scheme, you can finance up to 90% of your rooftop solar costs, and the maximum loan amount sanctioned is Rs. 10 lakh. The loan tenure is 10 years, the approval process takes 15-30 days, and it’s mandatory to register on the Jan Samarth Portal to become eligible for the PNB solar panel loan.

Moreover, since the PNB solar rooftop loan interest rate is already low, customers do not receive the PM Surya Ghar subsidy amount separately. That’s a big trade-off.

For consumers who prefer speed and a complete digital journey, NBFC financing models such as SolarSquare’s zero-investment solar loan are ideal. With an interest rate of 12-13% per annum, NBFCs focus on speed and simplified documentation. Approvals happen within 24 hours, the journey is online, and the eligible subsidy remains with the customer.

Read on to explore the ins and outs of the PNB solar loan scheme, including eligibility criteria, documents needed, application steps, the benefits of installing a solar energy system on EMI, and the difference between PNB and NBFC solar loans.

TL;DR Summary Box: How Much is the PNB Solar Panel Loan Interest Rate?

The PNB solar loan scheme follows a slab-based interest structure.

• Loans up to Rs. 2 lakh: They’re priced at 5.75% per annum
• Loans above Rs. 2 lakh: They fall in the 8-9% per annum range

Here are the main topics covered in this blog in detail:

What’s the PNB Solar Loan Scheme in India?

The PNB solar loan scheme is a financing option for rooftop solar panel systems for homes offered by Punjab National Bank under the PM Surya Ghar Muft Bijli Yojana. It allows homeowners to borrow up to 90% of their system cost at low interest rates, with a maximum repayment tenure of 10 years.

Here are the most important aspects homeowners must understand before applying for the PNB solar loan scheme:

• Residential rooftop focus: The scheme applies to residential properties where the applicant owns the rooftop and holds usage rights.
• Defined margin contribution: 10% for loans up to Rs. 2 lakh and 20% for loans above Rs. 2 lakh.
• Mandatory portal processing: Application for the PNB solar panel loan must be routed through the Jan Samarth Portal, followed by branch-level verification and inspection.

Key Features of the PNB Solar Loan Scheme at a Glance

The PNB solar loan scheme funds up to 90% of the cost of installing a solar system, starts at 5.75% interest per annum, allows repayment up to 10 years, and charges no foreclosure penalty.

Let’s check out all the key features of the PNB solar rooftop loan in detail:

Who is eligible for the PNB Solar Rooftop Loan?

The PNB solar rooftop loan is available to residential property owners who meet defined credit, age, and income norms. Eligibility is tightly structured, especially for loan amounts higher than Rs. 2 lakh.

Here are the conditions you must satisfy to be considered eligible for the PNB solar loan scheme:

• Residential property ownership: The applicant or co-applicant must own the house and have clear rooftop rights where the solar system will be installed.
• PNB savings account holder: The borrower must have a savings account with Punjab National Bank.
• Age criteria: The maximum age at loan maturity cannot exceed 75 years. Repayment must conclude before the borrower reaches this age.
• Credit score requirement: A minimum CIBIL score of 680 or equivalent is required.
• Roof space suitability: Adequate rooftop area must be available as per MNRE technical norms for installation.
• Electricity bill verification: The latest electricity bill must confirm ownership and installation address.
• Income requirement for loans above Rs. 2 lakh: Minimum annual income of Rs. 3 lakh is required.
• Repayment capacity condition: For loans above Rs. 2 lakh, your total monthly EMIs, including the PNB solar panel loan, should not exceed half of your gross annual income.

What are the Documents Needed for the PNB Solar Panel Loan?

Document requirements depend on the loan amount. While smaller loans require basic KYC and ownership proof, higher loan brackets involve income verification and financial assessment.

Let’s have a look at all the documents you’ll need to avail of the PNB solar rooftop loan:

How to Apply for the PNB Solar Rooftop Loan?

Applying for the PNB solar panel loan is not a one-click process. The journey moves through government portal registration, bank-level verification, and technical validation before funds are released.

