Solar Loan Interest Rates in India: Bank-Wise Comparison 2026

Solar loan interest rates in India range from 7.00% to 10.50% depending on the bank and your credit profile. SBI offers the lowest rate at 7.00–7.75% through its Surya Shakti scheme. Public sector banks generally offer 0.5–1.5% lower rates than private banks. Your actual rate depends on your CIBIL score, loan amount, and relationship with the bank.

Banks consider these factors when setting your solar loan interest rate:

1. CIBIL score — The biggest factor. Score above 750 gets the best rate. Below 700 adds 0.5–1.5% to the base rate.
2. Loan amount — Larger loans (₹5 lakh+) may get preferential rates due to economies of processing.
3. Existing relationship — Salary account holders and long-term customers get 0.25–0.50% concession.
4. Employment type — Salaried borrowers get slightly better rates than self-employed.
5. Loan tenure — Some banks offer lower rates for shorter tenures.

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Solar loans enjoy preferential rates (7–10%) compared to personal loans (10–18%) for three reasons:

• Priority sector classification — RBI mandates banks allocate a percentage of lending to priority sectors, including renewable energy. This incentivises banks to offer competitive solar loan rates.
• Tangible asset — The solar system is bolted to your roof and generates measurable savings, providing implicit collateral even though no formal collateral is required.
• Government backing — PM Surya Ghar and MNRE actively promote solar adoption, giving banks confidence in the sector.

Always opt for a dedicated solar loan product rather than a personal loan or credit card EMI for your installation.

Follow these strategies to secure the lowest rate:

• Apply with a CIBIL score above 750 — Check your score before applying. If below 700, spend 3–6 months improving it before applying.
• Apply at your salary bank — Existing relationship can save 0.25–0.50% on the rate.
• Compare at least 3 banks — Even a 1% rate difference saves ₹5,000–₹12,000 on a ₹1.5 lakh loan over 5 years.
• Negotiate — Banks have discretion on pricing. If you have a competing offer at a lower rate, show it to your preferred bank.
• Check for seasonal offers — Banks frequently offer reduced processing fees and rate concessions during festivals and government campaigns.
• Ask about state subsidies on interest — Some states offer 2–3% interest subvention on solar loans through their renewable energy agencies.

Solar Vipani's verified installers partner with multiple banks and NBFCs. When you get quotes through us, financing options with competitive rates are included.

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