Solar on EMI: Why Your Loan Instalment Can Be Lower Than Your Electricity Bill
A worked example of a 3 kW system financed under PM Surya Ghar at 7% — and how the subsidy slashes your EMI.
The scheme loan
Under PM Surya Ghar, public-sector banks give collateral-free loans up to ₹2 lakh at ~7% for systems up to 3 kW. You apply through the same national portal.
Worked example — 3 kW in Lucknow
| | Amount | |---|---| | System cost | ₹1,85,000 | | Loan amount | ₹1,85,000 | | EMI @ 7% for 5 years | ≈ ₹3,660 | | Subsidy received after ~45 days | ₹1,08,000 | | Loan after prepaying subsidy | ₹77,000 | | New EMI (remaining tenure) | ≈ ₹1,525 | | Monthly bill saving | ≈ ₹2,700 |
From month three onward you are ₹1,175 per month richer than before solar — and after 5 years the electricity is free for another 20 years.
Documents
Aadhaar, PAN, 6-month bank statement, latest electricity bill. Income proof only for loans above ₹2 lakh.
UPPower's finance desk pre-fills the application and coordinates with the bank branch for you.