Here’s a step-by-step breakdown of the entire process:

• Step 1 – Register your rooftop solar project on the PM Surya Ghar portal: Start by submitting your rooftop solar installation details on the official government portal and choose Punjab National Bank as your preferred financing partner.
• Step 2 – Submit your loan request through the Jan Samarth Portal: Complete the online loan application by entering your personal information, property details, system capacity, and any other required data as specified on the portal.
• Step 3 – Visit your PNB branch for verification: After online submission, you will need to visit the designated PNB branch to complete KYC formalities and submit supporting documents.
• Step 4 – Site inspection and feasibility assessment: Bank officials conduct a physical verification of the rooftop and check the technical feasibility of the proposed solar system before sanctioning the loan.
• Step 5 – Sanction and phased disbursement: Once approved, the loan is released in stages. A portion may be disbursed before installation, while the remaining amount is transferred to the vendor after commissioning and DISCOM confirmation.

SolarSquare’s Zero-Investment Solar Loan vs PNB Solar Loan Scheme: Which is Better?

Both financing options are built for rooftop solar, but they operate very differently.

• PNB solar loan scheme follows the PSU banking route with concessional pricing and rigorous verification that can take 15-30 days.
• SolarSquare’s zero-investment solar loan runs on a digital NBFC model focused on faster approvals within 24 hours and simplified processing.

SolarSquare’s zero-investment loan is offered at 12-13% per annum. It eliminates the need for an upfront down payment by adjusting the PM Surya Ghar subsidy you’re eligible for to cover the system cost. The balance converts into EMIs. The entire journey is online, approvals are completed within 24 hours, and there are no branch visits or bank inspections.

On the other hand, the PNB solar loan scheme offers interest starting at 5.75% per annum for loans up to Rs. 2 lakh, and 8-9% per annum above that slab. It can finance up to 90% of the project cost, with a repayment tenure of up to 10 years. Under this loan, the subsidy is adjusted within the loan rather than given to the customer separately.

Below is a structured comparison to help you evaluate both models side by side.

What are the Benefits of Installing Solar on EMI for Homes?

The biggest advantage of installing an on-grid solar system in India on EMIs is that you’re not paying the entire system amount upfront. This makes switching to solar affordable for everyone.

Here’s a snapshot of all the benefits in detail:

• Lower upfront payment: You don’t have to arrange the full solar cost at once. The loan covers 90% of the system price.
• EMIs match your savings: Once your solar system starts working, your electricity bill drops sharply. In many homes, the monthly savings are close to the EMI amount. As a result, your budget remains undisturbed. What you earlier paid for the electricity bill now goes toward owning the solar system.
• Very affordable interest rate: A low interest rate is the biggest USP of the PNB solar loan scheme, making rooftop solar affordable for everyone.
• No penalty for early closure: You can repay the PNB solar panel loan before time without extra charges if your financial situation allows.
• Moratorium option: The PNB solar loan scheme allows up to a 6-month moratorium. This means you can delay starting your EMI payments for up to 6 months after disbursement, but interest will still be added during this period.

What’s the Cost of Rooftop Solar Systems in India in 2026?

The solar system installation cost in India varies from city to city. For instance, a 3 kW solar system that costs ~Rs. 1.69 lakh* in Bangalore with subsidy will cost only ~Rs. 1.05 lakh* in Lucknow.

Let’s find out the estimated solar installation cost in India across various cities in 2026:

*Please note prices are subject to change without prior notice: The solar panel price for on-grid solar systems with subsidy listed in the section above is indicative as of 25th June 2026 for SolarSquare Blue 6ft variant. The final cost of solar panels for homes in India depends on your city, DISCOM charges, product variant opted for, type of panel, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.

Cost of Rooftop Solar vs Solar Savings and ROI Over 25 Years

Over 25 years, a rooftop solar system can help you save tens of lakhs of rupees by reducing your power bill to near zero and generating free solar electricity. These long-term savings are one of the biggest reasons why homeowners are choosing rooftop solar nowadays.

