Calculator

Solar Loan EMI Calculator

The useful question is not what the EMI is. It is whether your electricity savings are bigger than the EMI. If they are, solar costs you nothing from day one.

Your loan

From the net metering calculator
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The formula

EMI = P x r x (1+r)^n / ((1+r)^n - 1) P = loan amount r = monthly rate n = months THE PART THAT MATTERS Net monthly outgo = EMI - Monthly electricity saving If your saving is more than the EMI, you are ahead from the very first month.

What this assumes

  • Loan is taken on the net cost, after subsidy. If your bank lends on the full amount, adjust it.
  • Interest rate is treated as fixed. Most loans are floating and will change.
  • Processing fees and insurance are not included.
  • Monthly savings are averaged over the year. Monsoon months will be lower.
  • Subsidy money usually arrives after the loan starts, so your first few EMIs are on the full amount.

Common questions

Can I get a loan for solar?

Yes. Most public sector banks offer solar loans under the government scheme, usually at lower rates than a personal loan. Some are covered under priority sector lending.

Will my savings cover the EMI?

Often yes, especially on a longer tenure. The calculator shows you both numbers side by side. If savings beat the EMI, your solar is free from month one and yours after the loan ends.

Should I take a loan or pay cash?

If you have the cash and no better use for it, pay cash and skip the interest. If paying cash means emptying your emergency fund, take the loan. The savings usually cover most of the EMI anyway.

What tenure should I choose?

A longer tenure means a smaller EMI, which is more likely to be covered by your savings. You pay more interest overall. Five to seven years is a common balance.

Data last reviewed August 2026 Full methodology Disclaimer