Tata Power Solar Systems and Indian Bank Collaborate for Residential Solar Rooftops Financing

On April 23, 2024, Tata Power Company Limited informed in an exchange filing that the company’s subsidiary, Tata Power Solar Systems Limited, which is a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL), has partnered with Indian Bank.

Details of the Partnership 

A leading solar company in India, Tata Power Solar Systems Limited (TPSSL), announced its strategic partnership with Indian Bank, a leading public sector bank in India, to strengthen the adoption of solar rooftops among residential consumers. The collaboration seeks to facilitate financing solutions under the popular Pradhan Mantri Surya Ghar Muft Bijli Yojana scheme for installations up to 3 KW, as well as extend support for installations ranging from 3 to 10 KW under the regular scheme.

Under the PM Surya Ghar Muft Bijli Yojana initiative, residential consumers can avail of loans up to ₹2 lakh at an annual interest rate of 7%, in compliance with government regulations. With a nominal margin money requirement of 10% and collateral-free financing, homeowners can embark on their solar journey with ease. Furthermore, the repayment tenure extends up to 10 years, offering flexibility and convenience.

For installations surpassing 3 KW up to 10 KW, Tata Power Solar Systems and Indian Bank provide a customised financing solution that accommodates the various requirements of homeowners. Applicants who are eligible for this initiative can access loans up to ₹6 lakh, with a margin money requirement of 20%. Interest rates ranging from 8.4% to 10.8% per annum ensure competitive financing options.

Commenting on the collaboration, the CEO and Managing Director of Tata Power Renewable Energy Limited, Mr Deepesh Nanda, said, “At Tata Power Renewable Energy Limited, we are resolutely committed to propelling a sustainable future through the promotion of renewable energy solutions. This collaboration marks a significant step forward, offering tailored financing solutions to empower homeowners while seamlessly aligning with government initiatives like the PM Surya Ghar: Muft Bijli Yojana, aimed at promoting rooftop solar adoption. Together, we are poised to harness our collective expertise and resources to illuminate households and catalyse energy transition nationwide.”

The Chief General Manager, Retail Assets & MSME of Indian Bank, Shri Vikas Kumar, stated, “We are honoured to announce this initiative towards advancing the goals of PM Surya Ghar Muft Bijli Yojana. This partnership demonstrates our commitment to promoting awareness, growth, and social upliftment. By offering financial assistance and expertise, we aim to make a significant contribution to India’s energy objectives and ensure the success of this laudable initiative.”

The company stated that in-line with the Government’s commitment to champion Residential Solar, this collaboration between TPSSL and Indian Bank seamlessly integrates with the core objectives of the PM-Surya Ghar Muft Bijli Yojana initiative. By prioritising enhanced accessibility and affordability for a broader spectrum of stakeholders, this initiative is set to make a deep mark on the overall adoption of solar solutions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.