EMI, Loans and Financing Options for Solar Systems in Maharashtra

Introduction

Rooftop solar in Maharashtra is now a solid financial asset, not just an environmental gesture. Power tariffs for residential users above 100 units per month often sit in the ₹9–₹13 per unit range depending on the slab, which makes every saved unit valuable.

The catch is simple: a good-quality rooftop system still requires ₹1–3 lakh of upfront investment depending on size. Not every family in Dhule, Jalgaon or the rest of North Maharashtra wants to lock that much cash at once.

That’s where solar loans, EMIs, and other financing options come in. They don’t make solar “free”. They simply spread the cost over time so that you can match the system size to your cash flow.

This guide walks through how to finance rooftop solar, what a typical solar loan in Maharashtra looks like, and how EMIs compare to your monthly bill savings for 3 kW and 5 kW systems.

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Main Ways to Pay for a Solar System

There are four broad ways to finance rooftop solar today. The right mix depends on your savings, risk appetite, and how long you plan to stay in the property.

1. Pay Upfront (Own Funds)

You pay the full net cost of the system from your own savings.

Pros:

• No EMI, no interest cost.
• Highest returns over 20–25 years.
• Simplest structure; just one transaction with the EPC.

Cons:

• Ties up capital that could be used elsewhere.
• Not feasible for everyone, especially immediately after buying a flat or home.

For many families in Dhule and Jalgaon, this is still the cleanest option if they have surplus savings and low existing EMIs.

2. Bank “Green Loan” or Home Improvement Loan

Many banks now offer green energy loans or home improvement loans that can be used for solar. These are typically personal loans or top-up home loans with a slightly better rate because it is a climate-friendly asset.

Typical features:

• Tenor: 3–7 years; sometimes up to 10.
• Interest: often in the 9.5%–13% range depending on your profile and collateral.
• Some loans are secured (linked to property); others are unsecured personal loans.

This is a common way to finance rooftop solar for salaried customers with steady income histories.

3. EMI via Bank / NBFC at Point of Sale

Some EPCs and distributors partner with banks or NBFCs to offer instant EMI schemes:

• Quick approval based on CIBIL and basic KYC.
• Shorter tenors (often 3–5 years).
• Rates can be a bit higher than pure home loans but processing is faster.

This is what many homeowners think of when they search for “EMI for solar system”. It is convenient, but you still need to compare the EMI to your likely monthly bill savings.

4. RESCO / BOOT Models (Primarily for Business or Larger Loads)

For larger commercial roofs in Maharashtra, there are RESCO / BOOT models:

• A developer installs a system on your roof.
• You don’t own the plant; you sign a long-term power purchase agreement (PPA).
• You pay per unit of energy, usually at a tariff lower than the grid.

This model is more common for businesses, schools, and institutions than for small Dhule homes. Still, it’s worth knowing this exists if you manage a commercial building in North Maharashtra.

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How a Typical Solar Loan Works

Let’s look at the basic structure of a solar loan in Maharashtra.

Loan Amount

• Usually based on the net project cost after subsidy.
• Example: If a 3 kW system costs ~₹1.8 lakh and PM Surya Ghar subsidy is ₹78,000, the net cost is around ₹1.0–1.1 lakh.
• Banks often finance 80–90% of this amount; you pay the balance upfront.

Tenor and Interest

• Tenor typically ranges from 3 to 7 years for residential rooftop solar.
• Interest rates for solar loans and green loans usually sit in the 9.5–13% zone, depending on:
  • Bank vs NBFC
  • Secured vs unsecured
  • Your credit score and income profile.

Longer tenors reduce EMI but increase total interest outgo.

Security and Documentation

For most middle-class homeowners in Dhule and Jalgaon:

• Smaller loans might be treated like personal loans (unsecured).
• Larger loans could be top-up home loans or secured loans with property as collateral.

Typical documentation:

• KYC (PAN, Aadhaar).
• Income proof (salary slips, ITR, bank statements).
• Latest electricity bills.
• Solar proposal / quotation from a recognised EPC.
• In some cases, project approval or net metering documentation.

Fees and Prepayment

• One-time processing fee, usually a small percentage of loan amount.
• Prepayment charges can apply if you close the loan early; some banks waive these for floating-rate loans.

Before you sign, you want a full view of EMI, total interest paid, and any prepayment penalties.

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Example EMI for a 3 kW System in North Maharashtra

Now the practical bit: numbers.

Take a 3 kW rooftop solar system for a home in Dhule.

