Solar Financing Math: Is an EMI Cheaper than Your Bill?

Introduction

"I want solar, but I don't want to pay ₹2 Lakhs upfront."

We hear this every day in Dhule and Jalgaon. And it's a fair point. Why block your capital when you can pay monthly? But the real question isn't just "Can I get a loan?" — it is: Will the loan EMI be less than what I pay MSEDCL today?

If the answer is YES, then your solar system is technically free. It is paying for itself from Day 1.

In this guide, we show you how to check this math in 30 seconds using our interactive EMI Calculator.

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The "Positive Cashflow" Concept

Solar financing in Maharashtra has changed. With green loans (from SBI, Union Bank, etc.) and specific solar financing NBFCs, interest rates are reasonable (9-12%) and tenures are flexible (3-7 years).

This creates a sweet spot where:

1. Your Old Bill: ₹6,000 / month (gone).
2. Your New Solar EMI: ₹4,500 / month.
3. Net Saving: ₹1,500 / month immediately.

You own the system, you pay less than before, and after 5 years, the EMI stops—but the free electricity continues for 20 more years.

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Don't Do the Math Manually. Use the Tool.

Calculating this requires complex math:

• Subtracting the PM Surya Ghar Subsidy (up to ₹78,000).
• Calculating compound interest on the balance.
• Estimating generation units.

We built a tool to do this instantly.

Open the EMI vs Savings Calculator

How to Use It for Accurate Results:

1. Select System Size (kW):
   • Drag the slider. (Tip: 3kW is standard for a ₹3,000–4,000 bill).
2. Choose Loan Tenure:
   • 3 Years = Higher EMI, but loan finishes fast.
   • 5 Years = Balanced.
   • 7 Years = Lowest EMI (easiest to beat your bill).
3. Adjust Interest Rate:
   • Banks like SBI/Union Bank offer ~9–10%.
   • NBFCs might be 11–13%. Set it to 10.5% for a realistic average.

What the Tool Shows You:

• Net Cost: It automatically deducts the subsidy.
• Detailed Monthly Math: It shows "EMI vs Bill Savings" side-by-side.
• The Verdict: Look for the Positive Cashflow badge. If you see that green badge, the investment is a no-brainer.

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Real Example: A 3kW System in Dhule

Let’s run a quick scenario for a typical home.

• System Cost: ~₹1.80 Lakh
• Subsidy: -₹78,000
• Loan Amount: ~₹1.02 Lakh

Scenario A: 3-Year Loan

• EMI: ~₹3,500
• Bill Savings: ~₹3,200
• Result: You pay ₹300 extra per month. Almost neutral.

Scenario B: 5-Year Loan

• EMI: ~₹2,300
• Bill Savings: ~₹3,200
• Result: You SAVE ~₹900 per month instantly.

By choosing a 5-year tenure, you are cash-positive from the first month.

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Ready to Crunch the Numbers?

Every home is different. Your roof might need a 4kW system, or maybe you qualify for a cheaper loan rate.

> Go to the EMI Calculator Now <

Find the tenure that makes your solar system free.

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