Best Bank for Solar Loan 2026, IREDA vs SBI vs HDFC

ALMM and inverter compliance: MNRE’s current ALMM page publishes solar PV module and cell lists, not an inverter list. Verify the inverter’s exact model documents and applicable scheme or DISCOM requirements separately.

Solar financing in India has matured considerably. Five years ago, homeowners largely paid cash for rooftop solar or settled for informal dealer instalment schemes. Today, banks, IREDA and NBFCs offer formal solar finance, and the PM Surya Ghar programme makes a central subsidy of up to ₹78,000 available to eligible households.

The problem is comparison. Lender websites quote ranges, rates float against benchmarks, and processing fees sit in fine print. This guide compares what each lender’s own page shows, read on 14 October 2026, and lists the lenders alphabetically. It is not a ranking: the right loan depends on your loan size, credit profile and documents.

Direct answer. On each lender’s own page (read 14 October 2026): SBI lists 5.75% per annum up to ₹2 lakh and 7.90% per annum above ₹2 lakh up to ₹6 lakh for PM Surya Ghar rooftop solar; IREDA lists no household loan; HDFC Bank lists no solar-specific loan and advertises its Personal Loan from 9.99%. Use the 5-Factor Solar Loan Scorecard below to weigh rate, tenure, fees, subsidy compatibility and eligibility ease for your own situation.

This post covers the lenders in alphabetical order and is not a ranking.

The 5-Factor Solar Loan Scorecard

Before comparing lenders, it helps to know which dimensions decide the right loan for a given buyer.

The 5-Factor Solar Loan Scorecard

1. Interest rate: The most visible factor. Rates float, so note the benchmark, the reset frequency and the date of the quote. A difference of one percentage point on ₹3,00,000 over 10 years is roughly ₹16,000 to ₹19,000 in total interest at these rates (calculate your own case with the formula below).
2. Tenure available: A longer tenor lowers the EMI but raises total interest.
3. Processing fee and hidden charges: Ask for the fee schedule, including insurance and prepayment terms.
4. Subsidy compatibility: The subsidy is credited after commissioning, so ask how a lump-sum prepayment is applied.
5. Eligibility ease: Check the minimum CIBIL score, income, documents and whether the loan needs an intermediary.

Write down each lender’s written offer against these five factors and compare them for your own profile. This guide does not assign numeric scores because no published source supports them.

Lender-by-Lender Analysis (Alphabetical, Not Ranked)

HDFC Bank

HDFC Bank’s pages (read 14 October 2026) show no solar-specific or Green Home Loan product. Its Personal Loan is advertised from 9.99% per annum, with the EMI calculator running from 9.99% to 24% and tenures of 1 to 7 years.

Points in its favour:

• Existing customers may find the process familiar, and the bank has a wide branch and app presence.
• A personal loan does not need the property to be mortgaged.

Limitations:

• No solar-specific product on its pages, so the rate you are offered depends on your profile.
• The advertised starting rate is higher than SBI’s published PM Surya Ghar rates.

Best for: An existing HDFC customer who needs unsecured credit and accepts a higher rate. Read the HDFC solar loan guide for the full Decision Tree.

IREDA

IREDA (Indian Renewable Energy Development Agency) is the government’s specialised renewable energy financier. Its loan-schemes page (read 14 October 2026) lists 22 schemes, including a rooftop solar PV scheme for industrial, commercial and institutional borrowers. None is a household product, and rates are set by borrower grade in its interest-rate matrix, so there is no household rate to quote.

Points in its favour:

• Dedicated renewable energy lending with published scheme documents.

Limitations:

• Not a lender to individual homeowners on its published schemes.

Best for: Businesses and institutions financing a rooftop plant. Read the IREDA solar loan guide for what it does and does not offer.

SBI

SBI’s PM Surya Ghar loan page (read 14 October 2026) lists 5.75% per annum up to ₹2 lakh and 7.90% per annum above ₹2 lakh up to ₹6 lakh, floating and linked to EBLR, as on 15 December 2025. The terms: rooftop solar up to 10 kW, 10% margin, up to 120 months including a 6-month moratorium, nil processing fee and no prepayment penalty. Up to ₹2 lakh there is no minimum CIBIL score or income; above ₹2 lakh the page requires CIBIL 650+, net annual income of ₹3 lakh+, PAN and asset insurance.

Points in its favour:

• A published rate and published terms for PM Surya Ghar rooftop solar.
• Wide branch network and a loan application that starts on the national portal.

Limitations:

• Rates float with EBLR and change after the date printed on the page.
• The higher slab and conditions above ₹2 lakh.

Best for: Homeowners financing a PM Surya Ghar rooftop system of up to 10 kW. Read the SBI solar loan guide. SBI’s separate Surya Shakti solar finance is a business loan for SMEs, businesses and housing societies, not a homeowner product.

