Solar Finance – Banks Providing Solar Loans in India

Today, installing a solar power plant at your premises has become one of the biggest investments of your life. Hence care should be taken to chose not only your supplying and installation partners but also your financial partner. There are a lot of solar financing partners available ranging from leading banks to NBFCs. These institutions will help you pay the EMIs that increase the affordability of the overall investment while you start saving on your monthly electricity bills.

1. Union Bank is one of the leading public sector banks in the country. The bank offers personal, home, education, and vehicle loans. It also allows for the purchase of solar power panels along with the purchase/construction of houses. A loan is provided for the installation of grid-connected rooftop solar for residential purposes only. It is available for up to 10 kW plant to individuals having an existing independent house and not having availed loan with any other bank or financial institution against the same house. Salient features of the loan:

• The minimum entry age of the applicant should be 18 years
• The maximum quantum of the loan per individual is 75% of Project Cost (as per MNRE approved dealer) or Rs.10 lakhs whichever is lower
• 5% of the project cost will be contributed by the borrower under this scheme (margin)
• 40% subsidy of the project cost for installation of Roof Top Solar of 3 kW and 20% subsidy for 3 kW – 10 kW.

2. State Bank of India – Under the Surya Shakti Solar finance scheme, SBI provides finance to SME and business enterprises for the installation of Solar rooftops as well as ground-mounted grid-connected systems up to 1 MW capacity for captive use. The quantum of loan is Rs. 4 crores, maximum with the borrower’s margin of at least 20%. The repayment period is up to 10 years with upfront and processing charges. For more details click here.
3. Karnataka Bank – Karnataka Bank also provides finance for solar projects to Individuals, HUF, farmers, traders, business people, proprietorships, professionals, salaried persons, and institutions The loan amount could be used for the installation of solar lighting systems, solar water heating system, solar lantern, etc. for a maximum of Rs. 10 lakhs. For more details click here.
4. Canara Bank – Canara Bank provides the facility of a solar loan along with a housing loan for the purchase and installation of a rooftop solar PV system on the rooftop of a house as a part of a home loan or without a housing loan.
5. IDBI Bank – IDBI Bank also launched the Surya Shakti Scheme to provide loans for installing rooftop solar power plants. The amount of solar loan is up to 85% of project cost including accessories subject to a maximum of Rs.25 lakh, at around 10.5% p.a. interest rate. The loan tenure is ~7 years.
6. ICICI Lombard – ICICI Lombard has introduced an insurance policy for solar park developers. Its Solar Panel warranty Insurance provides cover against performance degradation of solar modules and other manufacturing defects. For more details click here.

7. Yes Bank was also one of the largest lenders to India’s clean energy space.