Solar Financing Made Simple: New Loan Schemes and Subsidies for Homeowners — SolSetu
Solar Financing Made Simple: New Loan Schemes and Subsidies for Homeowners
Thinking of going solar in 2025? Here’s a simple, step-by-step guide to the **subsidies, bank loans, and refinance windows** you can use to finance your rooftop system — including the flagship PM Surya Ghar scheme and recent NABARD refinance support for rural home loans bundled with rooftop solar.
1) PM Surya Ghar (Muft Bijli) — What homeowners should know
The national PM Surya Ghar scheme continues to be the largest demand-driver for residential rooftop solar in 2025. Under the scheme, eligible households may receive central financial assistance (subsidy) for rooftop systems — for example, benchmark subsidies around ₹30,000 per kW for small systems, with higher slabs for 2–3 kW installations (check the portal for state-level variations and eligibility). :contentReference[oaicite:0]{index=0}
2) NABARD & refinance windows for rural homeowners
NABARD has introduced special refinance facilities that encourage regional rural banks and cooperatives to offer home loans bundled with rooftop solar (Special Refinance Scheme / SRS). These windows reduce the cost of funds for smaller banks and improve access to affordable credit in semi-urban and rural areas. If you live in a rural area, ask your local RRB or cooperative bank whether they offer NABARD-backed solar refinance loans. :contentReference[oaicite:1]{index=1}
3) Bank solar loans & EMI options
Major public and private banks continue to offer dedicated rooftop solar loans (or add-on solar finance to home improvement loans) with tenors up to 7–10 years and competitive rates. Some bodies (state banks, Bank of Baroda, Indian Bank, etc.) have launched specific solar loan products and tie-ups with EPCs to simplify documentation and pass subsidy benefits directly to consumers. Compare interest rates, prepayment charges and subsidy pass-through before you sign. :contentReference[oaicite:2]{index=2}
4) Net-metering & rooftop aggregation models
Net-metering policies remain critical to the homeowner economics — many states allow net-metering for residential systems and the PM Surya Ghar rollout includes utility-led aggregation models that simplify paperwork and meter interconnection. Net-metering credits and the ability to export daytime surplus improve payback and loan servicing. Policies and credit settlement windows vary by DISCOM — always confirm the local net-metering rules with your distribution utility. :contentReference[oaicite:3]{index=3}
5) How to pick the right financing path (quick checklist)
- Confirm subsidy eligibility on the PM Surya Ghar portal and your state SIA/DISCOM portal. :contentReference[oaicite:4]{index=4}
- Get 3 itemised quotes that show subsidy pass-through, warranty and O&M terms.
- Compare net loan cost: interest rate, tenor, fees and any subsidy-bridging period.
- Prefer lenders who can accept subsidy as down payment or finance the net cost after subsidy.
- Check local net-metering rules and expected export credit settlement cycles with your DISCOM. :contentReference[oaicite:5]{index=5}
State-level incentives & recent signals
Several states have added fee waivers or simplified application steps to accelerate rooftop uptake (recently some DISCOMs waived upfront application/registration fees under PM Surya Ghar). Meanwhile, market trackers estimate a strong pipeline through 2026 as the scheme scales via utility aggregation. Check recent state announcements for extra top-ups or simplified processes. :contentReference[oaicite:6]{index=6}
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