Jan 14, 2015

Loans on Rooftop Solar Power - Solar Financing

It seems that the government is banking on financing of rooftop solar projects to achieve the ambitious target of 40,000 MWp of Grid-Interactive Rooftop Solar PV Plants during the next five years.

The interesting part is that the rooftop solar PV plants will be set up in residential, commercial, industrial, institutional sectors in the country ranging from 1 kWp to 500 kWp capacity. Haryana has already come out with a polciy on all new construction where 3-5% of rated load needs to be powered via renewable. Also, for industry, such rooftop plants have become economically viable as they produce clean electricity from the solar energy at about Rs. 7.0 per kWh without any subsidy. Notably, the subsidy percentage is coming down, and the Government is providing a subsidy of 15% on these plants to the beneficiaries which makes it further attractive and viable. Earlier this subsidy used to be 30% and the benchmark price also used to be higher.

What remains to be seen is the banks perspective and if this can be financed readily on their part. This massive target can be achieved with support from banks to provide loans for
installation of Grid-Interactive Rooftop Solar PV Plants to the loan seekers as a part of home
loan/ home improvement loan. Such loans can be taken at normal home loan / home improvement loans that are offered by banks in normal course.

In compliance, so far, eight Public Sector Banks namely Bank of India, Syndicate Bank,
State Bank of India, Dena Bank, Central Bank of India, Punjab National Bank, Allahabad Bank
and Indian Overseas Bank have shown interest and sent instructions downwards to the respective branches.

Write to us at contact@urjaunlimited.in to know more about this option or visit the contact us page on our website www.urjaunlimited.in and mention financing as an interest area for more options.

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