Tata Power Renewables, Bank of Baroda Partner to Finance Rooftop Solar Projects

Tata Power Renewable Energy Ltd, or TPREL, today inked an agreement with Bank of Baroda to provide finance options for residential rooftop solar under the PM - Surya Ghar Muft Bijli Yojana. The association will bring solar power into Indian homes, helping India achieve ambitious renewable energy targets for the country.

This is one of the highest rooftop solar initiatives worldwide as by the end of March 2027, the supply of solar power will be provided to one crore households. The dual-product proposition of TPREL- Bank of Baroda will be able to increase the adoption rate of solar power among residential customers through easy and cost-effective financing.

Financing options for residential rooftop solar systems

This scheme will make easier loan applying for installation of roof top residential solar systems up to 3 kW capacity. The maximum amount for a loan availed under this scheme is Rs 2 lakh. Most attractive features about this loan is that no income document will be demanded so this scheme will more easily be achievable for the huge section of the population.

It will be 7% p.a. with a facility of fixed as well as floating rate option. This product is unsubsidized and also gives a margin at a very thin rate of merely 10% non-collateralized. Tenure too is flexible in order to enable repayment over up to 10 years and help save cost on the houses for upfront, so that this solar system money goes into funding more solar systems. At the same time, the energy bills will decline for the families and usage of renewable energy will rise.

Roof Top More Power Installations Loan Details

For customer installations above 3kW and up to 10 kW, a loan up to Rs. 6 lac can be availed with a high margin contribution requirement of 20%. It can be availed of by both Fixed and Floating types of interest options starting as low as 7%pa.

Special concessional interest rates shall be applicable on existing Bank of Baroda customers, who were already availing home loan; this shall fall between 9.15% to 11% per annum. Non-home loan customers are charged interest of 10.15% to 12% per annum

Impact on Renewable Energy in India

This is part of an even greater scheme from the Indian government within the context of generating more power through renewable sources. The plan brings solar adoption closer at all levels of the country, pushing the country further to achieve even higher capacities through renewable energy sources.

The partnership between TPREL and Bank of Baroda has been the first step toward achieving some of these energy goals. This scheme is going to increase the usage of solar systems in residences, reduce dependency on traditional ways of energy usage, and will help in decreasing carbon emissions.

Transitioning India into renewable energy is a must to meet the promises the government has promised for keeping climate commitments and making sure that future generations will have sustainable energy. These financing options, for instance, promote household shifting to solar energy and, as a result, contribute to environmental sustainability and reduces electricity cost.

Key Features of the Scheme:

Loan Amount: up to Rs 2 lakh for systems below 3 kW and up to Rs 6 lakh for systems between 3 kW to 10 kW.
Interest Rate: starting 7% per annum.
Margin Contribution: 10% for systems up to 3 kW and 20% for bigger systems.
Repayment Tenure: available with flexible tenor of up to 10 years.
No Collateral: Loans collateral-free.
Eligibility: There is no need for proof of income in case of loans less than Rs 2 lakh, if the systems are small

Conclusion

The Tata Power Renewable Energy Ltd-Bank of Baroda venture itself is a big step towards rooftops becoming a feasible option that families would more than likely consider looking at to generate their own power. An easy loan coupled with flexible conditions will make more and more homeowners take advantage of the sun as their new friend, bringing India closer to its renewable energy goals and saving families on the cost of power.

The adoption rate of solar power in India increases such that surely by 2027, this would meet the target wherein clean, renewable energy will be provided to one crore households. TPREL and Bank of Baroda would implement it not on cost-effectiveness but more as a possibility of accessing the facilities.

Source: Tata Power Renewable Energy Ltd.