The PM Surya Ghar subsidy gives you ₹78,000 back. A solar loan gives you the full amount upfront and lets you pay it off monthly. Many Kerala homeowners use both together — and when structured right, going solar can cost you less than your current electricity bill from day one.
Option 1: Pay Upfront and Claim the Subsidy
You pay the full system cost to your installer. Your installer processes the subsidy application. Within 30 working days of commissioning, ₹78,000 is credited directly to your bank account by the government. Best for homeowners with available savings who want maximum simplicity and no EMI commitment. Total net cost for a 3 kW system: ₹1.1–₹1.4 lakhs after subsidy.
Option 2: Solar Loan + Subsidy
Several nationalised banks — including SBI, Bank of Baroda, and Canara Bank — and NBFCs offer dedicated solar loans at 6–8% interest. You borrow the full system cost, and when the subsidy arrives, it is used to pre-pay a portion of the loan.
Even with an EMI, most 3 kW solar loan customers in Kerala save money every month from the moment their system is commissioned.
Option 3: Power Purchase Agreement (PPA)
In some cases, solar companies offer a PPA arrangement where they install the system at no upfront cost to you, and you pay them a fixed per-unit rate for the electricity generated — lower than KSEB rates. You do not own the system, but you do benefit from lower electricity costs immediately.
Which Option Is Right for You?
The right financing structure depends on your savings, income stability, and how quickly you want to recover your investment. Rayenna will help you model all three options with your actual numbers before you decide.
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