Mumbai, 6 February 2025

 

Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company Limited has signed a Memorandum of Understanding (MoU) with Bank of Baroda to provide affordable financing options for residential rooftop solar installations under the Pradhan Mantri Surya Ghar Yojana (PMSGY). This strategic partnership aims to accelerate the adoption of rooftop solar systems across India by offering accessible and hassle-free financing solutions to households, thereby supporting the country’s transition to renewable energy. Through this MoU, Tata Power Renewable Energy Limited and Bank of Baroda aim to make rooftop solar installations easier, affordable, and widely adopted, thereby supporting India's clean energy transition and sustainability goals.

Tata Power Renewable Energy and Bank of Baroda have come together to provide Indian households with affordable and hassle-free financing options to adopt sustainable energy solutions, contributing to a cleaner and greener future. Under this collaboration, applicants can avail of loan amounts up to ₹6 lakh, with attractive interest rates starting at 7% per annum, and both fixed and floating rate options available.

Speaking about the partnership, Shri Lalit Tyagi, Executive Director, Bank of Baroda, highlighted the importance of the initiative, saying, "India's renewable energy capacity has crossed 200 GW, with solar energy accounting for almost 100 GW. This significant growth is driven by robust policy support, enhanced competitiveness, and rising investor confidence." Shri Deepesh Nanda, CEO & Managing Director, Tata Power Renewable Energy Limited, stated, "This strategic collaboration with Bank of Baroda marks a significant step forward 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. This initiative not only empowers individuals to reduce their energy costs but also contributes meaningfully to the nation's renewable energy goals and efforts to combat climate change.” 

As part of the PM Surya Ghar Yojana, customers installing residential rooftop solar systems with capacities of up to 3 kW can access loans up to ₹2 lakh without requiring income documentation. The scheme demands only a 10% margin contribution and offers an interest rate of 7% per annum. These loans are collateral-free and come with a flexible repayment tenure of up to 10 years, making solar installations affordable for households. For larger systems ranging from above 3 kW and up to 10 kW, customers can avail loans of up to ₹6 lakh under the regular scheme, with a 20% margin contribution required. Bank of Baroda’s Home Loan customers will enjoy concessional interest rates ranging from 9.15% to 11% per annum, while non-Home Loan customers can expect interest rates ranging from 10.15% to 12% per annum. These loans are also 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 lowering the upfront cost of installation. For solar systems up to 2 kW, customers can avail of 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 support provided for excess capacity as per the scheme guidelines. These subsidies, combined with affordable financing options, make rooftop solar more accessible to Indian households, enabling them to lower their electricity bills while contributing to India’s clean energy transition. This initiative offers an attractive and practical way to promote sustainable energy solutions, making solar power a viable option for more consumers.

 

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PIB Mumbai | EC/ DR

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