Rooftop Solar Gets ₹10,907 Cr Boost From Public Sector Banks: Govt

Empowering households with clean and affordable solar energy, Public Sector Banks (PSBs) have sanctioned over 5.79 lakh loan applications amounting to ₹10,907 crore as of September 2025. Sharing these details, the Finance Ministry noted that these loans sanctioned under the PM Surya Ghar Muft Bijli Yojana (PMSGMBY) can help to augment financial support for key beneficiaries in installing rooftop solar systems.

The ministry noted that streamlining the credit delivery process, facilitating collateral-free and affordable loans at lower interest rates, and simplifying financing through PSBs support the PM Surya Ghar Muft Bijli Yojana (PMSGMBY) implementation. The ministry explained that these loans are being processed through the JanSamarth Portal, which is integrated with the National Portal for PM Surya Ghar Muft Bijli Yojana (pmsuryaghar.gov.in), ensuring an end-to-end seamless digital application process, enhanced user experience, and data-driven decision-making for beneficiaries.

Scheme Offers Loan Benefits Up to ₹2 Lakh

As the model loan scheme,  PMSGMBY offers key benefits, including loans of up to ₹2 lakh at competitive interest rates, without collateral, and with a longer repayment tenor aligned with electricity cost savings. It also provides a six-month moratorium period from the date of disbursement, a lower margin contribution by the applicant, and a digital sanction process based on self-declaration.

The ministry suggested that with active participation from Public Sector Banks, several enhancements have been introduced to ease access to loans and expand the scheme’s reach. It explained that these notable improvements include the inclusion of co-applicants to broaden eligibility, the removal of capacity-based caps, and simplified documentation requirements, all of which were incorporated based on user feedback.

Moreover, the Financial Services Department, in coordination with the Ministry of New and Renewable Energy (MNRE), is actively reviewing the progress of loans under the scheme. Additionally, it continues to strengthen implementation through collaboration with State-Level Bankers’ Committees and Lead District Managers, for faster adoption, better outreach, and deeper penetration of the scheme.