How to Finance a Solar System in Bihar
Most Bihar households can go solar with minimal upfront cost using a combination of the PM Surya Ghar government subsidy and a solar loan or EMI. This page explains your options clearly and honestly.
- PM Surya Ghar subsidy up to ₹78,000 directly to your bank (post commissioning)
- Net cost after subsidy: ₹37,000 to ₹1,27,000 depending on size
- Solar loans available at 7.5%–11% p.a. from nationalised banks
- Low monthly EMI — often less than current electricity bill
- PM Surya Ghar CFA is NOT available for commercial connections
- Eligible solar assets may qualify for accelerated IT depreciation — consult your CA
- MNRE/IREDA-backed financing channels may be available
- System ROI typically within 3–5 years on commercial tariffs
Indicative EMI After PM Surya Ghar Subsidy
Calculated at 10% p.a. interest rate on net cost after subsidy. Net cost assumes maximum eligible CFA (1–3 kW) or no subsidy (5 kW+ if over 3 kW not covered by CFA). Actual costs depend on quotation and site.
| System Size | Net Cost (After Subsidy) | EMI — 3 Years | EMI — 5 Years | EMI — 7 Years |
|---|---|---|---|---|
| 1 kW | ₹37,000 | ≈ ₹1,194/mo | ≈ ₹786/mo | ≈ ₹614/mo |
| 2 kW | ₹62,000 | ≈ ₹2,001/mo | ≈ ₹1,317/mo | ≈ ₹1,029/mo |
| 3 kW | ₹87,000 | ≈ ₹2,807/mo | ≈ ₹1,848/mo | ≈ ₹1,444/mo |
| 5 kW | ₹1,27,000 | ≈ ₹4,098/mo | ≈ ₹2,698/mo | ≈ ₹2,108/mo |
* Illustrative only at 10% p.a. simple interest. PMT calculation. Actual loan product rates vary. Subsidy credited after commissioning.
Banks Offering Solar Loans in Bihar
These are publicly available bank loan products. Shree Laxmi Traders has no partnership with these banks. Contact them directly for eligibility and current rates.
Available for residential solar. Part of SBI's green finance portfolio.
Visit SBI (State Bank of India) Website ↗Solar installation eligible under home improvement category.
Visit HDFC Bank Website ↗Dedicated solar loan product with tie-ups with approved vendors.
Visit Bank of Baroda Website ↗Available at major Bihar branches.
Visit Canara Bank Website ↗Solar Finance FAQs
Yes. Several nationalised and private banks offer dedicated "solar loans" or "green home loans" for rooftop solar installation. Common options include HDFC Bank Green Home Loan, SBI Solar Power Scheme, Bank of Baroda Solar Finance, and Canara Bank's green loans. Eligibility depends on your credit score, income proof and CIBIL history. Interest rates vary between 7% and 12% per annum as of 2026.
The PM Surya Ghar Central Financial Assistance (CFA) is released directly to your bank account (DBT) after system commissioning and DISCOM net-meter approval — not upfront. Most borrowers take a loan for the full cost and receive the subsidy later, which can be used to prepay part of the loan principal.
No. The PM Surya Ghar Muft Bijli Yojana CFA (Central Financial Assistance) is available only for residential consumers with a household electricity connection. Commercial, industrial or agricultural consumers are NOT eligible for this subsidy. Commercial customers can potentially benefit from accelerated depreciation provisions under the Income Tax Act — consult your CA/tax adviser.
For a 3 kW system with an indicative cost of around ₹1,65,000 — after receiving the ₹78,000 PM Surya Ghar subsidy, the net investment is approximately ₹87,000. A 5-year personal loan at 10% per annum results in an approximate monthly EMI of ₹1,850. This is a rough calculation only. Actual EMI depends on your bank, loan product, credit profile and any processing fees.
Typical documents: KYC (Aadhaar + PAN), income proof (salary slips / ITR), bank statements (last 6 months), property documents (for home loan route), electricity bill, project quotation from installer, and your DISCOM consumer account number.
Get a Detailed Solar Quotation
We provide itemized quotations that you can share with your bank for loan processing.