As India moves toward a cleaner and greener future, solar energy is becoming a preferred choice for both households and businesses.
With rising electricity costs and growing environmental awareness, installing solar panels is a smart, long-term investment. However, the upfront cost of a solar system can still be a financial barrier for many.
From loans to EMI plans and government-backed subsidies, there are now multiple ways to fund your solar project. In this blog, we explore the most popular solar finance options in India — and how you can leverage them to switch to sustainable energy with ease.
1. Why Solar Financing Matters
Installing a rooftop solar system can cost anywhere between ₹50,000 and ₹5 lakhs, depending on your energy needs and system size. For commercial setups, the investment can be even higher. While the long-term savings on electricity bills are significant, not everyone can afford the initial capital outlay.
Solar financing helps bridge this gap by offering structured financial solutions, making solar energy more accessible and affordable for all.
2. Types of Solar Finance Options in India
Here are the most popular and effective financing options available for solar installations:
A. Solar Loans
Just like personal or home loans, several banks and NBFCs offer solar loans specifically for the purchase and installation of solar power systems.
Key Features:
- Loan amounts up to ₹10–25 lakhs
- Tenure ranging from 12 to 84 months
- Competitive interest rates starting from 8.5%*
- No collateral required for smaller loans
- Minimal paperwork and fast approval
Who Should Consider It?
- Homeowners installing rooftop solar
- Small businesses looking for energy cost savings
- Societies or residential complexes switching to solar
Tip: Platforms like My Mudra can help you compare and apply for the best solar loans online with minimal effort.
B. EMI Plans from Solar Companies
Many solar panel companies now offer zero-cost or low-cost EMI plans in partnership with financing institutions. This means you can install a solar system and pay for it in affordable monthly installments.
Benefits:
- Instant EMI eligibility checks
- No large upfront payment
- Flexible repayment options (6 to 60 months)
- Often bundled with installation and maintenance
This is a great option if you want a quick, bundled solar solution without coordinating with banks or financial institutions.
C. Leasing and Power Purchase Agreements (PPA)
This model is especially popular for commercial and industrial installations. Under this setup:
- A solar company installs and maintains the system on your property
- You either lease the system for a fixed monthly fee
- Or sign a PPA where you pay only for the electricity you use, at a pre-agreed rate (lower than grid tariff)
Advantages:
- No upfront investment
- Zero maintenance responsibilities
- Guaranteed savings on electricity
- Ideal for factories, institutions, or large office spaces
However, these options are typically available for systems above a certain capacity (e.g., 10 kW or more) and may have longer contracts.
D. Government Subsidies and Incentives
The Indian government, through MNRE (Ministry of New and Renewable Energy), provides subsidies for residential solar projects:
- Up to 40% subsidy on systems up to 3 kW
- 20% subsidy on systems between 3 to 10 kW
- Available through registered DISCOMs and vendors
These subsidies effectively reduce your cost and loan requirement, making solar adoption even more affordable. However, the disbursal process may take a few months.
4. How to Apply for Solar Finance with My Mudra
At My Mudra, we make solar financing simple and fast. Here’s how:
- Visit the Website
Go to www.mymudra.com and select “Solar Loan” from the loan options. - Fill a Quick Form
Provide basic details about your requirement, budget, and location. - Compare Loan Offers
View and compare multiple offers from top lenders in one place. - Upload Documents
Submit your KYC and income documents securely online. - Get Approved & Start Installation
Get your loan approved and disbursed, so you can begin installation without delays.
5. The Long-Term Benefits of Solar Investment
Even if you take a loan or opt for EMI-based financing, investing in solar pays off:
- Drastic reduction in electricity bills
- 10–25 years of savings
- Increased property value
- Lower carbon footprint
- Energy independence from rising grid tariffs
Over time, the cost of the system pays for itself — and the savings you earn can even exceed the loan EMIs.
Final Thoughts
With a wide range of solar finance options now available in India—such as solar loans, easy EMIs, Power Purchase Agreements (PPAs), and government subsidies—making the switch to solar energy has become more affordable and accessible than ever.
Whether you’re a homeowner looking to reduce electricity bills, a business aiming to cut energy costs, or part of a housing society planning a collective solar setup, there’s a financing solution designed just for you.
These flexible options ensure that the high upfront cost of solar installation doesn’t hold you back from embracing clean energy. With tailored repayment plans and minimal documentation, you can now go solar with ease and enjoy long-term savings while contributing to a greener and more sustainable future.