Other Banks (Bank of Baroda, Canara Bank, Punjab National Bank, Indian Bank)

These banks also lend for PM Surya Ghar rooftop solar. We did not read a rate page for them on 14 October 2026, so no rate, tenor or fee is quoted here. Use each bank’s own PM Surya Ghar loan page, and compare the offer in writing against the figures above.

MSME and Business Loans

For commercial installations (shops, restaurants, clinics, small factories), a business term loan is the usual route, and credit-guarantee-backed options may exist at your bank. SBI’s Surya Shakti solar finance is one published example (page read 14 October 2026): it is for SMEs and business enterprises, up to ₹10 crore for captive use, tenor up to 10 years, 20% minimum margin, and a 0.75% processing fee plus GST, with MSMEs priced on the External Benchmark Rate and non-MSMEs on the 6-month MCLR. Business loans can be paired with accelerated depreciation (40% in Year 1 under the Income Tax Act); see the solar depreciation tax benefits guide.

Comparison Table: Published Rates and Terms

Rates float; verify with each lender before applying. Sources: HDFC Bank, IREDA, SBI Surya Ghar, SBI Surya Shakti, all read 14 October 2026.

EMI Comparison: ₹3 Lakh Solar Loan

The table fixes the loan amount at ₹3,00,000 to give a concrete monthly cost comparison between the two lenders that publish a rate for it.

IREDA is not in the table because it publishes no household rate. For ₹2,00,000 or less, SBI’s page lists 5.75%, which on ₹2,00,000 over 5 years costs about ₹30,601 in interest, against about ₹54,905 at 9.99%. Compare the EMI with your own bill saving, using your own tariff and generation, and use a solar financial modeling tool for a year-by-year cash-flow view.

Which Solar Loan Fits Your Profile?

Common Mistakes When Choosing a Solar Loan

• Applying to the first bank you meet without comparing: on ₹2,00,000 over 5 years, the published SBI rate costs about ₹24,300 less interest than 9.99% (both calculated).
• Not checking subsidy handling: the subsidy is credited after commissioning, so ask how a lump-sum prepayment is applied. Some buy-now-pay-later products may not suit the DISCOM’s invoice requirements.
• Ignoring the tenor effect: a shorter tenor reduces total interest but raises the EMI. If the EMI exceeds your bill saving, the system is cash-flow negative until the loan is repaid.
• Choosing an unempanelled vendor to save on cost: this blocks the PM Surya Ghar subsidy. Comparing quotes from established solar EPC and turnkey installation providers, who are typically already empanelled, avoids the trap.
• Accepting a rate without a date: floating rates change. Ask for the sanction letter showing the rate, benchmark and reset terms.

For a broader comparison of all financing options including RESCO and zero-cost models, read the inverter financing options in India overview.

How to Apply for the Right Solar Loan: Step-by-Step

1. Determine system size: get a rooftop assessment from an empanelled installer. System cost, subsidy amount and net loan requirement depend on this number.
2. Check PM Surya Ghar eligibility: visit the PM Surya Ghar portal and confirm your DISCOM is participating.
3. Compare rates: use the table above and request written offers from SBI (via the portal or branch), HDFC Bank (if you are a customer) and any other bank whose own page you read.
4. Run the 5-Factor Scorecard: compare the written offers on rate, tenure, fees, subsidy handling and eligibility ease.
5. Gather documents: KYC, income proof where required, DISCOM approval and the installer quotation naming ALMM-listed modules and the exact inverter model.
6. Apply and follow up: ask the lender for its current processing timeline in writing; this guide quotes none because no published source gives one.
7. Use the subsidy for prepayment: once the subsidy lands, prepay principal if your lender allows it without a charge.

For homeowners on EMI specifically, read the solar on EMI guide for instalment structure analysis and the PM Surya Ghar subsidy amount breakdown for how the central subsidy is calculated by system size.

Where Qbits Fits

Qbits is an inverter manufacturer; it does not lend, install systems or approve subsidy. The loan only pays off if the system it finances performs for the full tenor, so the inverter’s written warranty and service route matter.

• Hybrid Inverters: Review current QBH model documents and confirm the exact battery, firmware, PV, backup-output, transfer, communication, warranty and project requirements in writing.
• String Sizing Calculator: confirm panel-string compatibility before the installer finalises the bill of materials and quotation.
• Authorised Service Partners: Search the current directory, then confirm partner status, service scope, coverage, response process and commercial terms for the location.

Contact Qbits with questions about an inverter model named in a quote. Installers can apply through become our partner. Verify module and cell ALMM status, scheme eligibility, DISCOM acceptance and loan terms with the responsible official parties; Qbits does not control subsidy or lender approval.