In India, various loan schemes are available to support the installation and adoption of solar energy systems. These schemes are provided by government initiatives, public and private sector banks, and non-banking financial companies (NBFCs). Here are some notable solar system loan schemes in India:
Government Initiatives
1.Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme:
Objective:
To promote the use of solar energy among farmers.
Components:
- Installation of solar pumps.
- Installation of grid-connected solar power plants.
- Solarization of existing grid-connected agriculture pumps.
Loan and Subsidy:
Provides a mix of central and state government subsidies, along with bank loans to cover the remaining cost.
2.Sustainable Rooftop Implementation for Solar Transfiguration of India (SRISTI):
Objective:
To encourage rooftop solar installations.
Loan and Subsidy:
Offers capital subsidies and loans to residential and institutional sectors for the installation of rooftop solar systems.
Bank Loans
1.State Bank of India (SBI) – Green Energy Loans:
Features
Offers loans for the installation of solar power systems at attractive interest rates.
Eligibility
Available to individuals, businesses, and institutions
Loan Amount
Up to 75-80% of the project cost.
2.Punjab National Bank (PNB) – PNB Solar Loan:
Features
Provides loans for installing solar power systems for residential and commercial purposes.
Eligibility
Individuals, partnership firms, companies, and other entities.
Loan Amount
Typically up to 80% of the project cost.
3.Bank of Baroda – Baroda Solar Installment Scheme:
Features
Provides financing for solar rooftop systems.
Eligibility
Homeowners, commercial entities, and industrial units.
Loan Amount
Covers up to 75-80% of the project cost.
Non-Banking Financial Companies (NBFCs)
1.Tata Cleantech Capital Limited (TCCL):
Features
Specializes in providing finance for renewable energy projects, including solar energy.
Loan Products
Offers project finance, working capital loans, and term loans for solar installations.
2.Loom Solar:
Features
Offers easy EMI (Equated Monthly Installments) options for purchasing solar systems.
Loan Products
Partners with various financial institutions to provide loans to individuals and businesses for solar installations.
Microfinance Institutions and NGOs
Selco India:
Features
Provides microloans for solar energy solutions to underserved communities.
Loan Products
Offers tailored financial products to low-income households and small businesses for solar installations.
Key Points to Consider
- Subsidies: Many schemes offer subsidies from the central and state governments, reducing the overall cost of the solar installation.
- Interest Rates: Interest rates vary based on the lender, loan amount, and tenure. They are often lower for solar loans to promote green energy adoption.
- Repayment Terms: Flexible repayment options are available, including long-term repayment plans.
- Eligibility: Eligibility criteria can vary; it’s essential to check specific requirements for each scheme or lender.
These solar system loan schemes make it easier for individuals, businesses, and institutions in India to adopt solar energy, promoting sustainability and reducing dependence on conventional energy sources.