Step 1: Estimate Cost and Subsidy

Assume:

• Gross cost of a good-quality 3 kW on-grid system: ~₹1.8 lakh (panels, inverter, structure, cabling, installation, paperwork).
• Central subsidy under PM Surya Ghar:
  • ₹30,000/kW for the first 2 kW.
  • ₹18,000/kW for the 3rd kW.
  • Total ≈ ₹78,000 for 3 kW.

So:

• Net cost after subsidy ≈ ₹1.02–1.10 lakh.
• For calculations, let’s take ₹1.10 lakh as the financed amount.

Step 2: Typical Solar Generation and Savings

In Maharashtra’s climate, 1 kW of rooftop solar can generate around 1,400–1,600 kWh per year.
For 3 kW, assume ~4,500 units per year.

For a Dhule home consuming ~250–300 units/month:

• Many units sit in the ₹9.64–₹12.83 per unit slabs.
• Blended benefit from solar offset might be ~₹9–₹10 per unit.

So annual savings ≈ 4,500 × ₹9.0 = ~₹40,000 per year, or ~₹3,300 per month.
This is a rough working number, not a guarantee.

Step 3: Example EMIs for ₹1.10 lakh

Assume interest rate around 11–12% per annum.

Approximate EMIs:

• 3-year loan: ~₹3,600–3,700 per month
• 5-year loan: ~₹2,400–2,500 per month
• 7-year loan: ~₹1,900–2,000 per month

You can see the pattern:

• At 5 or 7 years, EMI is usually lower than the expected monthly saving for a well-sized 3 kW system in Dhule.
• That means in many cases, your cash flow is close to neutral or mildly positive from month one:
  • You pay EMI instead of paying that amount to MSEDCL.
  • Over 20+ years, once the loan is closed, you keep enjoying most of the savings.

If your actual consumption is lower than assumed, your savings will also be lower. That’s why sizing and honest projections matter.

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Example EMI for a 5 kW System

Now take a higher-usage home in Jalgaon or another North Maharashtra town.

Step 1: Cost and Subsidy

Assume:

• Gross cost for a 5 kW rooftop system: ₹2.5–3.0 lakh (let’s use ₹2.8 lakh as a working example).
• PM Surya Ghar subsidy is capped at 3 kW, so still ₹78,000 maximum.

So:

• Net cost ≈ ₹2.8 lakh – ₹78,000 ≈ ₹2.02 lakh.
• Let’s round to ₹1.90–2.00 lakh to allow for variations; we’ll use ₹1.90 lakh for EMI examples.

Step 2: Generation and Savings

For 5 kW:

• Annual generation ≈ 7,000–8,000 units (let’s use 7,500 units).

A high-usage home (350–500+ units/month) often hits the ₹12.83 and ₹14.33 per unit slabs for top units.
Blended benefit of offsetting those expensive units could easily be ₹10 or more per unit.

So rough annual savings ≈ 7,500 × ₹10 = ₹75,000 per year,
or about ₹6,000–₹6,500 per month.

Step 3: Example EMIs for ₹1.90 lakh

Again assume ~11–12% interest.

Approximate EMIs:

• 3-year loan: ~₹6,200–6,300 per month
• 5-year loan: ~₹4,100–4,300 per month
• 7-year loan: ~₹3,300–3,400 per month

Interpretation:

• For a 5 kW system in a genuinely high-consumption Jalgaon home, the 5-year EMI can be lower than the monthly savings.
• Over a 7-year tenor, EMI becomes even smaller relative to savings, but you pay interest for longer.

If your actual usage is only 200–250 units/month, a 5 kW system is oversized and these numbers won’t hold. The system has to be matched to your real load, not just your ambition.

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Tax and Depreciation Benefits for Businesses

For business entities in Maharashtra (shops, offices, small industries), the calculation changes because of tax treatment.

Under the Income Tax Act, solar power plants fall under “renewable energy devices” and are eligible for accelerated depreciation (AD), currently around 40% on a written-down value basis in the first year, with possible additional depreciation depending on conditions.

In plain language:

• A company that installs a rooftop solar system can write off a large chunk of the asset value in the first few years.
• This reduces taxable profit and therefore reduces tax liability in those years.
• Effective payback period for businesses can drop by 1–2 years compared to a residential user.

Key points:

• These benefits are for tax-paying entities, not individual homeowners.
• Actual benefit depends heavily on your profit level, tax slab, and structure.
• You should confirm details with your CA or tax advisor before assuming any specific number.

