How to Finance Solar in 2026 - Loans, BNPL, No‑Cost EMI Explained
Buying a solar system no longer means paying everything upfront. By 2026, India's clean energy market offers multiple financing options-solar loans, Buy‑Now‑Pay‑Later (BNPL) plans, and zero‑interest EMIs-that spread costs while letting you enjoy energy savings from day one.
This guide walks you through each option, their pros and cons, and how to choose what best fits your budget and energy goals.
Why Financing Solar Makes More Sense Than Ever in 2026
Solar panel costs have dropped, but installation and inverter expenses still demand an initial investment of ₹1 – 3 lakh for a typical home system. Financing helps you:
- Start saving immediately while paying in easy monthly instalments.
- Combine subsidies and EMIs to reduce both upfront and recurring costs.
- Avoid high‑interest personal loans.
- Spread the system cost across 3–7 years, roughly equalling your current electricity bill.
Essentially, well‑planned financing means you trade your grid bill for a solar instalment-and own the system after it pays for itself.
Option 1 - Green and Solar‑Specific Loans
Most national and private banks now recognise rooftop solar under their green or renewable energy loan portfolios.
Features
- Loan amount: ₹50,000 – ₹10 lakh (typical cap for residential).
- Tenure: up to 7 years with flexible EMIs.
- Interest rates: 6.75% – 10.5%, often lower than standard personal loans.
- Collateral: Usually none required for small systems under ₹5 lakh.
Eligibility
- Valid electricity connection and ownership of premises.
- Verified quotation from an MNRE‑approved vendor.
- Standard KYC documents.
Pros
- Structured repayment and clear documentation.
- Easy integration of subsidies into loan amount.
Considerations
- Processing time varies by bank.
- Some lenders require installation by registered installers.
Top providers in 2026 include State Bank of India, HDFC, Axis Bank, IDBI, and emerging fintech lenders.
Option 2 - Buy‑Now‑Pay‑Later (BNPL) Solar Financing
BNPL has entered the renewable energy market as a quick‑approval, retail‑style credit method.
How It Works
- Immediate installation with repayment starting 30–90 days later.
- Short‑term payments (6–18 months).
- Usually handled by fintech or solar aggregators partnering with installers.
Benefits
- Fast approval in minutes to hours using e‑KYC.
- No bank visit or heavy paperwork.
- Ideal for small 1–3 kW systems where users expect short payback.
Watch‑outs
- BNPL may have hidden processing fees or higher interest beyond teaser period.
- Ensure you read penalty clauses for missed payments.
Use BNPL when you prefer quick installation + short EMIs, not as a long‑term funding solution.
Option 3 - No‑Cost EMI & Credit‑Card Financing
Many installers and e‑commerce solar providers in 2026 partner with payment gateways to offer 0% or low‑interest EMI options directly at checkout or through banks.
Key Highlights
- Tenure: 6–24 months.
- Processing: Often instant via partnered cards (HDFC, Axis, ICICI, Bajaj Finserv, etc.).
- No extra interest-merchant absorbs cost through small discount or subsidy.
This plan suits customers with strong cash flow who want short repayment without long documentation.
Points to Note
- Check if "no‑cost" truly means zero added GST or platform fees.
- Ensure installation warranty and service are still included.
Option 4 - Pay‑as‑You‑Go and Leasing Models
Some solar companies now offer a leasing or pay‑as‑you‑go option, mainly for businesses and large societies.
Structure
- Installer owns the system.
- You pay a monthly solar tariff lower than your grid rate.
- Ownership may transfer after 10–15 years or remain with the supplier.
It's ideal for customers who want solar benefits without handling maintenance or ownership risks.
How to Combine Subsidy With Solar Finance
In 2026, central subsidies under MNRE's rooftop scheme reduce upfront cost substantially (often 30–40% for ≤ 3 kW systems). When you finance solar:
- Apply for subsidies via the national portal before loan disbursement.
- The lender can adjust the subsidy amount after project inspection.
- Effective loan value drops, and EMIs become lighter.
Example
A ₹1.8 lakh system – ₹60,000 subsidy = ₹1.2 lakh financed through low‑interest EMI of under ₹2,000/month (approx).
Comparing All Solar Finance Options in 2026
| Financing Type | Tenure | Interest | Ideal For | Key Advantage | Possible Caveat |
|---|---|---|---|---|---|
| Green Loan | 3–7 yrs | 6.75–10% | Homeowners | Lower interest, structured | Moderate paperwork |
| BNPL | 6–18 m | 0–15% | Quick buyers | Fast approval | Short term, higher post‑offer rate |
| No‑Cost EMI | 6–24 m | 0% (absorbed by vendor) | Small systems | Instant credit card approval | Platform fees |
| Leasing | 10+ yrs | Fixed tariff | Businesses, societies | No maintenance responsibility | No immediate ownership |
Tips Before You Apply for Solar Financing
- Get 2–3 installer quotations to gauge realistic cost per kW.
- Verify lender tie‑ups with MNRE‑approved installers – this simplifies paperwork.
- Match EMI with expected savings: Choose tenure where your monthly saving equals EMI or slightly more.
- Ask about early repayment or foreclosure fees-some fintechs charge penalties beyond a certain cap.
- Always read contracts carefully, especially on warranty transfer if the loan is repaid early.
Why Finance Solar Through Arkahub Partners
Arkahub connects you with MNRE‑certified installers and vetted lenders offering:
- No‑cost EMI and BNPL options integrated with installation quotes.
- Instant subsidy verification via the national rooftop portal.
- Transparent repayment schedules and zero hidden fees.
With energy costs rising and interest rates stable, 2026 is the perfect year to instal solar through intelligent financing-turning your electricity bill into a future‑proof investment.
Financing solar in 2026 is no longer complicated-it's flexible, affordable, and designed for everyday homeowners. Whether through green loans, BNPL, or no‑cost EMI, going solar has never been easier or more financially rewarding.
FAQs - Solar Financing 2026
Frequently Asked Questions
Can I get both subsidy and loan together?
Is credit score important for green loans?
Can financing cover battery or hybrid upgrades later?
Are EMIs cheaper than my monthly electricity bill?
What happens if I move house before loan completion?
Still have questions?
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