Wondering how much money do we mean when we say tens of lakhs of rupees saved over 25 years? Here’s a snapshot of the solar savings and ROI you can expect from rooftop solar in a city like Pune:

*Please note prices are subject to change. The above-mentioned cost of solar panels for homes in Pune with subsidy for on-grid solar systems is indicative as of 25th June 2026 for the SolarSquare Blue 6ft variant. The final solar panel cost for homes in Pune depends on your DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.  Also, while calculating savings from household solar panels in Pune, we have considered an annual tariff escalation of 3% and an annual plant degradation rate of 1%. The actual final savings from a solar panel system for homes depend on the types of solar panels you’ve installed and their efficiency, intensity of sunlight your rooftop receives, orientation of the panels and tilt angle, the pollution level and weather conditions in your city, the temperature, shadow on the roof, impact of dirt/dust, and how well you maintain your panels after installation.

You can also use SolarSquare’s solar energy estimator for free to calculate solar savings expected from on-grid solar in your city.

Conclusion

The PNB solar loan scheme is ideal for homeowners who want bank-led financing at concessional interest rates. With rates starting at 5.75% per annum, funding of up to 90% of project cost, a Rs. 10 lakh cap, and repayment extending to 10 years, PNB solar loan makes rooftop solar financially accessible to everyone.

At the same time, the PNB solar loan scheme follows a strict process. Application through the Jan Samarth Portal, branch visits, income assessment for higher loan amounts, and physical verification are mandatory parts of the journey. The subsidy is adjusted within the concessional structure rather than credited separately. For many homeowners, that trade-off is acceptable in exchange for lower interest rates.

For any further queries about rooftop solar installation and solar financing in India, you can book a free solar consultation call with SolarSquare.

FAQs

Which bank is best for a solar loan?

If you want a low interest rate and a longer repayment period, the PNB solar loan scheme is one of the strongest options available. It offers interest rates starting at 5.75% per annum and tenure up to 10 years.

For those who prefer faster approval, a fully online process, and retaining the full subsidy amount, SolarSquare’s zero-investment solar loan is another practical option.

What is the maximum repayment in your PNB Surya Ghar loan scheme?

The maximum repayment tenure under the PNB solar loan scheme is up to 10 years, including the 6-month moratorium period. The loan must be fully repaid before the borrower turns 75.

What is the maximum amount of the PNB Surya Ghar loan?

PNB can sanction a solar rooftop loan of up to Rs. 10 lakh, depending on eligibility and project cost.

What’s the PNB solar panel loan interest rate?

The PNB solar panel loan interest rate follows two slabs:

• 5.75% per annum for loans up to Rs. 2 lakh
• 8-9% per annum for loans above Rs. 2 lakh

Can I repay the PNB solar rooftop loan early?

Yes, this is possible. PNB does not impose any prepayment/foreclosure penalty on customers paying off the loan early.

Loans up to Rs. 2 lakh: They’re priced at 5.75% per annum Loans above Rs. 2 lakh: They fall in the 8-9% per annum range" } },{ "@type": "Question", "name": "What’s the PNB Solar Loan Scheme in India?", "acceptedAnswer": { "@type": "Answer", "text": "The PNB solar loan scheme is a financing option for rooftop solar panel systems for homes offered by Punjab National Bank under the PM Surya Ghar Muft Bijli Yojana. It allows homeowners to borrow up to 90% of their system cost at low interest rates, with a maximum repayment tenure of 10 years.

Here are the most important aspects homeowners must understand before applying for the PNB solar loan scheme:

Residential rooftop focus: The scheme applies to residential properties where the applicant owns the rooftop and holds usage rights. Defined margin contribution: 10% for loans up to Rs. 2 lakh and 20% for loans above Rs. 2 lakh. Mandatory portal processing: Application for the PNB solar panel loan must be routed through the Jan Samarth Portal, followed by branch-level verification and inspection." } },{ "@type": "Question", "name": "Who is eligible for the PNB Solar Rooftop Loan?", "acceptedAnswer": { "@type": "Answer", "text": "The PNB solar rooftop loan is available to residential property owners who meet defined credit, age, and income norms. Eligibility is tightly structured, especially for loan amounts higher than Rs. 2 lakh.

