Banks That Provide Loans For Rooftop Solar Projects In India

Bank Loans For India Rooftop Solar

Rooftop solar is still in a distressed condition in India. In spite of the government enacting several laws and incentives, rooftop solar failed to gain the required momentum in the country.  While construction of solar farms and ground-mounted PV technologies is the most prevalent in India, other forms like rooftop and floating solar technology are still in a nascent stage.

While India’s high solar radiation and poor grid connectivity (in some parts of India) make solar installations attractive in the country, its green credentials and falling cost are added incentives. What makes rooftop and floating solar particularly lucrative is the fact that they do not require the expensive real estate to be specifically pledged for them (as in the case of ground-mounted solar plants). Rooftop solar can be safely installed at the terraces of homes and other commercial buildings, where the roofs are hardly used while floating solar installation is becoming popular over water and wastewater bodies.

A rooftop system can be self-owned or third-party owned, financed either through 100% equity or a combination of debt and equity. If it is self-owned an individual can claim benefits of net metering or can enter into solar PPA/ leasing with the third party.

Bank Financing for rooftop solar is available in India. All Public Sector Banks are directed to provide loans for grid-connected rooftop solar systems. These loans will be under the category of Home loans/ Home Improvement Loans.

You can also read a detailed note about how should I finance my Rooftop Solar PV System/ Project in India here.

Many public sector banks have come forward to help the government in this regard. Many foreign development banks have also been aiding the funding of solar power projects in India. ADB, KFW, EXIM have already committed billion dollar funds to support the development of Indian solar industry. The World Bank has lent State Bank of India a sum of $625 million to support Grid-Connected Rooftop Solar PV installation on the rooftops of commercial, institutional and industrial buildings in India. SBI expects to fully utilize this corpus over the next couple of years.

Asian Development Bank (ADB) had also approved a multi-million dollar funding for installation of rooftop solar systems in India. Punjab National Bank got $100 million from ADB for solar rooftop projects in India.

Amongst the private sector banks in India, Yes Bank along with European Investment Bank (EIB) has come forward to announce a $400 million renewable energy financing program for India. Yes Bank has also pledged to invest $5 billion for financing solar energy projects in India till 2030.

Also, read India – One Step Closer To Its Rooftop Solar Target!

Readers can also add on to the story with names of other banks by commenting on the article.