Finance Minister Nirmala Sitharaman introduced the Rooftop Solar Scheme or PM Surya Ghar Muft Bijli Yojana in the 2024-25 budget. Prime Minister Narendra Modi subsequently launched the PM Surya Ghar Muft Bijli Yojana.
Under this initiative, the government intends to install solar panels in one crore houses across the country. To guarantee that there is no financial strain on citizens, the Central Government will offer significant subsidies straight to bank accounts and highly beneficial bank loans.
The goal of PM Surya Ghar Muft Bijli Yojana is to increase rooftop solar installations by providing up to Rs. 78,000 in subsidies. This applies to homes that consume more than 300 units a month and bigger systems that are larger than 3 KW.
Households are eligible to get a subsidy of Rs 30,000 per KW for solar panels up to 2 KW and Rs 18,000 per KW for panels up to 3 KW.
Households can already obtain low-interest loan products with no collateral requirements, with rates as low as 7 percent, for installing residential RTS systems up to a 3 kW capacity, according to the Press Information Bureau (PIB).
The interest rate is set at 0.5 per cent higher than the current repo rate, which is decided by the Reserve Bank of India from time to time. If the current Repo Rate of 6.5 percent is lowered to, say, 5.5 per cent, then consumers’ effective interest rate would drop from 7 per cent to 6 per cent, PIB added.
Let’s look at the banks that provide loans to customers who choose to install solar rooftop panels under the PM Surya Ghar Muft Bijli Yojana, as listed on the scheme’s National Portal:
1. State Bank of India (SBI):
Purpose: Installing a 3 KW solar rooftop system.
Disbursement: Following the completion of the necessary feasibility assessments as needed by MNRE, payment will be issued directly to the vendor or EPC contractor. For payment of the loan amount plus the borrower’s margin, the borrower must claim the subsidy by referencing the loan account number.
Maximum loan amount: Rs 2 lakh.
2. Central Bank of India:
Purpose: Up to 3 KW of solar rooftop installation.
Disbursement: After installation, payment will be made directly to the vendor or the owner of the EPC contract. The branch will give the vendor/EPC contractor a supply order, subject to the requirement that payment be made only upon installation and receipt of a letter of satisfaction from the borrower or borrowers. Payment should be given to the vendor or EPC contractor directly upon installation and submission of the necessary feasibility assessments, per MNRE regulation.
Maximum Loan amount: Rs 6 lakh.
3. Punjab National Bank:
Purpose: Up to 10 KW of solar rooftop installation.
Disbursement: The loan amount for the rooftop solar system, including the borrower’s contribution, will be paid to the vendor or EPC contractor immediately following the filing of the necessary feasibility evaluations as needed by MNRE. The borrower or vendor must claim the subsidy by mentioning the loan account number.
Maximum Loan Amount: Rs 6 lakh.
4. Canara Bank:
Purpose: Up to 3 KW of solar rooftop installation.
Disbursement: Following the completion of all necessary loan documents, the vendor/EPC contractor will receive the loan amount plus any relevant margin directly.
Maximum Loan Amount: Up to Rs 2 lakh (including subsidy)
5. Union Bank of India:
Purpose: Up to 3 KW of solar rooftop installation.
Disbursement: Following the completion of all necessary loan documents, the vendor/EPC contractor will receive the loan amount plus any relevant margin directly.
Maximum Loan Amount: Up to Rs 2 lakh.
For further information on the banks mentioned above as well as all other qualified banks, visit the official site at https://pmsuryaghar.gov.in/VendorList/financialAssistanceReport
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