Tata Power, Bank of Baroda ink pact for financing rooftop solar projects

Tata Power Renewable Energy Ltd (TPREL) on Thursday said it has partnered with Bank of Baroda to facilitate financing of residential rooftop solar projects under the PM - Surya Ghar Muft Bijli Yojana.

Both the entities have signed a Memorandum of Understanding (MoU), under which applicants can avail loan amounts up to Rs 6 lakh at an interest rate starting at 7 per cent per annum with both fixed and floating rate options, TPREL said in a statement.

The PM - Surya Ghar: Muft Bijli Yojana is the world's largest domestic rooftop solar initiative, transforming India's energy landscape with a bold vision to supply solar power to one crore households by March 2027.

"This strategic collaboration with Bank of Baroda marks a significant step in our mission to make clean energy solutions accessible to every household in India. By offering affordable and convenient financing options, we are enabling residential customers to embrace rooftop solar technology with ease," Deepesh Nanda, CEO & MD, TPREL said.

Under the scheme, customers installing residential rooftop solar systems with capacities of up to 3 kW can avail loans up to Rs 2 lakh with no income documentation required.

"We are strongly committed to expand our engagement in the renewable energy sector, in line with the government's vision to maximise power generation through sustainable sources. We look to further strengthen our partnership with Tata Power Renewable, a key leader in India's renewable energy landscape," Lalit Tyagi, Executive Director, Bank of Baroda said.

The scheme requires only a 10 per cent margin contribution at an interest rate of 7 per cent per annum. The loans are collateral-free and come with a flexible repayment tenure of up to 10 years, making solar installations affordable for households.

For larger installations ranging from above 3 kW and up to 10 kW, customers can avail loans of up to Rs 6 lakh under the regular scheme. These loans require a margin money contribution of 20 per cent.

Bank of Baroda's home loan customers will enjoy special concessional interest rates ranging from 9.15 per cent to 11 per cent per annum. For non-home loan customers, interest rates will range from 10.15 per cent to 12 per cent per annum.