Ministry of Finance has advised banks to encourage the Home Loan / Home improvement loan seekers to install Rooftop Solar PVs and include the cost of such equipment in their Housing Loan proposals. RBI too has included renewable energy under the priority lending category thereby easing the process. Customers planning to install rooftop PV systems for their new homes can approach nationalized banks and avail loans of up to 10 lakhs.
If you already own a home, then you can take a home improvement loan for installing solar rooftop system. A home improvement loan fetches you a tax benefit on the interest component, that is, you can avail a deduction of up to Rs. 30,000 per annum (under section 24) for the interest that you pay on these loans.