For many SMEs in Dhule, Jalgaon and other towns in North Maharashtra, the combination of EMI + tax shield from accelerated depreciation makes rooftop solar a strong financial decision.

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Things to Consider Before Taking a Loan

Financing is a tool. Use it carefully.

1. Stability of Income

Ask yourself:

• Is your job or business reasonably stable?
• Do you already have big EMIs (home, car, other loans)?

If your income is volatile, taking a long solar loan may add stress even if the project looks good on paper.

2. How Long Will You Stay in This House?

Solar is a 20–25-year asset. Loans are typically 3–7 years.

• If you plan to sell the property in 2–3 years, be clear how the solar asset will be valued in the sale.
• In some markets, solar helps resale value; in others, buyers don’t fully understand the benefit yet.

3. System Quality vs Loan Tenor

There is no point taking a 7-year loan for a system that is built with the cheapest possible hardware.

• Panels should be from recognised brands with proper warranty.
• Inverters should have service support in Maharashtra.
• Structures and cabling must withstand Dhule/Jalgaon heat, dust, and monsoon for decades.

Your goal is simple: the system should easily outlive the EMI period.

4. EMI vs Realistic Savings

Never sign a loan based only on a salesperson’s optimistic generation chart.

• Use at least 10–15% conservative buffer on generation.
• Consider how your usage might change (AC, EV, more people in the house).
• Run scenarios:
  • “What if my savings are 20% lower than the brochure?”
  • “Can I still comfortably pay this EMI?”

A solar loan in Maharashtra makes sense when, in a conservative scenario, you’re still comfortable with the EMI and the long-term asset.

5. Total Cost of Capital

Look beyond the monthly EMI:

• Add up total interest over the tenor.
• Compare: upfront purchase vs 3-year loan vs 7-year loan.
• Sometimes a shorter tenor with slightly higher EMI is better overall than dragging a small saving over many years.

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How Ultron Power Systems Supports Financing Decisions

At Ultron Power Systems, our job is not to “sell EMIs”. Our job is to help you make a clear-headed decision.

Here’s how we usually work with homeowners and businesses in Dhule, Jalgaon and across North Maharashtra:

1. Honest Load and Roof Assessment

• We study your last 6–12 months of electricity bills.
• We talk about future changes: ACs, EVs, borewell pumps.
• We check your roof area, shading, and structural constraints.

Then we suggest a system size that fits you, not a random kW number.

2. Realistic Generation and Cash Flow Projections

• We estimate annual generation based on North Maharashtra conditions, not generic national averages.
• We map generation against your tariff slabs to estimate realistic savings, not fantasy numbers.
• We then show:
  • Upfront payment option.
  • One or more solar loan / EMI for solar system options: 3, 5, 7 years.

You see how EMI compares to expected monthly savings.

3. Documentation Support for Loans

If you decide to finance:

• We provide detailed quotations, system specs, and project documents that banks and NBFCs typically ask for.
• Where relevant, we can connect you with known financing partners who have previously funded rooftop solar systems for our customers.
• For business clients, we share system cost breakups that your CA can use while planning depreciation and tax treatment.

4. Long-Term Relationship, Not Just Installation

Once the plant is commissioned:

• We support you on performance questions and monitoring.
• We help you understand if the system is tracking close to what was projected.
• If you want to prepay or refinance your loan later, we can share updated data on plant performance that may help your discussions with lenders.

The idea is simple: you should never feel alone in this decision.

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Conclusion

Financing does not make solar “free”. It simply shifts the timing of your cash flows:

• Instead of paying MSEDCL every month forever, you pay a bank or NBFC for a few years.
• After that, you keep most of the savings while the system continues to generate power.

For many households in Dhule, Jalgaon and the rest of North Maharashtra, a well-designed 3 kW or 5 kW system financed via a sensible solar loan in Maharashtra can:

• Keep monthly cash flow manageable.
• Reduce long-term exposure to rising grid tariffs.
• Build a real asset on the roof that works for 20–25 years.

The key is to be brutally realistic about numbers, not emotional:

• Choose the right system size.
• Compare EMI vs conservative monthly savings.
• Understand interest cost and tax implications.
• Work with an EPC that designs for the full life of the system, not just for the day of installation.

Ultron Power Systems is happy to run through these scenarios with you, line by line, so that whether you pay upfront or run the project on EMIs, your solar decision is grounded in math, not marketing.