Here are the conditions you must satisfy to be considered eligible for the PNB solar loan scheme:

Residential property ownership: The applicant or co-applicant must own the house and have clear rooftop rights where the solar system will be installed. PNB savings account holder: The borrower must have a savings account with Punjab National Bank. Age criteria: The maximum age at loan maturity cannot exceed 75 years. Repayment must conclude before the borrower reaches this age. Credit score requirement: A minimum CIBIL score of 680 or equivalent is required. Roof space suitability: Adequate rooftop area must be available as per MNRE technical norms for installation. Electricity bill verification: The latest electricity bill must confirm ownership and installation address. Income requirement for loans above Rs. 2 lakh: Minimum annual income of Rs. 3 lakh is required. Repayment capacity condition: For loans above Rs. 2 lakh, your total monthly EMIs, including the PNB solar panel loan, should not exceed half of your gross annual income." } },{ "@type": "Question", "name": "What are the Documents Needed for the PNB Solar Panel Loan?", "acceptedAnswer": { "@type": "Answer", "text": "Document requirements depend on the loan amount. While smaller loans require basic KYC and ownership proof, higher loan brackets involve income verification and financial assessment.

Let’s have a look at all the documents you’ll need to avail of the PNB solar rooftop loan:

Loan Amount Documents Required Up to Rs. 2 lakh Application form and sanction letter KYC documents like Aadhaar card Latest electricity bill Property ownership proof Vendor quotation with MNRE-mandated feasibility reports. Above Rs. 2 lakh Besides all the documents listed above, here are additional documents needed: PAN card One-year ITR/Form 16 Last 6 months’ bank account statements" } },{ "@type": "Question", "name": "How to Apply for the PNB Solar Rooftop Loan?", "acceptedAnswer": { "@type": "Answer", "text": "Applying for the PNB solar panel loan is not a one-click process. The journey moves through government portal registration, bank-level verification, and technical validation before funds are released.

Here’s a step-by-step breakdown of the entire process:

Step 1 – Register your rooftop solar project on the PM Surya Ghar portal: Start by submitting your rooftop solar installation details on the official government portal and choose Punjab National Bank as your preferred financing partner. Step 2 – Submit your loan request through the Jan Samarth Portal: Complete the online loan application by entering your personal information, property details, system capacity, and any other required data as specified on the portal. Step 3 – Visit your PNB branch for verification: After online submission, you will need to visit the designated PNB branch to complete KYC formalities and submit supporting documents. Step 4 – Site inspection and feasibility assessment: Bank officials conduct a physical verification of the rooftop and check the technical feasibility of the proposed solar system before sanctioning the loan. Step 5 – Sanction and phased disbursement: Once approved, the loan is released in stages. A portion may be disbursed before installation, while the remaining amount is transferred to the vendor after commissioning and DISCOM confirmation." } },{ "@type": "Question", "name": "What are the Benefits of Installing Solar on EMI for Homes?", "acceptedAnswer": { "@type": "Answer", "text": "The biggest advantage of installing an on-grid solar system in India on EMIs is that you’re not paying the entire system amount upfront. This makes switching to solar affordable for everyone.

