Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power Company Limited, has partnered with Bank of Baroda, one of India’s leading public sector banks, to facilitate financing options for residential rooftop solar power systems. The two entities have signed a Memorandum of Understanding (MoU) aimed at providing affordable financing for customers under the Pradhan Mantri Surya Ghar Yojana (PMSGY). This collaboration will leverage the extensive branch network of the Bank of Baroda and the market leadership of Tata Power Renewable Energy, making it easier for customers to source and process loans for solar installations.
The MoU focuses on making rooftop solar systems more accessible to Indian households by providing affordable and hassle-free financing solutions. This partnership is expected to encourage the adoption of solar power across the country, contributing significantly to India’s transition to renewable energy. Under the MoU, applicants can avail loans of up to ₹6 lakh at attractive interest rates starting from 7% p.a. Both fixed and floating interest rate options are available for potential borrowers.
For residential customers installing rooftop solar systems of up to 3 kW capacity under the PM Surya Ghar Yojana, they can secure loans up to ₹2 lakh without requiring income documentation. The scheme only requires a 10% margin contribution and offers a low interest rate of 7% p.a. Customers can also enjoy a flexible repayment period of up to 10 years, making it easier for households to manage the cost of installing solar panels. The loans are collateral-free, further easing the financial burden on consumers.
For larger installations, which range from above 3 kW to up to 10 kW, customers can avail loans of up to ₹6 lakh. These loans will require a 20% margin money contribution, and customers who are existing Bank of Baroda Home Loan customers will enjoy special concessional interest rates, which range from 9.15% to 11% p.a. For non-home Loan customers, interest rates will range from 10.15% to 12% p.a. Similar to the smaller loans, these are also collateral-free, with a maximum repayment period of up to 10 years.
In addition to the financing options, the PM Surya Ghar Yojana provides government subsidies to further reduce the initial cost of solar installations. For rooftop solar systems up to 2 kW, customers can receive subsidies covering up to 60% of the benchmark installation cost. For systems between 2 kW and 3 kW, the subsidy covers 40% of the benchmark cost. For installations above 3 kW, the first 3 kW will receive a fixed subsidy, and any additional capacity will be subsidized according to the scheme’s guidelines. These subsidies, combined with financing options, significantly reduce the upfront cost of solar systems and make it easier for households to embrace sustainable energy.
This collaboration aligns with the government’s vision to expand the country’s renewable energy capacity. India’s renewable energy capacity has already crossed 200 GW, with solar energy accounting for nearly 100 GW of that total. The government’s focus on solar power generation is expected to accelerate further with initiatives like the PMSGY, which aims to increase the adoption of rooftop solar systems across India.
Deepesh Nanda, CEO and Managing Director of Tata Power Renewable Energy highlighted that this partnership is an important step in making clean energy solutions more accessible to every household in India. He stated that by offering affordable and convenient financing options, the collaboration will make it easier for residential customers to adopt rooftop solar technology. He emphasized that the initiative not only helps individuals lower their energy costs but also contributes to India’s renewable energy goals and efforts to combat climate change.
Lalit Tyagi, Executive Director at Bank of Baroda, expressed the bank’s commitment to expanding its role in the renewable energy sector, in line with the government’s vision to increase power generation through sustainable sources. He also acknowledged the significant growth of solar energy in India, driven by strong policy support and rising investor confidence, and reaffirmed the bank’s dedication to strengthening its partnership with Tata Power Renewable Energy.
This strategic collaboration between Tata Power Renewable Energy and Bank of Baroda is expected to play a key role in the widespread adoption of rooftop solar systems in India, making solar power more affordable, accessible, and sustainable for residential consumers across the country.
