Tata Power Renewable Energy Ltd (TPREL), an arm of Tata Power, has joined hands with Bank of Baroda, one of India’s leading public sector banks, for financing of residential rooftop solar installations under the Pradhan Mantri Surya Ghar Yojana (PMSGY). The two partners have signed a Memorandum of Understanding (MoU) to facilitate affordable, hassle-free financing options for TPREL’s residential rooftop solar customers.
“The collaboration will leverage on the wide branch network and financing capabilities of Bank of Baroda and the market leadership and dealer network of Tata Power Renewable Energy, enabling seamless sourcing and loan processing for customers. This strategic partnership is set to boost the adoption of rooftop solar systems across the country by providing affordable and accessible financing, thereby supporting India’s transition to renewable energy,” stated Tata Power Renewable Energy.
Under the MoU, applicants can avail loan amounts up to INR 6 lakh at an interest rate starting at 7% p.a., with both fixed and floating rate of interest options available.
Under the PM Surya Ghar Yojana, customers installing residential rooftop solar systems with capacities of up to 3 kW can avail loans up to INR 2 lakh with no income documentation required. The scheme requires only a 10% margin contribution and offers an attractive interest rate of 7% p.a. 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 INR 6 lakh under the regular scheme. These loans require a margin money contribution of 20%. Bank of Baroda’s Home Loan customers will enjoy special concessional interest rates ranging from 9.15% to 11% p.a. For non-Home Loan customers, interest rates will range from 10.15% to 12% p.a. The loans are collateral-free with a maximum repayment tenure of up to 10 years.
Under the Pradhan Mantri Surya Ghar Yojana, residential consumers installing rooftop solar systems are eligible for government subsidies, significantly reducing the upfront cost of installation. For solar systems up to 2 kW, customers can avail a subsidy covering up to 60% of the benchmark cost, while for systems between 2 kW and 3 kW, the subsidy covers 40% of the benchmark cost. Installations above 3 kW receive a fixed subsidy for the first 3 kW, with additional capacity receiving support as per scheme guidelines. These subsidies, combined with affordable financing options, make rooftop solar more accessible, helping households lower electricity bills while contributing to India’s clean energy transition.
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