Here’s a snapshot of all the benefits in detail:

Lower upfront payment: You don’t have to arrange the full solar cost at once. The loan covers 90% of the system price. EMIs match your savings: Once your solar system starts working, your electricity bill drops sharply. In many homes, the monthly savings are close to the EMI amount. As a result, your budget remains undisturbed. What you earlier paid for the electricity bill now goes toward owning the solar system. Very affordable interest rate: A low interest rate is the biggest USP of the PNB solar loan scheme, making rooftop solar affordable for everyone. No penalty for early closure: You can repay the PNB solar panel loan before time without extra charges if your financial situation allows. Moratorium option: The PNB solar loan scheme allows up to a 6-month moratorium. This means you can delay starting your EMI payments for up to 6 months after disbursement, but interest will still be added during this period." } },{ "@type": "Question", "name": "What’s the Cost of Rooftop Solar Systems in India in 2026?", "acceptedAnswer": { "@type": "Answer", "text": "The solar system installation cost in India varies from city to city. For instance, a 3 kW solar system that costs ~Rs. 1.69 lakh* in Bangalore with subsidy will cost only ~Rs. 1.05 lakh* in Lucknow.

Let’s find out the estimated solar installation cost in India across various cities in 2026:

Solar System Size Cost of Rooftop Solar Panels in India for Homes with Subsidy (Starting Price – Indicative for Base Variant) as of 25th June 2026* 2 kW solar system Ranges between ~Rs. 93,000 in Lucknow, ~Rs. 1.20 lakh in Ahmedabad, ~Rs. 1.23 lakh in Pune, and ~Rs. 1.53 lakh in Bangalore 3 kW solar system Ranges between ~Rs. 1.05 lakh in Lucknow, ~Rs. 1.32 lakh in Ahmedabad, ~Rs. 1.37 lakh in Pune, and ~Rs. 1.69 lakh in Bangalore 4 kW solar system Ranges between ~Rs. 1.62 lakh in Lucknow, ~Rs. 1.75 lakh in Ahmedabad, ~Rs. 1.82 lakh in Pune, and ~Rs. 2.15 lakh in Bangalore 5 kW solar system Ranges between ~Rs. 2.19 lakh in Lucknow, ~Rs. 2.32 lakh in Ahmedabad, ~Rs. 2.45 lakh in Pune, and ~Rs. 3.05 lakh in Bangalore 10 kW solar system Ranges between ~Rs. 4.72 lakh in Lucknow, ~Rs. 4.95 lakh in Ahmedabad, ~Rs. 5..05 lakh in Pune, and ~Rs. 5.72 lakh in Bangalore *Please note prices are subject to change without prior notice: The solar panel price for on-grid solar systems with subsidy listed in the section above is indicative as of 25th June 2026 for SolarSquare Blue 6ft variant. The final cost of solar panels for homes in India depends on your city, DISCOM charges, product variant opted for, type of panel, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc." } },{ "@type": "Question", "name": "Which bank is best for a solar loan?", "acceptedAnswer": { "@type": "Answer", "text": "If you want a low interest rate and a longer repayment period, the PNB solar loan scheme is one of the strongest options available. It offers interest rates starting at 5.75% per annum and tenure up to 10 years.

For those who prefer faster approval, a fully online process, and retaining the full subsidy amount, SolarSquare’s zero-investment solar loan is another practical option." } },{ "@type": "Question", "name": "What is the maximum repayment in your PNB Surya Ghar loan scheme?", "acceptedAnswer": { "@type": "Answer", "text": "The maximum repayment tenure under the PNB solar loan scheme is up to 10 years, including the 6-month moratorium period. The loan must be fully repaid before the borrower turns 75." } },{ "@type": "Question", "name": "What is the maximum amount of the PNB Surya Ghar loan?", "acceptedAnswer": { "@type": "Answer", "text": "PNB can sanction a solar rooftop loan of up to Rs. 10 lakh, depending on eligibility and project cost." } },{ "@type": "Question", "name": "What’s the PNB solar panel loan interest rate?", "acceptedAnswer": { "@type": "Answer", "text": "The PNB solar panel loan interest rate follows two slabs:

5.75% per annum for loans up to Rs. 2 lakh 8-9% per annum for loans above Rs. 2 lakh" } },{ "@type": "Question", "name": "Can I repay the PNB solar rooftop loan early?", "acceptedAnswer": { "@type": "Answer", "text": "Yes, this is possible. PNB does not impose any prepayment/foreclosure penalty on customers paying off the loan early." } }] }

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